Things To Consider

Before I go on, allow me to elaborate on some of the facts about the current state of the 15 billion dollar floor-covering industry in the US... and why there is such a huge market waiting for our CSG Licensees..

Fact #1... In the 60's, when we started our floor-covering business, carpets in homes were replaced every 3 - 5 years. In the 70's -- the replacement cycle extended to 5 - 7 years... in the 80's it was around 10 years... in the 90's and in the new century, it is at an all-time high of 12 - 14 years.

Why Are Homeowners Waiting Longer And Longer Until They Replace Their Carpet? There are basically two reasons:

• Carpets really don't wear out anymore, they just "ugly" out.
  

• The main reason, however, is... nothing new has been developed in our industry in the last 12 years since "Berber" carpets were introduced for the first time.

Do you remember "shag" carpets? Almost everybody had one of those and hated them because they always looked messy. People couldn't wait for the industry to come out with something new. Finally -- in the mid-70's -- "plush" carpets were introduced, and according to statistics...

Fact #2... 84% of homeowners replaced their "shag" carpets within 3 years. The floor-covering industry expected about the same ratio of replacements when the new "Berber" carpets were introduced. However, they were in for a big disappointment. Most people hated this new look, therefore...

Fact #3... Only about 23% of homeowners replaced their "plush" carpets with "Berber" carpets.

Fact #4... This means, over 75% of homes in the US have carpets from 12-14 years old, or older!

Now -- according to a survey, 93% of women make the decisions when it comes to decorating their homes. In addition, this survey showed that the decision makers were willing to invest about

$45 Per Square Yard On New Carpets...

which is at least 3-times the national average... if they liked the product.

What does this figure tell us? You may not be aware that the average person invests about $1.50 to $1.65 per square foot, which translates into $13.50 - $14.85 per square yard, for carpeting his/her home. And this figure includes padding & installation. That has to be the bargain of a lifetime!

Many people, especially men (sorry guys, but these are the facts) would never consider paying $45 per sq. yd. for carpet (that's only $5 per sq. ft.). However, they don't think twice paying from $5 - $10 per sq. ft. ($45 - $90 per sq. yd.) for ceramic tile, or hardwood floors... and much more for marble... and up to $35 per sq. ft ($315 per square yard) and more for granite.

So -- the carpet industry finally did something right and made a much needed change. You may not be aware of this yet, but there is a new law that states, starting January 1st, 2000, carpet has to be sold by the square foot, to give the consumer a chance to compare prices with other floor-coverings. It's about time!

Okay -- I guess I've made my point. As mentioned above, homeowners who entered this survey, were willing to spend at least $45 per square yard ($5 per sq. ft.) for carpet-based floor-covering, if someone could develop a product they'd fall in love with.