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Web posted Monday, February 3, 2003

Professionalism pays dividends for carpet firm

By Ron Veltkamp
For the Journal

photo: focus

 
From left, MacCheyne's Carpets Plus owners John MacCheyne, Dave Weaver and Wendy MacCheyne attribute a professional attitude to their success.
PHOTO/Courtesy MacCheyne's Carpet Plus

"Always wear a neck tie, and always have all of your salesmen wear ties." That advice was given to John MacCheyne, owner of MacCheyne's Carpets Plus in Fairbanks, by a highly regarded management consultant as a way to create a professional atmosphere in the business.

MacCheyne followed that advice, and took it a step further.

"I tell all of our distributors that if they want to make a sale when they come to our store, they had better wear a tie," he said.

That atmosphere of professionalism is evident from the moment you drive up to the recently remodeled building occupied by Carpets Plus. It's when you walk through the front door, however, that it becomes apparent that this is no ordinary carpet store.

Spacious, light and airy, the showroom has soaring ceilings, a large decorative tree, and a tile walkway leading to a curved stairway to the mezzanine level. It has the feel of an Italian villa, inviting the visitor to explore further.

The spaciousness of the showroom enhances the experience of shopping for flooring materials. A wide array of samples for carpet, rugs, tile, vinyl and laminates is on display to meet the flooring needs of every conceivable design, style and budget.

Highly qualified and experienced sales professionals -- all wearing ties -- assist customers in making appropriate decisions in selecting flooring products. It is difficult to imagine that this attractive facility on Peger Road was once a truck repair shop.

It all started in 1980, when MacCheyne left Eastern Washington to escape the ash from the Mt. St. Helens eruption. He had worked with his father as a carpet installer, and put those skills to work in Fairbanks as well.

MacCheyne started his own business in 1992 in the basement of his home, designing, binding and creating custom rugs under the name Carpet Art. The business moved to a small store on Van Horn Road in 1995. About that time -- while displaying his creative rug designs at a home and building products show -- MacCheyne came to realize that there were more profits to be made in retail carpet, so he decided to move the business in that direction. The business was outgrowing its small store, so MacCheyne started looking for a new store building.

Also about that time, Dave Weaver was referred to Carpet Art to have some carpet installed. Weaver was a former carpet retailer from the Lower 48 who had moved to Fairbanks. As the two became friends and exchanged lots of business ideas, MacCheyne came to believe that Weaver's skills and experience would be invaluable in growing the retail business. So Weaver came on board and became MacCheyne's right hand person in helping to establish the retail store, including the decision to purchase the building on Peger Road.

When that building was acquired in 1997, it seemed to be such a large facility that they couldn't imagine needing all the space. But the business was growing by leaps and bounds, expanding into commercial sales as well as retail. Within three years, it became apparent that the building would not be large enough, so plans were made for a new addition.

For guidance with business planning and ideas on growth options and strategies, MacCheyne used the resources of the University of Alaska Fairbanks Small Business Development Center. This Small Business Administration resource partner provides small business counseling and training. Center director Scott Swingle was impressed by MacCheyne's thoroughness. "One of John's strengths is his ability to really listen and use the resources available," said Swingle.

"In late Summer, 2000, there was a lull in economic activity, and money just wasn't flowing," said MacCheyne. "We knew that our sales would be off for a while, so the timing seemed right to do the addition." Financing for the addition was secured through the Small Business Administration 504 Loan Program. This program provides financing for fixed assets using a combination of a private lender, an SBA-licensed community development company, and applicant funds.

Evergreen Community Development Association, from the Seattle area, is the authorized community development company for Alaska. SBA guarantees a debenture, which is sold on the financial markets, to provide the community development company funds. Although somewhat complicated, this SBA program made it possible to get the funding for the addition while making the lenders comfortable, according to MacCheyne. "SBA's 504 Program is the only way I could get this done," he said.

Along with the building addition, MacCheyne affiliated with a buying group known as Carpets Plus. "We were the first ones to sign up with Carpets Plus at market," said MacCheyne. "I recognized that this organization would help us in our purchasing, inventory control and marketing efforts, which are important parts of being successful." This affiliation also resulted in changing the business name to MacCheyne's Carpets Plus.

The growth of the business is something that continues to amaze MacCheyne. Significant growth in the commercial division, coupled with growth in the retail section has increased monthly sales tenfold. What started out as a one-person operation now hires ten people and contracts with eight installers.

In mid-1999 John's wife Wendy came on board full-time as office and finance manager, adding valuable strength to the administrative and financial management of the business. MacCheyne credits much of the success of the business to the sales staff. "These six full-time, dedicated professionals have fueled the sales growth of this company," MacCheyne said.

"I am humbled by the success of this business," said MacCheyne, "and I am thankful to have the opportunity to provide quality products and create jobs which contribute to the Fairbanks community."

Ron Veltkamp is the business development officer for the U.S. Small Business Administration in Alaska. He can be reached at 907-271-4838.

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