Article Number: 4226
Mohawk ColorCenter: Commitment, interaction drives aligned dealers
By Steven Feldman
WASHINGTON—They may not be the largest flooring retailers in the country, but their commitment to their businesses is as strong as any. Despite an environment that has yielded declines in event attendance across the board, Mohawk ColorCenter members came to their annual convention with a roll count nearly equal to 2007.
Credit Mohawk for supplying the tools to make attending convention a priority for members, tools that include valuable networking and educational opportunities that focus on the fundamentals of running a better business.
Tom Lape, president of Mohawk’s Residential division, believes it’s less about Mohawk and more about the quality of membership. “As much as we’d like to take credit, it’s a testimony to the dealers that they want to spend time with other dealers. Having the ability to interact when times are tough becomes a higher priority.”
He believes education also becomes more important in a challenging environment. “We upped the content and dealer benefit of our classes. We spend a lot of time working on curriculum and handouts.”
Dealers agree. Gregg Karas, Floor Covering Warehouse, Darien, Conn., told FCNews this is the most important event for him to attend year in and year out. “Mohawk has a goal to make us more successful, which, in turn, will make it more successful. Mohawk has invested a lot of time and dollars in training and seminars at these conventions. If I didn’t come, I’d feel like I was missing something.”
Karas agreed with Lape in the value of the networking with his fellow ColorCenter-ites. “After six years I’ve come to know a bunch of these people who I want to see. I always come away from these things with more knowledge and hope.”
ColorCenter members are the backbone of floor covering retail. The typical dealer does between $1 million and $2 million from one store. He is an owner-operator who has built relationships in the community. But exemplifying the “strength in numbers” theory, as a group the 1,600 members represent about $2 billion in retail sales.
Interactive format
This ColorCenter convention was a departure from past editions in that the classroom environment was scrapped in lieu of more interaction amongst members. “We rebranded the convention into a Town Hall meeting,” said Manny Llerena, vice president of retail marketing for Mohawk. “We wanted the event to be viewed as members of a community coming together to talk about issues and arrive at resolutions. A lot of what we have done is facilitate discussion among peers.”
In illustration, the primary training session focused on benchmarking, a peer-to-peer format in which members shared their experiences and came up with solutions amongst each other. Billed as a blueprint for profitability, Llerena said the value of benchmarking is not in a set of numbers. Rather, it serves as a scorecard by which dealers can isolate fundamentals like expense control and margins. “It’s more of a common language issue,” he said. “All we’re trying to do is learn from the best in class and impart that knowledge on the others.”
Mohawk refers to benchmarking as solutions training. “It gives dealers the ability to say, ‘Now that I know my financials, what are my capabilities.’” How it works: Dealers input financial information about their business online. Once they do, they can compare how similar aligned dealers are doing. Criteria include sales volume, residential/commercial/builder mix; hard and soft surface splits, etc. “Dealers can compare attributes to like dealers such as average gross margin, compensation, independent installers vs. employees, percentage of expenses to income, etc. It’s the best way to start understanding your business.”
Karas said the benchmarking exercise has given him goals. “I may be paying my employees more than other people, and my net profit may not be as high as others. I take areas that I’m bad at and find out what I did wrong so I can get good. I can also see the areas where I’m good and remember how I got there.”
Another interactive session, ColorCenter Your Way, was led by the advisory board. Designed to discuss best practices, only one Mohawk employee was allowed in the room. “ColorCenter is a program that is developed by the dealers for the dealers,” Llerena said.
Karas always takes something back to his store after three days with his ColorCenter cohorts. “The biggest thing I’ve learned is we’re all in this together,” he said. “People will share one-on-one what they’ve done to be effective. I’ve learned about ways to lower cost and improve my gross margin, like completing an energy survey of my store. We now have energy-efficient lighting.”
At the core
ColorCenter focuses on three primary principles, Llerena said:
1. Providing business basics such as understanding a P&L and how to control expenses.
2. Learning how to focus on the sale aspect vs. the buy aspect. “That is selling value over price. You can actually increase your price by selling value. And the carpet industry has been culturally conditioned to focus on the buy, so this has been a major switch.”
3. Differentiating members’ assortments from that of other retailers. “This is what allows for value-based transactions, which leads to higher margins.”
“I didn’t start looking at my P&Ls until I took Systematic Business at Mohawk University,” Karas said. “I’d been in business for five years before I started to look at financials. And I almost went out of business. Now I know my percentages, my expenses, etc. I can also do comparisons month over month. It has helped me put my dollars to use in better places.”
When it comes to differentiated products, ColorCenter members receive an array of choices. On the soft side, Mohawk continues to expand its SmartStrand Sorona portfolio. “It’s a Mohawk exclusive and continues to be red hot,” Llerena said. “We are introducing 11 new products, including berber flecks, cut pile textures, freizes and LCLs. SmartStrand provides the ultimate in stain resistance and wearability with an incredibly soft touch and is good for the environment. It’s a perfect example of a product that commands higher prices and, thus, higher margins.”
Karas has had success selling SmartStrand. “It has a story,” he said. “When the customer wants a green product, I say, ‘Well, here it is. Every seven yards of carpet saves a gallon of gas.’” He added that it was through networking at ColorCenter conventions that he took on the product. “I learned from my peers about the value of SmartStrand. Mohawk can tell me it’s good. My peers will tell me how good.”
ColorCenter dealers were also introduced to the Sorona Color Wall. “This will be a focal point of the store and will attract the female consumer,” Llerena said. The merchandiser highlights the benefits of DuPont Sorona and facilitates the process for those who need help in seeking a color.
On the hard surface side, Scotchgard wood and Uniclic are proprietary technologies that give retailers a competitive edge in price-sensitive market, Llerena said. “The benefit to the consumer is that Scotchgard is not available in any other manufacturer’s wood.” He added that Uniclic technology makes for an “incredibly easy and a fail-proof” installation.
ColorCenter retailers also reap the benefits from the WoodWorks laminate display. “Dealers who have taken this display have increased their laminate sales 23% vs. other dealers,” Llerena said, adding that it is another example of developing merchandising for the female shopper. “We put it in a wing card, which is similar to the way she shops for clothing. It allows her to see a broad assortment in a concise display. At the same time, larger samples allow her to appreciate the look and texture. It’s taking a shopper’s perspective in the way we design merchandising.”
That approach extends to the entire selling floor. “It needs to be consumer centric vs. manufacturer centric,” Llerena said. “The floor should have a cohesive feel so the consumer can focus on buying product as opposed to being faced with different looks and warranty systems, where she doesn’t know where to begin.”
WASHINGTON—They may not be the largest flooring retailers in the country, but their commitment to their businesses is as strong as any. Despite an environment that has yielded declines in event attendance across the board, Mohawk ColorCenter members came to their annual convention with a roll count nearly equal to 2007.
Credit Mohawk for supplying the tools to make attending convention a priority for members, tools that include valuable networking and educational opportunities that focus on the fundamentals of running a better business.
Tom Lape, president of Mohawk’s Residential division, believes it’s less about Mohawk and more about the quality of membership. “As much as we’d like to take credit, it’s a testimony to the dealers that they want to spend time with other dealers. Having the ability to interact when times are tough becomes a higher priority.”
He believes education also becomes more important in a challenging environment. “We upped the content and dealer benefit of our classes. We spend a lot of time working on curriculum and handouts.”
Dealers agree. Gregg Karas, Floor Covering Warehouse, Darien, Conn., told FCNews this is the most important event for him to attend year in and year out. “Mohawk has a goal to make us more successful, which, in turn, will make it more successful. Mohawk has invested a lot of time and dollars in training and seminars at these conventions. If I didn’t come, I’d feel like I was missing something.”
Karas agreed with Lape in the value of the networking with his fellow ColorCenter-ites. “After six years I’ve come to know a bunch of these people who I want to see. I always come away from these things with more knowledge and hope.”
ColorCenter members are the backbone of floor covering retail. The typical dealer does between $1 million and $2 million from one store. He is an owner-operator who has built relationships in the community. But exemplifying the “strength in numbers” theory, as a group the 1,600 members represent about $2 billion in retail sales.
Interactive format
This ColorCenter convention was a departure from past editions in that the classroom environment was scrapped in lieu of more interaction amongst members. “We rebranded the convention into a Town Hall meeting,” said Manny Llerena, vice president of retail marketing for Mohawk. “We wanted the event to be viewed as members of a community coming together to talk about issues and arrive at resolutions. A lot of what we have done is facilitate discussion among peers.”
In illustration, the primary training session focused on benchmarking, a peer-to-peer format in which members shared their experiences and came up with solutions amongst each other. Billed as a blueprint for profitability, Llerena said the value of benchmarking is not in a set of numbers. Rather, it serves as a scorecard by which dealers can isolate fundamentals like expense control and margins. “It’s more of a common language issue,” he said. “All we’re trying to do is learn from the best in class and impart that knowledge on the others.”
Mohawk refers to benchmarking as solutions training. “It gives dealers the ability to say, ‘Now that I know my financials, what are my capabilities.’” How it works: Dealers input financial information about their business online. Once they do, they can compare how similar aligned dealers are doing. Criteria include sales volume, residential/commercial/builder mix; hard and soft surface splits, etc. “Dealers can compare attributes to like dealers such as average gross margin, compensation, independent installers vs. employees, percentage of expenses to income, etc. It’s the best way to start understanding your business.”
Karas said the benchmarking exercise has given him goals. “I may be paying my employees more than other people, and my net profit may not be as high as others. I take areas that I’m bad at and find out what I did wrong so I can get good. I can also see the areas where I’m good and remember how I got there.”
Another interactive session, ColorCenter Your Way, was led by the advisory board. Designed to discuss best practices, only one Mohawk employee was allowed in the room. “ColorCenter is a program that is developed by the dealers for the dealers,” Llerena said.
Karas always takes something back to his store after three days with his ColorCenter cohorts. “The biggest thing I’ve learned is we’re all in this together,” he said. “People will share one-on-one what they’ve done to be effective. I’ve learned about ways to lower cost and improve my gross margin, like completing an energy survey of my store. We now have energy-efficient lighting.”
At the core
ColorCenter focuses on three primary principles, Llerena said:
1. Providing business basics such as understanding a P&L and how to control expenses.
2. Learning how to focus on the sale aspect vs. the buy aspect. “That is selling value over price. You can actually increase your price by selling value. And the carpet industry has been culturally conditioned to focus on the buy, so this has been a major switch.”
3. Differentiating members’ assortments from that of other retailers. “This is what allows for value-based transactions, which leads to higher margins.”
“I didn’t start looking at my P&Ls until I took Systematic Business at Mohawk University,” Karas said. “I’d been in business for five years before I started to look at financials. And I almost went out of business. Now I know my percentages, my expenses, etc. I can also do comparisons month over month. It has helped me put my dollars to use in better places.”
When it comes to differentiated products, ColorCenter members receive an array of choices. On the soft side, Mohawk continues to expand its SmartStrand Sorona portfolio. “It’s a Mohawk exclusive and continues to be red hot,” Llerena said. “We are introducing 11 new products, including berber flecks, cut pile textures, freizes and LCLs. SmartStrand provides the ultimate in stain resistance and wearability with an incredibly soft touch and is good for the environment. It’s a perfect example of a product that commands higher prices and, thus, higher margins.”
Karas has had success selling SmartStrand. “It has a story,” he said. “When the customer wants a green product, I say, ‘Well, here it is. Every seven yards of carpet saves a gallon of gas.’” He added that it was through networking at ColorCenter conventions that he took on the product. “I learned from my peers about the value of SmartStrand. Mohawk can tell me it’s good. My peers will tell me how good.”
ColorCenter dealers were also introduced to the Sorona Color Wall. “This will be a focal point of the store and will attract the female consumer,” Llerena said. The merchandiser highlights the benefits of DuPont Sorona and facilitates the process for those who need help in seeking a color.
On the hard surface side, Scotchgard wood and Uniclic are proprietary technologies that give retailers a competitive edge in price-sensitive market, Llerena said. “The benefit to the consumer is that Scotchgard is not available in any other manufacturer’s wood.” He added that Uniclic technology makes for an “incredibly easy and a fail-proof” installation.
ColorCenter retailers also reap the benefits from the WoodWorks laminate display. “Dealers who have taken this display have increased their laminate sales 23% vs. other dealers,” Llerena said, adding that it is another example of developing merchandising for the female shopper. “We put it in a wing card, which is similar to the way she shops for clothing. It allows her to see a broad assortment in a concise display. At the same time, larger samples allow her to appreciate the look and texture. It’s taking a shopper’s perspective in the way we design merchandising.”
That approach extends to the entire selling floor. “It needs to be consumer centric vs. manufacturer centric,” Llerena said. “The floor should have a cohesive feel so the consumer can focus on buying product as opposed to being faced with different looks and warranty systems, where she doesn’t know where to begin.”
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