What should I look at in a flooring store’s sample board and display inventory?
Check whether the sample boards match what the store actually sells today. Look for discontinued products, missing sets, worn or damaged pieces, and displays the supplier owns rather than the store. Then ask who paid for them and whether they transfer to you with the sale.
Walk the showroom with the current supplier catalogues in hand. Every board and display should match a product you can still order. Stale samples tell customers the store is behind, and they can lead people to ask for products that are gone.
Ask who owns each display. Some suppliers lend or subsidize boards and expect them back, or expect the store to keep them current. Get that in writing from the supplier. Also ask whether the store has a record of what it paid for display fixtures, because that affects how the books treat them.
Compare the display against what customers actually buy. A showroom crowded with slow lines and thin on best sellers suggests the owner stopped updating. Photograph the whole floor, and ask what refresh the owner would do with unlimited funds, then ask what it would cost you to do the same. Finally, think about what you would do with the showroom on your first day. Count how many displays you would keep, how many you would remove, and what you would add. Ask the supplier reps what they would expect from a new owner, such as a refreshed display or a minimum commitment. Their answers show whether the current setup is an asset or simply a bill waiting to arrive, and they give you a fair basis for talking price with the seller.
Key takeaways
- Match every board and display to a product that can still be ordered.
- Confirm in writing which displays the supplier owns or can reclaim.
- Compare the showroom to what customers really buy.
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentWhat is inventory
- 02Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
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