Can they build a thriving rug business at 2. a ft? or in my neck of the woods 1.25?
Tom, how many rugs have they ruined or had to send out to be fixed ?
Like anyone that jumps into the "Rugs are where the money is at!" there is going to be a learning curve. I'm sure they have sought enough eduction to narrow that curve down as much as possible.
After that, I'd be afraid, I'd be very afraid. They have the marketing prowess to drive rugs to their door.
Will they take all your clients? No. But they will take the fence people. You know, those that know you are the best but if they can save several dollars a square foot they will be happy with second best. This segment seems to continue to grow, everyone is looking for a deal.
If you're in a large metro I'd begin to market against them (not by name) but attacking the "New Kids on the Block", the franchise approach, any chink in their armor. Where are they vulnerable what are their weaknesses?
Hit them hard with Guerilla Warfare. Lessen any blow they might have on your clientele. Even if they end up having no affect on your business, you'll have helped secure your clients for the future.
P.S.
Oh and fire bomb Tom's house because he's going to keep selling equipment to them!
J/K