2024 has been much slower for the flooring industry than the previous three years, a period I have dubbed the “COVID-19 Boom.” When the lockdowns first took place, I instituted weekly group teleconferences with my Flooring Success Systems members to help them implement strategies to get customers in the midst of severe limitations placed on businesses by the federal government. Within 90 days something happened that no one saw coming: a massive spike in the remodeling sector, including flooring. The emphasis of those teleconferences quickly switched from “How do I keep my sales up” to “How do I handle the onslaught of customers.”
During this time, I warned dealers that the boom would not last, to avoid complacency, and to prepare now for the inevitable downturn. I advised dealers to put very specific systems in place to drive sales; systems which continue to work even during severe market downturns. I recommended that dealers not totally rely on typical advertising—digital or otherwise—which becomes much less effective when the market slows.
Many dealers are sitting on their hands, simply waiting for market conditions to improve, maybe hoping the Fed reduces interest rates soon so sales will pick back up. For those of you who are waiting and hoping for the Feds to take action: What if the Feds don’t lower interest rates? What if they lower them, but not enough to make a difference for your business? What if they lower them a lot, but you don’t see the effects for a year? Or three years? What if another black swan event (e.g. a pandemic, another war, an assassination of a presidential candidate, etc.) happens that causes severe economic disruption and keeps the flooring market suppressed?
When I entered the flooring industry in 2007 we had an installer shortage crisis. We still have an installer shortage crisis. Yet most dealers are not taking steps to solve the issue in their own business, choosing instead to wait for the “industry” to fix it. We have a worker shortage that’s affecting most industries, including flooring. Most dealers are not being proactive in implementing strategies (many of which I’ve outlined in this column) to recruit and retain top talent, and instead seem content to shrug their shoulders and say, “Nobody wants to work, what can you do?”
All of the above challenges are real. The flooring market is down. There aren’t enough installers. It’s tough to find good employees. The future is unpredictable. And these challenges cause real problems and pain for flooring dealers. I’m not saying they don’t. What I’m saying is that you have two options when facing these or any major problem: 1) Do what the majority does and wait and hope things get better on their own, or 2) decide you’re going to part ways with the majority. That you’re not going to wait and hope things go your way. That you’re through letting outside circumstances determine your success or failure. That you’re going to be proactive, get creative and do what it takes, even if it’s outside your comfort zone. That you’ll MacGyver your way to success if you have to. Dealers who make that decision will be the ones who prosper, regardless.
Jim Armstrong is the founder and president of Flooring Success Systems, a company that provides flooring dealers with marketing services and coaching to help them attract quality customers, close more sales, get higher margins and work the hours they choose. For more information, visit FlooringSuccessSystems.com.
