THE ECONOMY'S AFFECT ON FLOORING INSTALLATION

Whether the material is carpet or ceramic makes no difference; the economy has taken its toll on the value of installing flooring materials.  Installation in years past was the number one problem cited by flooring dealers and manufacturers alike.  Today that issue has taken a back seat to low margins, which essentially means less profit for the same amount of work.  There is less flooring being sold in the residential market and therefore fewer installers are needed.  The law of supply and demand dictates that prices for installation will fall.   There are more installers than installation jobs and the dealer can haggle for the price being charged for the installation.   This in turn should make installing the material cost the end user less as well. 

There are two shortsighted concerns with this concept.  Since there are fewer installations being done the jobs that do exist should be getting installed by the most skilled installers; not the cheapest.  Every installation is a reflection of the dealers business and now is the time you have to shine in order to strengthen your business and build it.  Consumer confidence in the purchase and the installation will allow that to happen.  Consumers who are buying flooring can afford it and it’s likely they don’t want it installed by the least expensive and least experienced installers.   Concern one then is, since the consumer wants the best for a fair price, the dealer should be willing and able to provide that by insuring the best qualified installers get the work.  Concern two is most, if not all purchasers of floor covering, have no idea what the material or installation should cost.  Flooring is not a product purchased on a regular basis, like groceries or clothing.  The smart businessperson understands this and knows how to sell the right product into the right place that will perform as the consumer expects it to and also that it be installed by the best crews available.   If the installation costs the dealer $2.00 more per yard or $.22 a square foot on, for example a 100 yard job that totals several thousand dollars, and results in a trouble free installation, the cost is worth it.  The consumer has no idea what the installation should cost and they’re certainly not going to do it themselves.   The flooring dealer is more hung up on selling cheap than the consumer is on buying a product that will beautify their home. 

To avoid problems the flooring dealer has to recognize that the best installers he can get are going to make him money, not cost him.  The consumer is paying for the product and the installation.  Compare this to cars.  Dealerships hire professional mechanics and then train them continually to keep the customer coming back.  This is the same philosophy a flooring dealer should subscribe to.  If the flooring dealer can’t understand this as a business person then they have no business being in business.  In tough times consumers want more for their money and they’ll spend it with you if they know they’re getting the best their money can buy.  This is the law of business.  It has nothing to do with selling cheap or getting the cheapest labor to install the product.  In addition, you have to know how to sell to do this and the dealers who can are the ones who are not only going to survive but thrive.  Simply put, you have to give more to get more and if you know how to do this you’ll have no competition other than yourself.   Don’t try to beat up the installers to help you make more money; you’ll only be undermining your business and cheating your customer.   The economy should have nothing to do with the quality of product and service you provide the consumer.  In a down economy consumers expect more and you should understand how to provide that.