CELEBRATING ITS 10TH ANNIVERSARY, MOHAWK FLOORSCAPES^®

HAS BUILT A FOUNDATION FOR DEALER PROFITABILITY 

Value of Dealer Network/Manufacturer Partnership Shows in Products, Programs--and Most Importantly--Profitability

ORLANDO—Manny Llerena, Mohawk Vice President of Retail Marketing, does not pull punches.

So he gets retailers’ attention when he tells them that they’re not making as much money as they could.  Especially when he’s holding the research that proves it.

“There  is a 10 point difference in gross margins between the top 20% of stores and the average flooring retailer,” he said.  “For some of these stores to survive, this has to change.”

And that is Llerena’s mission at the 2008 Mohawk Floorscapes Convention:  Show stores the opportunities they have not just for sales, but for true profitability.

“The difference in an extra 10 points of margin isn’t magic,” he said.  “It’s good ideas, practical application, and intense focus.  That’s what Floorscapes is all about.  Now, more than ever, Floorscapes is not just a selling system, but a way of helping dealers succeed.”

Llerena and the Floorscapes retail partners have spent more than two years benchmarking best financial business practices for retailers.  This endeavor evaluates margins, staff costs, and other key business metrics.   The process provides valuable information that will help all Floorscapes retailers improve. 

The results of this partnership have been “amazing,” said Llerena.

“At this convention, we’ll be able to show many dealers areas where they can make little changes and see big returns,” he said.  “These are true solutions to flooring retailer business problems,” he said.

He also emphasized that the ideas that Mohawk rolls out at this convention are not quick fixes, but have lasting value.

“You cannot simply cut or save your way out of a recession.  You must c0me up with ways to grow your sales and grow your profits,” he noted.  “Based on what we’ve learned from dealers over the past two years, we have structured our product and program introductions to do just that.”

Value = Profits

Llerena said that dealers will be introduced to ideas that will help them sell value to consumers rather than just price.

“Our industry is notorious for focusing on price, especially in tough times.  But there’s a very big penalty to the store for operating like this.  Our research shows that if a store is selling based on price, it can take as much as 33% more sales to generate the same profit dollars.  That means you have to generate a lot more store traffic to make the same amount of money. 

“I don’t know if you’ve looked at the number of people in stores lately, but any good retailer has to be looking at maximizing profits from every sale.  What we’re doing at this convention is giving Floorscapes dealers ways to do just that.”

Llerena listed ten highlights of the convention created to help stores sell value and enhance profitability:

·                The rebranding and reintroduction of CustomWeave

·                A dramatic expansion of color for SmartStrand products

·                New soft fibers

·                New hardwood merchandising

·                Scotchgard Protector Advanced Repel Technology for hardwood

·                New high-value laminates

·                New ceramics, including inkjet technology

·                New web tools and advertising for retailers

·                A strong Mohawk Consumer Finance Program

·                Enhancement of the benchmarking program and expanding training through Mohawk University.

“Mohawk believes in partnership for profitability,” he said.

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Mohawk is a leading supplier of flooring for both residential and commercial applications. Mohawk offers a complete selection of broadloom carpet, ceramic tile, laminate, wood, stone, vinyl, rugs and other home products. These products are marketed under the premier brands in the industry, which include Mohawk, Karastan, Ralph Lauren, Lees, Bigelow, Dal-Tile, American Olean and Quick-Step. Mohawk's unique merchandising and marketing assist our customers in creating the consumers' dream. Mohawk provides a premium level of service with its own trucking fleet and over 250 local distribution locations.

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