July 23/30, 2012 News 3 Sturrus steps down, Babula takes lead Clarion Industries names new president, CEO By Raymond Pina [Shippenville, Pa.] Tony Sturrus announced he was stepping down as president and CEO of Clarion Industries, a vertically integrated manufacturer of particleboard and laminate flooring, based here, on July 25. The board of directors at Clarion Industries appointed Mike Babula, a fellow investor in Clarion Industries and former vice president of sales and market- Flooring America: Focus on referral business By Raymond Pina [Orlando, Fla.] Nearly 350 Flooring America/Flooring Canada members gathered here July 9th for its annual summer convention. The group focused on its Fast Phase II program that combines locally aimed TV and radio spots, web-based technology and training to increase its referral business through online testimonials and old-fashioned word of mouth. “It’s becoming more difficult to win the hearts and minds of customers with traditional advertising,” said Keith Spano, president, Flooring America. “Word of mouth is track able and inexpensive. Our Buzz Advertizing campaign is a new way to stay top of mind with our customers and getting people to talk about our products and unique services.” Supporting the strategy is data from Reuters, highlighting that 70 percent of customers con- ing, to succeed Sturrus. “The company is moving into another stage of development and it requires a leadership change,” said Sturrus. “I approached our board a year ago with a plan to create a deeper, more technical managemen t team internally and Mike was the best prospect based on experience and knowledge of Tony Sturrus Clarion and its customers. That plan put us in a place where Mike is now president and CEO. Our business has a solid foundation and I’m confident in Mike. I’m leaving my invested capital in the company.” Sturrus said the transition will allow him to focus on other business interests and his family. Sturrus and Babula were sult online reviews or ratings before making a purchase while 92 percent of consumers value word-of-mouth testimonials over advertising. What’s more, the study revealed 75 percent of consumers mistrust advertising. Guest speaker Andy Sernovitz, author of Word of Mouth Marketing, suggested members send free emails for friends and family sales instead of spending thousands of dollars printing out fliers. He also keyed in on unique services and products, such as flood proof vinyl floors, that are easy to remember and discuss. And, Sernovitz stressed the importance of searching the Internet for any comments about their stores — thanking those who commented favorably and apologizing and seeking solutions for those with negative comments. Dealers who sign up for the $87 per month Fast Phase II program receive a free iPad featuring an application to help consumers fill out testimonials as well as a system that automatically filters testimonials to members homepage, Facebook, Twitter and other social sites. The Build the Buzz campaign is also being supported by TV and radio ads featuring family and friends referrals to locally-owned Flooring America or Flooring Canada locations. “Our customers know they want a new floor but not much more beyond that,” said Marcia Hewey, direct of marketing, Flooring America. “Now we can leverage the words of her friends and family who have already been through the process. We’ve also added more diversity to our ads with different ages and ethnicities.” among a group of investors that purchased Clarion Industries from Tarkett for $26 million in 2009. With Tarkett as its original sole customer, Clarion Industries now supplies OEM laminate flooring to a number of the industry’s leading suppliers, distributors and retailers. Prior to joining Clarion Industries Babula served as president and CEO of Franke, a leading international supplier of kitchen systems. “I’m going to keep to our strategy of providing a domestic platform that executes extremely well and build upon it going forward,” said Babula. “It’s important that we have this transition and we expect it to be seamless for our customers, employees and shareholders.” FCW Members who are already deeply involved in their local communities are uniquely positioned to leverage this modern referral system, said Sue Barlett, owner of Charlevoix, Mich.-based Barlett’s Home Interiors. Barlett, a longtime Flooring America member, sponsors her local sport teams and donates to the library and battered women’s organization. “We already do a lot of referral business but this program will step it up,” she said. FCW Flooring America’s summer convention Carpet One: New wool carpet, click LVT [Orlando, Fla.] More than 500 Carpet One Floor & Home members attended the group’s Team of Champions summer convention, held here July 11-13, which focused primarily on new product. Eric Demaree, Carpet One president, told dealers that they need to get noticed, get into the consumer’s consciousness. “The best way to do that is to drive our combined product knowledge, selection and service locally,” he said. “Ultimately, it’s in each individual store where the battle is won.” The focus of this year’s convention was on new product, including Just Shorn, a high-end collection of New Zealand wool carpeting, and mechanically locking luxury vinyl tile (LVT). “Those who seek this type of luxury product will only increase as consumer confidence improves,” said Paul Johnson, a Carpet One owner in Tulsa, Okla. “The Just Shorn collection has a great green story and it’s beautiful.” Mike Mostad, general manager of Missoula, Mont.-based Loren’s Carpet One, said he was going to pick up the Just Shorn line at convention. “We have a new upper-end furniture store in our new building and their clientele will go towards this new line,” he said. Mostad said the biggest potential lies with the group’s recent advent of click LVT. “We’re pushing big into LVT,” he said. “Nationwide, that category is coming on like laminate did 20 years ago. And to be competitive, you need a click LVT at glue down price points.” Also introduced were coordinated commercial carpet and carpet tiles to complement the existing hard surface Core Elements program. “These products are specifically designed to target Main Street commercial,” said Demaree. “We have come to this convention with products and programs that continue to help our members differentiate themselves.” Carpet One also reported that efforts to attract customers by pairing the strength of its buying power and product knowledge with digital and social media has driven 65,000 leads from its website to local stores. FCW Kitchen of the Year features Shaw’s Epic [New York] Shaw’s Epic hardwood was the featured flooring in House Beautiful’s 5th annual Kitchen of the Year in Rockefeller Plaza. Poised to be the “new American living room,” this year’s kitchen was repositioned to generate more space and reconfigured to look and feel like a real home, according to Newell Turner, editor and chief of House Beautiful. Designed by Mick De Giulio, the con- struction of the kitchen began in early 2012. De Giulio said the inspiration behind the development was his own kitchen. “It’s all about kitchen centric living, all living can be done in this space,” said De Giulio. “I wanted to create a space that I would want to eat in. This is it, this is my style.” Shaw’s Epic in gold rush walnut was used in the kitchen and in the butler’s pantry. Made of recycled bi-product, Epic utilizes 50 percent less of the tree, and its handscraped and distressed look offers a time worn visual. It is also Cradle to Cradle certified. De Giulio stated that he will be using Shaw’s floors again and worked with the company to create his own chevron detailed pattern in the butler’s pantry. “People don’t want to compromise on style but they also want sustainability. I chose Shaw’s Epic because I wanted something stylish but organic,” said De Giulio. Continued on page 23 Shaw’s Epic is the featured flooring for this year’s Kitchen of the Year.
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