What should I ask about a flooring store’s relationship with local designers?
Ask which designers send work, how often, and what the store gives them in return. Find out whether the relationships belong to the store or to the current owner personally. If designers deal with the seller by name, ask how the seller plans to introduce you before closing.
Designers can be a quiet source of steady business. Ask for a list of the designers who have sent customers in the past year, what projects they brought, and how the store follows up. Check how much of the store’s sales come through them compared with walk-in traffic. A store that relies on a small handful of designers carries a different risk from one with many.
Then ask what those designers receive. Trade pricing, sample sets, early access to new lines, or a referral arrangement may all be in play. Ask for any of these arrangements in writing, and ask whether they are consistent across designers or negotiated one at a time. Unwritten promises tend to surface after closing.
Find out how personal the relationships are. If designers call the owner on a mobile phone and not the store, they may follow the owner out. Ask how the seller will introduce you, whether through a joint visit, a call or an event. Ask designers directly, with the seller’s consent, what they value about the store. Finally, ask whether the store has ever lost a designer to a competitor, and why. The story of a lost relationship often explains the ones that remain.
Key takeaways
- Ask for the designers who sent work in the past year and what they brought.
- Get any trade pricing or referral arrangements in writing.
- Plan joint introductions before closing so relationships carry over.
Related reading
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Due diligence
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentHow to diversify your supply chain
- 03Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
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