Mohawk Industries and Questionable Ethics
By InMyOpinion on Mar 27, 2009 | In A Musings, Business and Career
No long story short here but try to stick with me anyway...
So I'm looking to buy carpeting for a movie space (nothing too fancy just big screen TV, comfy chairs, posters on wall etc.) I've set up in my basement. I've searched for months for something not too tacky yet movie room thematic until I finally found something in the burgundy/brick color family with tasteful gold stars in a simple diagonal pattern. Classy, movie relevant and it matches the existing color scheme. "Great!" think I excited to have finally made my decision. I trot over to my local carpetmonger to inqire about buying said carpet but hear this instead. "Sorry" says she, "I can't get that carpet for you - we don't do business with that company". "Oh, okay" I say and leave figuring its a small store, probably can't work with all the manufacturers so I'll try a bigger player in the carpeting world.
Follow up:
On to retailer two who says "Can't get that carpet". "Why not?" I asked. "We just don't carry the manufacturer". Curious, I think. Uber Big manufacturer - tons of designs and patterns and I can't get here on Long Island - figured you can get just about anything here!
Third, even bigger retailer similar story. Seems it's a commercial carpet sold in big lots for hotels, offices, casinos, places like that. But I LIKE it, I WANT it. Won't rest til I get it. I'm okay with working through my local carpet store, so what's the problem? On to retailer four. I've done business with them before - maybe they can get the job done for me.
While my regular retail guy would love to make me happy (I bought carpet for another room the day I visited) he too tried to disuade me from my choice. Ok, what gives? I'm thinking. Is business so good no one wants to sell me carpet I want?? "Well" says my guy. "We can get the carpet. But we don't like working with the company". Finally, I think the real story! So my guy goes on to explain that the local rep for the manufacturer has been undermining the retailers for years. Everytime they have a big commercial job opportunity they go to "Rep" for a price. It seems as though Rep has a "vested interest" (read makes money himself by sending business to) another retail establishement. Rep make money on the wholesale end (his sales commissions)AND on the retail sale/installation. So he's stealing customers from his dealers and still lining his own pockets by double dipping. This is known in ethical circles as a conflict of interest. Now most customers either don't seem to care (or probably even know) about this underhanded behavior or just seem to really want the carpet manufactured by this division of Mohawk Industries known as "Durkan Patterned Carpet". They are a huge player (think monopoly - should be broken up huge with a 6.83 BILLION dollars in revenues) with a great diversified portfolio of patterned commercial carpet typically not available to the homeowner market.
Here's what makes me even crazier about the situation. Rep's direct boss is a buddy, so he turns a blind eye to the goings on because Rep is bringing in lots of sales (monopolies tend to put competitors out of business rather easily you see) hence Rep and "Boss" make lots of money - maybe even bonus'. "Bigger Boss" (Rep's boss's boss) makes his numbers, big money and possibly a bonus too so everyone is lining their pockets by turning a blind eye to this egregious lapse of ethics but no one at Durkan/Mohawk is looking at the big picture making them one dumb company!!
While Rep, Boss and Big Boss may look good on paper, scores of retailers are avoiding doing business with them and in many instances are steering customers to other products or other manufacturers where Rep and his cabal don't need to get involved. HELLO Mohawk! HOW MUCH MONEY ARE YOU LOSING with this laissez-faire attitude??!!?? Alienating your retailers is plain old dumb and a bad business practice to boot. What will your stockholders think if they found out - Think I'll send them all this post! Readers can help out here too...
I simply will not do business with a company that operates in this way. Get your house in order so I can buy the carpet I want. Until that time, I will boycott you and ask that everyone I know does the same.
Are you with me?
| « Tax Tea Party a GOP PR Effort? | Are You With Me? » |

