By Steven Feldman
Springdale, Utah—Twenty years after its launch, QFloors has become the second-largest flooring-specific business management software provider in the industry. With a customer list that now numbers around 1,100, QFloors has more than doubled its base in the last seven years because it helps the flooring retailer become more profitable every single day.
How? First, it’s the B2B management component, which saves retailers time and effort in maintaining their product catalogs. Then, there are the job-costing modules. “People tell us all the time, ‘I never knew whether I was making money or losing money on a job,’” said Chad Ogden, president and CEO. “With QFloors, retailers can see the job costs before they quote the customer. Then there’s the use tax calculation, which the off-the-shelf systems do not offer. Usually retailers are paying more sales tax than they should be, or paying their taxes too soon, or charging their customer too much.”
Benchmarking is another key component of the QFloors proposition. In fact, Trent Ogden, CFO, noted how he brought industry averages to one users conference and compared them with each attendee’s financials. “We found the attendees’ net profit, or their EBITDA, was 2.6% higher than the industry average. So, our average dealer makes more money by implementing our system.”
There are a bunch of flooring-specific software companies out there, but QFloors said it sets itself apart in two areas: customer service and ease of use. “I have had multiple people who have come from other industries using all kinds of software say, ‘This is the best customer support department we’ve ever dealt with,’” Ogden said. “It’s the way we answer the phone, the responsiveness. We’ve heard that over and over again.”
Ease of use is also a competitive advantage since a retailer’s fear of technology is the biggest obstacle to automation. QFloors said it conquers that barrier. “We basically have done in five screens what most people are doing in 50 or 60 screens,” Ogden said. “If you can do the same thing with the same features—but with fewer mouse clicks, fewer windows and less typing, you can do your job more efficiently, and it’s easier to train people. That’s why we can convert somebody in one week.”
He added that QFloors can also help a retailer easily produce a financial statement. “That’s not true with any other software.”
The field is ripe for growth, Ogden said, because in his estimation only 33% of flooring retailers—about 4,000—are using industry-specific software. About 6,000 are using generic programs like QuickBooks, and many are still using nothing at all.
What are some of the advantages of using flooring-specific software? The aforementioned B2B, for one. Then, there are the inventory modules. “Floor covering-specific software features square feet, square yards, cartons,” he said. “You’re not going to get that in QuickBooks. Also, job costing is more efficient. We can track labor rates and salespeople commissions.”
Ogden said the proof is in the pudding. “We’ve shown that people who are using QFloors are more profitable because everybody’s job is streamlined to make fewer mistakes, to do things faster, knowing the cost of the job before you sell it, not losing your inventory, plus the time savings with B2B. You put all that together and it equals about 2% to 3% net profit. A dealer doing $1 million a year can realize between $20,000 and $30,000 a year in greater profitability.”
Barb Clements, owner of Al’s Carpets in Rockford, Ill., is one retailer who attests to the benefits. “I wouldn’t be in business today if I didn’t have QFloors,” she said. “You don’t know if you’re winning or losing, and when you’re losing you can fix things. I know people who thought they were winning and went out of business because they were broke. It is OK to be in the negative, but you have to fix it. When QFloors did that [benchmarking]—what we should be paying for rent, etc.—my daughter said, ‘Mom, this is too much health insurance and too much rent.’ My kids got their own health insurance and we got our rent lowered. I should have done this years ago.”
We’ll Floor U, Hampton Bays, N.Y., was an early adopter of the QFloors software, coming on board nearly from day one. Diane Cullen, sales professional, said, “This integrates the whole business from the ordering to the warehouse receiving to the accounting. It streamlines the business and saves tons of time. It even organizes your inventory. It’s just a full package.”
QFloors also takes the fear out of technology for retailers by virtue of an extensive training program that begins with its new customer care department. “When we make a sale, this department will call that person and get them going,” Ogden said. “We walk them through every procedure. That’s the sole goal of this department. We also have free training videos they can watch online along with unlimited phone support. We don’t charge them for that, unlike our competitors.”
That phone support can be just as effective as an on-site visit, Ogden said. “We connect with them on our computer, so we can see their monitor and talk them through any issues. Most of our small dealers do it that way.”
JB Woodward Floors in Riverside, Calif., has been in business for 58 years, the last seven as QFloors users. Kim Wollman, co-owner, cited the simplicity of the software as well as the customer service as two hallmarks. “QFloors is so user friendly,” she said. “The whole process from an invoice to your purchase order is so simple. It makes my job easy to the point where I can move on to other things.”
Wollman also said the accounting aspect of the software has made a huge difference in the business. “Before we were doing all our own accounting and had to wait for our accountant at the end of the year to see those numbers. Now, we can see them whenever we want.”
She also said the pricing is more than fair for all QFloors offers, citing the customer support and training. “Also, it’s so easy to teach; there is not a steep learning curve.”
