Best Practices - January 2010

By Sonya Jennings

Atlanta West Carpets is a financially solid company with the adaptability to react to changes in the market due to an economic downturn. The company has distinguished itself in the competitive Atlanta market by growing strong relationships with local builders and contractors while also strengthening its push into the retail market. According to senior vice president Blake Lewis, “Even though it may be difficult to enter a new area, when the time and conditions are right, we will take that risk. Being diversified helps create long-term security.”

When Atlanta West Carpets was founded in 1973 by Glenn Wyatt Sr. and his wife, the company had a few builder and multi-family clients. In the 70s and 80s, it became the flooring vendor of choice for a large apartment builder in the Atlanta area. As the builder grew, so did Atlanta West Carpets. The company also worked with several other local builders.

In the late 90s, Atlanta West built a large showroom and design center in Lithia Springs, a suburb of Atlanta. The builder and multi-family end of the business grew quickly until 2006. Then, as the company watched the builder market slow, Atlanta West decided to make a new retail push. The company invested in a new two-sided electronic billboard, visible from a major interstate in Atlanta, to attract more retail clients. In addition, a direct mail campaign was launched to homes within a 15 to 25 mile radius of the store’s main location, and an ad was placed in a local monthly publication. Atlanta West Carpets also entered the cabinet building business, and this segment now represents 18% of the company’s sales.

Because Atlanta West Carpets carries very little debt—a founding principle of the company—it is able to spring into new areas when the market begins to change. When economic times were good, many other companies took on massive amounts of debt that could not be sustained when the economic downturn occurred. Some of those companies are not in business today.

Because Atlanta West Carpets stuck to the debt-free principle even when it could have borrowed money and grown even more rapidly, it has a solid footing. Today the builder market represents 45% of the company’s business, 25% is contract work and 18% is from the company’s new cabinet division. Retail represents 10% and the rest is supply/wholesale business. From a business that was almost exclusively builder and multi-family, the company has evolved into one that is aggressively branching into retail, cabinets and other areas.

“Today in this economic climate, the right price is a given,” Lewis says. “Service separates you from your competitor.” Atlanta West Carpets always makes its client builder look good to the end user. There’s never any talking down about the builder when working with a home buyer. By being a problem solver for builders and customers, the company gains the loyalty of clients, which sets it up for a long-term business relationship. By outperforming other companies on installation and handling problems with efficiency, Atlanta West Carpets fosters a relationship that clients know they can depend on. Lewis adds, “This job today sets up the opportunity for the next job. We don’t forget that.”

Atlanta West Carpets has also learned to take its operation on the road and travel to where its main clients are building, but there was a learning curve with this practice. With each job, the company figured out how to travel more efficiently and get the job done. Projects have taken company crews to Colorado, Tennessee, Florida, Alabama and more.

“No job on the road is ever the same,” Lewis says. “We learned a lot about being flexible on our first jobs that were out-of-town high-rise buildings.”

The willingness and ability to adapt to new circumstances allows the company to complete the out of town projects successfully. Taking on these types of projects solidifies the relationship with the client as well.

Eleven years ago, Atlanta West Carpets joined the FloorExpo buying group, which focuses on the builder market. According to Lewis, “For us, the biggest benefit of the group is the ability to have dialogue with other companies like us that are outside of our market.” Brainstorming and sharing ideas with companies in the same boat keeps the management team from feeling alone. Often, a problem that the company is experiencing has been dealt with by another FloorExpo company, and solutions can be shared.

Atlanta West Carpets has three locations, including a 115,000 square foot design center and retail showroom in Lithia Springs, a design center in suburban Sandy Springs, and a branch in Birmingham, Alabama that focuses on builder and contract business. The company offers carpet, laminate, hardwood, stone, tile, rubber floors, carpet tile, cabinets, countertops and lighting for new residential construction. Atlanta West Carpets handles all price points, from discount to upper end products.

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