When the Storm Clouds Clear… Will You Be Ready to Shine?
by Annette Callari
August 12, 2008
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| People get ready. When
business picks up and traffic in your showroom improves, will you be ready to
woo shoppers with fabulous flooring and expert advice? At a recent meeting of
Shaw Design Center retailers earlier this year, Kathy Young, a creative
director for Shaw (pictured above), gave retailers a tour of a new SDC showroom
format that includes updated signage and displays. The new display was set up
in a meeting room. |
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It’s often said that a
‘recession’ is when your neighbor loses his job and a ‘depression’ is when you
lose yours. I hope that makes you smile just a bit because this column is
devoted to the brighter side of the drab economy we’ve been muddling through.
As the media bombards us with every negative spin imaginable, it’s time someone
offered a glimmer of hope—or at least puts things in perspective. For the many of you who are floor covering
veterans, these cyclical downturns are nothing new. You have seen long lines
and soaring prices at the gas pump. You likely know the sick feeling of seeing
a neighbor’s home go into foreclosure. I am not trying to depress you. Just the opposite—I want to remind you that
we have been here before. As with any dip in the road, you will navigate this
one. And the best of the best will come out of it even better positioned than
ever.
Your
biggest asset is your mindset. Your responsibility right now is to stay
positive and stay focused: Look for ways to increase business. Think up ways to
capture more customers. Be creative and stay active—or “proactive” if you
prefer—in every area while you ride this out. If you sit around and wait for
customers to walk through your front door, you will probably create your own
personal depression.
A recent
comment from Douglas Duncan, chief economist of the Mortgage Bankers
Association, reminds us that, with our
24/7 news cycle, things can get blown out of proportion. According to the
Washington Post he warned that we should not “be misled by predictions of
imminent crashes.” Why? “Because the reports of doom ignore the positives in
the current marketplace.” Even the Federal Reserve’s vice chairman, Donald
Kohn, spoke out: “The rhetoric is just way overwrought.” He called the housing
slowdown a “correction” that will take us back toward more “normal conditions.”
Low interest rates, a fairly stable stock market, and moderate unemployment numbers
make this a softer downturn—pardon me—correction than many of those past.
Take, for
example, the new home market. While at the International Builders’ Show in
Orlando, Fla. earlier this Spring I heard one expert after another assure us
that even through the current slump, there has been a sizeable consumer base
still looking to buy new homes or redecorate the ones they have. This is
especially relevant to the floor covering industry. As the downturn improves
you will see this activity pick up, like fragile Spring flowers pushing their
way up through frozen ground. But nonetheless, it is a first step.
In my
role as sales and marketing specialist for Leonard’s Services & Design
Centers in Anaheim, Calif., I work closely with builders in the area and often interact
with sales agents showing model homes. Both sides report that would-be buyers
are finally emerging from their hibernation. In the Spring months of 2008 the
traffic through the model homes was more promising than anything seen over the
preceding twelve months. This means consumers are warily dipping their toes in
the water. On the remodeling side, there is also good news. People fed up with
the constant drumbeat of bad news want to feel good about their personal
space—their cocoon. That means room makeovers and possibly room additions. It
often means upgrading flooring throughout the home (rather than upgrading to a
brand new home). All of these changes can interpret into new floor covering
sales.
The
interior design aspect is often overlooked. You ask: Aren’t these times of
economic constraint? You wonder: How can people looking at $4 for a gallon of
gas also re-do their den? Let me explain. Design can and does affect the
psyche. When our dollars are not stretching as far as they once did, we stay closer
to home. When we need a lift mentally, we (women especially) gravitate towards
updating the home—and adding new color! And that is good news for you. Maybe
you won’t be selling mega rolls of that $85 per yard wool carpet. But you will
be selling carpet, or wood, or tile. And this is the time to really push color.
Every room is a blank canvas that becomes the backdrop for the family’s lives.
Design is a “layering” process, and usually the first artistic layer to that
blank canvas is flooring!
So think
of yourself as an artist. Now that you have more time to spend with each
customer, your goal should be to move the conversation from products to the
process of creating a beautiful home that reflects her tastes and lifestyle.
Talk to your customers and help them personalize their home. Ask questions so
you can interpret specific needs. Focus less on price than on style and color.
Once you fully grasp the power of design—and the emotions it can yield—you will
elevate your sales process to a whole new level.
Earlier
this year, when Better Homes and Gardens surveyed more than
2,000 homeowners who bought their homes within the last decade, they confirmed
the growing popularity of eco-friendly building and interior design. (This will
come as no surprise to regular readers of this column.) You have been reading
about sustainable design products from me for quite a while. If you still
haven’t studied the “green story” of every product on your floor, you are a
little behind in your homework. Why not sit down with each vendor and ask about
the ecology-smart story behind their products? Remember the earlier reference
to elevating your sales process? Well if you successfully incorporate eco-savvy
features into your sales story, you just moved up another notch.
The editor
of Better Homes, Gayle Butler, may have said it best: “What
we’ve discovered is that home continues to be our emotional center and the
sweet spot of everyday life. Economic uncertainty aside, we won’t stop
spending, improving or dreaming when it comes to home.”
So, as consumers start to emerge, and floor covering’s bumpy
road begins to smooth out, I leave you with the Boy Scouts’ motto: “Be
prepared.” Consumers who have been hibernating will appear in your store. You
may have only one chance to show what you know (and what you have learned
during your sluggish period). You can be the ‘technical artist’, and help your
customer achieve the home of her dreams (and do it in an environmentally
responsible way). Meanwhile, the guy
down the street (who probably doesn’t read NFT) will still
be sweating it out, slashing prices, cutting deals and avoiding creditors. And
that says it all.
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