Tile Flooring with Doug Disney & Chris Nezbeth of Tile Outlet Always in Stock

In This Podcast Episode

Floor guy, Rob McNealy, interviews Tile Outlet Always in Stock® Founder and President Doug Disney, along with Vice President Chris Nezbeth about their unique business model. Tile Outlet Always in Stock® stores have at least 50 products in stock and ready to go, to help homeowners get projects done quickly, and products that need to be ordered come from local distributors in an average of three days.

More About Doug Disney and Tile Outlet Always in Stock®

As a 19-year-old, Doug Disney started his own business called Yachtin’ America, in which boat owners across the country agree to swap boats while on vacation, similar to popular home exchange programs. Then, he got started in the tile industry, and there was no doubt he had the drive and desire to succeed on his own. He just needed some direction.

That’s when Disney came across the book, “Start Small, Finish Big” by Subway co-founder Fred DeLuca. The book contained DeLuca’s 15 key lessons to start and run a small business.

“I read the book in two days,” Disney said. “It made me realize that I already had a great concept, but that franchising was a much better alternative for growing than opening my own stores. As soon as I
finished the book I called an attorney to get started.”

Disney put the lessons he learned to good use when he began franchising in 2002. Today, Tile Outlet Always in Stock is not only one of the fastest-growing consumer goods franchises in the western United States,
but it is positioned for national growth, as well. Tile Outlet is the only franchised retail tile concept of its kind with 65 locations in eight western states. Thirty-three more locations are in development and expected to open within 12 to 18 months. Disney’s goal is to have 200 stores sold by the end of 2008.

Nothing derails the excitement surrounding a home improvement project faster than the seemingly inevitable delay in finding everything you need to get started. Tile Outlet Always in Stock® founder Doug Disney could literally feelthe pain of do-it-yourselfers during the dozen years he worked in the tile industry before taking matters into his own hands when he opened his first store in 2001.

“The biggest complaint from customers was that they would walk into a tile store, find a sample they like, order it and wait one to two weeks for it to come in,” Disney said. “And because each batch has a different
shade lot, the tile you picked out in the showroom could be slightly different than what you got a couple of weeks later.”

Tile Outlet makes matters immeasurably easier. Of the approximately 300 ceramic and porcelain tile and stone products on display at each store, more than 50 products are ready to go and the lead-time for ordered products from nearby distribution centers averages about three days.

Many other small discount tile stores are “special-order only” with lead times that typically stretch two or three weeks. The same can oftentimes be said for big-box home improvement retailers that also carry a limited amount of in-stock products.

“Each of our locations has a good selection of the basics,” Disney said. “If you walked into one of our stores today and needed tile for a project this weekend, they would have enough in stock for you to tile your floor.”

Besides an incredible array of ceramic and porcelain tile, stores carry a wide selection of slate, travertine, limestone, medallions and marble at savings of typically 20 percent compared to competitors because of Tile Outlet’s low-overhead, low-price concept. Top-selling prefabricated granite countertops offer savings of as much as 70 percent when compared to the cost of traditional installation. Tile Outlet also sells all the
necessary products, equipment and materials necessary for installation.

“We’re a one-stop shop,” Disney said. “We’re a very well-rounded tile retailer. We have inexpensive tile from 99 cents a square foot to glass tile that sells for $15 a square foot, as well as high-end granite products. You can find what you’re looking for whether you’re looking to inexpensively tile a laundry-room floor or choosing tile for a $5 million custom home.”

Tile Outlet also offers consumers more choices since many big-box retailers oftentimes carry products from only one supplier. “We have our own line of products, but we also have products from 20 other suppliers. From a consumer standpoint, it’s like being able to look at the products of 20 other companies at one time.” Disney also pointed out that product samples come from current stock, not a product lot that might have been produced last year, helping to ensure that customers’ purchases match their samples.

Prefabricated granite countertops are a top-seller simply because of the incredible savings they offer. Prefabricated granite is produced in smaller slabs and cut to a standard two-foot counter depth with a
finished edge already on it. Conversely, the fabrication costs alone to add a bullnose (finished edge) to customized granite countertops can cost about $50 per linear foot or $450 for a nine-foot counter.