Greetings Floor Dealers!
During the mortgage meltdown, the massive government bailout, and sweeping political changes over the past several years, many floor dealers struggled with survival – forget prosperity! The flooring industry seriously experienced the fallout, with many dealers severely downsizing or going out of business all together.
Why it’s a mistake to simply “hope” that the economy “turns around”
I’ve surveyed hundreds of dealers across North America, and there is a lot of suffering out there. A common theme I hear is “surviving” until the economy “gets back to the way it was.” I’m here to tell you there is great opportunity for unprecedented success in the “New Economy” for those dealers who understand it, and have a plan to take advantage of it.
When facing economic ups and downs, the ideal clients are those that are affected last and least. That means the affluent. While the poor and middle class are oftentimes forced to adjust their lifestyle every time there is a burp in the economy, the affluent have the resources to sustain their lifestyle for a very long time…or at least until the economy cycles back up again. This means that they are unlikely to sell off their gas-guzzling Hummer, they will continue to pay for $5 cups of gourmet coffee from Starbucks, they will continue to play golf on the most expensive, exclusive courses, and…they will continue to buy flooring from the dealer who is a savvy enough marketer to recognize this opportunity.
Creating A Unique Experience
One principle to keep in mind when targeting the affluent in particular (and charging higher prices in general) is creating an experience for your clients. This is what allows Starbucks to charge a premium for coffee, which is a totally commoditized product. Here is a partial list of the strategies Starbucks employs to create an experience that totally differentiates them from a typical coffee shop, and therefore allows them to charge premium prices and attract high-end clients:
| Typical Coffee Shop | Starbucks |
| Décor is unremarkable | Décor sets a mood |
| Served by a waitress | Served by a Barista (expert, trusted advisor) |
| Regular or decaf | Huge range of customizable options. (Just try ordering a “Venti, half-caff, mocha frappuccino with a shot of hazelnut and whipped cream” from your local greasy spoon.) |
| Takes your order | Writes your preferences right on the cup |
| No music (usually) | Jazz, folk or other “mood” music. |
| Booths and tables—feels like a restaurant | Couches, loveseats, chess table, lamps—feels like a living room |
| No amenities | Free “Wi-Fi” |
| Nothing particularly engaging or fun | Has quizzes to win a free shot of espresso |
| Waitresses are ordinary. Nothing remarkable about them. | Designer marker board announcing “Today your Barista is…” (Positions Barista as an “expert”) Also has daily selection recommended by the Barista |
| Served in coffee cups | Served in designer cups with spiritual/motivational/inspirational quotes. |
| No upsells | Offers various sizes, shots of this or that to add to your drink, etc. |
| No social or community involvement | Touts social awareness; tons of community involvement. Perception that “they care.” |
| No merchandise | An entire line of hip, cool, fun merchandise. |
| Uses standard industry lingo; no differentiation. (Large or small sizes; coffee; waitress; etc.) | Invented/imported its own lingo; total differentiation (Tall, Venti, Grande, Barista, Frappuccino, etc.) |
What are you doing in your store to create an experience that totally differentiates you from your competitors; that creates an experience to attract high-end clients; that allows you to charge premium prices? Review the list above. How many of Starbucks’ strategies can you modify and implement into your own business?
(To be continued)
To Tons Of Customers!
Jim Augustus Armstrong is The “Coach”
Jim Augustus Armstrong is the President of Flooring Success Systems, a program that equips dealers to double their profits, cut their work hours in half and beat the boxes! Many dealers have totally transformed their businesses and their lives for the better after joining Flooring Success Systems.
See what real, live dealers are saying!