Lumber Liquidators 2007 Annual Report Download - page 14

While we generally do not provide or arrange flooring installation, nor do we generally recommend or
endorse installers or installation companies, as a courtesy to our customers, each of our stores maintains a list of
local third-party flooring installers that they may provide to customers. In August 2007, we began to work with a
national installation company as either our exclusive or recommended installer at a number of stores we opened
in 2007. Depending on the success of this test program, we may expand it to other stores in the future. Even in
these limited circumstances, however, choosing an installer remains the sole responsibility of the purchaser or
homeowner, and we disclaim any liability for the work performed (or any damage caused) by any installer,
including those on any list our stores may provide.
Call Center
More than 50 flooring experts cross-trained in sales, customer service and product support staff our call
center. In addition to receiving telephone calls, our call center staff has been made available to chat online with
visitors to our website, respond to e-mails from our customers and engage in telemarketing activities. Customers
can contact our call center to place an order to be delivered directly to their home or picked up at a nearby store,
to make an inquiry or to order a catalog. Callers can also order flooring samples for a nominal fee that is credited
towards their first purchase. Our call center staff work on a commission basis. Call center sales fulfilled through
our Toano facility are credited to the call center, while those picked up at one of our stores are credited to that
store.
Website
Our website serves both to educate consumers and to generate sales, whether through a store, our call center
or directly via the website itself. Potential customers want information about the products they are considering,
and we seek to provide them with what they need to make an informed decision. Visitors to our website can
interact with our flooring experts and can search through a large database of frequently asked questions. We also
offer product reviews and an extensive “before and after” gallery from previous customers, as well as detailed
product information and how-to videos that explain the installation process. As with our call center, visitors can
also order flooring samples.
Catalog and Other Mailings
Our direct mail strategy focuses on regular contact with our customers and the targeting of prospective
purchasers. We distribute our catalog, as well as other direct mailings, to key consumer and commercial
segments around specific store locations. Copies of our catalog can also be obtained through our stores, our call
center and our website. We believe these mailings contribute to increases in store traffic and call center volume
that lead to more sales. We expect to continue expanding our catalog mailing efforts to prospective customers in
markets where we have stores.
Our Customers
We seek to appeal to customers who desire a high-quality product at an attractive value, and are willing to
travel to less convenient locations to get it. We sell our products principally to existing homeowners, who
represent about 80% of our customer count. Historically, these homeowners are in their mid-30’s or older, are
well-educated and have been living in their homes for at least several years. Over 60% of hardwood surface
flooring purchases are made by households with incomes of $70,000 or more. We have found that homeowners
like various aspects of wood floors, including appearance and durability, ease of installation, renewability of
resources and increasingly higher quality of engineered and laminate flooring. The majority of these customers
hire a third-party installer to put in their flooring, with the remainder being do-it-yourself installers. Most of our
other sales are to contractors, who are primarily small businesses that are either building a small number of new
homes or have been hired by an owner to put in a new floor.
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