New tariffs are causing flooring dealers across the country to worry about rising costs, shrinking margins and price-conscious customers. But instead of seeing this as a setback, the smartest dealers are using it as a wake-up call to refine their pricing, sales process and marketing strategies.
The key to thriving in this environment isn’t just about reacting to price increases—it’s about taking control of your business and positioning yourself as the obvious choice in your market. In this two-part series, I’ll cover strategies to protect your margins and ensure your business stays strong despite rising costs.
1. Focus on value, not just price.
One of the biggest mistakes dealers make when costs rise is resorting to competing on price. That’s a race to the bottom. Instead, you need to make price a secondary factor by positioning yourself as the go-to expert in your area.
Shifting the focus to value starts with education. Instead of simply quoting a price, explain why a particular flooring product will last longer, look better and save the customer money in the long run. Your team must also position themselves as trusted experts by guiding customers to the best product for their needs—not just the cheapest option. Service plays a major role in this. Customers are far less price-sensitive when they know they’re getting expert guidance, seamless installation and exceptional customer support.
2. Differentiate yourself from the competition.
If customers see you as just another flooring store, they will default to whoever is cheapest. That’s why differentiation is critical. Dealers who set themselves apart in meaningful ways don’t have to compete on price.
3. Implement a smart pricing strategy.
Tiered pricing adjustments help maintain affordability while protecting profits. Entry-level products should see modest price increases to avoid scaring off budget-conscious buyers. Mid-range products—where most sales happen—should be adjusted carefully. Premium products can absorb slightly higher increases, as affluent buyers tend to be less price-sensitive. The way you present pricing matters, too. Rather than telling a customer the total price has gone up, break it down into smaller, digestible amounts, such as explaining that an upgrade costs “just $10 per month with financing.”
4. Provide a strong sales process.
With costs rising, you can’t afford to lose walk-ins due to weak sales processes. You must make every customer count by having a structured, step-by-step selling system for your team to follow.
A strong sales process begins with a structured introduction that builds trust. Your team should ask the right discovery questions to understand the customer’s real needs, then use success stories and testimonials to reinforce the value of the product. Financing should always be offered to remove price barriers. Follow-ups must be systematized so potential buyers don’t slip through the cracks.
By focusing on value, differentiation, pricing and a strong sales process, you can protect your margins and increase sales—even in a tariff-driven market.
Jim Augustus Armstrong is the founder and president of Flooring Success Systems, a company that provides floor 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.
