Easy profits from easy care floors

'l' I'lE DO-IT-YOU RSELFER wulkI ing intt-r your storc with pluns ttr renrodel his kitchen expects you to supply everything he needs to do the job fronr the lloor up. And. he expects a broad product selection f rom which to choose.

If you don't offer a variety of floor coverings. not only rrny you miss a big sale, you rnay losc the customer forever to the retailer with a rnore conrplete stock.

Part of a complete floor covering stock is sheet vinyl, which is gaining popularity as a replacernent floor in honres across the country.

Sheet vinyl is being used more and rnore in kitchens, baths, family rooms, basements and entranceways exactly the areas where do-it-yourselfers are nrost likely to complete l"rome remodeling projects. In fact, 80% of the doit-yourselfer's dollar is spent on projects in these rooms. Last year alone ahnost 3 billion sq. ft of resilient flooring was sold for use in these nome areas.

Many building material retailers al- dealer support Mills poster easy it is to

PART 0F a comprehensive program, this Mannington shows do-it-yourselfers how install sheet resilient flooring.

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ready cash in on this sales potential. To trnd out more about their experiences in marketing sheet vinyl flooring, Mannington recently surveyed retailers like yourself. This research, coupled with a suwey of nearly 150 retailers conducted by the Bureau of Building Marketing Research, Chicago, I11., produced .some expected results anq some surpnses.

More that J lo/t, of the building materials retailers surveyed indicated sales of tile had declined or remained the same over the past three years. Meanwhile. lUlo of the same dealers said sheet vinyl sales increased over the same oeriod.

When -asked to forecast sales for the next three years, 74% said they expect increases in sheet vinyl sales. In addition, 63% said they think tile sales will remain static or decline further.

The retailers were asked to pro- ject sales growths for all the floor coverings included in the surveysheet vinyl, vinyl tile, vinyl asbestos tile, wood parquet, ceramic tile, and quarry tile. The increase projected for sheet vinyl was twice the combined average f<.rr the other floorings. Clearly, sheet vinyl will become an even more popular product category in building materials and home center stores in the next few years.

The retailers surveyed reported floor covering sales averaging more than $33,000 annually. Our survey shows the average annual sales of sheet vinyl per outlet exceeded $25,000 - with an investment of as little as $1,700.

But the total sales are really meaningless without a look at the profit margins and turns. While it is difficult to measure accurately the success of competitors' sheet vinyls, Mannington products offer margins in excess of 40%. Turns can range from a low of six a year to a high of 12.

Profit per square foot is also important to the home center operator. A sheet vinyl display of 100 sq ft. (including aisle space) in such a store can bring $225 to $255 total sales per sq ft, with a gross profit per sq it.of$l15to$119.

Whlle 41% of his floor covering sales are to tl.re d-i-yer, tl're home center retailer sells a surprising 37% to srnall builders and contractors. This is important in determining inventory. The retailer should offer a basic do-it-yourself quality sheetVinyl, such as Mannington's Vinyl Ease 100. But. he also should stock a builder's quality flooring that meets FHA minimum standards, such as Mannington's Vega.

When dealing with the do-it-yourselfer, it is essential to show the stock on the floor. The customer who purchases professionally installed

Story at a Glance

Sheet resilient flooring is gaining in popularity and becoming a significant d-i-y line . . retailer margins can run above 40%, with turns from six to 12 times per year.

flooring, expects to wait weeks for the job to be completed. The do-it-yourselfer comes in Friday night or Saturday morning resolved to start his project that weekend. He wants to take the product home with him then and there. If you don't have the stock, he will go elsewhere.

The retailer who wants to take advantage of the great sales potential in sheet vinyl will have help from the manufacturer. A manufacturer must become involved in the total retail orocess to ensure the retailer's success in sheet vinyl sales.

We as manufacturers offer retailers assistance in a variety of ways. A national advertising campaign, featuring Juliet Prowse, bolstered with advertising formats for tv, radio and print and a cost sharing program is designed to get the word to customers that you are a sheet vinyl retailer.

(PLease turn to page 621