Exactly.

Carpets are bulky and less efficient to ship in containers compared to flooring that comes in boxes. Additionally, hard surfaces have a longer shelf life, especially engineered wood, which can withstand various conditions better than carpet, which can rot.

Why is the flooring market mostly dominated by mom-and-pop retailers?

The choice depends on whether you're a homeowner or a professional. Homeowners often go to big box stores like The Home Depot, Lowe's, or Floor & Decor. It's probably more than 50% for homeowners. For professionals and contractors, it's different. About 60% to 70%, or even 80%, go to places like Floor & Decor or Lumber Liquidators. These companies have made a big push into serving professionals for recurring revenue, even though the pricing is lower. It's more steady business.

Why is the flooring market mostly dominated by mom-and-pop retailers?

Often, 25% to 30% of the time, something happens on the job site. Flooring is just a piece of a larger project, and it must fit within a timeline. If the timeline is disrupted, they need the product sooner or later. Flooring is heavy, and you can't just leave it outside or in a garage. Sometimes that's not possible. Delivery times can be a challenge, especially when homeowners change their minds to align with themes and designers. Lead times also play a role. Often, they have to call in favors. Executives at mom-and-pop stores are constantly fighting fires, dealing with exceptions, and providing support. If there's a problem, they make it right, so the professional doesn't have to worry. In contrast, with big box stores like Floor & Decor, once you buy, you're on your own to resolve any issues. You're stuck in bureaucracy, calling customer service. This model can be more expensive. I'm not saying the mom-and-pop model is superior, but many professionals are traditional and value relationships. However, this is changing as younger, tech-savvy professionals shop around and find prices 30-40% lower. That's why Floor & Decor and BuildDirect are gaining market share. We aimed for a value proposition in between.