THE CSG SYSTEM™
by Carpet Sculpture International, Inc.

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Frequently Asked Questions

Sports Car with Fiber Optics

1. Is this a Proven Concept?

Originally, we started developing our concept in 1987 for our floor-covering customers. Since we couldn't handle more than 50 customers a year by ourselves, we dedided in 1991 to teach and license our proprietary CSG System™ to entrepreneurs who wanted to start their own home-based carpet sculpting business.

2. What is the Market Niche?

Our niche is to create one-of-a-kind carpet sculptures (fine art using high-quality carpet as a medium) for the residential, commercial and industrial market.

Our CSG System™ makes it possible that -- for the very first time -- even the middle-class consumers can afford carpet artworks matching their decor. In addition, these carpet artworks are so well constructed that our CSG Licensees can guarantee their workmanship for a LIFETIME.

3. Who wants this stunning, one-of-a-kind FUNCTIONAL ART?

  • HOMEOWNERS ARE CLAMORING FOR THEM.

  • BUSINESSES, HOTELS & RESORTS WANT THEIR LOGOS FEATURED.

  • DECORATORS, CUSTOM BUILDERS, REMODELERS, SHOPPING MALLS, THEATERS, CINEMAS, RESTAURANTS, GALLERIES... ARE BEGGING FOR QUALIFIED CARPET SCULPTORS TO WORK WITH. BUT ONLY A FEW ARTISANS ARE CAPABLE TO SUPPLY THIS MUCH WANTED SERVICE.

4. What is CSG's Second Profit Center?

Our Second Profit Center is creating wall tapestries as detailed as a painting with fiber-optics in iridescent colors to highlight the artwork. How many walls in the US and other countries could be beautified with this Functional Art? You guessed it... millions!

4. What is CSG's Third Profit Center?

Our Third Profit Center is inserting a logo... or a design from a wallpaper... or upholstery... or a stained-glass window etc. into an existing wall-to-wall carpet. This changes a $20/sq.yd. carpet into a $100 - $500/sq.yd... (or more) personalized carpet artwork that not only beautifies the specific area, but also raises the value of the dwelling it is installed in.

5. What is the Estimated Income to the CSG Licensee?

We can not guarantee any income because we don't know how hard the Licensees are going to work. However, our Profit Structure ranges from 100% to 400%! At our marketing session we recommend charging the customer from $50 to $150... or more per hour for creating the carpet artwork... PLUS doubling the price of the hard costs (carpet & supplies).

Dave Chiordi from Albuquerque, NM made $214 per hour on a $4,500 job. The CSG Head Office made PROFITS of $32,799 from just one customer... with another $8,533 to be added shortly.

A CSG Licensee has the capability to make a Six-Figure Income using all three Profit Centers!

6. What is the Profile of a successful CSG Licensee Candidate?

  • Must be a self-starter, teachable, good appearance, good health (male or female 18 yrs. or older).

  • Should be ready to start the business within (three) 3 months.
    Must have a garage, basement, or any other area available to set-up a workroom (min. 120 sq.ft.).

  • Needs good people skills PLUS determination and perseverance to follow-through.

  • A strong desire to succeed in this business

  • Financially responsible with funds available for one of 4 CSG Programs.

  • Previous business experience desired, but not required.

  • Artistic abilities not required.

7. Who is Licensor's Major Competitor?

Carpet Sculpture International, Inc. is the only company in the US whose main business is teaching Entrepreneurs how to become the "Michelangelo's" of carpet sculpture...

Our CSG Licensees do not only learn how to become the finest carpet sculptors, they are also taught eleven (11) ways HOW TO MARKET THESE STUNNING PRODUCTS.

In our CSG Marketing Course©, Volker Bauerle, President of CSG, reveals secrets he learned from probably the best minds in marketing, i.e. Jay Abraham, Gary Halbert, plus other world-class marketers who charge up to $50,000 for their seminars.

In addition, Volker learned a few things on his own in the 42 years he's been in business. He will be sharing a specific marketing strategy that practically guarantees that for every $100 our CSG Licensees invest in marketing, they will receive a minimum of $200 in return... if things don't go as planned. However, if the strategy works, as planned, they could get returns of 500% to 1,000%... or more!

CSG also manufactures their own carpet sculpting equipment. It is very light, made of aluminum. Even a teenager can easily handle it (we tested the equipment using a family with a 12 year old daughter).

CSG developed their own Patent Pending "Key Palm Cutter" that cuts carpet almost as thin as a hair, enabling the CSG Licensee to create the most exquisite carpet artwork, even a portrait. To our knowledge, nobody else can create the same quality carpet artworks.

8. Are there any Threats to the Products, or Saturation, or Strategic Plans?

No threats or saturation!

Strategic Plan: Once the public finds out about RugArt™, we strongly believe that at least 5,000 carpet artisans will be needed in the US & Canada to supply the demand for custom made carpets. (So far we've taught just over 500).

Every house, every building etc. could be personalized with one-of-a-kind carpet artworks matching the decor of the customer.

Our vision is global. Once established, other products for homes & businesses could be offered to the consumer.

9. Geographical breakdown of licensed Locations etc.

We currently have Master Franchises in the UK & Ireland, in Singapore & Malaysia and a Regional Licensee in Saudi Arabia.

In the US and Canada, we license our proprietary CSG System™ to qualified Entrepreneurs. Our CSG Licensees in North America are not obligated to pay royalties to us.

Since we're not selling franchises in the US & Canada, there are no protected territories. However, our contract states that we will not have more than one CSG Licensee per 50,000 people per state for a Licensee who purchases Plan A (CSG Home Study Course© @ $11,900 US) -- or 100,000 people per state for a Licensee who purchases either Plan B, C, or D (hands-on workshop in La Habra, CA).

10. Quality of the Licensor's Operating Manuals and Operating Systems

The President of CSG learned from Jay Abraham, that most people attending a seminar or workshop only retain about 8%.

That's the reason why all of CSG's Licensees receive hands-on videos and manuals. (CSG invested a six-figure amount to have a workshop professionally videotaped and manuals developed for each video. This way, the Licensee can hone his/her skills twofold -- by using the videos and the manuals.)

Each Licensee also receives an Operation Manual, the 199 page CSG Marketing Course©, an inlaid & sculpted carpet sample, handcrafted by one of CSG's artisans etc. By doing this, the Licensee leaves the workshop with 100% product knowledge, not just 8%, since everything we do is backed up.

11. Training Programs -- Initial and On-going

We've designed 4 Programs (Plan A - D) to choose from to fit anybody's needs -- ranging from $11,900 to $39,900: Click here for details.

The new CSG Licensee will hone his/her skills at home with the help of our proprietary hands-on videos & manuals (see above).

If the CSG Licensee practices diligently for 30 days after finishing initial training, he/she should be able to produce any carpet art piece a client wants.

12. Support of License System

Licensees who purchase Plan A (CSG Home Study Course©) receive three (3) months free support from head office.

Licensees purchasing either Plan B, C, or D, receive six (6) months free support.

After their initial free support, Licensees have the option to continue support by paying $100 per month, or $900 per year (if paid in full upfront), or $1,500 for 2 years (if paid in full upfront).

13. Experience of Key Management

  • Volker Bauerle, Pres. (42 years in floor-covering, co-developer of the CSG System™ & marketing trainer).

  • Gina Bauerle, Secr./Treas. (40 yrs. floor-covering, co-developer of the CSG System™ & hands-on trainer).

  • Dave Chiordi, (30 years floor-covering, hands-on trainer for 9 years with CSG).

  • Pablo Rivera, (18 years floor-covering, hands-on trainer for 9 years).

14. What Programs are in Place to support CSG Licensees?

  • Telephone Support-line plus fax & e-mail to help with any questions, ordering of supplies, etc.

  • Carpet volume purchasing agreement.

  • Carpet remnant purchases at half price.

  • Loaner samples from Carpet Sculpture Gallery® (for Licensees who participate in Home & Garden shows, etc.).

  • Newsletters.

  • 2-page web site linked to CSG's web site..

15. Legal

No litigation since start of floor-covering business in 1963 including Carpet Sculpture Gallery® & Carpet Sculpture International, Inc., starting in 1991.

16. Trademarks/Servicemarks

Carpet Sculpture Gallery® and their wholly owned Carpet Store in a Briefcase® have registered trademarks & service marks for the North American and the European market.