By Lissa Wyman
COLORADO SPRINGS, CO. -- "Does selling rugs have you tied up in 'nots'?" With that tantalizing question as a starting point, Steve Boodakian and Sy Mahfuz led an entertaining and informative seminar at the Karastan dealer convention here Nov. 18.
The session was directed to both veterans and neophytes in the rug business. In particular, the two men addressed such issues as selling rugs in today's competitive retail market and how to look beyond a single sale and develop customers for a lifetime.
Boodakian and Mahfuz are principals of Mera Consulting Group, a two year-old company that offers sales training and product expertise to floor covering and home furnishings professionals. Boodakian is also a principal of Koko Boodakian & Sons in Winchester, MA. Sy Mahfuz is the owner of Persian Rug Galleries in Nashua, NH.
"We want to share the successes we experience as well as the challenges we face," Boodakian told the audience.
Boodakian and Mahfuz addressed such topics as
- The growth of the rug category
- How to succeed in a competitive environment
- Driving customers to the door
- Merchandising makeovers
All the subjects were peppered with lively personal anecdotes gleaned from the experiences of several generations in the rug business.
"We want to help you to become rug specialists, not just order takers," Boodakian told the audience.
Boodakian and Mahfuz emphasized that as ceramic, wood and laminate floors have expanded significantly, rugs have become an increasingly important part of the floor covering retailer's merchandise mix.
"Product diversification is imperative, particularly in a slow economy," said Boodakian. "Just as our fathers diversified into broadloom in the 1950s, traditional floor covering retailers should consider diversifying into rugs now."
Not only do rugs provide the consumer with instant gratification, the retailer's cash register rings sooner with each rug purchase. "With rugs, you also avoid the delivery and installation issues of broadloom," said Boodakian.
One of the cornerstones of success in the rug business is building a knowledgeable sales team, the men emphasized. "You need to hire and educate people who are team players. And every one should be a star," Boodakian emphasized. "Too often sales people are afraid of the rug business, because they don't have fundamental knowledge of the category. As a result, prices can become an issue. If you are selling on price alone, the problem becomes profit margin," he added.
Boodakian and Mahfuz noted that once a sales person is taught to appreciate the process of making a hand made rug, and the ultimate value they offer to consumers, margins will inevitably rise.
Personal selling is also a major factor in getting and keeping customers, according to Mahfuz.
"When you get wrapped up in the product, you take price out of the equation," said Mahfuz. "I tell my customers that they are paying for me. For my advice and expertise. The rug is free."
With that attitude, retailers don't have to be afraid of the competition, whether it's from big-box stores or from the Internet. "When you take price out of the equation, you don't have to be afraid to tell your customers that you are giving them the best price," he emphasized.
Mahfuz noted that studying the competition is better than fearing it.
"You have to figure out the competition and their strengths and weaknesses. Then you've got to do a better job than they do," said Mahfuz.
One of the most important factors in selling rugs successfully is driving the business into the store. "You've got to get out there and promote with tv, radio and newspapers. If you can't get them in, you can't sell them," Mahfuz stressed.
One area in which specialty stores excel is bringing the store directly to the consumer's home. "Once I get into a customer's home, they become my customers for life," said Mahfuz.
"Our task is to lay the foundation for making a customer for life. This is an ongoing relationship, this is not a one-time affair," he added.
Boodakian and Mahfuz challenged the retailers by asking them why consumers leave the store without making a purchase. The majority of seminar-goers said it's because the consumer loses interest.
"That simply isn't the case," said Mahfuz. "Our stores are not the kind of businesses you just walk into. They are in our stores because they want to buy a rug. If we create a memorable experience, give them the information they need, and make it fun and interesting, the customer will buy," he emphasized.
Boodakian and Mahfuz also gave the Karastan retailers tips on how to merchandise their stores.
- Stock sure winners, the traditional rugs that sell year in and year out.
- WOW products keep the stores looking fresh and tells your customer that you sell fashion products
- Stock the sizes you sell. "If all you show is 3x5 or 4x6 samples, that tells the customer you have a lack of commitment to the product," warned Boodakian.
- Don't get tempted by buying passe merchandise. "Those bargains aren't bargains at all if they don't sell," said Mahfuz.
- Don't fall in lover with your mistakes. "Take the markdown, get rid of the merchandise and invest in fresh products." said Boodakian.
- Add-on such as rug underlay and stain treatments can add big profits.
- Impulse add-ons. Stock and show runners or small accent rugs and show them prominently.
- Don't leave money on the table by not having product in stock.
Boodakian and Mahfuz have taken their seminar series to several venues, including the Atlanta Rug Market, Nebraska Furniture Mart, Capel and Karastan.
David Greenberg, a principal of New Jersey Decorating Exchange in River Edge, NJ, said he first attended a Boodakian-Mahfuz seminar a year ago. "They helped me get started in the rug business, and now it's a very important part of our product mix," he said.
Greenberg proved himself to be an apt pupil. In July, The New Jersey Decorating Exchange was one of the recipients of the industry's Retailer of the Year award.
12.01.06