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The flooring business -- Vast differences!

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hakrjak

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Hey Guys -

I just thought I'd share an experience I had recently while shopping for some flooring. A good friend of my recently lost her job in the fortune 500 world, and took a commission based sales job selling flooring -- So I was glad to have her over to show me what she had. She had told me she was making great money slinging flooring, and her bosses were very wealthy off this business, so I was even more curious to figure out their business model, based on this.

I was going to pick out a laminant and she pulled out her samples and showed me a lot of stuff for around $13 per sf installed. Thinking this was a bit high, I checked Home Depot the next week, which had the same exact stuff for about $8 per square ft installed. The materials alone would probably only cost me around $2 per square ft for me to install them myself.

No wonder my friend's company is doing so well if they are able to successfully sell this stuff at such a huge margin. I'm both impressed by and disgusted by their sales model at the same time. haha -- It seems they are just employing commissioned sales people who know how to "sell", and they are arming them with a variety of products to sell at extremely high prices, probably to people who have no idea what they are looking at. I don't know where they generate their leads from, but my friend has 5 or 6 homes to visit each day with very interested buyers, and she sells atleast half of them to 75%.

Just thought I'd share this experience in the residential flooring business... it's got me scratching my head going, "Maybe I should start one of these companies to keep my crew busy between flips?" :)

- Hakrjak
 
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