Surfaces Panel Outlines Road to Retail Prosperity

Las Vegas, NV, Feb. 4, 2010--Floorcovering dealers face a host of new challenges if they want to prosper in an improving 2010 economy. That was the message delivered by a keynote panel of industry experts at Surfaces 2010 in Las Vegas, according to a story in Builder magazine.

The industry faces heightened competition from big box retailers, a lack of bank financing, and cash flow challenges. The panelists made it clear, however, that dealers who can successfully navigate these challenges stand to gain from improving conditions in the overall economy, the resale housing market, and home building. 

Steve Silverman, president of Abbey Carpet Co., said that future prosperity will be determined by whether dealers use technology effectively, since more than 80% of customers first visit dealers through the Internet. Other panelists said that nothing replaces face-to-face selling in a tough environment.

"We've seen dramatic growth where our members have done this," said Scott Perron, president of Kansas City-based Big Bob's Flooring Outlet. 

Much of the discussion involved competing with big box retailers. Vinnie Virga, president of Flooring America at CCA Global Partners, said most dealers can compete with The Home Depot on total installed price, including moving furniture and installing underlayment. But others may find it more effective to compete on service and warranty. "Your salespeople are five or six times more capable," he said.

Perron downplayed the use of Internet advertising although other panelists argued that a dealer's website is more important now than ever and how it is found through Google makes all the difference.