KLAUSSNER FURNITURE INTRODUCES
RUG COLLECTION AS PART OF NEW TOTAL HOME PRODUCT ASSORTMENT

Rug specialist Steve Roan, left,  with Jeff Davis, senior vice president of marketing and strategic development for Klaussner Furniture.
 

By Lissa Wyman

AT THE MARKET - Klaussner Furniture is expanding its product lines to offer a complete soup-to-nuts assortment of home furnishings from upholstery, case goods and casual dining to home accessories and rugs, according to Jeff Davis, senior vice president of marketing and strategic planning for Klaussner.

A 72-piece rug program was introduced this week. Lamps, accessories and wall décor will be introduced at the January Las Vegas market, said Davis.

All the new products will be sold through Klaussner's network of  independent sales representative. "It's true that we're giving our reps a lot more product to sell,but they're excited about it. Many of them are rising to the challenge by adding assistants or enlisting their spouses to help,€VbCrLf said Davis.€VbCrLfIn fact, we already have quite a few husband-wife sales teams in the field.€VbCrLf

When all the categories are pulled together, Klaussner will be offering  a "whole room€VbCrLf product assortment with 10 different vendor partners, according to Davis.

 "This €˜whole room' concept will streamline the decision making process for consumers by allowing them the opportunity to purchase a custom-designed room. It will further strengthen Klaussner's position as a resource solution with products to furnish the entire home.€VbCrLf

At this early stage, Davis said it was difficult to estimate the bottom line contribution of the rug and accessories program. "Realistically, rugs will only be a small portion of total Klaussner sales, but perhaps the whole room concept could eventually account for  10% of our business,€VbCrLf he said.

The Klaussner rug program has been developed by rug industry veterans Steve Roan and Michael Shupp, who were both most recently sales and marketing executives at Hellenic Rugs.

The initial collection of 74 rugs offers a good-better-best assortment of  machine made, flat weave and hand tufted constructions in both contemporary, transitional and  relaxed traditional designs. Retail price points begin at $159 for machine made rugs and  hand-loomed bordered jute flat weaves. A group of wool flat weave kilims will retail at $249. The  tufted products are made of New Zealand wool and priced at  $299, $329, $399 and $499. The hand made rugs are sourced in India. Machine made rugs are manufactured in Saudi Arabia.

The rug line was developed over four months and is co-ordinated specifically with best-selling Klaussner furniture fabrics, color palettes and design categories, said Roan.

"We will be adding new branding partners and expanding our product assortment  in the next few months,€VbCrLf noted Roan. 

Roan said the rugs are stocked and shipped from Klaussner's four distribution points around the country. "The rugs ride on top of the furniture, so it's virtually freight-free,€VbCrLf he said.

" Nearly 60% of Klaussner furniture retailers are not currently in the rug business, so this  program offers tremendous opportunity,€VbCrLf said Roan.

Roan and Shupp have also developed a sales training and merchandising  programs for retailers. Klaussner will also publish a catalog of rug products as well as a full catalog of its new home accessories.

 
At Klaussner, from left: Rug executive Mike Shupp; Joan Suthers,Grand Harbor Imports, Atlanta; Klaussner salesman Reese Finch, Jim Conley, president of Grand Harbor and rug executive Steve Roan.

Jim Conley, president of Grand Harbor Import Co., a 15-store chain headquartered in Atlanta, said the new Klaussner rug program has re-kindled his interest in the rug category. "We've been in and out of the rug business for the past 20 years. Now we are considering getting back into it,€VbCrLf he said. "In the past, we've typically brought in a rug rack from a vendor and we do pretty well. A little while later, we discover that the big box stores are selling the same products 30% cheaper. As a result, our rug business  slows to a halt. With a program such as this, however, we would have some protection.€VbCrLf

"With a small company like ours, the big boxes can kill you, unless you get into the real high end hand knot market. Then you have to have a million dollars in inventory for $50,000 in sales,€VbCrLf Conley added.

In addition to Klaussner's independent dealer base, the rug program is also being offered to the Klaussner Sofa Express & More chain of 65 company-owned and franchised stores.

Klaussner is now offering a complete home fashions product line for retail customers, including case goods, upholstery, rugs, lamps and home accents.

10.19.2006