|
CREATIVE SELLING DRIVES BUSINESS
AT ATLANTA'S RUGSMART INTERIORS
By Janelle Lampp
NORCROSS, GA. -- Creative selling and a sense of fun drive the team at RugSmart. Located in Norcross, GA , the store bucks all the trends. The retailer's contemporary category is still growing, much of the business comes from niche products and the partners like being a big player in a small pond.
Stephen Cumbest, with partners Nathan Williams and Chris Saliga, specialize in selling product that other retailers might not consider worth their time.
"The way that we maintain an edge and our growth is to find and a niche and work it,€VbCrLf said Cumbest. "We have honed the contemporary niche, while the rest of the market is flat for that category.€VbCrLf
RugSmart's sales in contemporary looks have increased from 30% to 50% of rug sales in the last three years, he added.
Contemporary styles are just one of the niche categories in which RugSmart specializes There are numerous specialty products. Shag rugs are shown in a wide range of colors, shapes and fibers. "We stock an entire rack, over 40 sku's, of shag rugs, but in sizes only up to 6x9," said Cumbest. " That's because shags are purchased more often as an accent rug than to cover an entire floor. Rugsmart's assortment of felted wool, acrylic, flokati and leather shags retail for $199 to $599 for a 6x9
RugSmart is also known for its large selection of roll-runners. They are priced from $15 to $60 per linear foot. "We specialize in hard to find roll runners. Home Depot has it covered at the lower end of the price range and we leave the very high end to ADAC,€VbCrLf stated Cumbest.
"We prefer to cater to people with champagne taste and a merlot budget,€VbCrLf he added. "We target people, like ourselves, who know what they like and who want to source the best designs and colors for themselves.€VbCrLf
RugSmart closed its second store in Towne Center two years ago and simultaneously added 10 thousand sq. ft to its headquarters in Norcross. "Atlanta is a driving city, and traveling 30 to 40 miles to a design destination is not a stretch for Atlantans,€VbCrLf Cumbest noted when explaining why the Towne Center store was closed.
Karastan Gallery is a recent addition at RugSmart.
With the added space in Norcross, RugSmart made a bid for a Karastan gallery. He and partner Nathan Williams created a separate designer space at the back of the store, showing that they understood how to differentiate and market a premium brand such as Karastan.
Also displayed in the design gallery are the large sizes (9x12 up to 12x18) and high end products retailing for over $1,000
Steve Cumbest and Nathan Williams with a mansion-size rug.
"We sell more 9x12's than 8x10's without question," he told Rugnews.com. "We stock over 80 sku's in contemporary 8x11's alone. Any retailer can special order or drop ship. We want it in stock and on the rack, not only to make an immediate sale, but because selling off the rack is more dynamic. The customer has immediate satisfaction and that makes us happy,€VbCrLf Cumbest said.
Animal skin rugs from Brazil.
RugSmart initiated an import program this year. Williams developed a display of steer hides and sheepskin pelts from Brazil. The pelts and hides are shown in saturated solid colors and stenciled designs and range in price from $399 to $1,000 for 5x8 and 6x9. The skins come in such unusual shapes as rounds and oblongs.
Custom rugs are a growing part of the merchandise mix.
RugSmart's biggest thrust this year has been the growth of the custom rug program. Cumbest and Williams said they are expanding into better qualities, higher price points and new design, because, as Cumbest said, "Custom rugs are the perfect turnover. Having no stock means that every sale creates a positive turn. In addition, a custom rug is hard to duplicate so every customer owns an exclusive design.€VbCrLf
Customers visiting the store immediately understand that RugSmart is not just a rug store, but more a design house.
Nathan Williams, who was brought into the partnership in 2000 with 17 years of experience in the furniture industry is responsible for the eclectic and mix of furniture and decorative accessories that add to the ambience of the store and create add-on sales and impulse purchases.
Furniture and home accessories account for 20%
of store sales.
Although 80% of total sales come from floor coverings, the remaining 20% of furniture and accessory sales validate RugSmart's understanding and grasp of home design, according to Cumbest and Williams.
"Designers represent 30% of our business. That customer has to feel comfortable with our ability to bring them the most current and relevant styles and products," said Cumbest.
RugSmart management believes in the power of advertising, according to Cumbest. Television and newspaper advertising is given a healthy share of the budget. Cumbest said creative advertising is his real passion as he develops unique ways to reach new customers and to capture and maintain the loyalty of existing customers.
Cumbest's most recent promotion was the introduction of the RugSmart Gift Card Program, which was introduced last year. In the first mailing, a $50 gift card was mailed out to the entire mailing list of 8 to 10 thousand customers, at a cost of $1 per card. Instead of being discouraged by a low return of only 7 to 8%, Cumbest tried again.
"This time we mailed the card to only two thousand of our best customers, primarily designers, and achieved a 20% return. We effectively increased our customer flow and supported our TV ad campaign. It was a real win-win, a true gift to our loyal customers,€VbCrLf said Cumbest.
Another promotional element is the RugSmart website, which has been under construction for a few years. After spending $10,000 and over two years in development, the previously planned site was scrapped. An additional several months of research and planning, and many more thousands of dollars have since been invested, resulting in a new website, which opened in early September.
"We feel we have finally built a website that reflects the same personality and passion for niche product that one feels in the store,€VbCrLf said Cumbest. "We want the website to support store sales and for the store to bring life to the products found on our website. The store and the website should work together to give the customer all the tools and information she needs to make an informed and satisfying purchase.€VbCrLf
|
Janelle Lampp
|
Contributing editor Janelle Lampp is a well-known lifestyle designer of rugs and other home products. |
9.28.06 |