• 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
  • MEDIA
  • FLOOR Podcast
  • Videos
  • TISE 2025 Videos
  • Product Spotlights
  • 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
  • BUYER'S GUIDE
  • MEDIA
    • FLOOR Podcast
    • Videos
    • TISE 2025 Videos
    • Product Spotlights
    • eBooks
  • EMAGAZINE
    • eMagazine
    • Archive Issues
    • Contact
    • Advertise
  • SIGN UP

Art of Retail Management: If you only think you're doing fine, there's a good chance you're not

By Sam Allman
December 1, 2006
Comparing apples to apples: The World Floor Covering Association’s Financial Management Report enables flooring retailers to compare their performance to colleagues in the same business.


I had never even taken a business class in high school or college. Instead I earned degrees in microbiology and biochemistry. My credentials for running a store came from growing up in the carpet industry. At age eight, I was laying carpet with my father. As soon as I got a driver’s license I was taking samples to customers and selling them. My carpet-laying skills and selling abilities enabled me to raise a family and attend college at the same time. Despite my ability to earn a living wage while going to school, my father believed I was too lazy to succeed in the carpet industry.

To my father’s utter dismay, just before completing my doctorate in medical research, I quit school and opened a carpet store. However, I have never looked back. I believe this is a great industry, and I am proud to be part of it. It has given me a great life and enabled me to raise a family. My family is my most cherished possession (though admittedly there have been times when my business has clouded that value.) I believe I succeeded three decades ago not because I was particularly smart, but because I adopted a strong work ethic (my father’s assessment notwithstanding).

Why do I share this? Because I have come to realize that a strong work ethic is no longer enough. Many retailers work hard and long … yet still fail. Welcome to the 21st century: the age of the abundant flooring stores and survival of the fittest. Profits no longer flow from hard work alone. Today’s business owner must measure every financial data-point and know how to improve it, employ best practices, make smart decisions, study the market and run the business instead of letting it run him or her.




For 13 years, I’ve been associated with Mohawk University. During that time one tool has helped me learn business more so than anything else. And, for years, I have encouraged retailers to use it. Yet few do. That’s why I’m writing this column. This dynamic tool is the annual Financial Management Report from the World Floor Covering Association.

WFCA collects financial statements from many of its members and organizes the data into useful, benchmark “industry averages.” The report organizes the data to enable storeowners to find the averages for stores like theirs. You’ll find averages for Retail Oriented Firms, Retail/Main Street Commercial Firms, Contract / Commercial Firms and sometimes, Cleaners / Installers/Inspectors. Within each of these categories, you’ll find averages for “All Firms”, for “High Profit Firms” (the top 25 percent), and for stores with different volumes of sales.

As I stated, I am a self-study. I learned, by studying this report’s plain language, to find the crucial numbers on any dealer’s financial statements. I can tell him or her how to improve them. I regret that so few dealers use this treasure of information.

The report provides crucial benchmark information – how your peers are growing their sales, shifting Gross Profit Margins, trimming expenses, changing salaries, avoiding Bad Debt losses, and wringing out Net Profits. You see the critical ratios on their Balance Sheets.

You cannot know if you are doing well if you have no guidepost to set goals for you. Think of the information that drives athletes to perform better. It’s the standards set by other athletes. The success of others tells us what we can achieve if we work smarter. They inspire us to raise the bar on our company’s performance. Without the promise of such inspiring goals, we often aim only to stay busy, hoping we will somehow eke out a profit. Often, the only thing we achieve is the ability to stay busy, but that’s about it. Our take-home pay, company profit and the market-value of the operation stay stubbornly stagnant. For 10 years, I worked far too hard too have earned what I did. But that’s not what I lament. Looking back I dearly regret being too busy for the most important people in my life: my family.




Highlights of the key financial numbers (explaining their purpose), and the key ratios that are critical to understanding a company’s performance.

How Did We Do? – Industry Performance by Business Type

Specific financial performance data by business type and sales volume. These are our industry averages and benchmarks.

How Will We Improve? – Surviving and Flourishing In Our Changing Industry

How you can improve your future performance. It documents how minor changes in critical profit variables can significantly affect profitability.

Most helpful is the section revealing the Critical Profit Variables. (The numbers I have discussed in previous columns.) These variables determine a firm’s profitability. You want to know these variables, so you can concentrate your precious time on them. (See chart.) 

The report tells which numbers were raised above industry averages by the high profit stores (which, of course, is how they distinguish themselves as high profit stores. You learn which of your numbers needs to change to become a High Profit firm (or even a Higher Profit firm). The good news is that you needn’t improve all your numbers. Most dealers need to improve only a few, and by only a few percentage points.

The information found in this report has lifted me from running a business by the seat of my pants to knowing how to analyze numbers and how to improve performance. You can do it, too. 

Charlie Tremendous Jones once said, “Your success in life will be determined by the people you know and the books you read.” Because I want you to avoid the results of ignorance and mistakes that I suffered, I recommend you do two things.

First, if you have not already done so, join the World Floor Covering Association. I have found that dealers improve their financial performance and have more enjoyment running their stores more when they take advantage of what the WFCA has to offer. When they rub shoulders with fellow retailers, they realize they are not competing against dealers in far-away cities; rather they are hobnobbing with colleagues who are also struggling to win consumers’ hearts. Members share productive strategies and other tips that can increase each other’s profits. That same spirit permeates our Mohawk University seminars: the participants learn as much from each other as they do from me.



Second, please do yourself a huge favor and decide to learn more about financial management. When you buy the annual Financial Management Report, you can read its clear descriptions of the crucial profit variables. You can use performance of your colleagues to set a goal for you. And best of all, when you send your financial statement to the WFCA for processing, you receive a free, personalized, financial report for your business.

If you commit yourself to these two things, I expect you will be able to spend more time with the most important people in your life. How dearly I wish that for you! I believe that none of us, on our death-beds, will ever say, “Gee, I wish I’d spent more time at the store?” I write to you, so we all can become more effective at work, and be more joyful at home.    

(EDITOR’s NOTE:  To find out how you can purchase the annual Financial Management Report, contact the World Floor Covering Association at www.wfca.org)

Share This Story

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

Sam Allman is president of Allman Consulting and Training. He is an internationally recognized motivational speaker, consultant, trainer and author who delivers inspiring programs in areas such as leadership, customer service, management development, team building, retail sales and personal quality management. He has developed many audio and video programs and has created hundreds of training and educational learning systems.

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...
    Flooring Installation
    By: Darryl Jones
  • 2024 New Flooring Product Guide

    2024 New Flooring Products Guide

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

Report Abusive Comment

Subscribe For Free!
  • eMagazine
  • eNewsletter
  • Online Registration
  • Manage My Preferences
  • Subscription Customer Service

Takeaways from the 2024 AHSG Convention & Member Outlook for 2025

Takeaways from the 2024 AHSG Convention & Member Outlook for 2025

Shaw Flooring Network Retailers Report Post-Election Sales Surge

Shaw Flooring Network Retailers Report Post-Election Sales Surge

Retailers Share Top Takeaways from Shaw Flooring Network Convention

Retailers Share Top Takeaways from Shaw Flooring Network Convention

What Shaw Flooring Network Dealers are Banking on for 2025

What Shaw Flooring Network Dealers are Banking on for 2025

More Videos

Popular Stories

Ken Ballin manning the Tools 4 Flooring booth in Tool Alley at TISE 2025

10 Tool Innovations Every Flooring Contractor Should Have on Their Wish List

RevWood American Originals.jpg

How Mohawk's Domestic Manufacturing Powers Growth in Challenging Times

Paul Hambidge

The Waterproof Laminate Myth: Why Consumer Expectations May Never Be Met

Installation Awards - Vote Now!

Events

June 9, 2025

NeoCon 2025

A trade show for the commercial interior design industry.

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

Flooring Groups

Flooring retailers, do you belong to a buying, marketing or franchise group?
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

  • Art of Retail Management: Habit -- Realize the fix you're in

    See More
  • Art of Retail Management -- Habit: Fixing the Fix You're In

    See More
  • Art of Retail Management -- Habit: Figure out if you are earning, or just churning

    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
  • BUYER'S GUIDE
  • MEDIA
    • FLOOR Podcast
    • Videos
    • TISE 2025 Videos
    • Product Spotlights
    • eBooks
  • EMAGAZINE
    • eMagazine
    • Archive Issues
    • Contact
    • Advertise
  • SIGN UP