February 16/23, 2015; Volume 28/Number 17
By Ken Ryan
As witnessed at Surfaces 2015, higher-end carpet manufacturers are upping the ante on patterns, colors and textures that are providing specialty dealers with a pathway to turning a profit.
“I noticed quite a few new products at Surfaces, and it was nice to see some changes from the normal textured carpet,” said Janice Clifton, owner of Abbey Floors Unlimited in Napa, Calif. “Anytime you have a unique product, not something that is shown at every store, you have the ability to close the sale without losing margin and make a happy, loyal customer.”
Olga Robertson, president of the FCA Network in Shorewood, Ill., said many flooring dealers are fixated on sales volume when they should be focused on margin dollars. “And the best way to boost margin dollars is to sell higher-end goods.”
Tuftex Carpets of California, the premier residential carpet division of Shaw Floors, is known for its higher-end goods, punctuated by vibrant colors, patterns, shags and cut pile products. Its 2015 introductions show the variety and uniqueness that this West Coast mill can create, according to Suzanne Zurfluh, product marketing manager.
“Whether creating a beautiful cut pile product for the builder arena or a stunning 100-ounce shag for an upscale home, our product and marketing team is always seeking to differentiate itself from the competition,” Zurfluh said. “The product team is very accustomed to designing carpet constructions that aren’t always typical or easy to manufacture. They do this by blending unique yarn combinations, creating one-of-a-kind thread-ups and being on the forefront of machine technology.”
Perhaps more than any other carpet manufacturer, Karastan has achieved an iconic status in carpet styling, color and interior design circles. Through investments in manufacturing equipment, including Karastan’s patented Karaloc woven equipment, the company is able to produce unique designs woven through the back for superior durability. Karastan also has state-of-the-art tufting equipment that allows for distinctive design with precise color placement in its Kashmere nylon products.
“First, Karastan is the only brand that offers a full assortment of wool and synthetic fiber products, including Smartstrand Forever Clean Silk, Kashmere Nylon and New Zealand wool,” said Bill Storey, Karastan’s senior vice president. “This allows us the ability to leverage the unique characteristics and features of each of these yarn systems when constructing our products and provides our retailers with a broader portfolio for trade-up opportunities.”
Abbey’s Clifton said her store is selling more wool carpet each year, with Karastan, Dixie’s Fabrica and Tuftex as the main brands. “We always sell higher-end carpet products, and even if the margin is the same, the total sale is significantly more. We also find less price shopping happening with customers looking into high-end products. They are looking for service and confidence, not just the lowest price.”
Dan Phelan, vice president of marketing at Dixie, said each of the Dixie brands (Dixie, Masland and Fabrica) targets a different customer, yet all share a common theme—to provide differentiated styling that appeals to the fashion-conscious customer and adds diversity to the retailer’s assortment. All Dixie brands use predominately Stainmaster and wool, fibers that provide superior performance, he said. Additionally, with Stain-master the variety of lusters and dye levels provide Dixie with styling tools not available in other fibers.
Phelan said Fabrica uses a color assortment that allows it to customize the vast majority of its products. “We provide product to retailers and designers in retail price points from $4.99 to $8.99. We continually invest in new tufting technologies so we can lead the way in innovative patterns and textures.”
Masland, long recognized as an industry leader in styling and design, provides design-savvy products across many segments. “Selling to the fashion-conscious customer, you have to be on your game, and Masland has a history of meeting and exceeding the expectations of this group,” Phelan said. “We have a history of investing in new technology and a willingness to mix yarns. The combination allows us to create new looks that mainstream mills have a hard time emulating.”
Kane Carpet drew retailers’ attention at Surfaces with its many new colors and designs. However, the product separation between Kane and other mills goes beyond color and design, the company said. “Whether it be putting several different yarns in the same carpet or developing different textures and feels to the touch, we have been able to blend yarns like no one else in the carpet business,” said Bruce Kurtz, vice president of sales and marketing. “As we did years ago by reintroducing the retro shag looks from the ’70s and beyond, our mission is to always be in the forefront of color and design.”
Kurtz said Kane views its carpet like artwork; by using different type yarns in thickness and color, it creates the design much like you would a fine painting.
FCA’s Robertson said it just makes good business sense for flooring retailers to emphasize higher-end carpets in their showrooms. “Let’s use this example: 900 square feet of low-end carpet that retails for $1.79 at 40% gross profit percentage equates to $644 in margin dollars, but in reality not too many retailers sell low-end carpet at 40%; it’s usually 30% or less which brings the margin dollars down to $438. Nine hundred square feet of a high-end carpet that retails at $3.99 at 30% GPP equates to $1,077 in margin dollars. At 40% gross profit you would have $1,436 in margin dollars. Just think, if you only sold good quality, high-end carpet, you could in reality do less volume and make a lot more money—with less claims and less installation headaches, which is a bottleneck to growth in many areas of the country.”