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Ask The Pro: Diversify Your Business During The Downturn
by Anna Marie Fanelli
September 1, 2008

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Anna Marie Fanelli
Anna Marie Fanelli
You can offer new materials, styles and services that match your customers' interests.


Anna Marie Fanelli is co-owner, with husband John Fanelli, of Floor & Décor, a tile, stone and plumbing studio in Tenafly, NJ. Earlier this year, she spoke on green-related topics at both the Surfaces and Coverings trade shows. Bath & Kitchen Pro Publisher Bob Miodonski recently interviewed Anna Marie Fanelli about trends in the bath-and-kitchen market.

Bath & Kitchen Pro: What can contractors and designers do during the housing downturn to stimulate their bath-and-kitchen business?

Anna Marie Fanelli: The buzzword is diversification during the downturn. Be as diversified as possible with your materials and your niches. We’re selling tile to put on porches as well as in bathrooms. We’re doing stonework on decks around pools.

We provide design ideas for the homeowner and the designer. We sell tile and stone, and we also do the plumbing and lighting. We’ve branched out into so many areas. We also install, and that gives us revenue.

 The kitchen-and-bath market is an $8 billion market. There are so many opportunities in the renovation market. Renovation is the word for this year and 2009. I see 2010 being strong again for new construction.

BKP: Are the types of bath-and-kitchen remodeling jobs changing? Are they getting smaller, for example?

AMF: I wouldn’t say so. People are traveling less and putting money into their homes. The market is not what it was five years ago, but our business is up 25% from last year. If my tile business is low this month, I pick it up in plumbing. You have to think outside the box.

We focus on design. My whole philosophy is all about taking the basics and dressing them up. Take a stock piece, work with it and make it look special.

If you get pattern-sheet mosaic, for example, why not put it on the wall instead of just the floor? Or use it on a back wall. Use glass sheets to make dots on the floor. Using a stock piece in a special way is still the more cost-effective way to go.

BKP: How can designers and installers form a better working relationship?

AMF: Everybody has to have a respect level. The designer has to respect the contractor’s expertise and appreciate the craftsmanship he brings to the job. No one is a superstar on any project. It has to be a marriage. It’s like a baseball team – someone is the coach and everyone is out to win with the client being the winner.

BKP: Are consumers willing to pay for environmentally friendly green products?

AMF: Yes. Green is here to stay. If you have knowledge in this area, it opens this market to you.

I say green, but maybe not in large doses. If you do a totally green job, it’s going to be much more expensive, because of supply and demand. Green is in demand right now.

If you have carte blanche on a job, then fine. Otherwise do it in small doses; it doesn’t have to be everything. You can put in a high-efficiency toilet, and you will make an impact.

You could use decorative metals or sheets of recycled glass. Use them in small doses as detail pieces on tile that isn’t necessarily green.

It depends on what products you like that are green. PaperStone is a slab material made from recycled paper. Who would think you could have a countertop made out of paper?

BKP: What other trends do you see for the bathroom and kitchen?

AMF: In terms of design, contemporary has come full circle. It’s getting much more popular. If you have a showroom, though, don’t throw away your traditional boards because traditional won’t go away. Mix contemporary with traditional products in your display areas. I’ve used a mix of both in my designs.

BKP: With all the information available, are consumers making their own product choices, or do they still rely on the bath-and-kitchen professional?

AMF: If it’s on a TV show, everyone is fascinated with it. But the bath-and-kitchen professional is critical; it’s up to us to provide guidance for the customer because the amount of information is overwhelming.

As a professional, you should pick products that you feel comfortable with. Always go back to what you like, whether it’s slab materials or toilets. That’s the first level. Once you have a comfort level, you can ease into the market to see what else is available.

 Should you spend all your time online? No, you have to keep your business afloat. You have to have some level of sophistication, however, to see what exists in the market.

Green is a hot topic. You know, a couple of people came up to me at the Coverings trade show in Orlando and asked me, “Why are you so into this green thing?” You’ve got to be kidding me! You have to be aware of what your customers are talking about.


Anna Marie Fanelli
Anna Marie Fanelli is co-owner, with husband John Fanelli, of Floor & Décor, a tile, stone and plumbing studio in Tenafly, NJ. She will be speaking Jan. 30 at Surfaces 2008 in Las Vegas on “Green: It’s Just Not Surface Deep Anymore ... Making What’s On The Inside Count.” In April, she will tackle the topic, “Green Couture: How to be Eco-Friendly and Stylish,” at Coverings, April 29-May 2 in Orlando, FL. Visit www.annamariefanelli.com or call 201-569-5797 for more information.


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