• Sign In
  • Create Account
  • Sign Out
  • My Account
  • NEWS
  • PRODUCTS
  • A&D
  • INSTALLATION
  • MARKETS
  • AWARDS
  • EDUCATION
  • BUYER'S GUIDE
  • MEDIA
  • EMAGAZINE
  • SIGN UP
cart
facebook twitter linkedin youtube
  • NEWS
  • Breaking Flooring News
  • eNewsletters
  • PRODUCTS
  • Carpet & Area Rugs
  • Hardwood
  • Installation Products
  • Installation Tools & Equipment
  • Laminate
  • Resilient
  • Specialty
  • Tile & Stone
  • MARKETS
  • Commercial
  • Residential
  • AWARDS
  • Installation Awards
  • Top Flooring Products
  • EDUCATION
  • Continuing Education
  • Webinars
  • Sponsored Insights
  • MEDIA
  • FLOOR Podcast
  • Videos
  • TISE 2025 Videos
  • eBooks
  • EMAGAZINE
  • eMagazine
  • Archive Issues
  • Contact
  • Advertise
search
cart
facebook twitter linkedin youtube
  • Sign In
  • Create Account
  • Sign Out
  • My Account
  • NEWS
    • Breaking Flooring News
    • eNewsletters
  • PRODUCTS
    • Carpet & Area Rugs
    • Hardwood
    • Installation Products
    • Installation Tools & Equipment
    • Laminate
    • Resilient
    • Specialty
    • Tile & Stone
  • A&D
  • INSTALLATION
  • MARKETS
    • Commercial
    • Residential
  • AWARDS
    • Installation Awards
    • Top Flooring Products
  • EDUCATION
    • Continuing Education
    • Webinars
    • Sponsored Insights
  • BUYER'S GUIDE
  • MEDIA
    • FLOOR Podcast
    • Videos
    • TISE 2025 Videos
    • eBooks
  • EMAGAZINE
    • eMagazine
    • Archive Issues
    • Contact
    • Advertise
  • SIGN UP

The Tradeoff Between Volume and Profit

By Jim Lee
September 22, 2000
Over the past couple of years, I’ve had occasion to talk to a number of distributors about doing business in today’s high-speed environment. Most every one of their companies are attaining a much higher sales volume than ever before. Their sales increases are due not only their sales efforts and an extremely healthy economy, but also — in most cases — because of the diversification of their product offerings. Often, we discussed the past and usually took a kind of questionable guess as to what the future might hold for floor covering distributors.

During the course of these conversations, one thing always became extremely apparent — today’s floor covering industry is totally geared for continuously growing sales volume.

During the past 10 years or so, it seems many in the industry have lost sight of the reason to be in business. That reason is to earn a profit. When we gather at conventions, it seems that the talk always gets around to discussions of sales volume. Of course, volume is of some importance, but it should not come at the sacrifice of profits.

A business thrives on profit. You can’t grow a business without it. Nor can you pay your employees or your suppliers without it. So why has volume become so important?

Volume gives you something to brag about to your peers. Profit is for growth and prosperity. Generally, businesspeople do not discuss their profit with others. They keep it a closely guarded secret.

All too often, profit levels are kept secret because they are inadequate for the sales volume. Most any company, regardless of size, could increase its annual sales volume 10% to 20% simply by lowering prices (cutting profits). So, it’s easy to achieve a large sales volume.

But to have a large net profit on that volume takes astute management, careful control of expenses, maximum employee production, and very tight inventory control. The next time I hear of a company that admits to cutting its volume in an attempt to increase profits, I will recognize that company as one that has realized the true gauge of its management is based on net profitability — not sales volume.

I’ll bet you won’t hear too much bragging at the conventions about cutting volume to increase profit. Remember, profit pays the way.

Share This Story

Looking for a reprint of this article?
From high-res PDFs to custom plaques, order your copy today!

Jim Lee, author of FIANA Job Ticket, is president of the Floor Installation Association of North America (FIANA) and the retired owner of Professional Flooring Supply in Fort Worth, TX. During his career of more than 40 years, Jim has worked in all segments of the industry including retailing, distribution and manufacturing.

Recommended Content

JOIN TODAY
To unlock your recommendations.

Already have an account? Sign In

  • resilient flooring

    The 7 Types of Resilient Flooring

    The resilient flooring category is comprised of many...
    Resilient Flooring
    By: Resilient Floorcovering Institute
  • QuickDrain USA’s ShowerLine linear drain

    Tips for Curbless Shower Installation Using a Linear Drain

    Consider these four tips when planning for a curbless...
    Installation How-To
    By: Darryl Jones
  • 2024 New Flooring Product Guide

    2024 New Flooring Products Guide

    We explore this year's introductions in area rugs,...
    Floor Coverings
    By: FLOOR Trends & Installation Editors
You must login or register in order to post a comment.

Report Abusive Comment

close

1 COMPLIMENTARY ARTICLE(S) LEFT

Loader

Already a Registered User? Sign in now.

Manage My Account
  • eMagazine
  • eNewsletter
  • Online Registration
  • Manage My Preferences
  • Subscription Customer Service

What Shaw Flooring Network Dealers are Banking on for 2025

What Shaw Flooring Network Dealers are Banking on for 2025

Retailers Share Top Takeaways from Shaw Flooring Network Convention

Retailers Share Top Takeaways from Shaw Flooring Network Convention

SolidTech R: Sustainable, High-Performance Flooring from Bottle to Floor

SolidTech R: Sustainable, High-Performance Flooring from Bottle to Floor

Shaw Flooring Network Retailers Report Post-Election Sales Surge

Shaw Flooring Network Retailers Report Post-Election Sales Surge

More Videos

Sponsored Content

Sponsored Content is a special paid section where industry companies provide high quality, objective, non-commercial content around topics of interest to the FLOOR Trends & Installation audience. All Sponsored Content is supplied by the advertising company and any opinions expressed in this article are those of the author and not necessarily reflect the views of FLOOR Trends & Installation or its parent company, BNP Media. Interested in participating in our Sponsored Content section? Contact your local rep!

close
  • Woodura Herringbone 2.0
    Sponsored byBjelin

    The Herringbone Floor of the Future

Popular Stories

Woodura Herringbone 2.0

The Herringbone Floor of the Future

company branding

Branding and Marketing Strategies for Flooring Contractors

Three individuals, a man and two women, discussing flooring options while reviewing samples.

Humans in the Loop: Why AI in Your Flooring Business Still Needs You


Download the Free Moisture Meters Guide

Events

December 1, 2030

Webinar Sponsorship Information

For webinar sponsorship information, visit www.bnpevents.com/webinars or email webinars@bnpmedia.com.

View All Submit An Event

Poll

Growth Challenges in the Flooring Industry

What’s holding you back from growth in 2025?
View Results Poll Archive

Products

2025 BNI Interiors Square Foot Costbook

2025 BNI Interiors Square Foot Costbook

See More Products

FLOORtalk podcasts - Listen Now

Related Articles

  • Are We Really Witnessing the Demise of the Distributor?

    See More
  • Use It or Lose It: Don’t Let Your Business Go the Way of the Dinosaur

    See More
  • What Happened to the Old, Tried-and-True Ways of Expanding Business?

    See More
×

We’re rolling out the red carpet of flooring knowledge!

Stay in the know on the latest flooring retail trends.

JOIN TODAY!
  • RESOURCES
    • Advertise
    • Contact Us
    • Directories
    • Store
    • Want More
  • SIGN UP TODAY
    • Create Account
    • eMagazine
    • eNewsletters
    • Customer Service
    • Manage Preferences
  • SERVICES
    • Marketing Services
    • Reprints
    • Market Research
    • List Rental
    • Survey/Respondent Access
  • STAY CONNECTED
    • LinkedIn
    • Facebook
    • Instagram
    • YouTube
    • X (Twitter)
  • PRIVACY
    • PRIVACY POLICY
    • TERMS & CONDITIONS
    • DO NOT SELL MY PERSONAL INFORMATION
    • PRIVACY REQUEST
    • ACCESSIBILITY

Copyright ©2025. All Rights Reserved BNP Media.

Design, CMS, Hosting & Web Development :: ePublishing

search
cart
facebook twitter linkedin youtube
  • Sign In
  • Create Account
  • Sign Out
  • My Account
  • NEWS
    • Breaking Flooring News
    • eNewsletters
  • PRODUCTS
    • Carpet & Area Rugs
    • Hardwood
    • Installation Products
    • Installation Tools & Equipment
    • Laminate
    • Resilient
    • Specialty
    • Tile & Stone
  • A&D
  • INSTALLATION
  • MARKETS
    • Commercial
    • Residential
  • AWARDS
    • Installation Awards
    • Top Flooring Products
  • EDUCATION
    • Continuing Education
    • Webinars
    • Sponsored Insights
  • BUYER'S GUIDE
  • MEDIA
    • FLOOR Podcast
    • Videos
    • TISE 2025 Videos
    • eBooks
  • EMAGAZINE
    • eMagazine
    • Archive Issues
    • Contact
    • Advertise
  • SIGN UP