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STATISTICAL REPORT '11 - Floor Covering Institute

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July 23/30, 2012<br />

News<br />

3<br />

Sturrus steps down, Babula takes lead<br />

Clarion Industries names new president, CEO<br />

By Raymond Pina<br />

[Shippenville, Pa.] Tony Sturrus announced<br />

he was stepping down as president and CEO<br />

of Clarion Industries, a vertically integrated<br />

manufacturer of particleboard and laminate<br />

flooring, based here, on July 25. The board of<br />

directors at Clarion Industries appointed Mike<br />

Babula, a fellow investor in Clarion Industries<br />

and former vice president of sales and market-<br />

Flooring America: Focus on referral business<br />

By Raymond Pina<br />

[Orlando, Fla.] Nearly 350 Flooring America/Flooring<br />

Canada members gathered here<br />

July 9th for its annual summer convention. The<br />

group focused on its Fast Phase II program that<br />

combines locally aimed TV and radio spots,<br />

web-based technology and training to increase<br />

its referral business through online testimonials<br />

and old-fashioned word of mouth.<br />

“It’s becoming more difficult to win the<br />

hearts and minds of customers with traditional<br />

advertising,” said Keith Spano, president,<br />

Flooring America. “Word of mouth is track<br />

able and inexpensive. Our Buzz Advertizing<br />

campaign is a new way to stay top of mind<br />

with our customers and getting people to talk<br />

about our products and unique services.”<br />

Supporting the strategy is data from Reuters,<br />

highlighting that 70 percent of customers con-<br />

ing, to succeed Sturrus.<br />

“The company is moving into<br />

another stage of development and<br />

it requires a leadership change,”<br />

said Sturrus. “I approached our<br />

board a year ago with a plan to<br />

create a deeper, more technical<br />

managemen t team internally and<br />

Mike was the best prospect based<br />

on experience and knowledge of<br />

Tony Sturrus<br />

Clarion and its customers. That<br />

plan put us in a place where Mike is<br />

now president and CEO. Our business<br />

has a solid foundation and I’m<br />

confident in Mike. I’m leaving my<br />

invested capital in the company.”<br />

Sturrus said the transition will<br />

allow him to focus on other business<br />

interests and his family.<br />

Sturrus and Babula were<br />

sult online reviews or ratings before making a<br />

purchase while 92 percent of consumers value<br />

word-of-mouth testimonials over advertising.<br />

What’s more, the study revealed 75 percent of<br />

consumers mistrust advertising.<br />

Guest speaker Andy Sernovitz, author of<br />

Word of Mouth Marketing, suggested members<br />

send free emails for friends and family<br />

sales instead of spending thousands of dollars<br />

printing out fliers. He also keyed in on<br />

unique services and products, such as flood<br />

proof vinyl floors, that are easy to remember<br />

and discuss. And, Sernovitz stressed the<br />

importance of searching the Internet for any<br />

comments about their stores — thanking<br />

those who commented favorably and apologizing<br />

and seeking solutions for those with<br />

negative comments.<br />

Dealers who sign up for the $87 per month<br />

Fast Phase II program receive a free iPad featuring<br />

an application to help consumers fill out<br />

testimonials as well as a system that automatically<br />

filters testimonials to members homepage,<br />

Facebook, Twitter and other social sites.<br />

The Build the Buzz campaign is also being<br />

supported by TV and radio ads featuring<br />

family and friends referrals to locally-owned<br />

Flooring America or Flooring<br />

Canada locations.<br />

“Our customers know they<br />

want a new floor but not much<br />

more beyond that,” said Marcia<br />

Hewey, direct of marketing,<br />

Flooring America. “Now we<br />

can leverage the words of her<br />

friends and family who have<br />

already been through the process.<br />

We’ve also added more<br />

diversity to our ads with different<br />

ages and ethnicities.”<br />

among a group of investors that purchased<br />

Clarion Industries from Tarkett for $26 million<br />

in 2009. With Tarkett as its original sole<br />

customer, Clarion Industries now supplies<br />

OEM laminate flooring to a number of the<br />

industry’s leading suppliers, distributors and<br />

retailers. Prior to joining Clarion Industries<br />

Babula served as president and CEO of<br />

Franke, a leading international supplier of<br />

kitchen systems.<br />

“I’m going to keep to our strategy of providing<br />

a domestic platform that executes extremely<br />

well and build upon it going forward,” said<br />

Babula. “It’s important that we have this transition<br />

and we expect it to be seamless for our<br />

customers, employees and shareholders.” FCW<br />

Members who are already deeply involved<br />

in their local communities are uniquely<br />

positioned to leverage this modern referral<br />

system, said Sue Barlett, owner of Charlevoix,<br />

Mich.-based Barlett’s Home Interiors. Barlett,<br />

a longtime Flooring America member, sponsors<br />

her local sport teams and donates to the<br />

library and battered women’s organization.<br />

“We already do a lot of referral business but<br />

this program will step it up,” she said. FCW<br />

Flooring America’s summer convention<br />

Carpet One: New wool carpet, click LVT<br />

[Orlando, Fla.] More than 500 Carpet<br />

One Floor & Home members attended the<br />

group’s Team of Champions summer convention,<br />

held here July 11-13, which focused<br />

primarily on new product.<br />

Eric Demaree, Carpet One president, told<br />

dealers that they need to get noticed, get into<br />

the consumer’s consciousness. “The best way<br />

to do that is to drive our combined product<br />

knowledge, selection and service locally,” he<br />

said. “Ultimately, it’s in each individual store<br />

where the battle is won.”<br />

The focus of this year’s convention was on<br />

new product, including Just Shorn, a high-end<br />

collection of New Zealand wool carpeting, and<br />

mechanically locking luxury vinyl tile (LVT).<br />

“Those who seek this type of luxury product<br />

will only increase as consumer confidence<br />

improves,” said Paul Johnson, a Carpet One<br />

owner in Tulsa, Okla. “The Just Shorn collection<br />

has a great green story and it’s beautiful.”<br />

Mike Mostad, general manager of Missoula,<br />

Mont.-based Loren’s Carpet One, said<br />

he was going to pick up the Just Shorn line<br />

at convention. “We have a new upper-end<br />

furniture store in our new building and their<br />

clientele will go towards this new line,” he said.<br />

Mostad said the biggest potential lies with<br />

the group’s recent advent of click LVT. “We’re<br />

pushing big into LVT,” he said. “Nationwide,<br />

that category is coming on like laminate did 20<br />

years ago. And to be competitive, you need a<br />

click LVT at glue down price points.”<br />

Also introduced were coordinated commercial<br />

carpet and carpet tiles to complement the<br />

existing hard surface Core Elements program.<br />

“These products are specifically designed<br />

to target Main Street commercial,” said<br />

Demaree. “We have come to this convention<br />

with products and programs that continue to<br />

help our members differentiate themselves.”<br />

Carpet One also reported that efforts to<br />

attract customers by pairing the strength of its<br />

buying power and product knowledge with<br />

digital and social media has driven 65,000<br />

leads from its website to local stores. FCW<br />

Kitchen of the Year features Shaw’s Epic<br />

[New York] Shaw’s Epic hardwood was<br />

the featured flooring in House Beautiful’s 5th<br />

annual Kitchen of the Year in Rockefeller Plaza.<br />

Poised to be the “new American living<br />

room,” this year’s kitchen was repositioned to<br />

generate more space and reconfigured to look<br />

and feel like a real home, according to Newell<br />

Turner, editor and chief of House Beautiful.<br />

Designed by Mick De Giulio, the con-<br />

struction of the kitchen began in early 2012.<br />

De Giulio said the inspiration behind the<br />

development was his own kitchen.<br />

“It’s all about kitchen centric living, all<br />

living can be done in this space,” said De<br />

Giulio. “I wanted to create a space that I would<br />

want to eat in. This is it, this is my style.”<br />

Shaw’s Epic in gold rush walnut was used in<br />

the kitchen and in the butler’s pantry. Made of<br />

recycled bi-product, Epic utilizes 50 percent less<br />

of the tree, and its handscraped and distressed<br />

look offers a time worn visual. It is also Cradle<br />

to Cradle certified. De Giulio stated that he will<br />

be using Shaw’s floors again and worked with<br />

the company to create his own chevron detailed<br />

pattern in the butler’s pantry.<br />

“People don’t want to compromise on<br />

style but they also want sustainability. I chose<br />

Shaw’s Epic because I wanted something stylish<br />

but organic,” said De Giulio.<br />

Continued on page 23<br />

Shaw’s Epic is the featured flooring<br />

for this year’s Kitchen of the Year.

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