Best Practices - August/September 2008

By Sonya Jennings

>Located in a suburb of Milwaukee, Wisconsin, Malkin’s Carpets is an independent flooring retailer that offers carpet, hardwood, laminate, ceramic tile, area rugs, and vinyl floorcovering. By selling fashion and style, the majority of the company’s business comes from the mid to upper price points, but the store offers products on the lower end as well.

Malkin’s Carpets not only serves retail clients, which represent 40% of its business, but also the builder, commercial and apartment-rehabilitation segments of the market. This mix helps to protect Malkin’s Carpets from downturns in the economy, although even this strategy isn’t keeping the store from feeling the sting of the current economic climate. The difference is that while many stores are cutting back on expenses, Malkin’s Carpets is able to increase its advertising budget to gain overall marketshare. Most of the store’s advertising budget is focused on direct mail and circulars inserted into local newspapers.

According to Marty Schallock, owner of Malkin’s Carpets, several factors have contributed to the success of the store. First and foremost is the focus on customer service. About ten years ago, Schallock read the book, Raving Fans: A Revolutionary Approach to Customer Service. He then aligned the store’s identity with the principles described in the book. Members of his staff have read the book, and they are fully informed on how to carry out its core message. One of the guiding philosophies is, “We don’t want to be right…We want to make it right.” This statement underscores the idea that one unhappy customer will tell several people about her bad experience, so the staff wants every person who buys from the store to be a “raving fan.” The store employs four people just to focus on customer service.

In reality, this principle has cost the store money from time to time. Schallock describes an incident where a homeowner ordered one style in one color for her entire home. When the carpet was delivered, she called to say that the color was only supposed to be installed in the master bedroom, and the rest of the house was supposed to be carpeted in a different color of that style. Without batting an eye, Schallock ordered the color she wanted for the rest of her home and did not charge her a penny. He states, “I had the order form right in front of me with her signature on it, but being right in this situation was not my priority. I wanted to make her happy.” And it worked. He adds, “We don’t just want a satisfied customer, we want a raving fan.”

One example of Malkin’s’ customer service is the store sets an exact time for installation rather than the typical “we will be there between 9 and 12.” Also, Malkin’s installers know that when they leave a job, the home should look like they have never been there except for the new flooring. Schallock adds, “If a homeowner wants us to do the dishes in the sink, we will do the dishes in the sink.” The store has its own installers in addition to subcontractors who have worked with the store for years. There is a consistent standard for what is expected, and this is communicated through regular installation meetings that include both staff installers and subcontractors. Everyone who installs carpet for Malkin’s Carpets adheres to the same high standard. Schallock believes that “communication, communication, communication” is the key to having a strong installation team.

To gauge customer satisfaction, a customer service representative calls clients for feedback after installation is complete. Questions are asked about the entire process including sales, installation, and clean-up. This information, the good and the bad, is shared with everyone involved in the process.

Another facet of Schallock’s customer service philosophy is hiring good people. He has employees who have been with him for 25 years. He hires top-notch people who work hard. When asked how he keeps good employees, he replies, “Treat your employees like part of the family and compensate accordingly. You get what you pay for.” He also empowers his people to do what they need to do to take care of their customers and make them happy.

Schallock believes that selecting a prime location and giving back to the community have also kept the business strong. Three years ago the company built a 15,000 square foot facility in a very visible location along a local freeway. The increased visibility has brought in more people. In addition, Schallock operates under the belief that “giving is the secret to a happy life and business.” He gives back to the community through many channels including a program called “Community Warehouse.” This is a nonprofit organization that takes remnants and other donations, allowing lower income families to shop at a very low price.

Malkin’s Carpets is a Mohawk Floorscapes dealer. The store became aligned with Mohawk on Labor Day weekend of 2000. This relationship has worked out very well for the business. Schallock also serves on the Floorscapes Advisory Council to help other dealers grow their businesses.

All Mohawk dealers must offer Smartstrand carpet made with DuPont Sorona. This new corn-based product is a plus for the business because it attracts today’s educated consumer. According to Schallock, “We are selling a lot of this type due to its inherent softness, stain resistance, durability,” and its environmental story. “It is being well received, not only by our sales staff, but also by the consumer.”

An intense dedication to customer service, a new visible location, giving back to the community he serves, and aligning with Mohawk have all helped Schallock build Malkin’s Carpets into a retailing success story.