California Retailer an ‘Extended Family’ Business

Modesto, CA, March 24, 2004--The office tucked inside Johnson Rug Co., looks as though it could be a room in Dennis and Sue Pankow's home, according to the Modesto Bee. Mounted fish and antelope heads are displayed on the wall from Dennis Pankow's hunting trips. Two plump house cats--Sugar and Spice--are sprawled lazily on the counter, eyeing each customer. In many ways, the store on McHenry Avenue has become like a second home to the Pankows. Both of their daughters, Kim and Denise, worked full time at the store alongside their parents for several years. They since have left to pursue their own interests, but still help out occasionally. Most of the other five employees have worked at the store for 15 years or more, creating an "extended family" within the business. "If our girls don't want the business someday, hopefully we will be able to pass it on to one of our installers," Sue Pankow said. "It would be like passing it on to family." Dennis Pankow was an employee and installer before he took over the floor-covering business, which sells and installs carpet, vinyl, tile, finished hardwood and laminate. Johnson Rug Co., was established in 1948 by Ernest Johnson. Dennis Pankow, 65, began installing floor coverings in 1959 and bought half of Johnson Rug in 1980 from the store's second owner, Ray Darrah. Sue Pankow, 63, bought the other half of the business 10 years later. She works in the office while her husband does a little bit of everything else, including sales and installation. Working together as a family has been a rewarding experience, Dennis Pankow said. Their daughters brought different perspectives to running the business, he said. "They always came up with fresh ideas." There also is a peace of mind that comes with working with family, Sue Pankow said. "We liked knowing that if we want to go somewhere, it was OK because a family member was in charge," she said. Owning a family business can be stressful at times, they said. "When you work for someone else, you are done at the end of the day and you go home," Dennis Pankow said. "When you own a business, you go home and worry because a lot of other people are depending on you. You live the business 24 hours a day, seven days a week." Over the years, the growth in competition has become the biggest challenge facing the business, he said. "There used to be only five places in town that installed floor coverings when we started, and now there are about 40," he said. The Pankows say they have managed to stay in business because of the expertise and experience provided by their longtime employees. Many of their new customers arrive at the store through word-of-mouth, Sue Pankow said. Others are repeat customers who have been coming in for decades, she said. "People know we are trustworthy because we are local and family-owned," she said. "If there is a problem, we will fix it ourselves. We won't tell you to call a customer service number." There are other draws that keep customers coming back. Some people stop by the store just to bring treats for the cats, Sue Pankow said. Others like to carry the cats around the store while shopping for floor coverings. Husbands who are dragged to the store by their wives to look at carpet samples often find themselves inside the office, trading hunting tips with Dennis Pankow. In fact, a sign hung on the wall of the office jokingly declares: "Any husband ordering floor covering must have wife's written permission." In the end, the business really is about people, Sue Pankow said. "We sell people a quality product, and we get to know the customer," she said. "The customer knows they are a person, not a number."

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