CARPET FMR WEBINAR NOV 10, 2011 Welcome!!

Presenters Eileen Elam Carrie Stahl Product Manager Field Marketing Services Manager

Housekeeping Expect webinar to last 20-30 minutes Mute phone Type in questions Review at end Open for Q&A

Our program is about VALUE Our products – Carpet and Cushion Best supplier partners in the industry. No discontinued or roll goods, or special closeouts. First quality always Our designers – this is the DIFFERENCE Design professionals listen and guide our clients to the right products Installation Professional, licensed, bonded Client Services Cutting edge systems and methods for handling calls and maintaining client follow up Our Retail partner – This is a key motivator The Costco brand has one of the most loyal customer bases in retail. People love Costco and love to talk about it. You are really smart to buy your carpet from Costco!

Key points to buying carpet 1. Long term investment – Can be most expensive purchase next to house and car. May only do it once in a lifetime 2. It’s like moving each time you re-carpet, so buy quality that will last and get the right product to match your needs. 3. You get what you pay for. You can always find something less expensive. In the long run it will cost you more to replace. IT COSTS MORE TO DO IT WRONG, THAN TO DO IT RIGHT

Why us? We can save members about 4 hours of their time and provide peace of mind Box store service Go to store, find a salesperson, find a style, checkout, take home Back to store, return sample for deposit, find a salesperson, pay for measure Installer comes out to measure, gives store carpet requirements Go to store, find a salesperson, pay for carpet 100% up front, hope you made the right choice – CONSUMER BEARS RESPONSIBILITY FOR SELECTION MISTAKES Wait 4-6 weeks for install Our service Client provides contact information to you.. Designer contacts them within 2 days Designer takes samples to the home, ASSISTS CONSUMER WITH SELECTION of STYLE AND COLOR Designer measures, calculates and gives the client a price at the appointment Designer completes the sale and processes the order Installed within 4-6 weeks SIMPLE!

Pricing There are many variables in pricing from state to state Estimated Ranges $3.75 - $6.00 An average bedroom is 200 SF - $750-$1200 Our carpet price includes: High quality carpet engineered to last Premium backing on most styles Premium cushion options Professional install, T&H and Furniture move Excellent warranties

More Competitive pricing Quick ship We compare our prices to major retailers on a regular basis Generally apples to apples on an average size order we are 5-10% less than box stores and 10-15% than local dealers. Costco member AmEx and Exec rebates add more savings. Quick ship Selected styles and colors that are guaranteed to ship

Premium Backings Shaw Softbac® Mohawk Optibac® Provides dimensional stability Soft bac reduces scratching walls and woodwork during installation Reduces wrinkling and the need to re-stretch 10 year Wrinkle Free warranty Mohawk Optibac® Smooth back reduces scratching walls and woodwork during installation Reduces wrinkling and need to re-stretch 10 year no re-stretch , no delamination warranty

Why Premium Cushion? Shaw styles – Premium Touch Mohawk styles – Healthier Choice DUST BARRIER – keeps dirt on cushion surface so it can be vacuumed/cleaned; Hypo Allergenic SPILL PROOF – stops liquids before it penetrates cushion. Protects cushion and sub floors RADIANT HEAT FLOORING – provides excellent heat transfer NOISE REDUCER - minimizes noise in today’s active homes and those with multiple floors. EXTENDS LIFE OF CARPET – carpet will wear better over medium density cushion The cushion is Life Insurance for Carpet

10 Carpet Warranties Stain Resistance Soil Resistance Texture Retention Anti Static Abrasive Wear Quality Assurance Premium Backing Premium Cushion 5 year Installation 30 Day Customer Satisfaction Residential Limited Warranty – owner occupied residence

Overcoming Common Customer Obstacles Lack of Price Details Customers feel we are hiding something Competitive Pricing Discount retailers appear to have better price Business Confusion Customers think we are a carpet cleaning service Lack of Samples Customers want visibility to additional styles and colors Offer Ballpark Pricing Give a high and low range ($3.75-$6.00 per sq ft) Emphasize Price/Value Costco support, complimentary design service and guarantee Optimize Table Set-Up SmartStrand in the back, Luxury In Every Step in Front Stress In Home visits More options than available in any store

Let’s hear from you…

Luxury in Every Step

SmartStrand Story Board

Free Tear & Haul Promotion 11.15.11-1.15.12

Questions