RECESSION BUSTING TIPS:
IN HARD TIMES, HAGOPIAN
HAS A TOOL KIT FOR SURVIVAL

BIRMINGHAM, MI -- Hagopian World of Rugs is no stranger to hard times. The family-owned company has survived and prospered for nearly 70 years and has weathered  many ups-and-downs in the economy.

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This is the third in a series of articles on
how retailers and vendors are
fighting the current economic slowdown.

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Established in 1939 as Carpet Dyeing Service Co., the business  became Hagopian & Sons in the 1940's. Now known as Hagopian World of Rugs, the company has retail locations in Birmingham, Novi and Oak Park, MI and the cleaning division remains an important part of the business. Hagopian also operates an insurance replacement business and a to-the-trade showroom.  

Being based in suburbs around Detroit where the economy is tied to the automotive industry, the company faces unique challenges."The current downturn is not new," noted Edmund Hagopian, president of the company.

But Hagopian is undaunted. Over seven decades, the company has developed a tool kit of techniques to survive and prosper through the good and not-so-good times.

Tip #1. Act quickly

"Some businesses will postpone taking action because they think conditions will change," said Hagopian."I think it will be slow for awhile. So respond now."

Tip #2. Use all your resources.

Hagopian has a large cleaning division."We've gotten better at cross-marketing the businesses so we can share customers. We send out a survey after a consumer buys a rug or has cleaning done. We'll send a retail customer a gift certificate to use for $25 worth of cleaning. A cleaning customer will get a certificate for $50 off the retail price of a new rug."

Tip #3 Stay up-to-date with a fabulous website

Hagopian has upgraded its website, http://www.originalhagopian.com/

The website includes links to the cleaning division, online sales, the bricks and mortar stores and a four-color catalog.

"The site marries the two divisions very well," Hagopian said. Under the banner"To know us, is to love us," the company emphasizes a common theme of exceptional service and fair pricing, he explained."We've set up a clearance area online. Most of the time, our customers see it online and then come in and buy the rug, so I'm not shipping all over the country."

Tip #4. Be proactive

"We have always been active getting referrals, but now we are even more proactive," stressed Hagopian."Greet every customer and form a relationship. "

Being pro-active also applies to your relationship with vendors, said Hagopian, and he stressed that strong partnership bonds help both the vendor and the retailer.

 "We need vendors who can do more than just ship rugs. We need vendors who are supportive and creative," Hagopian said.

Employees should also be part of the solution."Talk to your employees too. If it worked last year, find something different this year."

Tip #5. Keep your name out there

Hagopian is continuing to advertise and a major promotional event is the Hagopian"Garage Sale."

 "We used to actually put it in the cleaning plant so it was like a real garage," Hagopian said."Now we bring people in through a side door. The markdowns are aggressive. We may even try some ‘door busters' this year. It will be at the two locations simultaneously," he noted.

Tip #5. Diversify

In addition to the cleaning operation and an insurance
replacement business in Oak Park, MI, Hagopian operates
three retail stores (Birmingham, Novi and Oak Park, MI),
and a to-the-trade showroom in Troy, MI.

"We are very diverse. All units are not operating at the same rate all the time, but when one is down, it's more likely that another will be up," said Hagopian

Read All the Recession-Busting Tips:
From Sy Mahfuz, click here
From Wendy Fried, click here
From Edmund Hagopian, click here
From Heather Copelas, click here
From Erich Heinrich, click here

04.28.08

 

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ED NOTE: Janet Herlihy is a Texas-based free-lance writer who frequently covers the rug and floor covering industry. She was formerly rug editor for HFN and editor in chief of Carpet & Rug Industry magazine.

Janet Herlihy