BY JIM AARON, EXECUTIVE DIRECTOR, FCEF
In my last column, I wrote about the importance of professional installation for the consumer to realize the value of the products we sell. I made the statement: “All flooring products, regardless of their technological advances or beauty, remain valueless until they are installed in a customer’s space. Yes, I indeed said they are valueless, and I don’t believe it’s up for debate.” In this column, I want to build on that concept but shift the conversation to the value of the installers themselves.
As a flooring retailer, have you ever calculated the yearly profit you make from the products installed by just one of your installers? Better yet, how about the profit made from all products an installer installs over the course of his career? Let’s do some simple math to get a ballpark idea. Your exact numbers may differ since this is just for example purposes.
Assuming a career carpet installer works five days per week for 50 weeks per year for 40 years that’s 10,000 days of installing carpet. (My back hurts just thinking about it!) Assuming the installer can install 60 yards of carpet per day, we’re at 600,000 yards over the course of his career. Just for example purposes, let’s also assume the average retail selling price of that carpet is $10.55 per yard with a (very low) gross profit margin of 30 percent, giving us a $3.16 gross profit per yard. Multiplying the gross profit of $3.16 per yard by 600,000 yards over the course of an installer’s career, we’re at a staggering $1.9 million gross profit generated on the products he installed. And that doesn’t even include the profit most retailers make on the labor costs as well.
So, what’s the purpose behind the assertion that flooring is valueless until installed and by demonstrating an example of the profit made from installed products over the lifetime of an installer? Simply, it’s out of a desire for our industry to collectively recognize the extreme importance of the installation element of our businesses — and invest accordingly.
In the three years I’ve served as executive director of the FCEF (Floor Covering Education Foundation), I’ve studied much about not just the installation labor crisis in the flooring industry, but also about the skilled trades gap in all construction-related trades. And to reiterate what has been said many times before, the labor availability issue in the flooring industry will not improve until the entire industry is pulling in the same direction. It will simply worsen.
I often see retailers investing much time, effort and money into other parts of their business rather than working to secure the installation part of it. It’s wonderful if your showroom is perfect, your marketing is highly effective and your salespeople are the best in town. But none of that matters if you don’t have an installer to complete the product fulfillment.
Consider the following: In November, I connected with a retailer in southeast Michigan. He’d heard about the Basic Floor Covering Installation program we’re implementing in tech and community colleges, and he wanted it implemented locally. Between December and June, my team and I met with a workforce development group for program implementation in the area. During that time, we’ve held more than a dozen Zoom conferences, had NDAs and MOUs signed, conducted a search for an instructor — and more. But one of the final steps before implementation is to hold a local advisory meeting with industry representatives and members of the local flooring community. The purpose is to show the level of local support that will be given to ensure the program’s success. Everything was lined up for the meeting, and more than 30 flooring retailers were invited to attend. Yet out of the 30 flooring retailers invited, only two showed any interest in attending.
The reality is clear: our industry cannot afford to neglect the critical importance of professional installation. As we’ve seen, the lifetime value of an installer to a flooring retailer is immense, with one installer potentially generating millions in gross profit over their career. This underscores the need for the entire industry to recognize and invest in the installation workforce. The Michigan example highlights the challenges we face, but it also serves as a call to action. We must all commit to supporting and securing the installation side of our business. By doing so, we ensure not only the success of our individual businesses but also the vitality and growth of the entire flooring industry.