Contractor’s Corner: Picking the right mill partners – June 2024

By Dave Stafford

A large part of your success as a commercial dealer depends on your mill partner selections-perhaps more so than any other factor. When it is a good fit, both will prosper; when it’s not, both will suffer. How do their philosophy and product lineup mesh with your sales goals and ideals? How willing are you and their mill rep, credit manager and claims section to work together in solving the inevitable problems? Having lived through various challenges, albeit with some white hair and calluses, what follows are some of my experiences as a commercial and residential dealer and contractor.

ESTABLISHING A GOOD FIT
Are you and the mill a good fit for each other? It is not about which mill will extend the largest credit line to you, or other perks, but more about the depth of their overall product line and how it will fit with your client base. How many other dealers do they have, and how do they manage their geographic territory in terms of pricing? Their mill rep’s competence, experience and integrity are paramount. Those mill reps are your direct link to the company hierarchy, and their clout at the highest levels is critical to you. Do you get along well and feel comfortable having candid conversations?

At the beginning of my career as a commercial flooring manager, I had hopes of establishing a GSA (government) contract for the company. To do that, I needed the right type of mill partner. Fortunately for me, I met with Curtis, a solid mill rep with a second-tier mill who shared my optimism about how we might work together. After almost two years of pursuit, and in sight of a long-term contract, the government denied our bid protest on nebulous grounds. We were ready to give up, but the mill’s president stepped in to provide us with funds to hire an attorney whose expertise with Federal Acquisition Regulations (FAR) was legendary. He was able to persuade the Government Accountability Office that its ruling was “incorrect as to the timeliness of our protest.” Shortly thereafter, we were awarded a GSA contract that featured their products and continued for 20 years (with renewals). Thus began a successful relationship with that mill, producing millions of dollars in sales for government and related commercial projects.

This same mill rep helped us negotiate a commercial project for 40,000 yards of carpet that stretched out over two-plus years, made possible only through a special credit line with 90+ day terms. Curtis was our “go-to” guy when there was a problem. If there was a cash crunch and collections were difficult, this mill was paid on time. We were recognized as their number one volume dealer for some years and in the top five for others. They were the standard by which we measured other potential partners.

WORKING TOGETHER
Every mill has those days when personnel and mill machinery fail to do their job in producing perfect product. Some call them seconds, irregulars, off-goods, but the most accurate term is a product with mill defects. Some of these products will be sold at below-cost prices to those specializing in such items, but unfortunately, others will pass through mill inspection and make their way to dealers as first-quality products. These anomalies may be uncovered when inspected by the dealer, by the installer on the jobsite or after installation is completed. How claims are handled illustrates the mill’s commitment to you.

In one personal instance, piece-dyed solid color cut-pile carpet with a shade off was not identified by us until we attempted to install it. The installer commented, “There is no way to make a side-match look acceptable following the sequencing suggested by the mill.” The mill rep agreed and provided a generous credit. However, the client inspected what was already installed and said, “Just give me a discount. Hell, this area is going to be covered by desks and file cabinets anyway.” Likewise, when a pulled-down row in the tufting process left a prominent visible line down the length of the loop-pile carpet, a credit solved the problem.

We were not as fortunate with the carpet that bled. There was no visible defect, but after we’d installed several thousand yards of carpet in corridors, our client called and said, “After last week’s rainy weather, I swear, it looks like the carpet is bleeding, and it is tracking everywhere, even into condo owner units.” The mill was slow to respond. We brought in a third-party inspector, and the verdict was that one strand of the yarn bundle, red, was not color-fast and released dye when wet. The written report stated this was “a mill defect and not correctible in the field.” But to avoid replacement, the mill first suggested “sealing the carpet.” They then began dragging their feet, and we had to threaten legal action to resolve the costly issue. Meanwhile, I was getting increasingly heated phone calls from our client. That mill had hung us out to dry. Although the issue was ultimately resolved, that mill lost a dealer, and we lost a client.

In another instance, the installer commented, “The only way this carpet tile will lay flat is to use nails.” However, this first-rate mill came in with a team within days of notification to fix the issues and provided an allowance to pass along to the client. The client said, “That’s why we do business with you; you get things handled.”

Similarly, at a prominent university, our project for rubber flooring wouldn’t stick to the floor. However, the mill rep responded promptly, diagnosed the problem and shipped new tile and adhesive, all within ten days. Part of the problem was “old adhesive” (their fault) and part was scouring the concrete instead of shot-blasting (our fault). The mill ate the cost of replacement products, and we swallowed the cost of labor. It was a learning experience for us, but we were ecstatic over the support from this mill.

Another time, the beautiful, patterned carpet we installed was a hit with the client until his personnel began regular vacuuming. “We are filling up vacuum bags with fibers from our new carpet, and now we’re seeing some areas where tufts are missing,” he reported. Upon inspection, it became obvious that tuft-bind adhesion was very poor. When presented with the evidence, the mill checked samples from the production run and concurred. They grudgingly agreed to do a total replacement and reimbursed us for the labor involved. But in the interim, our client had not yet processed our invoice, and we withheld payment from the mill. The delays from this defect were costly to all.

I recall another instance when it appeared we had a real opportunity to do business with our home state through its annual bid for flooring. We contacted the mill, met with their rep and were told, “Sure, we’d like for you to bid, and you will get preferred pricing.” It was a complicated bid, complete with bid bonds and performance guarantees, and required several days of research to ascertain labor costs. The pricing for products was to be given the day before the bid was due, by 5:00 pm. After repeated phone calls-and working most of the night on the bid-I was told, “We’re sorry, we won’t be able to give you pricing after all. There’s just too much competition.” You can only imagine my frustration and reaction. Over the next decade, we never again used that mill’s products.

NURTURING THE RELATIONSHIP
Becoming a partner with your mill takes time and commitment on both sides. Maximize your strengths and minimize mill weaknesses by being candid with your mill rep. Become valuable to them by specifying their products, letting them know the particulars of a potential project or being honest when you did not specify the job. They will likely know anyway.

Here are several varied scenarios of ways to build a relationship:
“Curtis, I just made a presentation to the Eagle group for their new office using your Series 14 products. Looks like it will be about 1,400 yards of carpet tile and 5,000 square feet of LVT. We’re still working on colors, but shades of blue and ivory would be my guess. They have money for the project, and the remodel should take place this fall. Orders are likely to be placed in June or July. How about getting back to me with your best project pricing, okay?”

“Phil, we just heard about the Rapido Company’s potential project that features your products. What do you know about this project? Did you specify through the architect, or is a competitor of mine working with you? We would like to bid this one. [Pause.] Or should we spend our resources elsewhere?”

“Hey, Dave, this is Curtis, and I have a favor to ask: Another bid is needed on the Lucinder project featuring our products. Can you help out by supplying a bid?”

You cannot please everyone and always accommodate the wishes of your mill partners. Likewise, you cannot always have the low price or work together to get a project. A mill usually has other key dealers in your area and may be reluctant to include you on their “short list” of recommended dealers without some incentives and experience with you. Being proactive in your partnership helps cement your value to the mill rep. “Jeff, our senior project manager was just tipped off that there is a major project being planned for Jefferson Group HQ. The architect is going to be using Simpatico Designs for the interiors. Do you have an ‘in’ with them? I will see what else I can find out. Perhaps we can work together?”

Likewise, being a trusted resource in an emergency helps strengthen your relationship. “Dave, are you able to come up with a crew to do a quick-turn installation of our flooring? The flooring contractor was unable to provide the required performance bond after all, and this job needs to be done now.” Or, “Their ‘low-bid contractor’ walked off the job, leaving the project in shambles. Can you step in and do the job?”

Once you begin to establish your reputation with the mill rep and the company for prompt payment, then good things will happen for you. “Dave, we are working with KiddTech’s main office to do their new building. Because of the size, they will only buy direct from a mill. This would be a direct sale of 38,000 yards of carpet tile. We need an experienced company that can offer receiving, warehousing, delivery to site, accessory items and installation over a period of eight months. Are you interested? You’ll be our recommended dealer, although there will be other bids.” In this particular instance, we did the job and made more money by not supplying the products or blowing up our credit line.

Copyright 2024 Floor Focus

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