It's What He Costs You that Counts

While the flooring business has certainly been more robust the past few years, it still seems that no flooring business seems to be flush with money today. Competition is fierce, and margins are squeezed. As with every budget in the business world, the need to watch expenses is very real. I get it! It’s just that there are some areas of your business which may be poor places to attempt to save money. In fact, in order to actually grow your clientele, you may want to consider just the opposite.

- Tom Jennings

What I don’t get is why so many flooring retailers that I encounter seem to think that installation can often be identified as an area of cost containment or reduction. Not only is service the only element of a sale that really differentiates us from our competition, it is most often where both profitability and customer are either maximized, or jeopardized. Too many retailers maintain that it is product that differentiates them from the competition in the customer’s eyes. I could not disagree more.

To illustrate, allow me to make a comparison to the restaurant business. Every morning a food supplier makes the round to the various restaurants in a trade area. Whether it’s a carton of eggs or a sack of flour, essentially the same ingredients are available to all establishments.