Driving trade-ups is one of retail’s biggest challenges, but one that the industry overall has actually had more success with in the last couple of years than in the past, noted Yon Hinkle, product manager, Armstrong laminate and residential resilient tile. According to Hinkle, retailers who sell laminate flooring need to clarify the segment’s trade-up story. To this end, he noted, many mills have gone to a very clear product hierarchy. “Clearly call-out the key attributes for your customers that drive value while showing her how true, realistic looks differ at varying price points.”
Premium laminates often offer the most realistic looks on the market, Hinkle explained, “and are often confused with their real wood counterparts. Inexpensive laminates can’t compete in terms of visual clarity or quality. Some mills are moving away from premium products. Consumers are doing more exploration and we believe need the facts to make proper decisions”
When adding new products, he noted, Armstrong is clearly marketing the trade up and pricing for value. “We’ve targeted laminate to have the best price value equation of any product. At a lower price point we launched Armstrong Illusions and Bruce Chelsea Park—each with incredible realism but less of a cost step. When consumers do their research, these choices will be the best value for their money.”
At Mannington, Dan Natkin, director of laminate and hardwood, said laminate has become such a commodity over the years, it’s increasingly difficult for salespeople to trade consumers up.
But, it’s not impossible, he noted. There are some simple stories that will help convince her it pays to buy a higher-end product.
The first thing Natkin pointed out is styling. “Consumers, and anyone who comes into their homes, will first notice how a floor looks. And one with the most advanced styling, and most detail and character, is generally at the higher end. For example, our new Restoration Collection offers unique textured rustic and wire-brushed looks that just don’t exist at the low end.”
Secondly, he added, higher end laminates tend to be thicker. “Our Restoration and Diamond Bay collections are a full ½-inch thick—which offers a more solid sound than thinner laminates.”
From a sales perspective, Natkin said when you have a consumer at the display, “take a sample of ‘good’ category product and compare it to the ‘best’ category. There will be no denying the big difference in the way it looks.”
Also, he added, compare the total cost of the good product and total cost of the best product. “She pays the same price for installation no matter which product is chosen, so the only differential is the product itself. Pointing that out can help minimize any sticker shock.”
Fred Giuggio, vice president of the Formica Flooring brand, believes salespeople need to fully understand all the features and benefits laminate flooring has to offer. “Most customers today are price-sensitive, so up-selling is based on the benefits the product brings to her. Laminate gives her service and versatility with the look and warmth of wood without the care and needs of wood.” Because customers are more aware of their budgets, he noted, if they can get a fair price and great quality products in the looks they need for their home, they will go to the brand as the final check. “They expect the brand to give them fashion and style, which will give retailers the edge when up-selling. With Formica, the brand itself is the up-sell.”
As David Hartman, vice president of sales for Pergo noted, even though consumers are remaining cautious with their discretionary spending, they still want value and performance. “Retailers should be aware of the continued demand for premium products. For instance, Pergo’s Elegant Expressions provides an opportunity for up-selling with its exclusive design and performance innovations, as well as a lifetime residential warranty.
“The strength of the Pergo brand also reinforces quality and trust,” he added, “and we continue to work closely with our specialty retail partners to create the most strategic combination of products for their customers.”
Like the others, Hinkle believes laminate producers need to use brand power to distinguish quality products to support the trade-up story. “Great brands, such as Armstrong and Bruce, are tremendous assets; they help bring people into the store. Remember, business conditions vary, but some aspects, including brand dynamics, remain constant. Dealers make a sale when communicating a value proposition.”
For flooring purchases, an activity most consumers have little experience and low expertise, he noted a meaningful brand says, “here is a product in which you can have confidence.”
Hinkle pointed a few other ways to up-sell laminate, such as use the web even more as an educational tool; use engaging displays that are easy to navigate and demonstrate sensitivity to her preferences; displays must do more than just present goods in a stylish manner, they must help increase sales, and have high-quality products to visually show the trade-up story. Give her variety. Even if she just comes in for specific items, give her a chance to view all products in a category, or across categories in your store.
-Louis Iannaco