FLOORING INDUSTRY BLOG & NEWS

Running Your Business
by the Numbers

Hamster

How to escape the hamster wheel

Do you feel you are running on a hamster wheel or a flywheel? Jim Collins wrote about the flywheel effect in his seminal work “Good to Great”— Pushing with great effort, you get the flywheel to inch forward, moving almost imperceptibly at first. You keep pushing and, after two or three hours of persistent effort,…

Commercial Flooring Headwinds 7 implications

Commercial Flooring Headwinds and 7 Implications for 2021

We have worked and spoken with many commercial flooring companies and identified new business patterns having significant ramifications for owners in 2021 and beyond. Here’s a summary and the 7 biggest implications for your business.   Market Dynamics   1Q 2020 was booming before the advent of Covid.  12 months on and there has been…

carnivore salesman

Are your salespeople carnivores or cannibals?

New sales hires look great on paper.  Their resumes are packed with successes and they are a delight to interview.  You expect your sales to explode after hiring them. Our clients tell us the reality is very different. “How is it we hired 5 salespeople over the last two years and our revenues have remained…

Takeoff 1200x600

Don’t take off on the takeoff. Think about the customer first

This week’s blog is an exciting guest contribution from Jessica Harrison. Jessica is second-generation flooring and part of the leadership team at DCO Commercial Floors.  Her experience is broad and, in this blog, displays her affection for the preconstruction function of the business. There is nothing more exciting to a Preconstruction team than fresh bid…

blinspot mirror 1220x600

Your cashflow blindspot and how to avoid it

Remember our saying—Revenue is Vanity, Profit is Sanity and Cash is King? The first two are easy to measure. I’m sure you all know your revenue numbers and your profitability. But cashflow is mercurial. We all understand cash but where does it flow to? Often it doesn’t flow into the owner’s pocket does it! It’s definitely a…

gouging 1200x600

Does high margin mean you are gouging your customer?

Have you ever heard these expressions: “That price would be gouging my customer” or “That is not a fair price” or “I think we are taking advantage”? If any of those beliefs are in existence within your organization … Snuff them out. Fast! It is interesting that the people who believe “gouging” is wrong are…

trust 1200x600

How to get higher margins through stronger relationships

Anyone can submit a bid. The best salespeople submit and win bids at higher margins. Why?  Because the prospect knows likes and trusts them. The ability to command a higher margin is directly proportional to the relationship built by the salesperson.   A funny thing happened last week.  I was helping a client VP build…

productivity 200x600

How to benchmark your sales and delivery performance

The biggest cost within a commercial flooring business is labor and materials captured as COGS.  The second most significant cost is the cost of selling and completing a job. Our benchmarking has revealed: There is huge variance in this cost from company to company It is not usually tracked or managed It is a goldmine…

Matt MC

Where do commercial flooring salespeople spend their time?

The lifeblood of your business rests on generating predictable and profitable sales. So it is pretty important your sales team is on top of their game. We have been observing flooring sales teams over the last few years and have built a database of their activities.  These results are also available in our free commercial…

growth

Why do you need to grow your company?

Why do we have to grow? Unless you are a pure lifestyle business, growth is imperative. One owner put it quite succinctly: Grow, shrink or become extinct Curtis Blanton (CEO DCO Commercial Floors Some of you may be contemplating the shrink fit option.  After all, backlogs are down 15-20% across the industry. It’s only natural…

discount boxing gloves (1)

Why do some dealers bid at crazy low margins?

Why do some dealers still bid at ridiculously low margins?  It does not make any sense. Look, there is nothing wrong with a low-cost high-volume strategy. Walmart, Amazon and others are good examples. However, our opinion is crazy bidding has nothing to do with a well thought out low-cost high-volume strategy. Our conclusion is there is…

subs

How to make your subs love you

We hear two different conversations around labor. The first is largely negative—there is a shortage, they are of poor quality, they are unreliable and they don’t show up. The second is positive—we love our subs, labor is abundant, quality is never an issue and trust is high. The difference—comes down to the relationship between the…