Premier Flooring Retailer is the face of the specialty flooring retailer. It is the only publication dedicated exclusively to the success of the specialty retailer and their supplier partners.
THE OFFICIAL MAGAZINE OF THE WORLD FLOOR COVERING ASSOCIATION
D2 | 2025
YOUR GUIDE to GREATER SUCCESS
pg. 24 Navigating Tariffs Essential Insights for Flooring Professionals pg. 48 SPC Failures Getting to the Core of the Problem pg. 14 Ai What? Behind the Scenes Revolutionizing Your Business pg. 40 The Future of Flooring Unified Roomvo + QFloors pg. 38 Luxury Vinyl Scores Big with Realtors pg. 04 The Importance of SEAL Leadership Training
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TABLE of Contents
The Official Magazine of the World Floor Covering Association
04 The Importance of SEAL Leadership Training Scott Humphrey 10 Fix What Needs Fixing! Tom Jennings 12 Shades Of Color That Fit Your Style Engineered Floors 14 Ai What? Jim Buckles 16 Trends 18 The Power of Words Freida Staten 20 PureGrain High-Def Flooring Engineered Floors 22 Farewell & Thank You Jeffery W. King 24 Navigating Tariffs Kaytie M Pickett 30 Protect Your Client’s Wood Floors with Floor Sentry ® Wagner Meters 34 Navigating Tariff Costs: How FCB2B Supports Flooring Retailers Lewis Davis 36 Why First-Quality Discontinued Products are Valuable
38 Luxury Vinyl Scores Big with Realtors Lisbeth Calandrino 40 Roomvo + QFloors: The Future of Flooring, Unified QFloors 46 Generation Z & the Tangle of Tariffs Mayson Taylor 48 SPC Failures: Getting to the Core of the Problem Healthier Choice 52 The Automobile Insurance Market & Business Risk Management Stacy Eickhoff 56 Why Consider Interior Designers for Your Business? 58 Get Your Business Ready for the Next Generation 60 FCIF Calls on Industry to Provide Aid to Flooring Families in Need 66 Raising the Bar: How Industry Education Elevates the Flooring Profession 66 Building The Future of Flooring Hidden Profit Center Robert Blochinger, IICRC 64
A Special “Thank You” to all the manufacturers and their marketing departments who provided outstanding editorial to make this publication a success. PUBLISHING STAFF Margo Rodgers Locust , Publisher Karen George , Managing Editor PAX STUDIO Inc. | Paxton Taylor , Creative Director + Designer GUEST COLUMNISTS James Buckles, Robert Blochinger, Andrew Stafford CONTRIBUTING WRITERS Chad Ogden, QFloors Jason Wright, Wagner Meters Robert Blochinger, IICRC CONTRIBUTING COLUMNISTS Lisbeth Calandrino, Lewis Davis, Scott Humphrey, Tom Jennings, Stacy Eickhoff, Freida Staten, Mayson Taylor EDITORIAL + ADVERTISING Fabulous Floors Magazine, LLC Phone: 678-761-5002 Email: Margo@pfrmag.net THE WORLD FLOOR COVERING ASSOCIATION (WFCA) Phone: 855-330-1183 Email: wfca@wfca.org Scott Humphrey , CEO Freida Staten , Chief Marketing & Strategy Officer Kay Wiley , Executive Assistant to CEO Kaytie M. Pickett , Legal Counsel Jeffery King , WFCA Legal Counsel Emeritus Premier Flooring Retailer is a joint initiative of the World Floor Covering Association and Fabulous Floors Magazine, LLC. Copyright © FABULOUS FLOORS MAGAZINE and WFCA 2025. All rights reserved. No portion of this publication may be reproduced in any way without written consent from Fabulous Floors Magazine, LLC or the WFCA. Change of Address: in order to ensure the uninterrupted delivery of Premier Flooring Retailer, notice of change should be made at least 5 weeks in advance. Premier Flooring Retailer is published quarterly in print and digital by Fabulous Floors Magazine, LLC located at 572 Main Street, Andrews, NC 28901 and the World Floor Covering Association located at 855 Abutment Road, Suite 1, Dalton, GA 30721. Postmaster: Please send address changes to WFCA, 855 Abutment Road, Suite 1, Dalton, GA 30721. responsible for discrepancies, typographical errors, discontinuance of product nor color reproduction. Although every effort has been made to ensure accuracy and timeliness of information, Premier Flooring Retailer Magazine cannot be held
ON THE COVER: Dreamweaver Carpet DW Select Lineage Weaver’s Row Collection from Engineered Floors, made from 100% PureColor® SD BCF polyester, is a stylish and durable patterned cut and loop carpet with a lifetime stain resistance warranty.
TAKING the LEAD
I n today’s rapidly evolving flooring industry, technical skill and product knowledge remain essential—but leadership is what truly sets great companies apart. That’s why the World Floor Covering Association (WFCA) is proud to offer SEAL (Seeking Excellence As Leaders), a leadership training program designed specifically for our members who are ready to grow not just as professionals, but as people. SEAL was created with a bold vision: to impact leaders both at work and at home. We believe that true leadership doesn’t end at the jobsite or the showroom. It’s a way of life—a mindset of intentional growth, influence, and integrity that touches every area of a person’s world. Leadership That Transforms, Not Just Performs Many training programs focus on business performance alone. SEAL goes deeper. It’s about developing individuals who inspire, who communicate clearly, who know how to navigate difficult conversations, and who take responsibility for the culture they create—whether that’s on a jobsite, in an office, or around the kitchen table. SEAL challenges participants to examine their leadership style, understand their values, and align their behavior with their personal and professional goals. It’s about becoming the kind of person others want to follow—not just because of what you know, but because of who you are. The Importance of SEAL LEADERSHIP TRAINING for Members of the World Floor Covering Association
Scott Humphrey CEO, WFCA
“ True
leadership doesn’t end at the jobsite or the showroom. It’s a way of life.”
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The Ripple Effect: Home & Work in Harmony We know from experience that when someone becomes a better leader, it doesn’t just benefit their business—it transforms their relationships at home. SEAL teaches communication, empathy, conflict resolution, and emotional intelligence—skills that are just as vital in marriage, parenting, and friendship as they are in managing a team or running a business. This whole-person approach sets SEAL apart. We’re not just creating stronger business leaders— we’re cultivating better spouses, parents, mentors, and community members. And when our industry is filled with people who lead with purpose and integrity, everyone wins. Why It Matters Now The flooring industry is facing a new generation of challenges—from workforce development and customer expectations to navigating rapid change and economic pressure. We need resilient leaders more than ever. SEAL equips WFCA members to meet these challenges with clarity, confidence, and compassion. As the only association dedicated solely to the floor covering professional, WFCA is committed to raising the bar—not just in product standards or installation excellence, but in leadership that If you’re ready to lead with purpose, elevate your team, and make a deeper impact in every area of life, SEAL is for you. Whether you’re a business owner, a manager, or an emerging leader, this training will sharpen your edge, strengthen your relationships, and leave a legacy that goes beyond the showroom floor. SEAL isn’t just leadership training. It’s leadership transformation. And it starts with you. lasts a lifetime. Your Next Step
Premier Flooring Retailer D2 | 2025 05
Insightful Conversations, Real Results GROW Navigating Business Success Live Event Tap into the knowledge of industry experts with our Grow With Us live event series. Each month, we tackle the topics that drive success in the flooring industry, followed by an interactive Q&A that puts your questions in the spotlight. Elevate your expertise and stay ahead — join us for these dynamic learning opportunities! Navigating Business Success Live Event
Technology in Your Business
Prescription Savings Program
Led By: Lewis Davis, WFCA, Director of Technology, FCB2B Program
Led by: Scott McKnight, CEO, Fill It Local
June 19th 2pm EST
July 17th 2pm EST
WFCA.ORG
Visit wfca.org to sign up.
Empowering Everyday HeroEs
Since 1972, the IICRC has provided the highest quality certifications to industry professionals around the world. As the cleaning industry grows, the demand for highly skilled professionals grows too. Get started today.
IICRC.ORG
STANDARDS
CERTIFICATIONS
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Are You a Trusted Tech? Becoming an IICRC Certified Technician Builds Your Credibility in the Cleaning, Inspection, and Restoration Industries
We Offer: In-Person – 25+ Certifications iicrc.org/iicrccertifications Live-Stream – 15+ Certifications iicrc.org/livestreaming
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A s I visit with flooring dealers around the country, I often hear the lament “Our business isn’t what it used to be.” In today’s economic climate, this statement is often made in reference to sales volume. I often wonder, however, if this statement isn’t telling of a deeper problem that many existing businesses face: they simply aren’t functioning internally as well as they once did. There is a country saying that you “need to fix what needs fixing!” While this may seem to be obvious, how often do we see the consequences of poor maintenance? When we fail to perform routine service on our automobiles, should we be surprised to find ourselves eventually facing costly repairs? The same logic can be applied to the house that we live in – even to our personal relationships. Most things seem to take care of us as we take care of them. Each spring we anticipate cleaning up the landscape and rejuvenating the lawn. We open the windows and give the house a thorough cleaning. We service the air conditioner and tune up the mower to make sure that they will service us well for another season. Do we not value our livelihoods at least as much as our lawns? Then maybe we should consider giving our businesses a spring tune up, as well. Every business has elements that “need fixing.” Some are badly broken. Some are just a little out of tune – but out of tune nonetheless. Since most of our businesses are not running at full speed right now, this may be an excellent time for a tune-up. What needs fixing in your business? Do you have policies or procedures that once worked well but have become somewhat antiquated? How about procedures that could cause internal difficulties for your staff? Such policies can only have negative impacts on your customers. Technology can be a wonderful tool. Perhaps it’s time to revisit the flow of a customer’s order through your business. Do you have an employee who is more detrimental than beneficial to the overall health of your business? Do you really think that increased volume is going to solve the problem? It never did for me – I doubt that it will for you either. Fix it now! Do you have a product category that is not producing the results that it once did? Is there a product category that is growing at a much faster pace elsewhere (think green!) than it is at your store? Perhaps your store’s showroom displays are out of balance with the realities of today’s market. It may FIX WHAT NEEDS FIXING!
TOM’S Tips
Tom Jennings Retail Training Expert A lifelong flooring industry member, sold his family’s retail business in 2006 and now serves as an educator and speaker. A past WFCA board chairman, he is currently chairman of WFCA Services, Inc. tomg.jennings@gmail.com
“ The price
of ignoring problem areas of a business is usually far greater than the cost of repair.”
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be time to reclaim your showroom. Many dealers seem to have relinquished the right to control the product mix in their stores to their suppliers. Consider that what vendors may be interested in selling may not always be what your customers are interested in buying. Could inexpensive displays really be creating a high cost to your business? It’s just a thought. Remember that the customer will always buy what she is interested in buying - whether you’re prepared to sell it to her, or not. The list of items that may need attention is long and varied. Areas that possibly may need work done include: inventory levels, store hours, website content, staff size, store location, staff training, receivables, marketing budget, etc. You will need to assess the needs for your individual business. However, businesses do not have an owner’s manual in the glove box to advise you what service
to perform at a given interval. You’ll have to figure it out for yourself. That’s what makes being in business so exciting – and so challenging! There simply is no owner’s manual for being in your business – in your market – at this time. With anything that is not working well, the first step is to see if it is fixable and can be repaired cost effectively. If so, then start today. Problems just never seem to fix themselves. The price of ignoring problem areas of a business is usually far greater than the cost of repair. If you have areas of your business that “aren’t what they used to be” fix them now – before they have the chance to break completely. The cost will be less both financially, and emotionally, for all involved.
Premier Flooring Retailer D2 | 2025 11
Engineered Floors SHADES OF COLOR THAT FIT YOUR STYLE
P ureColor High-Def® carpet incorporates up to 24 colors in every carpet, adding layers of complexity for a more vibrant visual and a more natural feel. All these different, subtle shades mean the carpet pairs perfectly with your surrounding surfaces and colors with ease, guaranteeing a carpet that will evolve with you and your decor. PureColor® featuring High-Def This year, we are most excited about two new products, PureColor featuring High-Def (PCHD) Col- or Technology’s Gold Standard and Silver Lining. This new technology provides an immersive 4-D experience: Depth, Dimension, Durability, and Design Depth
A complexity of color for a more vibrant visual PureColor High-Def incorporates up to 24 colors in every carpet, adding layers of complexity for a more vibrant visual and natural feel. Dimension A high-resolution finish for softness you can see. The high-resolution finish of PCHD allows you to see and feel every strand of fiber for nev- er-before-seen color clarity in soft surface. Durability It is engineered to endure. PCHD’s tailored fabrication, combined with its proprietary yarn process, allows for industry-leading durability metrics never before seen in PET. Design A special color affinity supporting self-selection. The multicolor makeup of PCHD allows every carpet to blend perfectly with surrounding surfaces and colors with ease, empowering and inspiring consumers to feel confident in their own selections. With the combination of high texture + high twist, these products provide the ultimate performance in soft fiber.
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Admire Enjoy Dare Surprise
Flooring That Gives You the
Freedom to
Design Climb Laugh Create
Jump Relax Craft
Inspire Dance
Hitari | 8120 Prairie Grove
Premier Flooring Retailer D2 | 2025 13
NEXT GIG Communication
Jim Buckles Founder, Purchasing Ally, the PA for your flooring business™. Buckles is an industry veteran of over 30 years, whose experience includes CCA Global, RFMS, the WFCA as well as consulting with independent retailers throughout the USA, Australia, New Zealand and Canada. info@purchasingally.com 256-469-0485 www.purchasingally.com
Ai WHAT?
E very software product in the marketplace from virtual assistants to lead generators to sales management tools seems to be screaming now that they use AI (artificial intelligence) like proclaiming vitamin-fortified drinks. It is reminiscent of past marketing crazes where there was a scramble to add the latest, hottest trend to your product no matter how tenuous a connection there might be. One basic definition: artificial intelligence refers to software that processes your question and finds a recommendation or compiles an article, resume, vlog post, etc. It also includes things as simple as autocorrect or auto suggestions where the software suggests a change based on what you have written compared to earlier writings. None of these represent reasoning or “thinking”. They are doing the work of a research assistant, or editor based on the information they have been fed. (Next generation will be AGI or Artificial General Intelligence which can reason not just compile.)
“ Artificial
intelligence is revolutionizing business— mostly behind the scenes.”
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One of the earliest uses of “artificial intelligence” was in medical diagnosis during the 1950’s where they took the decision paths of expert diagnosticians and coded them into software as essentially yes or no questions leading to a final assessment from those experts. We all do that today when we are using some of the software wizards to troubleshoot a problem, you answer a series of questions, which land you on a recommendation to fix your problem. Artificial intelligence is excellent at taking a large amount of data and finding trends or creating a quizzable database out of an instruction manual or finding examples of what you are asking for and manipulating it into the document you want, e.g. a vlog post or interview questions. It is revolutionizing business, but, for now, mostly in the back office, writing software code, synthesizing marketing strategies, polishing emails, creating spreadsheet formulas, etc. But it is not a magic wand and is still subject to what the industry
refers to as “hallucinations” where the software such as ChatGPT literally makes it up. In short, it writes a great first draft, but the human element is still needed, at least for now. In our software, Purchasing Ally, behind the scenes we are using AI to schedule checks on new vendor pricing (critical in these days of tariffs) to make sure you don’t quote a bad price, to look for the vendor’s responses to the purchase orders you sent, as well as learn what products you are searching for and do an autofill to make it easier. Our software is an easy way to create a sales order on the fly, with current pricing from your vendor, order the goods with the push of one button, and receive your vendor invoices with Purchasing Ally automatically pushing both the sales order and the vendor invoice into QuickBooks. Our website is www.purchasingally.com or email us at info@purchasingally.com for more information on how our family business can help yours.
Premier Flooring Retailer D2 | 2025 15 “ AI is powerful—but context, creativity, and judgment still belong to people.”
Trends FLOORING THAT GIVES YOU THE Freedom TO LIVE
Whether it’s soft, luxurious carpet or a durable and elegant hard surface, our flooring products combine the highest technology with styles that are always on trend. With so many options to choose from, you’re sure to find the perfect fit for your home – and your life.
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Flooring Style that Goes Bold Whatever your style, there’s a PureGrain® High-Def DLVT from Engineered Floors that fits. Digitally embossed designs scanned from real wood are printed directly onto a high-density core, providing a more realistic look and feel to highly durable luxury vinyl plank flooring that you might swear is real hardwood flooring. If you’re looking to be expressive, your style likely features vibrant colors, daring patterns, and eye-catching elements that make a strong statement. You need a bold vinyl flooring choice that can stand up and stand out. That’s where our Bold Collection answers the call. More visual texture, deeper color, and earthy tones that ground your space, creating a sense of warmth and authenticity. The texture and patterns reflect a raw, unpretentious beauty, aligning perfectly with a rugged yet elevated style. The PureGrain High-Def Bold Collection features your choice of four distinct decors, scanned from actual real wood samples, and each has a unique story.
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I n January, many of you embraced the challenge of choosing a guiding word that resonated with you. That single word set a clear tone for shaping your business and personal journeys throughout 2025—steering decisions, focusing actions, and inspiring your company’s culture. Today, we’re taking that idea a step further by exploring how the everyday language you use can transform internal communications, build stronger relationships, and drive exceptional performance. The Impact of Words on Workplace Dynamics Every word you speak is critical in shaping your company culture and directly influences how your employees feel and perform. Research consistently demonstrates that dismissive or negative language can elevate stress levels, diminish engagement, and ultimately increase turnover. With that in mind, consider these key aspects of how intentional language makes a difference: Fostering Collaboration & Trust: The language we use builds bridges between team members. Simple phrases like “Thank you,” “Great job,” and “Let’s work together” validate efforts and create an environment where everyone feels valued. Clear, supportive communication can boost engagement and reduce turnover—an essential advantage for small businesses facing competitive labor markets. Shaping Leader-Employee Relationships: The words of a leader carry immense power. Empathetic expressions such as “I trust you” or “I believe in your capabilities” open channels for honest dialogue, lift morale, and foster commitment and loyalty. When leaders speak intentionally, they reinforce a culture of mutual respect and collaboration. Building a Positive Organizational Culture: Every interaction sets the tone for your company’s culture. By choosing empowering, forward-looking language, you enhance internal relationships and strengthen your external THE POWER OF WORDS: Elevate Your Team, Elevate Your Business
FLOOR Education
Freida Staten Chief Marketing & Strategy Officer, WFCA
“
When employees feel heard and appreciated, they’re more motivated to contribute to a culture of innovation and excellence.
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Actionable Strategies for a Future-Ready Communication Culture Adopting a culture of thoughtful communication doesn’t require an overhaul of your operations. Here are some practical steps to help you build a more positive work environment: • Reflect and Seek Feedback : Regularly assess your communication habits. Encourage your team to share how your words impact them through informal check-ins or anonymous surveys. • Practice Constructive Alternatives : Identify phrases you’d like to avoid and rehearse supportive alternatives. This ensures that even in high-pressure situations, your language remains positive. • Lead by Example : Remember the guiding word you chose at the start of the year. Let it remind you to embody these values in every conversation, setting the standard for your team. • Develop a Communication Guide :Create a brief guide outlining preferred phrases and communication practices. This sets clear expectations and reinforces the culture you’re aiming to build. • Integrate Communication Training : Even a short workshop or regular discussion on effective communication can ensure everyone is on the same page. In Conclusion Every word you choose matters. The correct language can transform your internal culture, drive productivity, and build lasting relationships within your business. For WFCA members navigating the challenges of running a business, investing in thoughtful, clear, and engaging communication isn’t just beneficial— it’s essential. By embracing these strategies and learning from leaders and companies who have mastered the art of impactful language, you are setting the stage for a resilient, innovative, and successful organization in 2025 and beyond. Reflect on your guiding word and share your experiences with the WFCA community—your insights might just spark the next great idea in thoughtful communication.
brand image. When employees feel heard and appreciated, they’re more motivated to contribute to a culture of innovation and excellence. “If you talk to a man in a language he understands, that goes to his head. If you talk to him in his own language, that goes to his heart.” — Nelson Mandela This quote reminds us that truly intentional communication—speaking in a way that resonates on a personal level—can move beyond mere understanding to inspire genuine connection and loyalty. Real-World Inspiration: Leaders and Companies Who Use Language to Drive Success Reflect on the impactful words of industry leaders who have turned thoughtful language into a strategic tool: • Satya Nadella (Microsoft): His call to “Learn it all, not know it all” embodies a growth mindset that inspires continuous learning and innovation. • Sheryl Sandberg (Former COO, Facebook): By emphasizing partnership and allyship, she fostered a culture of mutual support. • Indra Nooyi (Former CEO, PepsiCo): Her view that “Leadership is not about being in charge; it’s about taking care of those in your charge” reinforces the power of empathy. • Richard Branson (Virgin Group): His philosophy— to “Train people well enough so they can leave, treat them well enough so they don’t want to”— demonstrates how caring language builds loyalty. • Howard Schultz (Starbucks): His reminder, “We are in the people business serving coffee,” underscores the importance of community and shared purpose. Another powerful example of language- driven leadership is The Ritz-Carlton. This hospitality brand has transformed its internal communications by prioritizing an inclusive and collaborative tone. Instead of dismissing concerns or offering offhand remarks, Ritz- Carlton’s leadership cultivates an environment where team members actively collaborate. They regularly use phrases like “Let’s work together to create the guest experience you deserve” and “Can you help me understand your perspective?” This intentional use of supportive language has built a strong culture of trust and shared responsibility, enhancing both team cohesion and service quality.
Premier Flooring Retailer D2 | 2025 19
Engineered Floors PUREGRAIN HIGH-DEF FLOORING HAS DISRUPTED THE INDUSTRY
P ureGrain® High-Def flooring by Engineered Floors is setting new standards for flooring solu- tions. PureGrain High-Def is the first digitally printed LVT (DLVT) flooring that transcends practicality to deliver the unmatched look and feel of real wood with as many as 35 different plank patterns to avoid repetition. Traditional film products do not have the clarity, realism, or the variety offered by PureGrain High-Def. The high-definition visuals and authentic texture bring a natural and luxurious feel to any space, with unmatched performance. The remarkable durabil- ity and stain resistance make it incredibly easy to clean and maintain. And the standard lifetime warranty from Engineered Floors makes it even more attractive.
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BOLD
The floor is yours.
BOLD or BALANCED ? The floor is yours.
Smooth, clean colors and a light grain. Flooring that compliments both classic and modern decor to bring serenity home. Feel Balanced .
Be Bold.
DIVINE Smooth, clean colors and a light grain. Flooring that compliments both classic and modern decor to bring serenity home. Feel Balanced .
Be Bold.
Rich, expressive colors and deep grain and textures. Flooring that anchors your room with eye- catching personality.
Rich, expressive colors and deep grain and textures. Flooring that anchors your room with eye- catching personality.
ANTIQUITY
DIVINE
ANTIQUITY
NATURAL OAK
HICKORY
NATURAL OAK
HICKORY
CERUSED OAK
ORIGINAL OAK
CERUSED OAK
ORIGINAL OAK
BLEACHED PINE
AGED PINE
BLEACHED PINE
AGED PINE
ASH
OLD OAK
ASH
OLD OAK
FAREWELL & Thank You
LEGAL Matters
A lmost 30 years ago, Chris Davis, the new Executive Director of the World Floor Covering Association (“WFCA”), called me and asked if I would consider taking over the role of general counsel for the Association. Thus began a journey of collaboration and growth that has spanned nearly three decades. It allowed me to work with, and learn from, two gifted leaders—Chris Davis and Scott Humphrey. During this time, I also had the privilege of working with some of the most dedicated and passionate individuals in the flooring industry. Together, we have tackled challenges and celebrated successes, always with the goal of advancing the industry and serving its members. As I reflect on my time with the World Floor Covering Association, I am filled with gratitude for the opportunities and experiences it has provided me. I have witnessed the evolution of the industry and the Association, and I am proud to have been a part of it. From tackling installation issues to influencing major regulations, the Association has been a driving force for positive change. The WFCA tackled the installation issue with the acquisition of Certified Flooring Installers, and initiating the Floor Covering Education Foundation. WFCA became a powerful voice for the flooring industry before Congress and Administrative Agencies. It has impacted major regulation, including rules on independent contractors, worker safety, overtime pay, and multiple other regulations that affect the flooring retailers and contractors. WFCA also has given a voice on Capitol Hill to flooring retailers and contractors. Senators and Congressmen now seek the Association’s input on important legislation. For example, WFCA helped lead the charge to on internet sales taxes to level the playing field for retailers. I was given the chance to provide legal updates and information to WFCA members. Whether through the books I wrote on contracts, independent contractors, and green construction, the initial blog “Jeff King Takes the Floor,” or articles in the Premier Flooring Retailer, I tried to provide practical guidance in clear and understandable language on legal issues and concerns to WFCA members. Like Tom Jennings’ articles, I aimed to make members aware of issues before they became problems, and provide some simple solutions. I cannot help but reflect on just how wonderful the time I have spent with WFCA and it members has been. I had an opportunity to get to know such amazing people. There are too many members that had an impact on me to name them
Jeffrey W. King General Counsel for the WFCA Jeffrey King has more than 35 years’ experience in complex litigation with a focus on contracts, employment, construction, antitrust, intellectual property and health care. He serves as legal counsel for WFCA and other trade associations, and is a LEED Accredited
Professional. (561) 278-0035 jeffw@jkingesq.com. “ As I reflect on my time with the World Floor Covering Association, I am filled with gratitude.
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all. I would also be remiss if I did not recognize the important role the flooring press had on my representation of the flooring industry. They provided me with invaluable insights and information on the flooring industry. I hope that I have provided as much to the WFCA members as they have provided to me. WFCA’s members’ passion for the industry and the Association has been truly inspiring. I was given a front row seat to observe the American Dream as WFCA members grew and developed their independent business, whether a single store or multiple locations; whether starting a new or expanding family owned store; or whether creating a retail outlet or an installation business. As I pass the torch to the new General Counsel, Kaytie Pickett, I am confident that the WFCA will continue to thrive and make a positive impact on the flooring industry. Thank you to all for letting me be a part of this journey and I hope I have helped shape the Association into what it is today. I look forward to seeing what the future holds for the World Floor Covering Association and its members. Please know that I will truly miss spending time with WFCA’s members and being part of the WFCA team. I wish you all continued success, for now into the future, wherever your paths may take you. Best wishes and farewell.
Premier Flooring Retailer D2 | 2025 23
LEGAL Matters
N o one can escape the constant news about tariffs and trade wars, and many are wondering how tariffs will impact their business. President Trump called tariffs “the most beautiful word in the dictionary,” but many flooring industry professionals have questions about tariffs that the dictionary can’t answer. As the new General Counsel of the World Floor Covering Association, I want to be sure our organization is providing our members with the guidance they need. A benefit in working with Jones Walker is that I can access my partners and colleagues who regularly work with clients on international trade issues to assist in providing critical information on this hot-button issue. Because the tariff landscape is changing daily, flooring professionals will want to seek timely legal guidance on precisely what tariffs are in place on which goods and when. To provide some initial guidance regarding how tariffs work, we have prepared this frequently asked questions chart. The chart provides basic information about how tariffs work and the background for understanding this complex topic in order to ask the right questions. I have also included contact information for the Jones Walker trade team. Please reach out to me or one of my partners for further information. NAVIGATING TARIFFS: Essential Insights for Flooring Professionals
Kaytie M. Pickett General Counsel for the WFCA, Partner Jones Walker LLP
“ Flooring
professionals will want to seek timely legal guidance on precisely what tariffs are in place—on which goods and when.”
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FREQUENTLY ASKED Questions
What is a tariff? A tariff is a direct tax imposed by a government on imported goods or services; therefore, unlike income or sales taxes, tariffs vary by product and by the originating country. Tariffs may be used by a government to generate revenue or protect domestic industries from foreign competition, or as leverage in trade negotiations. In practice, tariffs can impact everything from pricing and supply chains to broader trade policy. Are there different types of tariffs? Yes. There are several types of tariffs that a government can employ, including but not limited to the following: • Specific Tariff: A fixed tariff that is applied to every unit of a good imported. • Ad Valorem Tariff: A variable tariff (the Latin meaning according to value), calculated by working out a certain percentage of the total value of the imported shipment. Example : If an imported good is valued at $1,000 and the tariff rate is 10%, then the tariff is $100. • Compound Tariff : Combines ad valorem and specific tariffs, which means that a compound To calculate the tariff amount, an importer needs to know the customs value, tariff rate, and quantity of the good. Customs value is the declared value of the good at the time of import. The primary method for determining customs value is the transaction value method. Transaction value is the price actually paid or payable to the seller from the buyer for the imported good, and, in almost all cases, includes the following: • Packing and handling costs incurred by the buyer • Freight charges (to the port of entry) • Insurance costs (incurred during transport) • Any selling commissions incurred by the buyer • Any royalty or license fee related to the imported good that the buyer is required to pay as a condition of sale • Proceeds of any subsequent resale that accrue to the seller To find the applicable tariff rate for a good, you will need to look at the tariff schedule of the country you are importing from; typically, the first step is to identify the Harmonized System (HS) Code of the good, which helps determine the specific tariff rate of the good. Alternatively, you can use online tools like the World Trade Organization’s (WTO) Tariff Analysis Online or the World Bank’s World Integrated Trade Solution (WITS). The quantity of the good should be measured or weighed in accordance with the unit of measurement stated in the applicable tariff schedule. tariff consists of a fixed, unit-based fee + a value-based fee. Example : An importer may have to pay 8.8¢/kg plus 20% of the good’s value. How is the amount of a tariff determined? Total Import Duty = Customs Value x Tariff Rate x Quantity Once you have gathered the information above, apply the tariff formula (or utilize the tariff calculation tools linked above). If transaction value (as described above) cannot be used or determined (i.e., there is no actual sale or the sale price is deemed unreliable due to factors
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such as restrictions on the buyer or conditions that affect the price), then there are five fallback methods: METHOD #1: Transaction Value of Identical Goods METHOD #2: Transaction Value of Similar Goods
If transaction value for identical goods is not available, then transaction value is calculated in the same manner on similar goods if the following are all true: • The goods closely resemble the goods being valued in terms of component materials and characteristics. • The goods are capable of performing the same functions and are commercially interchangeable with the goods being valued. • The goods are produced in the same country as and by the producer of the goods being valued.
Generally, transaction value is calculated in the same manner on identical goods if the following are all true: • The goods are the same in all respects, including physical characteristics, quality, and reputation. • They are produced in the same country as the goods being valued. • They are produced by the producer of the goods being valued. Note: For this method to be used, the goods must be sold for export to the same country of importation as the goods being valued. The goods must also be exported at or about the same time as the goods being valued.
What happens if a tariff is issued while my goods are in transit to the United States — will the tariff apply to my shipment? Generally, no. It is unlikely that you will have to pay the new tariff for goods already loaded onto a vessel (or other mode of transportation) at a port of loading and in transit prior to the announcement or effective date of a new tariff. Example: The Executive Order issued by the Trump administration on April 2, 2025, provides, in relevant part: “[e] xcept as otherwise provided in this order, all articles imported into the customs territory of the United States shall be, consistent with law, subject to an additional ad valorem rate of duty of 10 percent. Such rates of duty shall apply with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on April 5, 2025, except that goods loaded onto a vessel at the port of loading and in transit on the final mode of transit before 12:01 a.m. eastern daylight time on April 5, 2025, and entered for consumption or withdrawn from warehouse for consumption after 12:01 a.m. eastern daylight time on April 5, 2025, shall not be subject to such additional duty.” Note: There may be exceptions to the general rule, thus careful review of Executive Orders and/or engaging trade/customs counsel for assistance is recommended. Will CBP apply the tariff amount I calculated? No. While there are various online resources that can assist with calculating your tariff amount, in the United States, US Customs and Border Protection (CBP) makes the final determination of what the correct rate of duty is — not the importer. For specific duty information, you may request a CBP Binding Ruling or contact your local CBP port. A Binding Ruling (also known as an advance ruling) is a pre-entry, binding decision issued by CBP to importers seeking clarity on how a specific good or transaction will be treated under customs laws (i.e., an importer can seek a pre-entry classification decision). However, Binding Rulings are just that — binding. Therefore, whatever Ruling is provided by CBP will be binding upon the goods identified in the Ruling for all subsequent imports of such good, and not abiding by the Ruling may result in penalties.
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“ Customs value is more than just a price tag— it includes freight, insurance, royalties, and resale proceeds.”
Who pays the tariff? The importer of record (IOR) is statutorily liable for tariffs on imported goods at the time the goods pass through CBP. However, the economic burden of the tariffs may not necessarily rest solely on the IOR. Example: A customs broker can pay duties on behalf of the IOR and then invoice the actual payer (i.e., a consignee or financing partner). An IOR can authorize another party to pay tariff costs via commercial agreement or a written power of attorney. An IOR can also use a customs bond to defer payment, and a third party may reimburse or fund that payment depending on agreement terms. Note : Even if another party is financially responsible for the tariff, CBP still holds the IOR legally responsible. If I am the IOR and am responsible for tariff payments, how can I best manage increased costs? If you are the IOR and financially responsible for tariff payments, such expense usually cascades down to consumers via increased pricing. If you do not want to pass costs down to consumers, one option is to execute contractual arrangements with your foreign manufacturers and stipulate that they are responsible for the tariffs. Example: Using International Commercial Terms (also known as “Intercoms”) outlined by the International Chamber of Commerce, a vendor and its foreign manufacturer can arrange for shipping to be Delivered Duty Paid (DDP). DDP means that the foreign manufacturer is responsible for all costs, including duties and tariffs, until the goods are transported to the vendor at an agreed-upon location in the United States. Note : In any event, tariffs are paid to CBP before the goods are cleared and released for transportation from the US port of entry to the final US destination.
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What are Foreign Trade Zones and bonded warehouses? Can they help me? A Foreign Trade Zone (FTZ) is a designated area within the United States where foreign and domestic goods can be treated as if they are outside the customs territory of the United States. Therefore, such goods are not considered imported until they leave the FTZ for domestic consumption, and thus will not be subject to duties, tariffs, and other applicable taxes while in the FTZ. Further, while in the FTZ, goods may be stored, inspected, repackaged, repaired, tested, cleaned, sampled, displayed, manipulated, mixed, processed, assembled, salvaged, destroyed, or reexported. A bonded warehouse is within the customs territory of the United States and is a secure facility in which imported dutiable goods may be stored or manipulated without payment of duty for up to five years from the date of importation. Although FTZs and bonded warehouses are similar, key differences include the following: • FTZs are often used for storing, testing, cleaning, processing, assembling, manufacturing, relabeling, repackaging, displaying, exhibiting, and repairing goods, while bonded warehouses are generally used for the storage of imported goods entered for warehousing. Further, manufacturing is not permitted in a bonded warehouse unless the goods are ultimately exported. • Goods may only be held in a bonded warehouse for five years, while goods in an FTZ can be held indefinitely. • Only foreign goods may be held in a bonded warehouse, whereas foreign and domestic goods can be held in an FTZ. • Bonded warehouses are subject to direct oversight, direction, and control of CPB, while FTZs are not. Determining whether either of these options can help you depends on factors such as your objectives, business operations and industry- specific activities, ability to comply with CBP regulations, and costs.
If I am NOT the IOR, can I pay the tariff for the IOR? If I pay the tariff, will doing so increase transaction value and result in an increased tariff amount? If you are not the IOR, you can be financially responsible for the tariff. However, paying the tariff may come with some risks, such as the following: • You cannot dispute or appeal charges directly with CBP because you are not the IOR. • If you are advancing duties with the expectation the IOR will repay you, there is a risk that they will refuse to pay or cannot pay you back. • If CBP audits the IOR and finds an issue, CBP might reassess past duties or issue penalties, and you may be caught in the financial fallout despite your good-faith compliance efforts. It is possible that taking financial responsibility for duty payments can result in an increased transaction value, thus causing an increase in the total tariff amount owed to CBP. However, a buyer may issue a rebate to the foreign seller or negotiate a reduction in price of the good after importation; the foregoing will have no effect on transaction value at the time of importation. If I AM the IOR and responsible for tariff payment, how do I pay the tariff? Should I use a customs broker? What are the associated costs? It is advisable to work with a customs broker if you are regularly importing goods. Customs brokers are licensed, regulated, and empowered by CBP to serve as intermediaries between the importer, exporter, and CBP. Notably, customs brokers (a) are familiar with compliance requirements for importing goods into the United States, (b) manage applicable documentation while the goods move across international borders, (c) coordinate payments of duties and taxes, and (d) are aware of any changes to import regulations. Customs broker fees vary; often, fees are tied to the commercial value of the shipment they are clearing, the complexity of the shipment, the specific services provided by the broker, and the particular type of commodity being imported.
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Will the tariff process affect supply chain delivery expectations? Possibly yes. Tariffs can impact supply chains, margins, and operations. Tariffs can increase costs for businesses and consumers, thus forcing businesses to reevaluate current operations and sourcing strategies and contemplate alternative markets. Further, tariffs can change the demand for certain goods, affect trade routes, and cause material shortages and/or production delays, all of which may ultimately cause supply chain delays and disruptions. However, vendors who buy from a US distributor or manufacturer and are paying increased costs due to tariffs can subsequently pass those increased costs down to their consumers, which may pose additional challenges but may have less of an impact on supply chain delivery expectations if the vendors and suppliers/manufacturers involved continue business as usual, despite increased costs. Note: The potential impacts of tariffs are not straightforward, and the global supply chain is currently under distress. Therefore, vendors should adjust their supply chain delivery expectations. What are some tariff mitigation strategies? Tariff mitigation strategies include but are not limited to the following: • Diversifying supply chains • Addressing payment of tariffs in supply contracts (i.e., using Intercoms + force majeure clauses) • Reclassifying goods, or reconsidering product design or production location • Using FTZs or bonded warehouses • Passing costs to consumers • Utilizing duty drawback programs
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WAGNER Meters
T here comes a time when you finish your installation and leave the finished floor in your client’s hands. But, if clients don’t know how to maintain the floors, or know what problems to look out for, their floor could become damaged—ruining all of your hard work and wasting all of your client’s hard-earned money. To make matters worse, if your clients aren’t aware of problems damaging their floors after installation they might blame your installation work. But what if there was a way you could protect your client’s floors and your reputation as a trustworthy flooring installer? The answer to post-installation protection lies in Floor Sentry. Learn what this device can do for you as we cover: • Moisture risks in wood flooring • What Floor Sentry is (and why you need it) • How you can help homeowners protect their floors Let’s start by talking about the greatest contributor to floor damage post-installation—moisture. PROTECT YOUR CLIENT’S WOOD FLOORS with FLOOR SENTRY ®
Jason Wright Business Development Specialist Jason Wright brings over 30 years of flooring industry experience, with a focus on hardwood flooring products and installation. Since starting in 1986, he’s held roles in sales, product development, and marketing across both wholesale and retail sectors. Known for his expertise and industry insight, Jason is a trusted resource for flooring professionals. Contact: jwright@wagnermeters.com
Call Wagner Meters today at (844) 533-9100 and ask for Jason or visit www. wagnermeters.com.
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