Lumber Liquidators 2008 Annual Report Download - page 12

stores that had been open for more than twelve months is approximately $330,000 and consists of both in-stock
inventory and order-specific inventory. With the exception of certain high-volume products, we have found that
customers typically request to pick up or arrange delivery of their products approximately one month after
placing an order. By generally requiring a 50% deposit when an order is placed, we reduce store-level working
capital requirements.
Sales Force, Customer Service and Installation
We position ourselves as hardwood flooring experts and believe our high level of customer service reflects
this positioning. Key elements of our service include providing consumers with useful product information and
answering their hardwood flooring questions, ensuring product availability, following through on customer
requests and selling high-quality products at an attractive value. Our store managers are familiar with all aspects
of our store operations and, along with our call center staff, are trained to understand the characteristics and
installation method for the broad range of hardwood flooring that we offer, and to guide customers through the
purchase process. Many of our staff have relevant industry experience, and we are currently developing a formal
standardized training program for all of our store associates.
While we generally do not provide or arrange flooring installation, we have a national installation
arrangement with The Home Service Store, Inc. (or “HSS”), allowing us to provide consistent installation
services in virtually every store in our chain. HSS manages fully insured and licensed providers of professional
installation services that measure, deliver, and install flooring at competitive prices. This arrangement allows us
to increase our service offerings to our customers, and we benefit from cross-promotional opportunities. We
minimize risk associated with installation services and reduce time spent by store managers on installation
service issues.
We offer our customers a financing alternative through the Lumber Liquidators credit card, administered by
a third party and without recourse to us. We generally utilize the credit program for promotional opportunities,
including 6-month and 12-month deferred interest payment programs.
Call Center and Website
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. Our website serves both to educate consumers and to generate sales,
whether through a store, our call center or directly via the website itself. Visitors to our website can search
through a large database of frequently asked questions, browse product reviews and an extensive “before and
after” gallery from previous customers, as well as research detailed product information and how-to videos that
explain the installation process. Flooring samples are available through both the call center and website.
Catalogs and Other Mailings
Our direct mail strategy focuses on regular contact with our customers and the targeting of prospective
purchasers. We distribute our catalogs, as well as other direct mailings, to key consumer and commercial
segments around specific store locations. Copies of our catalogs 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.
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