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floorcoveringnews volume 34/number 6 I fcnews.net I the publication more retailers prefer I September 3/10, 2018 I $2.00

Tarkett targets hospitality sector via Lexmark deal

IN THIS ISSUE Bella Flooring Group offers supply solutions PAGE 3

Carpet: State of the industry

By Ken Ryan

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Engineered Floors backs JA Discovery Center

Michael Goldberg receives the Lifetime Achievement Award from Steven Feldman, FCNews publisher and editorial director, and Dustin Aaronson, associate publisher.

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SPOTLIGHT

GOLDBERG EARNS FCNEWS’ LIFETIME ACHIEVEMENT AWARD By Ken Ryan

ichael Goldberg, CEO of Rite Rug, was honored Aug. 17 with Floor Covering News’ seventh annual Al Wahnon Lifetime Achievement Award. The award was presented to Goldberg by Steven Feldman, publisher and editorial director, and Dustin Aaronson, associate publisher, at Rite Rug’s headquarters in Columbus, Ohio. Floor Covering News established the Lifetime Achievement

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Upside of underlayments Today’s innovative padding products suppress noise, provide comfort underfoot and extend the life of the flooring materials they support. PAGE 16

DIGITAL ACCESS IS

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Dealers approach fall season with optimism

INCLUDED F Check out our new website: fcnews.net

arkett, which has steadily grown its commercial carpet footprint through acquisition since 2012, has signed an agreement to acquire 100% of Lexmark Carpet Mills. Glen Morrison, CEO of Tarkett, said the acquisition of Lexmark will position Tarkett as one of the leaders in the hospitality segment in North America while further strengthening Lexmark’s offering in this segment. The move is expected to help Tarkett broaden its reach in North America, where Lexmark has its production, and tap into the hospitality segment with brands such as Marriott. Dalton-based Lexmark produces carpet primarily for the North American hospitality segment, although in recent years it has extended its product range

to address the residential market. Lexmark operates one plant in the U.S., which generated an estimated $120 million in sales in 2017. In a statement, Paul Cleary, CEO of Lexmark, said the two companies share the same vision and entrepreneurial values, which will create an even stronger entity. “Within the Tarkett group, we will be able to offer a larger choice of products to our customers and partners and provide an even stronger offering.” Cleary said he could not expand any more on the pending acquisition, citing Tarkett’s position as a publicly traded entity. However, other sources said they believe Lexmark will run as a separate company with Tarkett. Augusta, Maine-based NRF Distributors, which handles both accounts, sees the

By Ken Ryan

looring dealers are expecting a better-thanaverage fall selling season, citing a stronger economy that favors investment in home improvement projects such as flooring. The one caveat expressed by retailers: the poten-

tial threat tariffs may have on business in the final two quarters. For the most part, dealers are viewing the fall market as a continuation of what has been a solid year so far. For a few retailers, however, the autumn is a chance for a reprieve following an uneven first half. “As fall approaches, we see continued growth opportunity in all segments of our business, including multi-family, new construction, commercial, wholesale and retail,” said Craig Phillips, president of Barrington Carpet, Akron, Ohio, whose overall business is up 10% year over year, and his gross margin is up nearly a full point. “We got through the dog days of summer, experiencing very strong growth in our retail business. The luxury vinyl/WPC category continues to dominate

Hiller’s Flooring America, Rochester, Minn., is following up a record August with a great September, thanks in large part to LVP.

our hard surface business in all segments.” For Carpetland USA, with nine stores across eastern Iowa and western Illinois, the first part

of 2018 was a missed opportunity squandered by an elongated winter in the Midwest that hurt business for months. However, there is a silver lining with a harsh winter, according to Doug Bertrand, executive vice president. “I believe with the long winter a good portion of the country missed the normal spring selling season, which created pent-up demand. Now, with winter approaching, I feel customers will have disposable income to invest in their homes. As a result, I feel the fall selling season will be better than average.” The winter weather was harsh Continued on page 20

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( IN THE NEWS )

Bella Flooring Group raises the stakes

Tarkett expands production SOLON, OHIO—Tarkett has expanded its North America accessories production capacity through the purchase of a 70,000-square-foot building adjacent to the company’s existing Chagrin Falls manufacturing facility located in Auburn Township, Ohio. Tarkett executives say this investment is intended to increase production capacity for the company’s Johnsonite-branded vinyl resilient wall base and finishing borders. “Our Chagrin plant produces the top accessories products in the market,” said Jeff Fenwick, president, resilient, Tarkett North America. “This capital investment helps us increase our production capacity, allowing us to continue to deliver high-quality products.” This expansion also reinforces the company’s focus on efficient, sustainable manufacturing. The Chagrin Falls site operates on 100% renewable energy and uses a closedloop process water system—procedures that will be carried over to the new location, the company said.

Cali Bamboo hooks Fish SAN DIEGO—Cali Bamboo has named Bob Fish its new director of national sales. He brings a wealth of industry experience in both the U.S. and Canada. Fish spent the last 30Bob Fish plus years at Shaw Industries, most recently serving as regional vice president of the company’s Anderson Tuftex division. "We've already proven ourselves to some amazing channel partners, and this renewed focus on strengthening the Cali leadership team means we're even better positioned to service these relationships," said Doug Jackson, president and CEO. Cali Bamboo, which has made numerous management appointments over the past year, grew sales to $100 million in 2017, a 21.8% rise.

Karndean named top workplace EXPORT, PA.—The U.S. corporate headquarters of Karndean Designflooring has been voted by employees as one of Pittsburgh’s Top 100 Workplaces for the seventh consecutive year, according to a recent survey conducted by Energage. “Empowered employees are the heart of Karndean Designflooring,” said Larry Browder, chief sales and marketing officer. “This company began as a family business and although we’ve grown considerably, that family atmosphere is still very much alive at Karndean today.” Karndean currently employs 90 fulltime employees throughout its offices, warehouse and production department. The Top Workplaces lists are based entirely on employee feedback administered by Energage. Employers are rated on factors such as company alignment, effectiveness, management and employee engagement, in addition to the basics—benefits, pay and flexibility, etc.

September 3/10, 2018 I 3

By Lindsay Baillie

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ella Flooring Group represents a new approach to bringing products to market. That’s according to Matthew Syler, chief revenue officer of the newly formed company, who believes there is currently only a handful of companies with the ability to provide a broad spectrum of products to both the residential and commercial markets. “I’ve seen importers try to bring just an LVT or hardwood product into the market and make it difficult for sales reps to be supported,” Syler explained. “The reps have to extend their geography too much to be able to find the number of sales they need to support themselves, and without the daily interaction with customers it can be very slow to start.” What makes Bella Flooring Group unique, according to Syler, is it provides a way for multiple factories to come together into a single company and create what he calls a “manufacturing cooperative group.” Through this group, factories are

Bella Flooring Group’s carpet tiles come in on-trend colors and patterns. Shown is the Urban Fields collection.

able to participate by bringing their products to Bella Flooring Group, which then brings them to market. “We have a contracted sourcing team and lab where we help manage all the sourcing and testing for all products that are brought into the system,” he explained. “Our goal is longterm partnership and bringing the industry products they can rely on and be profitable with.” To help build and maintain its partnerships, Bella Flooring Group is focusing on four key elements: reliability, sus-

tainable inventory, value at the price point and building relationships. “Reliability means after you install these products, you’re not going to spend much time going back and asking customers how they feel about them or having to worry about going back to repair them,” Syler said. “We work directly with our factories, and they have an equity stake in the performance of these products.” In terms of inventory and value at the price point, Bella Flooring Group currently offers carpet tile—polypropylene and nylon—for both the contract/specified space as well as Main Street. The company also has SPC products ranging in formats and price points from a 3.2mm with an attached underlayment in a 12-mil construction, all the way up to a 6.5mm multi-width, multi-length product. It Continued on page 5

Virginia Tile takes wraps off new showroom WARRENSVILLE HEIGHTS, OHIO—Virginia Tile Co., a Midwestern distributor of ceramic tile and natural stone products, has opened its new showroom in Warrensville Heights, Ohio. The new showroom, located at 4670 Richmond Rd, features more space and amenities. The space now spans 9,000 square feet— more than double the previous size. The showroom features a comprehensive, intuitive experience that enhances the product selection Virginia Tile’s expanded showroom is twice process. Customers can easthe size of the former space. ily navigate to any product category (stone, porcelain, glass, ceramic, large format porcelain and enjoy immediate service. Virginia Tile’s more) and get a first-hand look at tile professional showroom team is trained in vignettes and large panel displays. With a interior design and can help ensure the large local inventory, customers can also customer’s project mirrors her vision.

“Our goal was to create a welcoming and professional environment that focuses on classic and trending designs for our customers,” said Steve Ziessler, CEO of Virginia Tile. “We’ve been servicing the Cleveland market for over 18 years and the expanded showroom will allow us to continue meeting the demands and budgets of all residential and commercial clients.” Virginia Tile, founded in 1928, is a distributor of ceramic, porcelain, stone and glass tile in the states of Ohio, Michigan, Indiana, Illinois, Iowa, Kansas, Missouri, Minnesota, Nebraska and Wisconsin. The wholesaler serves residential and commercial contractors, dealers and other trade professionals.

( SNAPSHOT) Habitat for Humanity, Cali Bamboo partner for a good cause SAN DIEGO—Earlier this year a team of 20-plus Cali Bamboo volunteers have been hard at work, and some play, on a Habitat for Humanity International job site in Barrio Logan here. Team Cali Bamboo prepped and installed the company’s green bamboo flooring in new homes for low-income families.

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floorcoveringnews

my take

michael blick president/ceo [email protected]

An achievement well deserved

steven feldman publisher/editorial director [email protected]

rarely devote an entire column to one individual, but given this issue of FCNews features our seventh Al Wahnon Lifetime Achievement Award winner, it is both timely and relevant. Now, no Lifetime Award winner is any more significant than another; each is different in his or her own way and has made unique, significant contributions to the industry, their communities and the world. Michael Goldberg, owner and CEO of Rite Rug in Columbus, Ohio, is a unique individual. He is also the first retailer to be honored with FCNews’ Lifetime Achievement Award. Every year, we solicit nominations from the industry, either written or verbal. Some suggestions pass the litmus test; most do not. This year, we asked many manufacturer and distributor personnel to throw some retailers’ names in the hat, and the name Michael Goldberg kept coming up. If you read the story that begins on page 1, you will learn why Michael, someone I have known for 20-plus years, was chosen. He truly checks all the boxes. I remember my first interaction with Michael back in the mid-1990s as managing editor of Floor Covering Weekly. I was charged with compiling the Top 50 retailer listing, and back then we physically called every retailer on the list. Somehow I was put through to Michael. “What did you have us down for last year?” he asked, to

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which I replied: “40 million.” “OK. Put us down for that again,” Michael quipped. Seemed like Rite Rug was doing $40 million every year. Either the company was remarkably consistent, stagnant, or Michael just really didn’t give a flying fork about the accuracy of our list. Michael soon gained a comfort level with me and invited me to Columbus to do an exclusive article on Rite Rug. He was about as trusting of journalists as Americans would become of Benedict Arnold, but somehow he saw me as different. I remember meeting him for the first time: the outside-the-box spectacles, the espresso machine, the pasta dish that was apparently ordered multiple times a week. Michael proceeded to tell me about the history of Rite Rug; his dad, Duke, and conflicts that tore apart his family. Those who know the story know because Michael allows them to know. For the rest of the world, it’s not their business. But anyone this side of Helen Keller, Stevie Wonder or Ray Charles could see it had torn him apart. Over the years, Michael and I developed a friendship—a bond, if you will. He advised me on my most personal matters. He took an interest in my life to the point where he almost insisted I get divorced; practically implored that I stop dating women that he could see were disingenuous, even when my eyes were blinded. Yes, Michael has his opinions and

views. Many suppliers have said he is one of the toughest negotiators they have ever had to deal with. It’s Michael, Marv Berlin, Sandy Mishkin and Olga Robertson—the Mount Rushmore of negotiators. Some say his view on “fair” is having the supplier break even. But all agree Michael lives up to every commitment he ever makes. And every cent he saves on the buy is passed through to the sell. He wants to give his customers the best price possible. When we asked suppliers for a few quotes on Michael, many wanted to pay tribute with an ad. That speaks volumes— so much so that FCNews decided to donate a portion of the revenue to the Special Operation Warrior Foundation, something Michael supports in a big way. Michael has taught me success and happiness is impossible without good people. You can’t sit with him for five minutes without him raving about his team. The only thing he values more is his wife, Anita. She is his rock, the person to whom he attributes his success, his happiness. He will always take her call, no matter what. Why? “Because when you love someone, you must make them feel like the most important person in the world. Always.” We all can learn something here.

dustin aaronson associate publisher/ advertising director [email protected]

editorial reginald tucker managing editor [email protected]

ken ryan senior editor [email protected]

lindsay baillie associate editor [email protected]

mara bollettieri assistant editor [email protected]

art/production frank notarbartolo art/production director [email protected]

sales associate nadia ramlakhan [email protected]

Steven Feldman

founder albert wahnon 1920-2011

Getting social with fcnews correspondents leah gross k.j. quinn nicole murray

columns jim augustus armstrong lisbeth calandrino scott perron roman basi fcica david romano tom jennings

marketing mastery lisbiz strategies retailer2retailer financial installments dear david lessons learned

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September 3/10, 2018 I 5

Carpet One’s Buchanan hosts 9/11 benefit PLYMOUTH, MICH.—More than 100 golfers gathered here last month to remember and honor the fallen New York City firefighters who perished on Sept. 11, 2001, as part of the inaugural Carl & Fran Francavilla Charity Golf Outing. Proceeds from the event, including raffles, benefited The Stephen Siller Tunnel to Towers Foundation along with Building for America’s Bravest. “I asked the golfers to play like there was no tomorrow, because we never know what that day will bring us,” said event coordinator Cathy Buchanan, owner of

Bella Continued from page 3

also has a 5mm loose-lay product with a 22-mil wear layer that is solid vinyl and fiberglass reinforced as well as a 2.5mm, 20-mil, glue-down product. “We’ll be offering a glue-down in a 2mm, 8-mil format by the end of this year,” Syler said. To help bolster relationships, the company is hitting the streets. “We’re going to start developing and gaining boots on the ground,” Syler said. “We’re going to start having people who can go out, shake hands, know their customers, know their businesses and be there to support them. The industry has lost a little bit of that in its analytics and in its optimizations. It has lost some of its personal relations with its customers.” A look ahead Bella Flooring Group is looking to hit the ground running with several new introductions throughout 2019. On the docket are wall coverings, laminate flooring, engineered hardwood and other specialty products. Currently in development are some new hard surface and carpet tile products that, according to Syler, have not been available in the market currently. “At our heart, we’re an innovation-based company,” he said. “We have some new composites and polymers that we’re working with to create some new hard surface products that move away from PVC and film in general—and some even moving away from wear layers. We’re also working to create new products that eliminate some of the failing points—delamination, wear through, pattern repeats—as well as a more sustainable polymer sourcing system that’s better for both the pocketbook and the environment.”

Independence Carpet One Floor & Home in Westland, Mich. The golf event is symbolic. Siller, a New York City firefighter, was returning to Staten Island after work on Sept. 11 to play golf with his brothers when he heard about the attacks at the World Trade Center. He canceled the outing and headed to Lower Manhattan to help out, running on foot through the Brooklyn Battery Tunnel to get there. The charity golf outing hosted more than 30 sponsors and included a buffet dinner and presentations along with the distri-

bution of prizes and rafCarpet One’s Cathy Buchanan fles. The money raised and her brother, Bob Francavilla, goes toward the building presided over the symbolic of adapted smart homes golf outing. for injured soldiers returning from Afghanistan. of $65,000 to the Buchanan said she was immeSiller Stephen diately drawn to this program Foundation. This after listening to Frank Siller, year’s event featured Travis Mills, Todd Lively and Todd 343 lawn signs with the faces of Love speak at the Carpet One conNew York City firefighters who vention in Phoenix in 2014. She lost their lives on 9/11. started fundraising through wineBuchanan and fellow memtasting events, various sales and bers have taken part in the now her first charity golf outing. Tunnel to Towers 5K in New In four years, Independence York City every September. Carpet One has donated upwards Independent Carpet One now

participates in the Berkley, Mich., T2T5K as a corporate sponsor. Buchanan’s staff has provided flooring for two homes in Michigan—one in Ludington for Staff Sergeant (SSG) Eric Lund and one for SSG Ben Eberle in Alpena, Mich.

BY JOHN MCGRATH

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arious flooring industry of the booming Florida construcentities are taking their tion market. own approach in addressThe INSTALL collaboration ing the installation/labor chalon the first two offices was so lenges. At INSTALL, a major ini- successful that Mr. David’s tiative for 2018 and beyond opened a third location this past entails expanding our contractor spring in Tampa. Situated on base, comprehensive training Florida’s Gulf Coast, the Tampa program and growing our presmetropolitan region is home to ence in the Southeast region of more than 3 million people (the the country, where booming largest in the state) with strong construction markets have hisgrowth rates expected to contorically relied on low-cost, inde- tribute to higher construction pendent subcontractors. and development spending in But we are not doing it sincoming years. gle-handedly. A major contribuTony Troehler, president of tor to this growth is national Mr. David’s, believes pairing up contractor Mr. David’s Flooring with INSTALL to open a training SE LLC, which recently opened a facility in Florida was a match third Florida location in the city made in heaven. “Mr. David’s is of Tampa with the help and colknown for its high-quality brand, laboration of and INSTALL’s entire INSTALL. To program is based on increase our presproducing quality ence in key southAL’S COLUMN people,” he told me. ern markets like “The programs truly Florida, Texas and fit hand in hand.” Oklahoma, INSTALL Historically, Florida has established a successful lacked a trained and certified model of partnering with memlabor pool. So the first step in ber contractors to open new Mr. David’s Florida expansion offices, train and/or relocate three years ago was to work with installers and provide ongoing INSTALL on plans for a training support in their expansion plans. facility in the area where our curAs the most endorsed and riculum and certification could specified training program in train local labor to the exacting the industry, INSTALL is able to standards that Mr. David’s leverage long-standing manufac- required. While some employees turer partnerships, bringing were sourced and trained locally, together field know-how and in- Mr. David’s also brought talent depth product expertise. For with them from other markets. new markets, this means conBy relocating team leaders, traintractors will now have access to ers, installers and other key trained and certified journeyemployees, they were able to men, and will be able to train quickly and efficiently set up the next generation of expert shop in a new state. installers. INSTALL and Mr. David’s Most recently, INSTALL sup- have continued our expansion ported Mr. David’s during its partnership through the opening expansion into the southeast of three new offices, a process region. With multiple locations that has been very positive and across the United States, the continues to meet business nationally recognized commerexpectations. This includes wincial flooring installer identified ning multiple high-profile projFlorida as a key region for busiects across the state. ness expansion. INSTALL collabThis is just one step in a orated with Mr. David’s on two much larger plan for Southern new Florida locations within the expansion. Our goal is to help past three years, which allowed contractors commit to seven the company to take advantage more new locations this year.

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John McGrath, Jr., is executive director at INSTALL, the International Standards and Training Alliance.

With the strengthening trend of the WPC and SPC category, more consumers are purchasing greater quantities of hard surface in our market. It’s apparent by the gross sales we are seeing that consumers are extremely confident in their purchases.

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—Bonnie Fenwick, Carpet One Floor & Home Jacksonville, Fla.

What I’m seeing is an [uptick] in the sales of the various LVPs, where people are doing their entire main floors. These are big-ticket numbers because of the sheer size of the jobs. Beautiful floors, fun to sell.

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Building the labor force via partners

(RETAILERS REACT) A study showed consumers expect to make a big-ticket purchase within six months. What Thanks to a more robust economy, consumers interest in larger projects, are you finding are showing according to flooring dealers.

Since January of this year, we have seen our average ticket size grow substantially. Since May in particular, we have seen the consumer spend that increase with confidence and far less price shopping.

—Rob Elder, Hiller’s Flooring America Rochester, Minn.

—Kevin Frazier, Frazier’s Carpet One Knoxville, Tenn.

During everyday business we see carpet jobs averaging around 300–450 square feet and pretty much the same with hard surface. During a period this past July and early August, we ran a 36-month finance promotion with 0% down. We saw a generous jump in the size of jobs in both hard and soft surface, which affirms my belief that most consumers are very willing to tackle larger projects if they can spread out the payment. —Steve Weisberg, Crest Flooring Allentown, Pa.

We have seen a major uptick in larger jobs. Consumers don’t seem to be shying away from making big-ticket purchases as the economy is healthy and consumer confidence seems to be high. —Dan Mandel, Sterling Carpet and Flooring Anaheim, Calif.

‰ Starter homes are now more expensive than at any time since 2008, when the last boom came to a crashing halt, reports show. In the second quarter, first-time buyers needed almost 23% of their income to afford a typical entry-level home, up from 21% a year earlier, based on an analysis by the National Association of Realtors. The property market, after years of price gains that outpaced income growth, is showing signs of slowing as sales decline. The affordability crunch is especially severe at the low end of the market and in hot areas where supplies are tightest and values have risen the most. A jump in mortgage rates this year only made it worse.

( CALENDAR ) Sept. 10-Oct. 12 CFI Residential Carpet Five-week course, CFI training facility, Forney, Texas. Contact: John McHale, 816.231.4646; [email protected]; cfiinstallers.org

Sept. 26 16th annual Alan Greenberg Charity Golf Tournament To benefit the Floor Covering Industry Foundation (FCIF), Barnsley Gardens, Adairsville, Ga. Contact: Paula Holt, 800.466.6984, ext. 1101; [email protected]; alangreenbergfcif.com

Sept. 27-28 CFI Ceramic Certification Two-day course, CFI training facility, Forney, Texas. Contact: John McHale, 816.231.4646; [email protected]; cfiinstallers.org

Oct. 2-4 NWFA Intermediate Installation + NWFACP Installation Testing Three-day in-depth training, hosted by Gehl Flooring Supply, Wauwatosa, Wis. Contact: Tricia Swindoll, 800.422.4556; [email protected]; member.nwfa.org/events

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educating the industry

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6 I September 3/10, 2018

Oct. 3-5 FCICA Mid-year meeting, The Hotel Hershey, Hershey, Pa. Contact: 1.877.TO.FCICA; [email protected]

Oct. 3-5 FEI Group Annual conference, Manchester Grand Hyatt, San Diego. Contact: 770.528.4745; [email protected]

Oct. 18-19 CFI Hardwood/Laminate/LVP Installation Training & Certification Two-day course, hosted by Carpet Plus, Charlottesville, Va. Contact: John McHale, 816.231.4646; [email protected]; cfiinstallers.org Oct. 22-23 Wood Flooring Manufacturers Assembly Hilton Garden Inn Nashville Downtown/Convention Center Contact: John Forbes, 800.402.4558; [email protected]; member.nwfa.org/events

Oct. 25-26 CFI Hardwood/Laminate Installation Training & Certification Two-day course, hosted by Fishman Flooring Solutions, Columbia, S.C. Contact: John McHale, 816.231.4646; [email protected]; cfiinstallers.org

( POINTS OF INTEREST)

‰ Consumer confidence unexpectedly rose in August to the highest level since October 2000, according to a report from the New York-based Conference Board. The report showed a greater share of respondents anticipate purchasing big-ticket items including homes, cars and major appliances within six months, which bodes well for the outlook for consumer spending. While a smaller share said they expect employment to rise in coming months, more Americans were optimistic about pay gains. The share of consumers who said they expect better business conditions in the next six months rose to 24.3% from 22.9%.

‰ Despite a strong economy, about 40% of American families struggled to meet at least one of their basic needs last year. That’s according to an Urban Institute survey of nearly 7,600 adults, which found the difficulties were most prevalent among adults with lower incomes or health issues. The findings issued by the nonprofit organization highlight the financial strains experienced by many Americans in an otherwise strong economy. The average unemployment rate for 2017 was 4.4%, a low that followed years of decline. But having a job doesn’t ensure families will be able to meet their basic needs, said Michael Karpman, one of the study’s authors. Among the households with at least one working adult, more than 30% reported hardship.

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State of the industry

Higher-end, patterned products find a home as segment By Ken Ryan

as opposed to entire homes,” Lape explained. Although there is some shortage in existing homes to purchase, some executives point to a growing stock market, rising wages, low unemployment and lower corporate taxes as contrib-

deliver both innovation and value. As Brian Warren, executive vice president of sales and marketing at Foss Floors, noted, “Consumers are smarter than ever before and have a wealth of information at their fingertips. An educated consumer has

he higher-end residential carpet segment is growing in the low single digits in 2018, buoyed by a more robust economy that has given consumers the confidence to invest in better, higher-end goods. Mohawk’s success in luxurious soft goods continues in 2018. While sales have Shown is SmartStrand Silk Reserve. risen an estimated 2% compared with the same period in 2017, unit volume is down roughly 4%-5%, executives say, as raw increases material continue. This has led to multiple price hikes in 2018. What’s more, carpet’s comeback has been impeded by the hard surface onslaught that continues to take share away from soft goods. In many cases within residential, carpet is relegated to bedrooms or so-called “comfort” rooms. On the plus side, however, consumers are more discerning about the type of carpet they want in their homes and are more than willing to spend more for better goods. Overall, carpet is trending similarly to 2017, when FCNews research showed sales inched ahead 0.6% to $8.83 billion. Volume is a different story, however. In 2017, volume (which includes area rugs) was up 0.4% to 11.250 billion square feet. However, mill executives said carpet is under pressure at the unit level so far in 2018 and is likely to remain that way due to raw material and inflationary pressures. Shaw views Bellera as a disruptor in the Still, the overall sentiment flooring industry because of its top-to-bottom is carpet is making inroads as it innovation. Shown is Epic Rainforest. attempts to slow the hard surface tide. “There seems to be a utors to the mild resurgence seen already determined the value crowd mentality like you would in home improvement investproposition of the product she is see at a 5-year-old’s soccer game ment. “The unemployment rate looking for. You need to pack in with everyone crowding around is low, and earned income is on as much differentiation through vinyl right now,” said Tom Lape, the rise—all of which tends to innovation as possible at a fair president of Mohawk residential. lead consumers to make larger, and equitable price.” “However, all things considered, more substantial purchasing Tim Baucom, executive vice carpet is having a decent year. decisions,” said Chris Johnson, president of Shaw Industries’ resBetter goods are having a nice senior vice president of sales at idential business, believes conrun. We feel good about carpet.” Phenix Flooring. “Whether that sumer demands are primary drivIt’s easy to see why optimism is in the form of transitioning ers in the marketplace today. is on the upswing. Just as a rising from a rental position into home “Consumer expectations of their tide lifts all boats, a stronger ownership, selling and buying a soft surface products are higher economy is benefiting all segnew home, or renovating their than ever, and for us to succeed ments of flooring, including carcurrent home, it means new floor we need to meet and exceed pet. “More homes are going into covering materials—including those demands,” he explained. “Today’s consumer is looking for the ground, and even though carpet—will be required.” hard surface continues to get the Beyond an improving econo- a carpet that will be beautiful and share in builder, carpet is gaining my, what’s also driving business stylish while also accommodating as well on a room-to-room basis in 2018 is the fact companies can her active lifestyle. We recognize

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that manufacturers will need to continue innovating, combining beauty and durability to meet these high expectations of residential carpet.” Carpet remains what some call a “bifurcated” market, with activity strong at both the low and high ends of the spectrum, and weak to non-existent in the middle. In both growth areas, newer technology is creating patterns and multicolor looks that are sparking demand. “New tufting technology has unlocked new design capabilities, so you’re seeing a lot of companies invest there,” said Jeff Dill, director of mill sales and specialty retail for

underfoot and a quieter home.” Paul Cleary, CEO of Lexmark Carpet Mills, has noticed a trend: As less carpet is used in the home, consumers are turning to more patterns. “Carpet has become more design-driven, and even smaller dealers are using vignettes more to showcase the design attributes of carpet,” he noted. Some flooring dealers have noticed a spike in their carpet sales this year. Perhaps that is wishful thinking or perhaps that is because of all the flooring products, carpet provides the most productive margin and, thus, independent dealers must protect the category. They also have to have the right product in stock. “If dealers are going to be successful today, then they better be selling what the dogs are eating,” said Joe Young, soft surface category manager for Engineered Floors. “These days, the dogs are eating polyester. More specifically, solution-dyed polyester due to the inherent performance benefits and advantages in multicolor styling. Polyester continues to take market share from nylon and other fibers at a quick pace.” However, there is still ample room for nylon, as noted by Matt Rosato, category director for Anderson Tuftex. “Our research shows nylon as the preferred fiber of our premium customers, and we see continued popuThe cleaner home movement is larity of our patterns, textaking shape with products like tures and shag offerings. Stainmaster Live Well. Although consumers are putting more hard surface throughout the home, they still Invista. “The result is an incredible array of new patterns that want something soft, durable and leverage unique fibers to create well-crafted to complement it.” beautiful designs. No longer are consumers limited to a wide Still innovating range of beige on beige. Now The Dixie Group reports its resitheir choices are wide ranging dential business is up vs. 2017, with strength in specialty retail and stunning.” With residential carpet being across its Dixie Home, Masland purchased more on a room-by- and Fabrica brands. “We are room basis, consumers are also developing new yarn combinalooking for styles and designs that tions to create unique and beauticomplement the hard surfaces ful carpet styles with color play throughout their homes. Dill and luster effects,” said T.M. believes consumers are still Nuckols, president, residential investing in their homes, and as division, The Dixie Group. “From part of that investment they want new multi-color cut piles to disthe best products they can afford. tinctive designs in loop and pat“One of those products happens tern constructions, we are transto be high-quality flooring, but forming the consumer’s perception of how carpet can make her carpet still provides the consumer with great value while also home more beautiful.” Marquis used Surfaces 2018 providing incredible comfort

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September 3/10, 2018 I 9

looks to rebound as the platform to capitalize on its soft products introductions. World Class, an upper-end, soft, cut- pile residential carpet with a drawn-down profile, is the big story of 2018 for Marquis, according to Chet Graham, president. “Our dealer network is having huge success with World Class in their new home sales and remodeling projects. Our color lines have continued to stay in the natural palette, and have been a great complement to our SPC rustic hard surface products.” In 2018, Invista has doubled down on its two leading subbrands: Stainmaster PetProtect carpet and Stainmaster LiveWell carpet. “The healthier home is an emerging trend we believe is here to stay,” Dill said. “For our Stainmaster PetProtect carpet, we worked with our designers to expand our color offering once again, enabling our mill partners to continue creating new and unique designs.” EF’s signature 2018 introduction also plays on the healthy home-oriented theme via its PureBac collection. EF combined its most up-to-date looks in its proprietary PureColor Soft polyester with an innovative backing. “The face of the carpet is protected by our solution-dyed technology, providing better stain, fade and bleach resistance than conventional piece-dyed products,” Young stated. “On the back, we take it a step further with our proprietary PureBac technology.” Not to be outdone, Phenix’s Cleaner Home collection continues to perform very well with consumers who are looking for products that can assist in keeping a cleaner home and promote a healthier lifestyle. “We know homeowners want products that last longer and work harder, and that’s exactly what this carpet— protected by Microban antimicrobial technology—does by continuously fighting the growth of bacteria,” Johnson said. Stanton Carpet made its foray into the Main Street market in 2018 with Stanton Street Decorative Commercial, which features carpet tile and plank from Stanton (for the first time) as well as decorative commercial nylon broadloom in modern, edgy designs that allow for versatile layout options and various applications from residential to heavy commercial spaces. The product will ship this fall. When Shaw created Bellera High Performance Carpet, it knew consumers wanted their soft surface products to stand up

to heavy foot traffic—and the messes that come with it. “With Bellera, consumers no longer have to sacrifice beauty for that needed durability,” Baucom explained. “We are so confident in this collection that we can guarantee Bellera carpet will look as beautiful in five years as it did on day one of install. Bellera is a disruptor in the flooring industry because of its top-to-bottom innovation and has positively impacted Shaw’s bottom line.” One trend that continues

unabated is that soft floor- Defined patterns like this one from Lexmark are trending in the carpet industry. ing sells. Case in point is Mohawk’s SmartStrand, which continues to be an industhey do two or three [of these] try leader and innovator in luxuproducts they are hooked.” rious soft. New offerings from At Foss, DuraKnit has been SmartStrand, Karastan and Air.o the breadwinner in 2018. Unified Soft Flooring stand out as These products feature unique Mohawk’s big three introductions construction characteristics in 2018. that provide commercial-grade “There has been a lot more performance. “They will never consumer activation with Air.o,” unravel, zipper, fray or wrinkle Lape said, noting that a new and are great for anything that series of Air.o products would be pets or people can throw at debuting later this year. “It would them,” Warren said. “They also certainly appear that more retailare extremely inexpensive for ers are getting comfortable sellthe retailer—which translates ing and installing Air.o. Once into higher margin at retail.”

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10 I September 3/10, 2018

Engineered Floors sponsors JA Discovery Center By Steven Feldman

CUMMING, GA.—When the Mike & Lynn Cottrell Junior Achievement (JA) Discovery Center at North Georgia held its grand opening here Aug. 23, Engineered Floors was front and center within the space. The center, located on the high school campus of the Alliance Academy for Innovation of Cumming– Forsyth, will serve approximately 15,000 local middle school students from six counties, offering the opportunity for children to gain exposure to all types of businesses headquartered in the state. This JA Discovery Center is the third of its kind. The first, JA Chick-fil-A Foundation Discovery Center, opened in downtown Atlanta five years ago; the second, JA Discovery Center at Gwinnett in Gwinnett County, opened three years ago. This, however, will be the first hybrid facility in the state combining both JA BizTown and JA Finance Park, experiential simulations that have impacted more than 160,000 middle school students in the last three years. JA BizTown creates an experience where students are able to

interact within a simulated economy and take on the challenge of fueling a business. JA Finance Park provides students the rare opportunity to experience their personal financial futures firsthand. Students participate in a simulation that enables them to develop skills to navigate today’s complex economic environment. “The JA Discovery Centers represent the incredible partnership of an entire community that comes together to make this work,” said Jack Harris, president and CEO, JA of Georgia. “We want this to be immersive, authentic and interactive. That’s how learning sticks. We are thrilled to be able to expand the impact of this relevant, authentic and experiential learning to more students across the state.” Jeff Bearden, superintendent, Forsyth County Schools, noted the center will allow middle school students to explore career opportunities that perhaps they have never considered before and experience what their futures might hold. “The mindset is to expose students to the intricacies of the real world and create career pathway exposure that helps bring learning to life. The

Bob Shaw (center), founder and CEO of Engineered Floors, attended the ribbon-cutting ceremony at the Mike & Lynn Cottrell Junior Achievement Discovery Center at North Georgia.

brands that sponsor the JA center provide authenticity and exposure that students will never forget.” Engineered Floors chose to sponsor a “storefront” inside the center to not only teach students about carpet manufacturing but also about business. “When you train them in a direction toward business, you are training them in a direction toward accomplishment,” said Bob Shaw, founder

and CEO, who attended the ribbon-cutting ceremony. “We want them to be exposed to the opportunity that business provides and entrepreneurship. It’s about having the right attitude.” Anna Adamson, a granddaughter of Shaw, is director of Northwest Georgia at JA Worldwide. She is charged with facilitating the involvement of local schools in JA programming and specifically with the Mike and Lynn Cottrell Discovery Center. “It was very important to the Cottrells to have manufacturing represented because of their background as manufacturers of automobile hauling equipment. And what better way to represent manufacturing in north Georgia than the carpet industry.” She added that the team partnered with local talent to build out the Engineered Floors space. Jordan Bolch, executive director of innovation, RaceTrac, one of the Discovery Center sponsors, has witnessed the benefits after visiting the first two facilities. “I was blown away by the interaction and engagement. I think the students will take the knowledge they learn here and carry it with them the rest of their lives and be

equipped with valuable tools. They learn things here they would otherwise not learn in a traditional school environment. That’s what makes JA so special.” Dr. Bonita Jacobs, president of the University of North Georgia and another sponsor, said the Discovery Center provides “a great deal of flexibility for students with all kinds of career aspirations. It aligns with our mission to help develop students into leaders to live and work in a diverse global society.” The launch of the third center was made possible with the support of Mike and Lynn Cottrell as well as partnerships with school systems and investment from businesses such as ADP, Andean Chevrolet, Associated Credit Union, City of Cumming, Delta Air Lines, Elavon, Engineered Floors, Georgia Power, Georgia State University, Georgia United Credit Union, MarketSource, North Georgia Community Foundation, Northside Hospital, Publix Super Markets Charities, RaceTrac, United Way of Hall County, United Way of Forsyth County and Zaxby’s. All businesses that invested have storefronts in the facility.

Engineered Floors sponsored a storefront where students learned about the processes involved in carpet manufacturing.

TM

The

playtime with your best bud carpet.

You know that life happens. Help your customers choose carpeting that promotes carefree living.

scotchgard.com/carpet

3M, Scotchgard and the Plaid Design are trademarks of 3M. © 3M 2017.

ceramic

12 I September 3/10, 2018

Technology expands design

dear david

Tracking ‘true’ business performance Dear David: I need some help understanding what reports to look at to see what is going on in my store. I am good at staying on top of daily things. I look at my bank balance, try to stay on top of receivables, check out sales reports and pay attention to my profit and loss statement. What else should I be looking at?

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DAVID

ROMANO

ice (callbacks, average days to resolve issues and money to resolve issues) should be reviewed daily. Claims (by vendor, aging, status, total number, numbers open and closed, and money collected and open) should be looked at weekly. Inventory reconciliation and change orders (per sales associate, crew and money collect and lost) must be looked at monthly. Merchandising. Sales and gross profit, sales per sales associate, turn rate, aging, open-to-buy, gross margin return on investment and stock BEING AN ENTREPRENEUR IS performance should all ALREADY DIFFICULT; MAKING be reviewed monthly. You’re now probaUNIFORMED AND RASH DECISIONS bly overwhelmed and realize this list is ONLY MAKES THINGS WORSE. impossible to track, and less about my reporting especially if you assume that only advice. Nonetheless, here are a you are the collector and analyst. few suggestions from your peers Remember, you have a team of who participated in Benchmark people to help run your business. Group’s surveys over the years: If you allocate each of these Financials. Cash flow should reports to the appropriate staff be looked at daily. Accounts and give them due dates, this is receivable (aging and by sales palatable. It is also critical each of associate), job cost (by sales asso- the assigned individuals underciate) and open orders (by sales stands they are responsible for associate) should be checked not only reporting the data, but weekly. Profit and loss (compared also understanding what caused to last year and to budget) as well the performance as well as proas budget (monthly and YTD viding suggested improvements. comparison) should be looked at You should also check with your by the 15th of the following sales reps at RFMS, Pacific month. Balance sheets and adver- Solutions or Rollmaster, as they tising investment (cost of adverhave all gotten much better at tising per new customer) should providing this type of reporting. be looked at monthly. This leaves you with the most Sales. Quotes should be important part of all: You would checked daily. Average ticket (by be required to be an owner and associate, store and business segnot a firefighter. An owner who ment) and open orders should be believes that preventing fires is looked at weekly. Gross profit more important than putting and close rates should be them out. An owner who checked monthly. Written sales, believes that proactive is more delivered sales and traffic should effective than situational leaderall be reviewed daily and monthship. Being an entrepreneur is ly by sales associate, store, busialready difficult; making uniness segment and vs. goal. formed and rash decisions only Operations. Customer servmakes things worse. Dear Uniformed Owner, Providing a list of reports and how often you should review them is the easy part. It’s going to be more difficult to convince you that what you are currently doing isn’t very effective. You’re simply looking at data from the past and reacting to things in the now instead of using that information to create the shortest, most efficient route to get where you want to be. This is more about your philosophy

David Romano, formerly the founder of Romano Consulting Group as well as Benchmarkinc Recruiting, is currently the director of Dallas-based Romano Group. You can contact David at [email protected].

By Mara Bollettieri

ith the help of technology, ceramic can go where it wasn’t able to go before. High-definition printing and screening has completely transformed the category, allowing it to be a more versatile floor and thus a more attractive option to the consumer. The industry has been raving about the aesthetics of wood, and with high-definition printing, manufacturers can now offer these hot looks to the marketplace. If the consumer wants to install a floor that looks like wood in her bathroom but doesn’t want to put in real wood because water may damage the floor—no problem. In short, she can have the wood look she wants, with the benefits of ceramic tile to go with it. Case in point: Dal-Tile uses digital printing to replicate looks of not only wood to stay on trend, but also stone, marble, masonry and concrete. Highdefinition printing allows the company to give the consumer a plethora of options and designs to appeal to all different tastes. “Digital printing continues to be an innovation that lets us

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develop tile lines to meet consumer demands,” said Laura Grilli, senior manager of product development, Dal-Tile. “By combining digital printing with our existing expertise in tile design and manufacturing, our leading tile brands are able to develop tile that accurately

realism by creating the feel of the material it’s imitating. “Our technologies can create tile for our brands that capture the visuals and texture of the material we are trying to achieve, so much so that it is difficult for consumers to discern what is tile and what is the natural sur-

Emser Tile’s glazed porcelain Porch line, pictured here in coffee, features subtle wood grain movement on tile panels.

replicates the natural surfaces but still features the benefits of tile, such as design, durability, cleanability, high-performance, health and sustainability.” The manufacturer uses its Reveal Imaging, Visual Imaging and EverLux technologies in its three main tile brands—Daltile, Marazzi and American Olean. Grilli emphasized that not only do these technologies provide the look of the material that it is imitating in the design but also

face we are imitating,” she explained. “Our EverLux technology actually synchronizes the texture to the design for the ultimate realism.” Emser Tile also uses highdefinition printing to its advantage. The company cited its Porch line, a glazed porcelain that features subtle wood grain movement on tile panels. The collection gives realistic wood looks and can be installed in shower walls and floors, kitchen counters, inside pools and other wet areas due to the benefits of ceramic as a flooring option. “High-definition print technology continues to evolve, enabling ceramic designs that showcase high-resolution pattern and texture at once,” said Barbara Haaksma, vice president of marketing. Technological advancements have also allowed manufacturers to have more control

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September 3/10, 2018 I 13

possibilities over the design process of tile. MSI shared that not only has high-definition printing revolutionized the category, but it provides companies with the ability to have 100% control of the outcome of the print. Because of this, MSI can change images on the tile to the way the company wants it to look. “The unique beauty of this is if there is a vein coloration or awkward knot hole in the natural material that we want to remove or alter, we can,” said Emily Holle, director of trend and design. “At MSI, our strong background in natural materials gives us a very good eye for color, detail and movement in graphics. We are very particular about what graphics work and which ones don’t. We now have the ability to take a high-resolution scan of natural stone, wood plank, cement look, etc., and print it on tile.” Using the latest advancements, MSI is also able to produce larger-format tiles for shower walls, floors and now countertops. This pairing of hot graphics with popular large tile sizes is its key ingredient to success in the industry with ceramic tile. “Large 5 x 10 panels are being printed with the most beautiful graphics,” Holle stated. “This happy marriage of digital print and large format panels is going to change the tile industry as we know it. Largeprinted tile is now perfect for countertops. Think about countertops that won’t fade and can be in any high-end stone look you desire for a fraction of the cost. It won’t scratch and it’s heat resistant.” Leslie Wolfe, designer and owner of Benton Parker Design, LaGrange, Ga., who frequently collaborates with MSI, attested to how high-definition printing has completely transformed the category. She has experience designing multiple spaces with tile for many years but has always been resistant to its looks. Now, tile can offer authentic stone looks, which she prefers, with digital printing. Daltile uses Reveal Imaging technology in its Marble Attache collection, which features interpretations of the finest marble from around the world.

“I have always been a natural stone loyalist because of its authentic colorways, rich depth in veining and overall luxurious appeal,” Wolfe explained. “In the past, there was no comparison. Ceramic tile wasn’t anywhere close to the quality of looks I specified for projects. With the massive improvements in print technology, the visuals look better than ever. There are some prints on tile that do not exist in nature, so that is an added bonus—high durability plus a unique design.”

MSI utilizes high-definition printing technology in its wood-look Aspenwood line, shown here.

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14 I September 3/10, 2018

Raskin donates product to active-duty U.S. Marine DEERFIELD BEACH, FLA.— Summer is the season of patriotic holidays: Day, Memorial Independence Day and Labor Day. In that same vein, it’s the time of year that many people take the opportunity for home improvement projects in between barbecues and trips to the beach. With that, the team at Raskin Industries decided to help with a summer home remodel and lent a hand to one of our country’s brave servicemen. Earlier this year, Raskin connected with Gunnery Sergeant Jeffrey Boyer of the United States Marine Corps Forces Special Operations Command, better known as MARSOC, for a home renovation project. Boyer finds himself working on projects throughout the house when he’s not deployed (he recently returned from his fifth tour in the Middle East) and this summer saw the revitalizing of two main areas of the Boyer home: the dining room and the living room. He lives in Wilmington, N.C., with his wife, Lara, and their 6-yearold son, Gunnar. Reviewing Raskin’s extensive portfolio of luxury vinyl options, the Boyers selected Pride from the FloorNation collection, a flooring line exclusively made in the USA. FloorNation is ideal for an active home as it comes standard with Raskin’s G88 ceramic coating system, which delivers stain resistance as well as antibacterial/anti-fungal properties. Pride also features a 20mil wear layer and lifetime residential warranty. “This floor is a dream floor,” Boyer said. “It will last as long as we’ll be in this house, and we have no plans to move anytime soon. It’s so much more aesthetically pleasing and much cleaner than the carpet and laminate we had before. Also, we know it will stand up to our two dogs and an active child. We just love the durability.” Local flooring contractor Carolina Commercial Floorcovering donated time and services to get the install in the Boyer home completed. Raskin connected with Dan Brock, Carolina Commercial president, who handed the project over to contractor Tim

lessons learned

Why ‘infomercial RSAs’ consistently excel was recently coaching a group of retail salespeople who were new to the flooring industry. While having a coffee break, the conversation shifted to infomercial salespeople. The general tone was one of amusement at the manner in which they conveyed their particular message for the product they were currently promoting. When I inquired whether they thought this method of selling was effective, the general tone was, “It may work for them—but I couldn’t do it.” My response was if they were serious, then possibly they had chosen the wrong career path. Explaining my remarks, I reminded them of the selling basics these late-night salespeople have mastered. Let’s examine a few: Be a believer. If you want to be believed, you must first be a believer yourself. Always

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Several rooms of the Wilmington, N.C., home of Gunnery Sergeant Jeffrey Boyer of the United States Marine Corps were redesigned using Raskin’s FloorNation products.

Dupree and installer Bryan Jones. “The install was fast and easy,” Boyer stated. “In a day and a half, the main areas of our living space were done. There was minimal prep and getting the floor down seemed effortless. We love the fact that it’s made in the USA.” The Carolina Commercial team appreciated the opportunity to share in this project. “It was an honor to provide the installation for such a deserving family; they were very helpful to us during the project,” Brock said. “We would also like to thank Raskin for providing the FloorNation product that was

not only easy to install but looks beautiful as well. We know the Boyers are very happy with it.” Michael Raskin, founder and CEO of Raskin Industries, acknowledged the sacrifice members of the U.S. military make to safeguard our freedoms. “We get to live our lives and conduct business in a free society because of brave men like Jeffery Boyer and to have our floors in his family’s home is truly an honor. We are so happy to give the Boyer family a refreshed interior with floors they can count on and that are proudly made in the USA. Providing peace of mind is priceless.”

TOM

JENNINGS

urgent tone to encourage the prospect to move quickly. I’m living proof that you certainly do not have to be an “in-yourface-hard-closer” type to ask for the order. Develop your own technique. Just don’t forget to ask for the sale. Do the demo. Infomercial salespeople never make a presentation where they fail to visibly demonstrate the superiority of their product. They don’t just tell you a product works—they show you. What do you do to demo your products and services to get the customer excited? This is crucial to your sucWithout the “wow,” they SUCCESSFUL SALESPEOPLE cess. won’t be buying now. Be the difference. Let’s ALWAYS DEVELOP A STYLE be realistic—most salespeoTHAT WORKS FOR THEM. ple sell products and services that are nearly identical, or perceived as such, to those sold remember that we buy based by the competition. So how do on emotion. Is there ever a you differentiate yourself and shadow of doubt that these your firm from similar compeproduct pitch people believe tition? The answer is simple— they are selling the very best it’s you. While products may be solution to the problem at similar in the customer’s judghand? They are enthusiastic to ment—you cannot be. While a fault. Contrast this to the your product may be hard to indifference that is so prevadifferentiate, you are not. You lent among most clerks you must stand apart and be memencounter today. When we are orable. positive with our message, Successful salespeople sales always increase. always develop a style that Your job is to sell. Is eduworks for them. Don’t try to cating the customer an imporcopy their style because it tant factor in a sales presentawon’t work. It’s critical that tion? Absolutely. However, you be yourself to be perceived education is only a vehicle to help the customer make a deci- as genuine. You need to develop your own style that is comsion. Too many salespeople see fortable for both you and your the “education of the customer” as their primary goal. It target customer. What you do is not. Your job is to sell. Never want to emulate, however, are some of the techniques proven forget to create a compelling to get people off of their reason for the customer to buy now. You’ll never hear a profes- couches and reaching for their sional salesperson say, “Call me wallets. In today’s retail environment, this is more imporwhen you get a minute.” It is tant to your success than ever. always “call now.” Their voice As they say on late night televiinflections and facial expression: “Act now.” sions help create a slightly Tom Jennings is vice president of professional development for the World Floor Covering Association (WFCA). Jennings, a retail sales training guru, has served in various capacities within the WFCA.

installation

16 I September 3/10, 2018

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For underlayment suppliers, silence is golden Sound-deadening padding provides noise-control solutions By Reginald Tucker

n today’s fashion-centric world of flooring, a lot of emphasis is placed on style and design. But it’s important to not overlook what lies beneath the flooring—

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specifically underlayments. Not only can these innovative, functional products extend the life of the flooring materials they support, but they also provide numerous

benefits for end users, especially noise suppression. Following is a sampling of some of the latest sounddeadening underlayments available.

Centaur

Foam Products

Centaur Sound Reducer is a composition rubber sound-control underlayment engineered for use directly under most floor finishes. Available in 48-inch-wide rolls and a variety of standard and custom thicknesses, Sound Reducer yields exceptional impact sound insulation results, even under hard surface flooring for concrete or wood-framed construction. Sound Reducer is backed by more than 400 independent laboratory and field tests. Also available with a waterproof membrane, Sound Reducer can be installed

Foam Products introduced one of the first acoustical underlayments, The Silencer, back in the mid 1990s. Today, it produces preacoustical mium underlayments for all laminates, wood and vinyl plank flooring using the Silencer brand name. The company offers Eco Ultimate Silencer/Eco Silencer HD FOF premium acoustical underlayments for use with laminates, bamboo, engineered wood and hardwoods. They are intended to reduce noise transmission in two- to three-story residential homes, condos, apartments or other high-rise buildings. This product has acoustical ratings of up to IIC 73, STC 70 and Delta IIC 22, depending on the subfloor and installed flooring composition. These acoustical underlayments eliminate the hollow, “clicky” sounds inherent in many laminate floors.

Diversified Industries FloorMuffler Ultraseal has been the gold standard for flooring underlayment, offering the highest sound ratings in the industry for the past 14 years. The polypropylene formula used to create FloorMuffler not only provides optimal sound abatement attributes, but it also features a built-in moisture barrier. FloorMuffler is an all-in-one underlay-

under most types of grouted, glued and floating floors, including hard tile, hardwood, engineered wood, laminate, LVT and carpet. Product installs easily and is compatible with radiant heat systems.

ment for use under laminate, engineered and solid hardwood flooring and boasts IIC ratings up to (74) dB, an STC up to (73) dB and a delta IIC up to (25) dB. FloorMuffler LVT Ultraseal is also made of polypropylene. The product is 1mm thick, providing a more dense product for use under luxury vinyl tiles and planks and boasts IIC ratings up to (71) dB, an STC up to (66) dB and a delta IIC up to (25) dB.

Dri-Tac DriTac introduces DriTac 8501 RecycUL, a sound and moisture control felt underlayment for glue-down, floating and nail-down wood and laminate flooring installations. Made from 100% recycled fibers, this thick plastic moisture barrier provides enhanced acoustical abatement and can be used for the installation of multi-ply engineered plank, solid plank, bamboo and more. American made, RecycUL provides moisture vapor blocking technology, with improved foot-fall sound performance. DriTac also offers two premium-grade foam acoustical abatement underlayments: DriTac 8301 Impact for resilient floor installations and DriTac 8302 Double Impact for wood and laminate floor installations. Both provide enhanced acoustical abatement properties and a total sound reduction system when used with approved DriTac flooring adhesives.

Laticrete Laticrete Fracture Ban is a high-performance, pliable, lightweight, peel-andstick membrane designed for use under thin-bed adhesives for ceramic tile, stone and other hard surface installations. This reinforced, high-strength membrane performs as a crack isolation and an acoustical underlayment system that eliminates the transmission of stresses from the substrate, while dampening the transmission of impact and airborne noise through the floor to the room below. Laticrete 125 Sound & Crack Adhesive

Silencer LVT premium acoustical underlayment is designed for a range of vinyl plank flooring products (LVT/LVP/WPC), including the 2mm – 3mm glue-down planks used in many This apartments. underlayment has all the sound control, acoustical rating and moisture protection benefits available with the aforementioned Eco Silencer products while adding comfort underfoot when walking on the thinner vinyl planks. The Silencer LVT is extra dense to protect the thin locking edges on the vinyl planks from breaking. Foam Products’ underlayments are constructed to minimize the noise associated with hard surface flooring and are GreenGuard Gold certified. Foam Products’ underlayments are made with high-density polyurethane foam, which rebounds from applied pressure and is designed to last the lifetime of the installed flooring.

is a superior crack prevention/sound isolation adhesive mortar designed to achieve high Delta IIC ratings and independently tested to ASTM E2179. Laticrete’s 125 Sound & Crack Adhesive provides sound transmission protection while simultaneously protecting the surface finish from any cracking in the substrate. Equipped with lightweight technology and reinforced with Kevlar to provide maximum strength and durability, 125 Sound & Crack Adhesive is an alternative to time-consuming, thin-set membrane or mat combinations and allow for a more cost-effective tile and stone installation.

Shaw’s Sound Advisor tool quantifies noise levels DALTON—Shaw Industries has introduced Sound Advisor, an innovative, patent-pending tool to quantify the impact that ceiling and floor construction (as well as flooring and underlayment selection) have on room acoustics. This web-based tool helps users make more informed design and interior product selection decisions. According to Jay Henry, director of innovation at Shaw Industries, Sound Advisor brings

more science-based decision making to building design, room design and product selection. The company’s research-centric approach aims to shape how its teams advise designers and facility managers through product selection, and how Shaw develops innovative products. “Floor covering and other products are labeled with an IIC rating; however, IIC ratings on a product are not enough,” Henry noted.

“They don’t tell the whole story.” Building certifications now take acoustics into account when evaluating a space's impact on human health and the environment. The U.S. Green Building Council LEED v4 includes a focus on airborne sound and in-room sound for commercial buildings, schools and healthcare facilities. The International WELL Building Institute has set benchmarks for the numerous ways a building and

its systems can support human health and wellness, including sound abatement. “Recognizing this gap in the marketplace, we’ve conducted extensive testing to provide an estimated IIC rating based on specific floor and ceiling construction, paired with flooring types and installation methods where underlayment is and isn’t used,” Henry explained. “This testing produced not only an IIC number but a sound

file that allows a user to actually hear the difference.” Shaw’s new Sound Advisor tool can be currently accessed via the following branded sites: •Patcraft: patcraft.soundadvisor.com •Philadelphia Commercial: philadelphia.soundadvisor.com •Shaw Contract: shawcontract.soundadvisor.com •Shaw Floors - Multifamily: multifamily.soundadvisor.com

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MP Global QuietWalk Plus, MP Global’s signature underlayment, literally does it all. It is versatile in its application and can be used under floating, nail-down and glue-down floors. QuietWalk Plus is made from recycled fibers in a patented process that offers excellent sound reduction at a very affordable upgrade option when compared to cork and rubber options. The product is popular in high-rise multifamily applications as it helps diminish the transfer of impact and airborne noises from traveling to rooms below. IIC ratings are 71 dB and STC 66). QuietWalk Plus also boasts a factory-

QEP Roberts Consolidated Industries, a division of QEP, offers SoundBarricade Universal Sound Control Underlayment featuring advanced rubber foam technology that delivers enhanced sound absorption and antimicrobial protection. The ratings are IIC 69, STC 63, Delta 25 under luxury vinyl tiles and plank, and IIC 68, STC 63, Delta 22 under laminate and wood products.

Schönox Schönox TS improves impact sound insulation by up to 17 dB. This impact sound insulating underlayment is available in a thickness of just 1⁄8 of an inch. Schönox TS is made of cork and recycled urethane granules for sound reduction and provides additional thermal insulation as well. It is suitable for installation under resilient floor coverings such as vinyl and cushioned vinyl or carpet. It’s also made for all wood flooring, floating laminate floors or on wood substrates such as plywood, oriented strand board or well-bonded floor coverings such as ceramic.

September 3/10, 2018 I 17

attached vapor barrier, which protects hard surface floors against harmful moisture emissions found in concrete subfloors. Insulayment, a cousin to QuietWalk, is made from the same recycled materials, but is denser and offers more support under glue- and nail-down hardwood applications. It has good sound ratings as well and boasts an FIIC of 60 and STC of 53, making it suitable for multifamily and single-family dwellings. Due to their fiber makeup, both Insulayment and QuietWalk products inherently offer insulation value, and there are no harmful off-gassing or VOCs. Furthermore, the products are GreenGuard certified.

WE Cork WE Cork’s latest addition to its family of sound-control products is WECU SilentlyLVT, a high-density rubber and cork underlayment specifically designed for use under glue-down LVT. WECU products are ideal for use in single-family homes as a better and best upgrade under flooring for step sound within the room as well as transmitting sound from rooms above. WE Cork has also test results using the DELTA IIC ratings, with performance up to Delta 26. WE Cork’s cornerstone product is WECU-Soundless (1⁄4 inch) and Soundless+ (1⁄2 inch), one of the most dense cork under-

layments on the market. It is ideal for use directly under ceramic tile and stone with an IIC rating of 53 dB, based on laboratory testing for 6-inch concrete structure (without suspended ceiling) and one of the highest performing products on the marWECU-Soundless ket. products also meet or exceed building code requirements in wood-joist buildings for use under hardwood and stone flooring. WE Cork also offers Warm&Quiet (1⁄8) and Warm&Quiet+ (1⁄4), a medium- density product line for use under hardwood and carpeting. WECU-Warm&Quiet+ provides an IIC 59 rating under hardwood and significant thermal insulation as well.

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lisbiz strategies

Fall season Continued from page 1

Info-based dialogue sets sales process in motion

T

here are various types of conversations we all use to function in everyday life. When attempting to converse, whether person to person or in a group or organization, it is essential to understand the different types of conversations and how each type functions. Informational conversation is what most people would define as conversing. It is the type of conversation that “gets beyond the gate keeper,” and this is important when it comes to establishing a level of trust or rapport before making a sale. Informational conversation concentrates on exchanging facts and/or pieces of common information. These facts can be correct or incorrect but, most importantly, they are free of opinion or feeling from either of the participants. It is a low-risk conversation in that it reveals little or nothing about those

LISBETH

CALANDRINO

the organization, the person answering the phone should reply courteously, “I can get them on the line in just a minute if you are willing to hold.” He then should wait for a response. If the caller agrees to hold, the employee should set the phone down with the speaker directed away from any noise and quietly get the person the caller is waiting for. If the business has phone extensions, he can easily transfer the call to the correct person and thank the caller for waiting. Advising your sales associate to stop talking may counterintuitive to ADVISING YOUR SALES ASSOCIATE seem making a sale, but many salespeople often talk TO STOP TALKING MAY SEEM excessively and fail to COUNTERINTUITIVE TO MAKING A listen to the customer. We often feel that we SALE, BUT MANY SALESPEOPLE need to control the conTALK EXCESSIVELY AND FAIL TO versation, or we will lose the sale. However, LISTEN TO THE CUSTOMER. the problem with constantly talking is you are involved. unable to truly understand the The basic, informal “hello” underlying needs of the cusgives a clear invitation to begin tomer. an informational conversation. When qualifying a prospect, It acknowledges that someone is you are evaluating whether or responding on the other end of not she is in a position to decide the phone in a polite and direct to buy your product. If you are way. If the person smiles when talking to someone in an organisaying “hello,” the person on the zation, it is important to speak other end will hear the friendlionly to the person who has the ness in the speaker’s voice. authority to finalize a purchase. A more formal greeting If the person is not authorized could do more to orient the to make a deal with you, then caller into the conversation. find out when the person who Saying the company name first can close the deal is available gives the caller a better idea of and call back. whom she is speaking to—for Once you have the person example, “Discount Carpet, with authority on the line, Hillcrest branch, this is Juan, the inquire if he or she has the manager speaking.” The caller is means to close the deal. This able to confirm she is calling the may involve finding out inforcorrect place and speaking to the mation about available funds on person who can effectively deal credit cards, lines of credit and with her problem. monthly budget. Informational If the caller requests to conversation is a great way to speak with someone else within get the ball rolling.

Lisbeth Calandrino has been promoting retail strategies for the last 20 years. To have her speak at your business or to schedule a consultation, contact her at [email protected].

in western Pennsylvania as well, and the summer was no great shakes, either. All the more reason why Mike Foulk, owner of Foulk’s Flooring America, Meadville, Pa., is ready for a bounce back during the fall selling season. “Late summer has slowed on the retail side with vacations and anticipation of schools starting. The fall shows promise of coming back as product sales promotions go into effect.” Foulk said Main Street commercial and contract have remained strong throughout, and the LVT and ceramic segments have continued to drive demand. Chris Kemp, owner of Kemp’s Dalton West Flooring, Newnan, Ga., sees the robust activity continuing. Still, he worries retailers might have a false sense of security amid these heady times. “My concern is we could get used to the volume we are doing. I want to be ready as a company to be profitable in normal business seasons. We need to be careful not to build the machine bigger than we can feed it.” Don’t tell that to Rob Elder, owner of Hiller’s Flooring America, Rochester, Minn., who doesn’t mind if the good times keep rolling. “The fall season is off to an unbelievable start—we are coming off the biggest August

Tarkett Continued from page 1

acquisition as mutually beneficial. “The overall direction of the branding and bundling pos-

in the store’s history by far, and September is starting off right where August left off. The LVP category is still doing incredible numbers. The economy is strong, and our customers are confident with it and excited to spend

Flooring dealers agree LVP/WPC continues to be the dominant product category.

money on their homes.” Some retailers worry that the pent-up demand that finally seems unleashed could be threatened by tariffs on Chinese vinyl products. “The only concern I have is the pending tariffs that could put the brakes on LVP,” Bertrand said. Barrington Carpet’s Phillips agreed, adding, “My main concern for the near term is the potential 25% tariff on imported flooring products from China and how that could hamper the over-

sibilities together will be very exciting,” Leah Ledoux, vice president of corporate commercial strategy, told FCNews. “You take Lexmark residential carpet, which is very strong, and

all dominance of this category.” Beyond tariffs, there are other issues retailers are facing on a local level. For example, at Montgomery’s CarpetsPlus Color Tile, with three locations in southwest Florida, the issue is the persistent red tide (the normal, seasonal occurrence in southwest Florida). But this year’s red tide has persisted since last November, making it the worst bloom since 2006. The problem has killed off marine life, kept tourists away and hurt the economy. “The red tide has definitely affected our area and some of our snow birds will not be returning,” said Missy Montgomery, manager. “However, our fall compared to spring and summer will be up since we still have a very large customer base for fall and winter. We do the majority of our business in those months, being that we are in Florida and we have a large retirement community.” Sam Roberts, president and owner, Roberts Carpet & Fine Floors, Houston, was hesitant to give a prediction on the fall season but offered this: “I’m a terrible source for prognostication.” But product trends are another story. “Sophisticated patterns in carpet; wide and long white oak hardwood with low luster and little distressing, and the continued strengthening of the LVP category are some pretty clear trends at our stores.”

the brilliance of Tarkett on style and design—the ability to cobrand is very powerful.” Ledoux said Lexmark has other advantages that are enticing to Tarkett. First, it is an American manufacturer; second, it has a relationship with the big hospitality brands (including Marriott) that Tarkett wants to go after. “It will be great for both sides,” she said. Once completed, the purchase will mark Tarkett’s third acquisition of a carpet producer in less than seven years. In September 2012, Tarkett acquired Tandus Flooring (now Tandus Centiva) in a move that allowed Tarkett to expand into the commercial carpet business in North America and Asia Pacific. Two years later, Tarkett acquired Dutch carpet maker Desso from Bencis Capital Partners. With that purchase, Tarkett became a dominant supplier of wall-to-wall carpet for offices, hotels and other public spaces in Europe. The combination of Tandus and Desso also gave Tarkett the ability to provide commercial carpet solutions to all customers worldwide.

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22 I September 3/10, 2018 Continued from page 1

NEGOTIATOR

Award in 2010 to recognize and celebrate those people who have not only made significant contributions to the floor covering industry but, more importantly, worked toward its betterment and made a difference over a sustained period of time. Simply stated, the award is intended to recognize service and leadership that is of a scope and duration to be considered a lifetime achievement. Passionate. Relentless. Skilled negotiator. Loving. Those are some of the attributes that Rite Rug customers use to describe Michael Goldberg, who has been running Rite Rug for the past 29 years.

The journey Goldberg’s father, Duke, and uncle, Stanley, started the company in 1934 selling linoleum pieces, tile and used rugs. By the time Goldberg was 15, he was ready to embark on his flooring career; by 1969, he was working full time running the company. When he was drafted into the U.S. Army that year, his sister, Janet, stepped in to keep the operation going. After Goldberg returned from service in 1971, he picked up where he had left off. In 1981, his father bought out his uncle; and in 1989, Goldberg assumed ownership when his father passed away. In the subsequent years, the has undergone business unprecedented growth as it seamlessly navigated through

Mickey Goldberg, left, COO of Rite Rug, with Michael Goldberg, his father.

the ebb and flow of economic cycles and recessionary pressures. In the mid-1990s, Rite Rug had grown to be an impressive $40-million business operating almost exclusively in Ohio.

Don Maier, CEO, Armstrong Flooring “Our friendship is built on a solid foundation of trust. I think we speak at least once a week and get together in person several times a year. It’s a relationship that has benefited me personally and has also allowed Armstrong Flooring to grow along with Rite Rug. With Michael, what you see is what you get. You always know where you stand and what the score is when you engage with him. While he is one of the best negotiators I have ever met, he does this with great transparency and integrity. His primary focus is being a passionate advocate for Rite Rug. To accomplish this, he works very hard to establish deep connections with his suppliers and their leadership.”

Ten years later, it was a diversified $80-million business operating out of 11 states and 32 locations. During that time, it expanded from its retail roots into new construction, commercial, property management, floor care/maintenance, on-site hardwood staining and refinishing, window treatments and tothe-trade wholesale divisions. Much of that growth has come organically rather than through acquisition. Similarly, Rite Rug has hired and groomed its own top employees who have grown into division leaders and presidents in their own right. Mickey Goldberg, who serves as chief operating officer at Rite Rug, has this to say about his dad: “He has the ability to evolve his management style, from being a micro-manager to a macro-manager. He lets people grow. Even if he knows they are going to walk into a wall, he allows them to do it so they can learn from it. If he told every person how to run their business, then they are not going to grow.” Mickey Goldberg agreed with the general consensus among supplier executives that his father’s zest for the business—even at an age (70) when many others would have retired or at least slowed down signifi-

cantly—is unparalleled. “His passion for this business is second to none,” Mickey told FCNews. “I personally don’t want him to retire, I don’t think it would be good for his health. He is in a great place where he can continue to provide effective management for this company. He is very active at 70, and his mind is sharper than ever.” Industry executives who have supplied products to Rite Rug for decades, and who know the operation intimately, said the retailer is staffed with as deep a bench as any flooring operation. In many cases, these are men and women who began their careers at Rite Rug, were given a chance and seized the opportunity. People like Kurt Helfant, chief financial officer, and Erin Appleman, president of retail, marketing and merchandising, have spent nearly a generation at the Columbus-based business, steadfastly working their way up the ranks. “Michael allows us to take ownership,” Helfant said. “He wants us to act as entrepreneurs, to run it like it is our business. He is not afraid to change.” Helfant recalled how proud Michael Goldberg was to take over the business from his father; to Michael, being a good steward of the business, to nurture and grow it into the success it is today was very important as he continues to burnish the family legacy. “Michael has taught so many people in this industry,” Helfant said. “He is a legend in this business.” Appleman echoed that sentiment, drawing on her own experience: “He allows you to make mistakes because that’s part of the learning curve.”

David Holt senior VP, Mohawk

COACH

Goldberg

“Michael and I have a respectful relationship of each other’s talents; we are firm where we have to be firm. We don’t mind the hard conversation. I would consider us fair to one another— tough but fair. Michael has a team approach to running his business. It is not about Michael Goldberg; it is about Rite Rug. And he has hired some really talented people to run his business segments. He trusts them and holds them accountable to make decisions. Michael gets very emotional when he talks about his company, his family or his employees. They love his leadership and he will do anything for them.”

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24 I September 3/10, 2018

Vance Bell, CEO, Shaw Industries

unning one of the largest and most influential flooring enterprises is only one aspect of what makes Michael Goldberg a uniquely qualified recipient of the FCNews Al Wahnon Lifetime Achievement Award. For decades, he and his company have worked for the betterment of the surrounding community. In fact, Rite Rug has been a vital part of the Columbus metro area for more than eight decades and remains a major donor to several worthy causes.

“Michael can certainly be ‘colorful’ in his negotiating approach and vocabulary. Many of our interactions have often included disagreements and arguments but almost always a resolution. Michael fights for what he believes is right for his business—and that has always included maintaining and supporting his key supplier relationships. He is ultimately loyal to the key suppliers of his business as he understands how important those relationships are to make his business successful. I admire Michael for how he has built Rite Rug into a retail powerhouse in the industry. He has always been loyal to his business and is a relentless worker and thinker—a student of the industry.”

In good company Michael Goldberg joins an impressive list of Lifetime Achievement Award winners. Past recipients include Sandy Mishkin, president of CCA Global Partners; Don Miller, CEO of Roppe; Ralph Boe, retired president of Beaulieu America; Don Finkell, founder and CEO of American OEM and former CEO of Anderson Hardwood Floors; Jeff Lorberbaum, chairman and CEO of Mohawk Industries; and Pierre Thabet, founder and CEO of BoaFranc, maker of the Mirage brand of hardwood flooring.

• Ohio State University James Cancer Clinic. The mission of this world-class healthcare enterprise is improving the lives of cancer patients. It is one of only 40 institutions in the U.S. designated by the National Cancer Institute as a comprehensive cancer center. • Columbus Zoo and Aquarium. This non-profit zoo has a worldwide reputation. It is home to more than 5,000 animals representing in excess of 700 species and attracts 1.8-million visitors annually. Rite Rug recently funded the animal hospital there. Among the charities Rite Rug supports: the Columbus Humane, Columbus Jewish Federation and Ohio State

University Veterinary Hospital. The benevolence stretches beyond local needs. In 2017, Goldberg coordinated a product donation of more than $300,000 to the flood victims in Texas and Florida. This donation has helped hundreds of families rebuild following the catastrophic hurricanes. Rite Rug also generously supports the Special Operation Warrior Foundation. This organization was founded in 1980 to provide college scholarships and educational counseling to the surviving children of Special Operations personnel killed in the line of duty. It was founded after the daring attempt to rescue 53 American hostages in Iran, which ended in the tragic loss of eight servicemen who left behind 17 children. A promise to take care of those 17 children has become the noble mission of the Special Operations Warrior Foundation to educate over 1,200 children. It also provides immediate financial assistance to severely wounded and hospitalized special operations personnel.

DECISION MAKER

R

Among the entities closest to his heart: • The Wexner Center for the Arts. This is considered one of the premier modern art galleries in America. Wexner offers many educational opportunities for families and expands children’s cultural horizons.

FIGHTER

Making a big difference

Wade Verble, business development VP, DriTac “Michael is a leader and key decision maker for Rite Rug. He is a very strong, forthright negotiator who knows the industry inside and out. He is always well apprised of any situation he is involved in and very knowledgeable about adhesives and installation solutions. His ability to stay on top of industry changes coupled with his wealth of overall flooring knowledge make Michael an industry leader.”

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“I am very impressed with what Michael has been able to build in our industry—but then again, who would be surprised if you knew Michael? A fierce competitor, shrewd businessman with an eye for product and a drive to excel, it doesn’t surprise me he became the successful entrepreneur he is today. Michael deserves this Lifetime Achievement Award to the fullest. He’s an industry icon and a great example to many how hard work and dedication pay off.”

school and part new school. “I compare him to some of the old-line retailers like Marv Berlin. He knows exactly what he wants and has a plan to get it. He is very focused, very aggressive, understands his business model and executes it very well. He knows what he wants and knows where he wants to be.”

On the other hand, Bell said he keeps up with the latest innovations—product or otherwise—and is always keeping his stores fresh and vibrant. David Flaum, former president of the Ohio distributor CDC, agreed that Rite Rug’s strengths and accomplishments today can be traced to Goldberg

John Cousins SVP, SSCs, Field Sales, Dal-Tile “Honesty, fairness and respect define your success in life and business, and that best exemplifies what Michael Goldberg is all about. Thank you for your mentorship, guidance, great friendship, wonderful humor and support over the years. It is a true pleasure to recognize and celebrate together your outstanding accomplishments.”

“and his energy to challenge his distributor and mill partners to come up with the most competitive program he can get behind to drive sales.” Like many, Shaw recognizes the importance of doing business with Rite Rug. “Rite Rug is a bellwether account in Columbus and the other areas in which they do business,” Bell said. “So it’s always important to have your product positioned with him. He likes us, and we do a good job servicing him. Michael is more than a good customer; he is a good friend.” Multiple roads to growth For most of its 84 years, Rite Rug was a large and successful seller Continued on page 28

James Lesslie, president, commercial Engineered Floors LEADER

W

Piet Dossche president, USFloors

MOTIVATOR

hen suppliers and distributors talk about their business experience with Rite Rug, they invariably invoke the name of Michael Goldberg. That’s because so much of Rite Rug’s legacy stems from Goldberg— his passion, business acumen, vision and willingness to take risks in transforming a carpet retailer into a multi-dimensional flooring enterprise. “I admire Mike Goldberg for taking over a successful business that his late father built into a significant size, and then taking it to an entirely new level of business,” said Jeff Meadows, senior vice president, residential sales, Mohawk. “I’m sure Duke Goldberg would be very proud of his son.” Tom Lape, president of Mohawk Residential, said he was reminded of a quote by a famous English novelist that applies to Goldberg. “When asked about the secret of his success, Charles Dickens responded, ‘Whatever I have tried to do in my life, I have

tried with my heart to do well.’ This statement also reflects the reason Michael Goldberg has led an enduring business for so many years,” Lape said. “Michael pours his heart and soul into Rite Rug. The same passion he has for his business he has for travel and his art collection. Michael is direct; he’s a skilled negotiator and he’s tough. However, when he makes a commitment, he lives up to that commitment. Business is never easy, but it takes heart to do well.” Vance Bell, CEO of Shaw Industries, has been doing business with Rite Rug and Goldberg for nearly 30 years. He says the one thing that separates Goldberg from other retailers is that he is part old

MENTOR

By Ken Ryan

COMPETITOR

Rite Rug suppliers laud Goldberg’s leadership

“Michael has a unique management style that allows him to continue to be successful by assembling highly motivated people focused on making Rite Rug successful. “With the recent passing of Sen. John McCain and the stories of his life, I was struck by the similarities between Michael Goldberg and Senator McCain. Both came from families with histories of success—which left big shoes to fill. Both served in the military and have a deep love for this country. Both have admitted that in their younger years they were outspoken and perhaps a little arrogant. Both are leaders who were never afraid to make the tough decisions and also had the courage to admit their mistakes. Michael has utilized his leadership skills to grow Rite Rug sales to record levels year after year.”

David Flaum former president, CDC Distributors “Michael challenges his distributor and mill partners to come up with the most competitive program he can get behind to drive sales. He is not afraid to commit to buying inventory to drive sales.”

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of flooring in the Columbus, Ohio, market. When the time came to increase business through diversification, Goldberg seized on opportunities, including acquisitions and expansions. Today, Rite Rug operates 10 divisions: Rite Rug retail stores, new construction, property management, commercial, Michael David Design Center, Rite Rug Floor Care, Flooring Distributors Wholesale, Creative Hardwood Floors, Realtor Direct and Windows Treated Rite. “Rite Rug’s strengths are similar to other enduring businesses,” Mohawk’s Lape said. “They have multiple stores leveraged among many different areas of business such as retail, builder, multi-family and commercial businesses as well as professional cleaning services. They have continued to expand into new markets, and they are customer focused.” Risk-reward approach “By diversifying their business over the years and getting into the builder and commercial markets, they have spread out

Michael Goldberg, handling carpet samples as early as age 13, is shown here in the Masland showroom at the Chicago market.

“naturally,” Flaum said, won the bet and took the 10 grand. Jay Kopelson, vice president

Michael Goldberg, left, with his dad, Duke, who helped start the company in 1934 with his brother, Stanley.

corporate accounts, of Mannington Mills, said Rite Rug’s philosophy is similar to Mannington’s. “Hire great people and let them do what they’re good at. Combine that with Michael’s business sense, and you have a winning combination. They’ve been a solid company for so many years.” Perhaps no company has had a longer relationship with Rite Rug than Armstrong Flooring, which stretches for several decades, according to Steve Staikos, general manager, hardwood brands portfolio, Armstrong. Staikos said Rite Rug has built the success of its company on the pillars of focus and customer service. “They are diversified in multiple markets, which gives them a competitive advantage. They have also built their brand with aggressive advertising and promotion.” Staikos shared an anecdote he feels best exemplifies the

DELEGATOR

Continued from page 26

the risk of any one market being down,” Meadows added. This risk-reward approach has earned Goldberg a legion of admirers among his suppliers. “Michael is a businessman who is committed to—and passionate about—his company,” one supplier said. “He challenges us to be our best, and if we deliver he rewards us with business.” To illustrate Goldberg’s risktaking flair, Flaum recalled an episode where Goldberg was negotiating a deal with a manufacturer. Goldberg and the manufacturer’s vice president of sales went back and forth negotiating over $10,000 in advertising money. At some point, Goldberg stopped the haggling and challenged the vice president to “flip for it.” Goldberg,

kind of business partner Rite Rug is. As he explained, “A few years ago, many flooring companies were looking to China for less-expensive wood imports, but Rite Rug elected to focus on quality and service. Even though many importers continue to offer deals, Rite Rug continues to believe in the quality and performance of Armstrong products.” Other business partners attest to Goldberg’s approach. Midwestern distributor GilfordJohnson Flooring has been doing business with Rite Rug for more than 10 years, and the experience has left an indelible mark on the company. “Our experience with Rite Rug has been very pleasurable and rewarding,” said Rob Purkins, senior vice president of sales. “They’re a forward-thinking company that’s doing what it takes to thrive in a changing economy.”

Jay Kopelson VP, corporate accounts, Mannington “He hires great people and lets them do what they’re good at.”

Scott Rozmus president/CEO, FlorStar Sales ARCHITECT

Leadership

“Several things impress me about Michael. He is relentlessly focused on growth. He values talent, retaining talent and pushing responsibility down into the organization. Michael is candid. Listening to and analyzing feedback from his organization helps make us better because that feedback is centered around providing the best value for customers.”

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TEACHER

Jamie Clingan EVP, sales and marketing, QEP “Michael’s perseverance in growing the business over the years is clearly attributable to never wavering from his beliefs. He trusts his vendors to be honest and supportive, just like he is with his own customer base. In my very first meeting with Michael, I was there to sell him; however, when I left I felt like I was the one who learned more from our meeting, both from a professional and a personal aspect.”

Humorous recollections ichael Goldberg is not only regarded for his business acumen, charitable generosity and genuine concern for his employees and industry part-

M

So much for safety One year I was on one of those DuPont trips. Tim Baucom (currently executive vice president, Shaw residential division), was my DuPont rep at the time. So DuPont invites me out to Colorado. You know how they are so safety oriented. So we are going snowmobiling. I asked for a helmet and they didn’t have one. I never had driven a snow-

ners alike. As it turns out, he’s a pretty good storyteller, too. Following is a collection of some of his most notable anecdotes:

mobile before. I was real excited and tried to go as fast as I possibly could. I’m having a great time. All of a sudden, I come upon a rise and there’s this 30foot drop. I know I’m about to go into the air. I get a rush. You know, “Yippy ki-yay m&*^% f@#%*r.” I fly into the air and when I land my head hits the windshield. It breaks. I go one way, the snowmobile goes the

other way. I needed 13 stitches and my head had swollen 6 inches. Baucom never invited me on another trip. It probably scared him half to death. What you don’t know CAN hurt On one of those Trivera trips, I was out bass fishing in Florida with someone from Salem [Carpet Mills] and another guy. So I’m sitting on the boat, we’re drinking and the seats are up high. All of a sudden I fall into the water. I climb back in, we’re all laughing and I just dive back in. What I didn’t know at the time was the water was infested with alligators. Put it on HIS tab About 35 years ago, Barwick had this convention at the Fountainbleu in Miami. This is when Jack Paton and Nick Howard were running Barwick for Gene Barwick. My dad took me down there. I was sitting at the bar getting drunk. Well, I knew everything was on the Barwick tab, so I started buying drinks for everyone—not just the carpet guys but the band, the butlers, everyone. My dad almost killed me. With interest compounded daily In the early 1970s, I was on a plane to Germany for the Frankfurt Fair. There were many industry people on board: Art Black, president of Evans & Black; Joe Maffett, president of Cabin Craft; some Armstrong people, etc. I was sitting with Floor Covering Weekly editor Al Wahnon. Al and I were bored so we started playing gin. I beat him for $22 and the SOB stiffed me. I’m still waiting. Paying your dues pays dividends About 35 years ago, we had a warehouse where we had these filthy Sunoco tubes. They were disgusting inside—rat feces, mouse feces. One day, my Uncle Stanley calls me into his office. He tells me these Sunoco tubes need to be cleaned. So we take these tubes to our downtown store. The guy I was working with decided we should wear white. We got rags and cleaned them out. There was nothing I wouldn’t do. Of course, Stanley’s son worked for the company at the time and did not have to clean. He never cleaned a tube. Then again, today I own the company and he doesn’t.

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FCIF lends a helping hand he Floor Covering diagnosis of breast cancer in ments and doctor visits, Taylor is Industry Foundation 2017, she quickly realized the now in remission. She has (FCIF) is dedicated to financial burden of this disease. returned to work and learned to financially assisting those who “You never think to budget not take life for granted. “This are—or have been—affiliated for cancer,” she recalled. Her rare grant from FCIF saved my home, with the flooring industry lowered my stress level who experience cataand gave me peace of strophic illnesses, severe mind,” she said. “I disabilities or other lifestopped worrying so altering hardships. Grants much about medical bills. are awarded based on My grandkids, God and need for expenses such as the FCIF gave me the medical care, medications strength to push through and other necessities as this difficult time.” food, shelter and utilities. FCIF, with the perCampaign for a cause Melissa Taylor is a FCIF grant recipient, breast mission of beneficiaries, FCIF, with the help of cancer survivor and 23-year veteran of the recently released details generous donations from floor covering industry. of two deserving recipiboth industry and private ents who were awarded citizens, is looking to help grants through the promore people like Carrillo gram. The most recent and Taylor. To that end, case is Oralia Carrillo, the organization is runwho worked as a creeler ning its “Helping My in Dalton for 30 years. Fellow Man” campaign Now battling Stage-4 this fall with hopes to breast and bone cancer, raise additional funds for she recently completed flooring industry memchemotherapy and is takbers and their families ing medications and infu(see ad on page 30). In the sions to help slow and past year, the FCIF has treat the cancer. Although doubled its grants to famshe has health insurance, ilies, and the organization she still has hefty medical is seeking an additional FCIF has helped pay for Oralia Carrillo’s bills and household $150,000 to help reach medical travel expenses, cancer treatments, expenses that have been their goal of $650,000 for prescriptions, housing and living expenses. piling up while she has 2018. been out of work. Companies who make Thankfully, a grant from and rapidly growing cancer a pledge at the $500 and above FCIF helped pay for her medical required frequent, aggressive level by Oct. 31 will be recogtravel expenses, cancer treattreatments, so she had to take nized in several media and trade ments, prescriptions, housing time off from work as a claims show publications in the fourth and living expenses. “It has and customer communications quarter. Additional giving levels helped me to pay off my medical specialist at a manufacturing are as follows: bills and chemotherapy,” Carrillo facility. She was hesitant to turn •$1,000 – Genesis said. “FCIF is a great foundation.” to her sons for financial help, •$2,000 – Bronze Another grant recipient who adding: “Parents are not sup•$5,000 – Silver volunteered to share her story is posed to rely on their kids. It •$10,000 – Gold Melissa Taylor, a 23-year veteran should be the other way around.” •$25,000 – Platinum of the flooring industry. After her •$50,000 – Diamond After a year of rigorous treatFCIF fundraising chairman Larry Nagle invites industry members to participate in the Helping My Fellow Man campaign. Donations can be made online at fcif.org or via mail at 855 Abutment Road #2, Dalton, Ga., 30721. For more details, contact FCIF executive director, Andrea Blackbourn, at [email protected]. FCIF was chartered in 1981 by industry leaders such as Nagle, Harry Saul, Bob Shaw, Harry Saul, Walter Guinan and Al Wahnon. The FCIF board of directors includes Howard Brodsky, co-founder, chairman and co-CEO of CCA Global Partners; Keith Campbell, chairman of Mannington Mills, who serves as treasurer; and Tim Baucom, executive vice president, residential, Shaw Industries, who serves as corporate secretary.

T

marketing mastery

How to capitalize on consumer interactions very interaction you, your staff and your business have with a prospect or customer is a marketing opportunity. Like it or not, consumers get an impression of you every time they interact with your company. What kind of impression are you making with each marketing opportunity? Are you compelling them to buy from you even if you’re more expensive? Or are you showing that you are no different than your competition? Over the last several columns I’ve written, I outlined the ultimate floor marketing system, which consists of three steps: “Before,” “During” and “After.” Let’s look at how the “marketing is everything” principle applies to each step.

E

JIM AUGUSTUS

ARMSTRONG

walks into a flooring store, too many dealers think only of the sales process itself. Yes, that’s vitally important, but here are other things to consider: Is your showroom clean? Have you curated your products, or is it so jammed with samples people can hardly navigate? Testimonials. Are testimonials from happy customers visible in your showroom? Do you have display monitors showing before and after photos of installations? Are your restrooms clean? Before This step encompasses your mar- Do they look like an interior designer decorated them or keting efforts to attract new cusmore like a gas station restroom? tomers. When most dealers Do you show hospitality to think of attracting new cuswalk-ins? Do you provide them tomers, they think of their webwith a beverage menu with difsite, TV, radio, pay-per-click, social media, etc. That’s true, but ferent drink options? Do you put cookies or fresh bread out front? it’s incomplete. Here are some Do you conduct a full diagother considerations: nostic review while in the customer’s home? Do you LIKE IT OR NOT, CONSUMERS inspect your customer’s vacuum, walk-off mats and floorGET AN IMPRESSION OF YOU cleaning products? Do you give her written recommenEVERY TIME THEY INTERACT dations on getting the longest WITH YOUR COMPANY. life out of her floors? How is your phone answered? I’ve called a lot of dealers and had the name of the business grunted at me by the person answering. Make sure your phones are answered in a way that makes people feel welcomed and creates differentiation from your competition. What does the outside of your building look like? Is your signage clean and free of cobwebs? Are your business vehicles clean? Or do they look like rust buckets? During This next step is what you do during the sales process to create differentiation, position yourself as a trusted authority and close more sales. When a consumer

After This final step is what you do after the installation is complete to create a stream of repeat and referral business. Do you communicate with your past customers? Do you send out a monthly printed newsletter? Do you send them a weekly e-newsletter? Do you have a referral program? Do you reward and thank customers for their referrals? Do you have customer appreciation events? Do you have an annual Christmas party or a summer barbecue in your parking lot or local park? If every month you implemented one of these strategies, in under a year you’d have them all in place, and you’d create a massive advantage in your market.

Jim Armstrong specializes in providing turnkey marketing strategies for flooring retailers. For a free copy of his latest book, “How Floor Dealers Can Beat the Boxes Online,” visit BeatTheBoxesOnline.com.

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ASSISTANT TO THE PRESIDENT/BUSINESS ADmINISTRATION KOSTER American Corporation, Virginia Beach, VA

Responsible for managing assigned business operations projects. Facilitate daily operations through scheduling, planning, and organizing work, clearly communicating goals, and ensuring that all staff are familiar (and in compliance with) the appropriate standards and procedures. Minimum of 4+ years of flooring, waterproofing, or concrete related construction industry experience is required. Contact Howard Kanare at (757) 425-1206 or [email protected]

SALESPERSON WANTED M-D PRO, a subsidiary of M-D Building Products, has an immediate opening for an energetic salesperson to manage the North Eastern U.S. territory consisting of Washington, D.C, Maryland, Delaware, New Jersey, Massachusetts, Connecticut, West Virginia, Eastern Pennsylvania, New York,Rhode Island, Maine, Vermont, and New Hampshire. This qualified person will be selling to Floor Covering, Ceramic and Sundry Distribution representing all product lines within the M-D PRO offering including PROVA Ceramic & Stone Installation Accessories. Significant travel within this territory is mandatory. Floor covering and ceramic tile industry experience is required. Please detail your experience in your cover letter. Expenses, 401K, insurance, wages commensurate to experience. Send resume to: [email protected]

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September 3/10, 2018 I 35

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