Technology gives a Boost

Investing in flooring software can efficiently streamline, organize business operations

By Trent Ogden

In today’s world, most flooring companies recognize (albeit sometimes begrudgingly) that technology is a must. It is an absolutely essential part of doing business and plays an important role in attracting customers.

But while many dealers have a website and some other online presence, a myriad are still in the dark about the significant impact flooring-specific software can have on their bottom line and peace of mind. When doing its job properly, computer software streamlines and organizes operations, conserves time and makes it possible to do more business without hiring additional staff, saving overhead costs as well.

There are many different types of flooring-specific software a dealer might choose to utilize. Various technologies can help with business management, room visualization, estimation, lead management, digital marketing, scheduling and customer communication. Flooring business management software, also known as enterprise resource planning (ERP) software, can potentially have one of the largest and most widespread impacts on a business.

Often, business owners become hyper-focused on tools and techniques for marketing and driving more sales. Both are important components of any successful enterprise but creating more leads without being prepared to service and take care of them in an efficient manner will result in wasted opportunities and negative experiences for all.

In other words, would it a make sense to spend money and time to remove all the dings from a car and give it a brand-new paint job if the engine isn’t working correctly?

The right business management software is the engine of any company. It benefits operations from start to finish, impacts the overall profitability of a company and can help every employee be more successful in their individual responsibilities.

But how does it do all this?

Quite simply, by systemizing operations, increasing productivity and giving owners instant access to vital information about what’s happening in their business.

IMPROVED BOTTOM LINE

It has been shown that systemizing business operations, when applied correctly, saves time and money. It also provides protection against dropped balls and lost opportunities. One consulting company that has helped more than 350 businesses from multiple industries convert to various ERP systems found that properly implementing business management software increases a company’s bottom line by five to 12 per cent.

Floor covering software can streamline and automate frequently repeated tasks, including looking up costs; creating estimates (all pricing components of the order are automatically populated and job costed before the sale is complete, so margins can be adjusted as needed); checking available inventory and ordering materials; accessing data on customers, leads, estimates and orders; obtaining pricing updates from manufacturers or distributors; and ordering materials (particularly when utilizing the industry’s business-to-business technology). And that’s just some of the items.

INCREASED PRODUCTIVITY

Hiring extra employees doesn’t always translate into higher profits. In fact, it sometimes simply means more overhead costs. Technology, on the other hand, often allows business owners to do more volume with the same number of workers. Dealers can grow their business and increase gross profit dollars without adding staff to the payroll or, at the very least, with fewer employees required.

The monthly overhead cost of adding flooring ERP software is much lower than that of hiring staff. For example, a store with three back office employees who are responsible for processing jobs and accounting services could amount to monthly salaries paid of $12,000. Implementing an ERP system for the same store would generally cost between $300 and $500 per month. This would enable the store to do the same volume of business with one fewer employee, resulting in savings of $4,000 per month or, alternatively, alternatively, it could free up human resources to potentially significantly increase sales without adding more office staff.

Productivity is also enhanced with an ERP system by remote access. Cloud business management software allows flooring professionals to work off-site, which has become a necessity during the Covid-19 pandemic. It also enables owners to keep tabs on what is happening at their store when on vacation, at a job site or meeting a potential client, and gives them immediate access to important information. Staff members can easily keep the business running in an owner’s absence because all required information can be accessed via a computer. No rifling through file cabinets and looking through piles of papers.

Perhaps most importantly, ERP software allows store owners to replicate their business genius. Systemization means the success of the past can be more easily replicated in the future. This will go a long way when a company is being valuated for sale. Otherwise, it is at serious risk. Owners who run their company based on ‘what’s in their head’ are only hurting themselves, their business and future.

HIGHER PROFITS

A combination of factors work together to generate extra profit. Flooring software delivers benefits like improved organization and streamlined operations; fewer mistakes; prevention of overpayment to employees, installers, vendors and government (through taxes); greater accuracy in reports, tracking and financials; better/ faster job costing; time savings, which allow employees to be more focused on what is most important; greater theft protection; and accurate real-time information to help dealers make wiser and more informed business decisions. Many of these benefits are simply not possible with generic accounting software, spreadsheets or pen and paper. Selling floor coverings is completely different than, for example, running a retail donut shop. Generic software doesn’t understand the difference. And running a flooring business manually severely limits the ability to grow.

Trent Ogden is CFO at QFloors, one of the leading providers of floor covering software in North America. QFloors’ mission is to help flooring dealers achieve operational and financial success. As the product of three generations of flooring experience, Trent has worked in the industry for almost 40 years. He also acts as CFO for a 13-location flooring retail company. Trent can be reached at sales@qprosoftware.com.