Hardwood Flooring February March 2018

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FEB/MAR 2018

MARKETING METRICS THAT MATTER FLATTENING WOOD SUBFLOORS ELECTRICAL SAFETY ON THE JOB SITE MARKETING CONTENT

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FEATURES

O N T H E C O V E R

Content Marketing…It’s All About the Customer | By Katrina Olson Today’s savvy buyers are anywhere from 66-90 percent through their buying journey before they contact a vendor, according to Forrester Research. That means they’re looking at websites, checking prices, and forming impressions of companies before setting foot in a store or driving past a location.

Flattening Wood Subfloors By Brett Miller Subfloor flatness is one of the many considerations that should be addressed before installation of any wood floor. 56

Marketing Metrics that Matter By Katrina Olson

It’s easy to get distracted by all the digital and social metrics available at the touch of a few keys. Learn more on where to focus your energy.

PUBLISHING PARTNERS

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CONTENTS

Industry Insights:

16 Government Affairs The new Forest Service leadership brings optimism, vision, and energy.

By Dana Cole

20 Designer Insights Herringbone is hot…here’s why.

By Emily Morrow Finkell

22 Market Matters How will Amazon influence wood flooring?

By Lindsay Konzak

Business Best Practices:

26 Finance Digital financial tips and tools to help efficiency. 30 Business Basics Three key sales roadblocks for flooring companies – and how to overcome them. 32 Sales Savvy Is your sales approach built on principles or techniques?

By Bree Urech-Boyle

By Kevin McGirl

By Paul Reilly

34 Legal How the legalization of marijuana could impact By Barbara Dunn O’Neal your employees. & John F. Kuenstler 36 Technology How the Internet of Things may affect our industry. By Jodi O’Toole 38 Marketing A-Max’s Jerman maximizes SEO...and opportunities. By Katrina Olson

111 Chesterfield Industrial Blvd. Chesterfield, Missouri 63005 P : 800.422.4556 Local : 636.519.9663 F: 636.519.9664 E: news@hardwoodfloorsmag.com W: hardwoodfloorsmag.com

At the Site: 48 Health & Safety Focus Electrical safety on the job site. 52 Tech Troubleshooting Best practices for installing wood subfloors over concrete.

By Kjell Nymark

CONTRIBUTING WRITERS Bree Urech-Boyle Dana Cole Michael Dittmer Jason Elquest Emily Morrow Finkell Lenny Hall Mark Halverson Anita Howard Lindsay Konzak John F. Kuenstler Megan Lhamon Michael Martin Kevin McGirl Brett Miller

Kjell Nymark Katrina Olson Barbara Dunn O’Neal Jodi O’Toole Paul Reilly

By Brett Miller

59 Tech Talk Common subfloor-related causes for By NWFA wood floor failures by region.

Regional Instructors

Scott Taylor Chris Zizza

61 Subfloors Better floor performance starts with a solid subfloor system.

By Mark Halverson

ADVERTISING SALES

64 WFOY Spotlight Saving the best for last.

By Stacy Brown

Libby White Johnston Media & Advertising Sales libby.johnston@nwfa.org | 337.794.9232

Product Focus: 76 Subfloors, Subfloor Prep, & Adhesives

Hardwood Floors (Print: ISSN 0897-022X and Online: ISSN 2475-5125) is published on a bi-monthly basis, plus the Annual Industry Guide, by the National Wood Flooring Association and distributed as a membership benefit to its member companies and without charge upon request to qualified individuals throughout the wood flooring industry. Single copy price is $8, annual Industry Guide is $50. Subscriptions: $40/ year (includes 6 issues and Industry Guide) in the U.S. and Canada. Publication office: 111 Chesterfield Industrial Blvd, Chesterfield, MO 63005. Phone: 800.422.4556. Printing office: Walsworth, 306 N. Kansas Ave., Marceline, MO 64658. Printed in the U.S.A. Application to mail at periodicals postage prices is pending at Chesterfield, MO, and additional offices. POSTMASTER: Send address changes to Hardwood Floors, P.O. Box 9147, Lowell, MA 01853. Copyright © 2018 by the National Wood Flooring Association. All rights reserved. Reproduction in whole or in part without written permission is strictly prohibited.

Also in this Issue:

6 Chairman’s Cut 8 Wood Stock 66 NWFA Resources 82 New Products 83 Ad Index

By Chris Zizza

84 Final Coat CEO’s Message

By Michael Martin

hardwood floors

a regularly interacting or interdependent group of items forming a unified whole The Bona System ™ Innovated, perfected and defined by Bona. System:

Bona is the foundation of hardwood floors across the globe. The Bona System works in synergy, creating beautiful floors every time. We not only innovated the first full system for hardwood flooring professionals...we defined it.

To engage, learn and experience more about The Bona System visit us online at Bona.com .

CHAIRMAN’S CUT Improve Your Marketability with NWFA

By Chris Zizza Chairman, NWFA

impression of your company long before your first conversation. See the article on page 40 to learn more about why you should be creating a strategy and working to build your customer relationships before they call or walk through the door. While it may seem overwhelming, simply being a member of the NWFA provides you with a variety of marketing tools that can help you quickly showcase your dedication to your craft. Present your expertise to your customers using the following resources:

Today, with the introduction of websites and social media sites like Houzz, Facebook, and Twitter, any company with any size budget can expand their reach and grow their business. In fact, it’s even possible to tailor our marketing based on online feedback and analytics. So you may be asking yourself, “Ziz, why does this matter to me?” According to Forrester Research, buyers are anywhere from 66-90 percent through their buying journey before they contact a vendor. That means they’ve formed an

The evolution of technology and the impact on how we conduct business is staggering. I remember when I first started my company more than 30 years ago, if someone had asked me about my marketing strategy, I would have replied, “I’m in the Yellow Pages.” I know it may be hard for some of my younger colleagues to imagine such a world, but before the internet, people had no way to get in front of potential customers other than one-way communication pieces such as direct mail, billboards, or radio ads.

NWFA LOGO: Use the NWFA member logo to identify your company as a member of the largest trade association anywhere dedicated exclusively to the wood flooring industry. The logo is available in a variety of formats and can be placed on your website, social media profile, building, or even on your trucks. This tells the consumer you’re reputable. NWFA Certified Professionals also have exclusive rights to specialized NWFACP logos. HARDWOOD FLOORS MAGAZINE INDUSTRY GUIDE: The Industry Guide features a comprehensive listing of all NWFA members. Available both in print and online, this annual publication is one of the top resources for connecting members to business prospects. DIGITAL BADGING THROUGH NWFAU: Completion of online courses through NWFA University provides valuable marketing benefits. As courses are completed, they lead to earning badges. These badges are a digital representation of a learned skill that can enhance your social media platforms, website, marketing materials, and even your digital resume on platforms like LinkedIn. I was traveling last month to visit a mill in Poland and I completed six courses while on the plane. NWFAU is awesome and if you haven't tried it yet, I wish you would. FIND-A-PROFESSIONAL SEARCH FEATURE: As consumers look for wood flooring professionals through NWFA’s website, searches are ranked by training levels. Earn a badge, move up in the rankings; earn two badges, move up again; earn a certification, move up; earn two certifications, move up; etc. This platform offers consumers a real glimpse at how NWFA members commit to their profession through training and continuing education. WOOD FLOOR STYLES & TRENDS: This informative "look book" promotes the uses and benefits of wood flooring to help you successfully sell wood, and includes dozens of photos to inspire your customers. Best of all, it can be customized, allowing NWFA members to brand the publication to use as a targeted marketing tool. A digital version suitable for e-blasting and hosting on member sites is available as well, making it a valuable marketing tool to help our members grow their businesses.

the power of one 2018 NWFA WOOD FLOORING INDUSTRY GUIDE

Do you have ideas about things that would help you in the marketplace if we created them and added them to the toolkit? I’d love to hear about your ideas.

to help you educate your customers with tip sheets and communications pieces that you can add your company branding to while utilizing the credibility of the association as the source of content to impress upon your customers.

NWFA’s mission is to serve wood flooring professionals. My mission is to keep pushing you, our members, in the direction of greater success and higher profits. As such, we are in the process of creating a new online marketing toolkit

hardwood floors www.hardwoodfloorsmag.com

Lägler is celebrating 10 years of training top floor sanding professionals. It's a simple enough idea, really: Learn more, earn more.

Get yours.

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Wood

CONTRACTOR CORNER

• Pallmann recently announced its 2018 training schedule. Seven classes will be held during 2018 at their new training facility in Aurora, Colorado. Visit pallmann.us. • Bona US has released its 2018 training schedule for the Bona Sand and Finish Training School. This four-day training is ideal for hardwood flooring contractors, distributors, retailers, and inspectors. Visit bona.com. • Bostik Inc. has created an incentive program specifically tailored for installation professionals. Bostik Pro Rewards™ offers contractors the opportunity to earn reward points that ultimately may be redeemed for thousands of brand-name items, travel rewards, and much more.

Hardwood at HOME By Megan Lhamon

In business, having a niche or something that sets you apart is the key to success. It provides customers with something they

can’t find elsewhere. For Peggy and Dennis Sharbono, owners of Soft Touch Designs in Billings, Montana, one thing that sets them apart from other contractors is that they have a showroom. Previously set up in a rented building, Peggy and Dennis decided to build a brand-new showroomwhen their lease was up, so they purchased a 6,000+ square foot farmhouse and got their creative ideas flowing. They knew they wanted it to be unique and provide their customers with the best experience. After 25 years in the flooring business, they’ve worked with a lot of customers and have an excellent understanding of what homeowners are looking for in their homes. The showroomwas designed to mirror a home so that customers can envision what different flooring options would look like in their own homes. Complete with living spaces, a kitchen, and even a theater room, the showroom does just that.

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MANUFACTURER MEANDERINGS

• Bona announced that it has achieved zero waste at its manufacturing facility in Monroe, North Carolina. Additionally, the company opened a new distribution facility in Limburg, Germany with a host of sustainable and environmentally focused features. • Mullican Flooring partnered with the Appalachia Service Project (ASP) to build homes for more than 120 families affected by the 2016 West Virginia flood and Great Smoky Mountains wildfires. • For the second time in a row, Boa- Franc, manufacturer of the Mirage brand of prefinished hardwood floors, has received the Grand Prix Québécois de la Qualité Award. • Waterlox Coatings Corporation, a Cleveland-based manufacturer of wood finishes, has promoted Kellie Hawkins Schaffner to President & Chief Executive Officer and Conor Hawkins to Vice President. • ProKnee Corp. recently celebrated the grand opening of a new 16,400-square- foot manufacturing facility and warehouse inWhitefield, Maine. • Warren, Arkansas-based Ouachita Flooring Inc. in Monticello, Arkansas, announced an investment in a new state-of-the-art LICO Ripping System. • Cali Bamboo has named Doug Jackson its new president, replacing founder and CEO, Jeff Goldberg. Hardwood Flooring Inc., a sister company to Maxwell Hardwood

Soft Touch Designs is well-known for refinishing and refreshing existing wood floors, but that’s not all they offer. “Customers can design their own floors from raw wood and customize them through stains, textures, and unique mixed materials,” says Dennis.

Soft Touch Designs also works with their local school district to maintain gymnasiums, they restore flooring in historic homes, and they partake in commercial business projects. Since opening the doors to their new showroom a fewmonths ago, Peggy and Dennis have received great feedback from their customers who come in.

Photos courtesy of Soft Touch Designs.

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REPAIR, REFINISH, REFRESH

DISTRIBUTOR DOINGS

• The North American Association of Floor Covering Distributors (NAFCD) recently recognized BobWagner of Fishman Flooring Solutions in Baltimore, Maryland, as the recipient of the 2017 NAFCD Lifetime Achievement Award. • In partnership with HeroHomes and Loudoun Valley Floors, Horizon Forest Products recently donated flooring to help build a new home for a wounded veteran in Round Hill, Virginia. • Haines and Belknap-White Group announced the formation of a strategic partnership between the companies. The two distributors recently completed an investment and collaboration agreement • Armstrong Flooring announced key enhancements to its website with new and improved features for homeowners to help guide them through all stages of the buying journey. The site will also help drive consumers primed to purchase Armstrong Flooring products to aligned retailers. • Hannover Fairs USA announced that it will debut DOMOTEX USA focused on the American residential floor covering industry in Atlanta from February 28-March 2, 2019. DOMOTEX USA will target North American-based professionals, including wholesalers and retailers of floor coverings, wood flooring, and other innovative flooring products for flooring retailers, home builders, floor installers, and more. RETAILER ROUNDUP designed to improve the strategic effectiveness of both organizations.

Photos courtesy of Chris Frate.

By Megan Lhamon

and prepared for final sanding. “We finished it off with 80-grit then 100- grit with a multidisc sander to create an even flatter surface and a more- refined scratch pattern,” adds Frate. “The multidisc sander is especially useful when working on floors that go in multiple directions, to minimize dish-out and uneven flooring.” “After sanding, we water popped with our backpack sprayer and stained,” says Frate. “We used a Provincial color stain first, and then coated it with waterbase sealer and two topcoats of two-component waterbase – gloss then satin.” To keep up with Chris’ latest projects, follow him on Instagram at @pasquale_floors_.

A considerable advantage of wood floors is that they can be refinished and repaired over time. The longevity of wood flooring makes them a great value that can last a lifetime. Refinishing floors also provides homeowners with the ability to achieve a look that aligns with their changing tastes or the latest color trends. Chris Frate, the owner of Pasquale Floors in Cleveland Heights, Ohio, has been in the business for more than 16 years and is no stranger to refinishing floors. A recent job of his had multiple repairs and was in need of being refinished. “There were a few custom thresholds throughout the room, including one at the slider door and

one at the entrance to the living room,” explains Frate. “Since this flooring wasn’t easy to find, we custom-milled boards to weave into the existing floor.” Starting with 60-grit and moving to 80-grit on a belt sander, the existing coating was removed, and the floor was flattened

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Experiencing moisture issues?

We’re here tohelp.

The hardwood industry’smost trusted line of moisturevapor control products. Bostik, the leader in hardwood adhesives, offers the most comprehensive range of products featuring unlimited moisture vapor protection with no concrete moisture testing requirements . Also, with Bostik adhesives there are never any board width or length restrictions, making it easier for you to install your hardwood flooring. The formulasyou trust and the performanceyou can relyon.

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62 IIC, 52 STC

Formore information, contact us at: 1-800-726-7845 I www.bostik.com/us

*When usedwith anyBostik adhesive. T3127_08.24.17

Wood

RENOVATION Retro

By Megan Lhamon

Alex Lira, local chef in Charleston, South Carolina, and proud owner of a 1974 AirStream, has big ideas for his travel trailer, and Geoff Ahearn, an employee at John Griffiths Hardwood Flooring, was the man for the job. “When John called me one day, asking if I was interested in installing leftover chevron we had in our warehouse into Alex’s AirStream, I couldn’t resist the offer,” says Ahearn. Lira has plans to bring his culinary skills to his own yard, serving food to guests inside the AirStream, upon completion of the renovations. “Being in tight quarters, 6’ x 22’ to be exact, this job was challenging, but it has been so cool to see it come together,” adds Ahearn. “The installation of the white oak chevron floor was part nail- down and part glue-down.” Upon finishing the installation, Lira had another proposition for Ahearn. “Once the install was wrapped up, Alex asked if I wanted to also take on the carpentry/ design part of the renovation,” says Ahearn. “We worked together to design the interior layout, including building the kitchen, sleeping area, and dining area.”

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Once all of the furniture was built and installed, the floors were ready to be sanded and finished. “This was such a fun project to be a part of and it was so rewarding to see the final product,” says Ahearn. “I’m very appreciative of my boss, John Griffiths, and our customer, Alex Lira, for letting me be a part of this job.”

Photos courtesy of Geoff Ahearn.

ULC LEVEL-SEAL 500

Level-Seal is a two component urethane

leveling compound capable of creating a moisture barrier of up to 18#’s CC or 97%RH. Once cured, installation can begin by applying adhesive directly to the urethane sealer. Also suitable for use with ERP 270, creating an industrial epoxy flooring installation. ULC 500 must be spread to a minimal thickness of 1/32” but can be applied at a much thicker rate. The convenience of leveling and sealing a floor in one product, and all in one application.

Changing the way you install again... Stick with what works!

A D H E S I V E S S I N C E 1 8 2 8

www.staufusa.com 866.GLUEUSA

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Wood

Not Your Standard Job

By Megan Lhamon

Floor-to-ceiling windows that offer a view of Manhattan, private lounge areas, and a custom wrap-around bar. When J. Rapaport Wood Flooring headed back to The Standard to replace the floors they initially installed when the hotel was built 10 years ago, they knew just what the “Boom Boom” room needed. “The space is a very high-profile bar/nightclub in The Standard, High Line hotel in Manhattan,” says Maxx “Although we scrub and recoat at least twice a year, and refinish the floors once a year, after 10 years of use, they were ready for an upgrade.” For this project, Santos mahogany in a herringbone pattern (3” x 18”) was the perfect addition to an already unique room. Rapaport, Vice President of J. Rapaport Wood Flooring.

“The install wasn’t much of a challenge for our team,” adds Rapaport. “What did present a challenge was working in a boutique hotel. Unlike some residential or commercial projects, we were given a short time frame to get this job done, which required working 18-hour shifts and working hand- in-hand with other trades.” To ensure that they had the space exclusively to themselves when necessary, the team worked overnight on occasion. “We used a colored waterbase sealer and two coats of two-component waterbase to finish the floors,” said Rapaport. “We will continue to maintain the floors with a routine maintenance schedule throughout the years to come.”

“We were given a short time frame to get this job done, which required working 18-hour shifts and working hand-in-hand with other trades.”

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Photos courtesy of Maxx Rapaport.

Did You Know? The term herringbone is literally derived from the bones of a herring fish, due to its visual similarity to the bone structure.

the magazine of the national wood flooring association

GOVERNMENT AFFAIRS INDUSTRY INSIGHTS

By Dana Cole

New Forest Service Leadership Brings OPTIMISM, VISION, AND ENERGY

timber harvest programs, including those that provide raw materials to the U.S. hardwood industry, contribute to the overall health of the forest system. Thinning and fuel cleanup help prevent fires,

The focus in Washington D.C. is often on elected officials – the White House, the Senate, the House of Representatives – and their role in making and enacting federal policy. However, it is often those who hold positions appointed by the president or department secretaries that can have the most impact on issues of importance. On Sept. 1, 2017, U.S. Secretary of Agriculture, Sonny Perdue, swore in one such individual,

provide needed wildlife habitat, and allow for recreational activities throughout the year. The

Tony Tooke, who became the 18th Chief of the U.S. Forest Service (USFS). Appropriately, the ceremony took place at White Mountain National Forest in New Hampshire. The USFS is a multifaceted agency whose mission is to sustain the health,

Federation has been a

strong voice for increased timber harvest

Photo courtesy of Paul Johnson

A skid loader operator uses a clipper attachment to cut down trees in a woodland thinning project for wildlife.

levels for a number of years, and we believe Chief Tooke is fully aligned with our vision that more forest management will improve the health of our federal forests. Late last year, Hardwood Federation Lobbyist, Pat Rita, and I were able to sit down personally with Chief Tooke and discuss our concerns related to current federal forest management practices. The meeting was very encouraging on a number of fronts. Chief Tooke clearly is committed to delivering more board feet of timber off our federal forest landholdings and has been clear with department staff that this is a top priority. He indicated that in late 2017, board feet production was trending upward in every region of the country and the USFS is committed to producing 3.4 billion board feet (BBF) off federal forests in 2018, with a goal of getting to 4 BBF by 2020. He went on to say that more timber has been sold during the last two years off the federal forests than at any time during the last 20 years.

diversity, and productivity of the nation’s forests and grasslands to meet the needs of present and future generations. Those needs include economic support for communities surrounding the national forests, a goal that seems to have been overshadowed by other priorities during the last 25 years. Chief Tooke assumes this leadership role with 37 years of service to the Forest Service, starting at age 18. Before becoming Chief, he was the Regional Forester for the Southern Region of the USFS, responsible for 14 national forests. He now oversees 154 national forests and 20 grasslands in 43 states and Puerto Rico. The Hardwood Federation is encouraged by what we are hearing and seeing from the new Chief. He fully understands the benefits that

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acknowledging that this is a national issue, not one confined to the western states. He remains optimistic that federal forest reform legislation will get enacted in 2018. Pat and I committed to working aggressively with his lobbying team and our champions in the House and Senate to help make that outcome a reality. We also discussed the emergence of cross-laminated timber (CLT) as a highly desirable building material and the opportunities for hardwood products to be developed and included in this sector of the industry. Chief Tooke was well- versed on the issue and is supportive of efforts to enact the Timber Innovation Act, which will provide more research and development dollars toward developing wood products in taller buildings. The bottom line is the new Chief is very familiar with our products and our industry, and we are looking forward to working with him to advance policies that both benefit our sector and the rural communities that surround our forestlands. It was a refreshing conversation and one that we look forward to continuing on behalf of the entire industry. Dana Cole is Executive Director at the Hardwood Federation, a Washington D.C.-based hardwood industry trade association that represents thousands of hardwood businesses in every state in the U.S. and acts as the industry’s advocacy voice on Capitol Hill. She can be reached at dana.cole@hardwoodfederation.com.

A key talking point of our meeting with Chief Tooke was that the Hardwood Federation seeks to bring a national face to the symbiotic relationship between federal forest fire suppression funding and the need for federal forest management reform. Although the public perception may be that devastating wildfires are a strictly western U.S. concern, the eastern half of the country is also impacted. Not only do fires occur east of the Mississippi, insect infestation and

Photo courtesy of Paul Johnson

A blazing wildfire burns in the night in Missouri.

disease are having an increasingly negative impact on the eastern forest system, including federal forests. The fact that forest fire suppression efforts now take up more than half of the USFS budget exacerbates these problems and pushes solutions off to “another day.” Chief Tooke strongly agreed,

the magazine of the national wood flooring association

INDUSTRY INSIGHTS DESIGNER INSIGHTS

By Emily Morrow Finkell

Give Your Designers a Bone,

A HERRINGBONE

Hardwood flooring has never had so much desirability and curb appeal as it does today. It seems that every type of material is mimicking the lovely “bois” pattern and patterns that are similar to wood grain, such as zebra, chevron, and watermarked, all of which are very much in vogue in both interiors and fashion. We can’t help ourselves when it comes to zigs and zags in wood and fabric. Herringbone, for instance, goes back to ancient Egypt where woven twill fabrics were discovered 1 and it’s impossible not to notice the herringbone wood in iconic architecture. Currently, there are endless herringbone and chevron flooring designs in a number of materials. However, for the winning look, hardwood always takes first place. The Palace of Versailles fuels my love and appreciation for herringbone floors, speaking to the timelessness and classic beauty of parquet. Today and always, herringbone floors exude elegance andmake an interior feel extraordinary. We can find herringbone, and its cousins chevron and double herringbone, all around us, even in other materials such as backsplash tiles, textiles, and inside fireplaces.

Why are we seeing so many interior designers and homeowners install herringbone hardwood? Because it’s an excellent way for designers to set their projects and portfolios apart from the others and homeowners love the look. Herringbone hardwood flooring makes a large design statement of elegance and timelessness at first glance. It’s certainly not a “spec house” look found in all your neighborhood’s other homes. Furthermore, herringbone floors are just busy enough, especially in open floor plans, that they create depth, dimension, and visual excitement. In small spaces like entries and foyers, the zigzag design visually leads the eye across the threshold into the desired space. What professional designers and skilled installers know is this: herringbone flooring can add to the value of the home, and depending on the quality of the product itself and the direction of the installation, it can actually wear better, longer, because the traffic is going over the strongest parts of the board. It also shows fewer scratches and wear over time. By the way, did you know that herringbone was used as far back as Roman times? Herringbone is a very stable installation type to use for hardwood floors (or road pavers, as the Romans used it). Each of the sides pushes against the others at an angle and allows for expansion and contraction under weight or traffic. The length of a paver used by the

In a world

filled with endless choices when it comes to

hardwood flooring,

many professionals, and even designers, are suffering fromwhat I like to call inspiration overload. Let’s take a look at flooring options from the designer’s perspective, and imagine the variety of all the products they have to specify, and find ways to provide some guidance on what’s hot. This year, what’s hot is herringbone. It’s easy to be captivated by the wide range of installation configurations in hardwood but, without doubt, the biggest story right now is with herringbone and chevron patterns. I’ve observed design influencers around the world being wooed by the opulence of well-made, well-designed hardwood parquet, often getting down on their knees to feel the wood grain’s texture, contoured edges, and overall finish. At recent shows, I’ve been listening in on design professionals when they are discussing how to include hardwood in their design plan. This type of feedback makes it all worthwhile and reinforces my belief that real hardwood will never go out of style. The look, the feel, the sound, and even the scent of hardwood can’t be duplicated by any other type of flooring in the world.

Photos courtesy of Emily Morrow Finkell.

20 hardwood floors www.hardwoodfloorsmag.com

a century. Choosing between the two comes down to personal taste: chevron planks meet in perfect points like a long string of arrows, while herringbone planks look slightly staggered. Often found in formal living rooms, dining rooms, and entrance halls, both of these elegant zigzag designs elevate a room from the ground up.” One important thing to make a note of, in looking at floors over a life-long career, there are all levels of quality of flooring. Ask yourself why carpet got a bad rap or why people covered the hardwood floors in the 70s only to uncover them in the 90s. American consumers love change and are far too quick to trash something that would be cherished and well-maintained in other cultures, so we’re losing that sense of how quality flooring looks and feels. We have, generally speaking, opted for the cheap alternatives simply for the sake of something new when we could

Romans was not overly large and was easier to cut and work with than large planks for laborers or skilled artisans. Further, the angular installation of the herringbone allows for uneven subfloors or earthen roadbeds. It can undulate over the highs and lows with little concern for trip-hazards. In looking at all the most beautiful herringbone installations published in shelter and design magazines, it’s apparent that installers can be artists in how they use depths of color, lightness, darkness, and direction to make the installations fit the style of the interior. From a traditional English manor home to a Bel Air, California, residence to a modern Scandinavian apartment, the floor’s metamorphosis is inspiring. According to the article “These Classic Parquet Floors are Always in Style,” by LindseyMather, “For a twist on standard hardwood flooring, try a classic chevron or herringbone pattern – the parquet styles have been around for more than

have spent just a little more, invested in better-made hardwood flooring that can last a lifetime, or for centuries if you so desire. 1. Herringbone: Dropping Knowledge | GQ Emily Morrow Finkell is an interior designer and CEO of EF Floors & Design, LLC in Dalton, Georgia, a provider of hardwood floors and home furnishings, and NWFA design contributor. She can be reached at kikermorrow@gmail.com.

WOOD MOISTURE METER LINE

CONCRETE MOISTURE TEST

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INDUSTRY INSIGHTS MARKET MATTERS

Digital Disruption in Wood Flooring: Threats and Opportunities

it has been doing this in lighting, electrical, home automation, plumbing, and other home-improvement categories. Analysts name Angie’s List and big-box stores like Home Depot and Lowe’s as competitors to Amazon’s Home Services division. IRCG’s Marks recently purchased a home- automation system on Amazon, and when asked if he wanted it installed through Amazon Home Services, he selected yes. The experience was educational: the local installer told him that he no longer needed to advertise elsewhere because the Amazon leads were enough. “The emergence of this in the wood- flooring space would have a ripple effect,” says Marks. “Installers would build an Amazon- centric model, and it would be hard to blame them for that.” Some retailers and independent installers already partner with online-only platforms or big-box retailers, bringing in thousands in sales each month to measure, estimate, and install product sold through those companies. Flooring distribution veteran John Simonson, the owner of WebstreamDynamics, says while there may be benefits to these partnerships, he questioned whether specialty retailers should go down this path. “Are you really gaining your own business, or are you shooting yourself in the foot, where the chains are going to dominate and you’ll end up being just an installer rather than a legitimate flooring store?” There’s also the question of quality and consistency. “It’s a hornet’s nest (for Amazon) to get involved in managing local installers on a national basis,” says JimGould, founder of the Floor Covering Institute. One challenge: ensuring installers have the specific training required. Based on his experience in the

When Amazon formally launched B2B marketplace AmazonSupply in 2012, most industrial and construction supplies distributors kept one eye on the giant but pushed forward doing what they’d always done. Amazon rebranded and relaunched as Amazon Business in 2015, and later extended its Amazon Prime two-day free-shipping benefits to (business-to-business) B2B buyers. Suddenly Amazon was perceived as a real threat to the traditional B2B market. Amuch more aggressive Amazon Business had secured its place as the preferred procurement platform for the likes of Stanford University, the Mayo Clinic, and Siemens, and had quickly grown into one of the biggest diversified distributors. Amazon Business reported more than $1 billion in sales in 2016. Amazon Business along with its B2C (business- to-consumer) platformwas also capturing smaller customers, who are higher-margin and typically cross-subsidize larger-volume contracts. “The plumbing market experienced a similar profit squeeze when home centers came into play in the 1990s,” says Mike Marks, managing partner of Indian River Consulting Group (IRCG). Concern over Amazon’s potential impact is highest among sellers of contractor and industrial MRO supplies that are easier to buy online and ship. Because of logistical challenges, the wood flooring industry has largely been immune to the Amazon effect. Wood flooring is bulky, heavy, and hard to install without proper training. Another challenge: difficulty in returning the product, and handling claims. But this could change in 2018. Amazon has started approaching flooring retailers to be installers for its B2C-focused Amazon Home Services. For a few years now,

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By Lindsay Konzak

flooring industry, he says claims go down dramatically when an installer has training unique to the product type being installed. Gould urges the wood flooring industry to invest in educating the consumer on the importance of proper installation. “The idea of getting someone who’s bonded or has experience or even works for a legitimate retailer or contractor doesn’t mean they know what they’re doing (with every floor type),” says Gould. “That’s one of the problems that someone like Amazon has unless they make a requirement that all of their installers are NWFA-certified professionals.” Are products next? With its interest in installation services, Amazon’s next natural step may be to grow their wood flooring product selection, which is currently limited. Amazon didn’t comment by press time for this article, so it’s unknown if this is in their plans. But Amazon continues to pursue newmarkets aggressively, and according to some analysts, its foray into more-complex products like flooring is inevitable. Because of the challenges inherent in selling flooring online, however, Amazon’s best bet may be to use existing distributors and retailers through its third-party seller network rather than try to do it all themselves. In other verticals, this has proven to be profitable for some sellers but has had its cons. Among them: limited access to customer data, which Amazon is notorious for holding tight. It’s worth noting that Amazon has the capital to buy its own required infrastructure into the wood flooring space, as well, whether that’s a chain of smaller companies or one large one as they did when they bought Whole Foods in 2017. Other online-only competitors, including Vancouver, British Columbia- based BuildDirect, have been selling wood flooring online for years. Some in the industry take BuildDirect’s recent bankruptcy filing as evidence the online model at scale doesn’t work, but the company claims its filing for reorganization was driven in large part by cash-flow challenges related to investments into the technology driving its platform. In its Nov. 3 filing for relief under Canada’s Companies Creditors Arrangement Act, BuildDirect said it hasn’t been profitable since its 1999 founding, but still believes in “heavy, hard-to-ship products” as an “underserved market offering tremendous opportunity for growth.” In October, BuildDirect tapped former Amazon Business executive Dan Park to lead the business, reaffirming its commitment. Just as with Amazon, BuildDirect is built on a hybrid internal and third- party seller model. It’s the latter that BuildDirect has invested heavily in during the past year, creating a seller portal that allows its partners to not only manage their own product listings but take advantage of built-in

the magazine of the national wood flooring association

Digital Disruption in Wood Flooring (Continued)

published on the website, including a comprehensive hardwood flooring shopping guide and general wood flooring advice. Gould says educating the consumer is one of the best things that wood flooring businesses can do to protect their market – and their margin: “I’ve always said that in the absence of other information, price is the only thing that differentiates one product from another.” Today’s buyers, especially millennials, go online first and then visit a showroom. “Unfortunately, the internet has some retailers at an impasse, because the millennial buyer is going there first, and once they read 10 articles, they think they’re as knowledgeable as the floor salesman, who is really trying to sell them something they don’t want or need,” Gould says. Gould says that whether you sell actual product online or not, companies do need an online presence – and they need to use that platform to educate. “Put more than store hours, your years in business, and a picture of your store on your website,” he says. And if you do sell online, invest in SEO and good product data, and make sure you have the logistics infrastructure to be able to deliver. And just because it’s online doesn’t mean you have to sell for the lowest price, Hosking says. “Flooring is very competitive, and it always will be,” he says. “We’re competitive with everybody else, but we’re just not going to go down to selling it for nothing just to make the sale. There is just too much involved with it.” Lindsay Konzak is President of 3 Aspens Media (3aspensmedia.com), which provides marketing- and research- driven content for businesses. She is also the former editor of Modern Distribution Management (mdm.com) and has written extensively about Amazon’s impact on B2B channels.

is to their business. In the same survey, 15 percent of manufacturers said they sell through online channels. Even if Amazon doesn’t move quickly into flooring, it is putting its toes in the water with installation services. The question that remains is whether NWFA members will meet Amazon and other competitors with an improved digital game and whether they will differentiate themselves by translating their product knowledge and reliable installer connections online. Independents in the wood flooring industry that already have succeeded online have done it despite the challenges. In 1998, Massachusetts- based Hosking Hardwood launched its first e-commerce website in response to the big-box threat. “I said in order to be competitive, we’re going to have to do something a little different,” says Owner Jeff Hosking. Hosking Hardwood, with Simonson’s company’s support, grew to offer more than 58,000 styles of flooring, moldings, and installation accessories through their website. Hosking knows firsthand how difficult selling wood flooring online can be. “It can get daunting,” he says. “We went through the learning curve very early on as far as shipping.” Simonson says any retailer that wants to sell online must view it as its own channel, and dedicate a separate team to it. Hosking gets 600-800 phone calls a day from its website, asking about whether a floor will work, how to buy trims and molding, how flooring is installed, howmuch it costs, how long it will take to get, and more. “The lines are busy here at all times,” Hosking says.

analytics showing buyer preferences, locations, price tolerances, market trends, and competitive offerings. BuildDirect’s goal is to “fully connect homeowners and pro buyers with sellers from around the world,” according to an October 2017 press release. When BuildDirect relaunched their seller portal in 2016, participation far surpassed its expectations, with 100,000 new products as of October 2016 and 212 new suppliers, according to its bankruptcy filing. This added to 6,500 and 250, respectively, before the February 2016 launch. More revealing, BuildDirect said in its filing that its primary assets are not the products sold through the platform, but the technology and data driving it. Countering digital disruption In mid-2017, we asked NWFAmembers what they were most concerned about going into 2018, and none mentioned Amazon. That said, many NWFAmembers are still concerned about trends that have been driven or exacerbated by online competition: product commoditization, manufacturers selling direct, and the changing shopping habits of consumers. Most respondents recognize they need a stronger online presence, but many aren’t sure where to start, let alone how important an online platform

His success getting found by prospective customers online is due in part to content he has

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The best floor you’ll ever see is the floor we saw.

At Peachey, we hand select each piece of old-growth hardwood that carries our name. By working closely with local Amish sawmills we are able to specify the perfect cut that will produce the widest and longest boards in the industry, for beautiful flooring crafted to last through generations in your home.

We understand this isn’t the way all hardwood floors are created, but at Peachey, there’s no substitute for doing things right.

PeacheyHardwoodFlooring.com | Reedsville, PA | 717.667.9373

BUSINESS BEST PRACTICES FINANCE & DIGITAL FINANCIAL Tax Tools

Tips As we enter 2018, maybe some of you are looking forward to a less- stressful tax preparation time. Or, perhaps, it will be an easier time for your CPA resulting in a lower tax preparation bill for you this year. Since this issue of Hardwood Floors highlights some of the aspects of digital marketing, it seemed fitting to dig into some digital financial tips and tools that could help make you even more efficient, providing you additional savings in time and money.

THE WHAT • Online accounting software, such as QuickBooks • Accounting software compatible with other systems (e.g., tax, expense reporting) • Remote deposit • Positive pay

• Electronic payment receipt options • Cloud document storage • Mobile credit card processors • E-signature services • Online password generators/storage

THE WHY AND HOW If you are not using online accounting software, you may want to look into it as a way to work on finances while you are away from your office. This also works well for the company that utilizes part-time or remote workers to do their bookkeeping. Also, online accounting software tends to integrate better than desktop versions with other software systems that can be used for things like expense and tax reporting. Desktop versions are beginning to phase out and may someday not even be an option. Online accounting software is changing rapidly. If you looked into it in the past and it wasn’t right for you, try again. It is possible that things have changed and now it is right for you. In the same vein,

credit card or cash processors (e.g., PayPal or Venmo). These services integrated together can result in a situation where everything is paperless and accessible immediately from any location. It will make tracking things more manageable and result in timelier reporting that can help you make capturing everything digitally. This is understandable with the prevalence of fraud today, but there are steps you can take to help out in these situations as well. There is software that can protect your passwords and also generate unique secure passwords for the websites you visit. LastPass is one popular option, decisions in your business. Many people are leery about

expense reporting software like Expensify or Concur have changed as well. These platforms used to market mostly to larger companies, but now also have packages that target smaller businesses. Recently, my family had our HVAC technician at our house, and his company had gone entirely paperless since his last visit. Everything was done on his tablet, and all receipts were emailed to us. This made me think about wood flooring contractors and how this process could benefit you all as well. To digitize fully, you would want to consider other services like e-signature services (e.g., DocuSign), cloud storage services (e.g., Dropbox), and mobile

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