Running a floor covering business for 75 years in and of itself is considered an amazing feat by many observers. But doing it at a very high level over the course of seven-plus decades is even more impressive. That’s the rarified air that Grand Rapids, Mich.-based Verhey Carpets occupies as it marks this history-making milestone.
The company was founded on Dec. 1, 1949, by Neil Verhey, who transitioned from his career in distribution with Morley Brothers—a lumber and hardware wholesaler—before transferring ownership to his brother, Bob Verhey, and getting back into the distribution business. Today the company is owned by Bob’s son, Dave Verhey, who has not only grown the business but also ushered the company through challenging times.
So, what does it take to be successful in flooring retailing so well for so long? FCNews recently caught up with Karla Wischmeyer—a nearly 40-year veteran at Verhey Carpets who serves as showroom manager and design consultant—to share the secrets behind its success.
Following are some of the key takeaways:
Establish your store as a destination
Verhey Carpets operates two showrooms: The original location, situated on historic Wealthy Street in downtown Grand Rapids, is its primary spot, established in 1949. The company’s second location, roughly 20 minutes away on 29th St., is co-located with a furniture/appliance retailer that resides in the popular West Michigan Design Center District.
As a staple in the community for decades, Verhey Carpets has earned the title of “the place to go” for not only flooring products but overall design guidance and direction. “A lot of designers use our showrooms, and they bring clients in for us,” Wischmeyer said. “That’s been a great resource.”
All this confirms Verhey Carpets’ position as an interior design authority. “Customers say, for example, ‘I’m looking for hardwood floors, let’s go to Verhey because they’re the experts in what they do,’” Wischmeyer explained. That expertise extends beyond wood—a category prominently positioned in its showrooms. “In our market we reintroduced people to cork, bamboo and sisal carpets, and we also have some really nice wool products that shoppers are interested in.”
Of course, the retailer also displays today’s popular products like LVP, laminate, porcelain, stone and even window treatments. The key, Wischmeyer noted, is staying abreast on the enormous variety of flooring options available today to suit a wide range of end-user needs.
Solidifying one’s hard-earned reputation as the expert across multiple categories, however, takes discipline. In Verhey Carpets’ case, that means ensuring its staff members stay up to date on what’s new with ongoing product knowledge sessions and learning.
Kill ‘em with kindness
Everybody talks about providing top-notch customer service, but few practice what they preach on a daily basis. At Verhey Carpets, the customer is truly king. “We’ve been around as long as we have because we’re still a customer service-driven company,” Wischmeyer said. “When you walk into our stores, we’re going to help you, we’re going to follow up when you leave, we’re going to offer you free estimates, we’re going to deliver samples to you and we’re going to help you make the right selections. And, yes, sometimes we won’t make the sale because of price. But we’re going to be honest about what we’re selling you and what we think is right. Then we’re going to install it, we’re going to vacuum, we’re going to leave it better than when we got there, and when it’s all done, we’re going to follow-up and make sure you like it—then you can pay your bill.”
Tweak your product mix accordingly
Good retailers know how to respond to changes in consumer tastes while knowing what sells well in their respective markets. The great ones focus on getting ahead of those trends so they don’t get caught playing catch up.
“When we first started, we were just selling carpet—hence the name,” Wischmeyer recalled. “People didn’t love hard surfaces like they do now. Wood, which is one of our biggest categories today, was sold mostly in lumberyards back then. You used to only see it in the dining room or foyer. Now it’s throughout the home; they want it from the front door to the back door.”
Fast forward to today, and the ratio of hard to soft surface at Verhey Carpets has completely flipped. By Wischmeyer’s count, it’s roughly 40% hardwood and 40% carpet, with resilient accounting for 15% of sales. Ceramic represents about 5% of the business.
Despite the shift in product mix, Verhey Carpets’ customer base has largely remained the same. “On the residential side, we’re mostly a remodeling contractor for homeowners, and we have a handful of builders that we work with,” Wischmeyer said. “We also have some commercial accounts.”
Stay relevant in consumers’ minds
So much has been made of how customers shop today, how they research products, how they choose brands/products and, yes, how they ultimately select the retailer they’re going to do business with. That’s why suppliers spend hefty sums on focus groups, surveys and other consumer marketing research initiatives. While it’s still all about word of mouth, effective marketing, positive customer reviews, etc., technology has no doubt raised the stakes and changed the game.
Treat your employees like rock stars
Employee relations is often cited as one of the common denominators in every successful customer-facing business—and Verhey Carpets is no exception. In fact, it sees its employees—especially its full-time floor layers—as a competitive advantage.
“We’re one of the few companies left in West Michigan that have carpet installers on the payroll,” Wischmeyer stated. “We have people who come here to work with us mainly because of that.”
The positive culture at the company is also evidenced by employee retention. “We have an installer who just retired, and he was with us 42 years,” Wischmeyer said. “I started in 1986 and my boss, Dave Verhey, started in 1964. My newest employee has been with me three years now.”
Verhey Carpets employs 19 people currently.
Stand firm when times get tough
You don’t last 75 years in business without having the ability to overcome adversity and difficult times along the way. For Verhey Carpets, a defining moment came in 1967—nearly two decades into its existence—when the city of Grand Rapids was the scene of race riots. Dubbed the “Long, Hot Summer,” it was a period of widespread racial unrest that saw more than 150 riots across the U.S., fueled primarily by deep-seated frustrations over accusations of police brutality as well as poverty and racial inequality within many Black communities.
“There was rioting here on Wealthy St., and businesses were burned,” Wischmeyer said. “People fled the downtown Grand Rapids area in droves.”
But Verhey Carpets chose to stick it out. Wischmeyer recounted the story about how Bob Verhey, the owner of the company at that time, stood his ground on principle. “He said: ‘We’re all humans, we all should get along. I refuse to move away from here.’ He kept his word. He had a strong sense of community—and we still do today— even before it was a ‘thing.’”
While the Grand Rapids riots lasted only a few days, the lingering effects were felt for several years to come. “Back in the ’70s people were in fear,” Wischmeyer recalled. “There were drugs and a lot of crime going on downtown. It was really bad from the late ’70s until the late ’90s.”
Fast forward to the present day, and Wealthy Street is thriving. “It’s one of the hottest spots in Grand Rapids right now,” Wischmeyer said. “Grand Rapids went through a tremendous revitalization, and Wealthy St. is the place to be right now. All the shops and the restaurants—it’s been so much fun to watch it grow.”
Put a premium on vendor partnerships
Even high-achieving flooring dealers know they can’t do it alone—success takes great vendor partners to ensure consistent supply (and quality) of materials and ongoing product knowledge to meet the needs of the consumer. Conversely, suppliers rely on retailers to represent their offerings appropriately in the market. Here’s what some of Verhey Carpets’ vendors had to say about the company:
“We are proud to have had the privilege of partnering with Verhey Carpets for the last 15 years. Our discussions in the beginning of our partnership were all related to who we are and what we can offer to them—quality products that offer no claims, flexibility in our offering by design, grade, width and technology. It’s a true partnership between both companies. As they celebrate their remarkable 75th anniversary, we extend our heartfelt congratulations. We truly value the trust and support they’ve shown throughout our partnership, and we look forward to continuing our collaboration for many more years to come.”
— James McManus, regional sales manager, Mirage
“This family-owned business, led by Dave Verhey, continually strives to satisfy every client with quality products because of their commitment to perfection. They definitely have shown their commitment by their continued success as one of our most outstanding customers. Verhey Carpets continually seeks out what their customers desire. Their sales staff instructs customers how to properly care and maintain their carpet and rugs, protecting their investment. It is my sincere joy and pleasure to work closely with Verhey Carpets for the past two decades.”
— Jimmy Apple, Unique Carpets, Ltd.
“Verhey Carpets is a long-time valued partner of The Dixie Group. The family’s dedication to building long-term relationships with its vendors, customers and employees is what makes this business shine. We love partnering with Verhey Carpets because, like TDG, they invest in their people and have a professionally trained sales team with years of experience and dedication. In addition to lining up with The Dixie Group’s corporate culture, Verhey Carpets focuses on quality. They listen to their customers and focus on the keys to what built the company: service and quality. With this combination they can’t go wrong.”
— Tami Stahl, vice president of marketing, The Dixie Group
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