MAKING A LIVING THROUGH INSTALLATION

Making a living wage as an installer in today’s market is an increasingly difficult  matter. Jon Namba,  industry consultant and owner of Namba Services, Inc. reports that payment has dropped to mid-1970 levels. Before the recession, residential carpet installers were making $3.50 to $4.00 a square foot; in some areas, they are now making $1.75 to $2.75. Tile setters who were pulling in $3.00 to $5.00 a square foot previously are sometimes getting only $1.00 to $1.50 now. And hardwood installers, making $3.00 to $5.00 before the recession, are averaging $2.00 to $2.50 in some markets. Throw in licensing and insurance costs, and it’s hard for up-and-up tax-paying installers to compete.

Plus, at least on the residential side, quality installers will always be fighting a battle against fly-by-nights hoping to make a quick buck. The barrier to entry for the residential installation business is so low—roughly $350 to $400 of tools—that anyone with a couple nights worth of bar tips and an insurance policy can call themselves an installer, regardless of their experience, education or a track record of success. Committed retailers have a hand in curbing this problem by establishing (and maintaining) a close relationship with their installers and encouraging customers to use only these vetted workers.

The Carpet One Floor & Home store in Vallejo, California, owned by David and Michelle Struble, has worked with the same five installers for over 15 years. These installers do a good job and are rewarded for it—knowing that they will get first dibs on any jobs that come along. This reciprocal loyalty serves not only the installer and store but also the customer—as they are guaranteed an installer with experience and a history of success. In addition, at Struble’s store, customers are presented with a total cost—for materials and installation—after the store scopes out the job, and that price is guaranteed. Customers aren’t sold a roll of carpet and left to haggle with an installer over the cost of installing it.

Though it is often assumed that subcontractors will take shortcuts on the job site—when they aren’t under the watchful eye of the retailer—Struble says that this is not the case with his installers. Struble guarantees installations for life, and when problems occur, which they inevitably do, Struble expects the same installer who did the work to fix it. “The installer won’t take a shortcut because they know the will lose money in the repair,” says Struble.

Avalon, a major 14 store chain in the Northeast, pays for some of its installers’ training and certifications but also seeks to enable them with the best tools in the field. At times, the store will buy new tools at cost and sell them to the installers, for the same price, under a payment plan, which is much easier to absorb than a single payment. “Then I know they have the right tool in their hand,” says Vince Licolli, vice president of installation for Avalon.

If an Avalon installation needs to be repaired, the company gives the original installer the opportunity to take care of it. And if the repair costs Avalon money, they charge that back to the installer, again using a payment plan to make it easier on the installer’s finances. Licolli notes that repairs are needed infrequently—only a few call-backs are made a month across Avalon’s entire chain.

All of the dealers that we spoke with use subcontractors for installation, and that is fairly standard across the industry. Jim Walker, a seasoned installer and founder of the Certified Floorcovering Installers organization, estimates that less than 15% of retailers employ their installers. Licolli, who has been in the business for 20 years, notes that those retailers who do employ installers usually have only one or two on staff, and they generally serve as general contractors but also know how to install. Over the years, Licolli has considered moving installation in-house but believes that contracting creates healthy competition among installers that encourages them to work harder and smarter. Licolli has approximately 60 subcontractor installers that he works with.

Struble points out that his store could not offer competitive prices on installation if they had employee installers. “This is the best way to offer value to the customer and allow people to make a living,” he says. Struble—who owns Struble Family Funeral Services, which is located right next to his flooring store—purchased his Carpet One store when the owner, his former tenant, went bankrupt. Struble has employed his experience as a funeral director in the flooring store, taking a very humanistic approach to the business. He encourages both his employees and installers to focus on building relationships, rather than selling. And he seeks to meet the customers needs—whatever they may be—even if it means sending them to a store that better suits their needs. “I don’t take off one hat and put on another,” Struble explains. “All of us are here for the customer. It’s about hearing what the customer is saying, putting ourselves in their shoes and considering what we would want from someone in our role.”

DIVERSIFICATION
Rather than leaving the field during the recession, many installers have chosen to diversify, installing more than one flooring type. Most often, carpet installers jump to hard surface installation of engineered hardwood and resilient flooring. This trend has received a mixed response from dealers.

Some dealers value this diversification because they can send one installer to do a complete job of both hard and soft surface installation, freeing up another installer to go elsewhere. But other dealers believe it produces installers who are jacks-of-all-trades, masters of none.

Regardless of that “danger,” specialization might not be an option for long. Namba says, “Years ago, people could specialize; now they have to be diverse. They have to up their value. They have to install a minimum of two flooring types to be competitive.” In fact, Namba believes that the value of diversification is the most important lesson an installer—budding or experienced—can learn. He also advises that installers earn certifications through non-profit agencies to build their credibility.

However, it still gives flooring installers a bad name to have amateurs out there doing slipshod work. Fortunately, after a while the principle of survival of the fittest tends to weed out the worst of the worst, while others find they’re losing money to get the jobs done and they retreat back to the residential sector.