Mitchell Dancik

    Mitchell Dancik is President of Dancik International, Ltd., the leading
    provider of software to the floor covering industry, ceramic tile, and
    natural stone industries. He is also a consultant for the Floor Covering
    Institute offering his expertise to institute clients and their businesses.

    Mitch has spent the past 25 years working with over 130 leading flooring
    companies specializing in systems that work seamlessly for the entire
    supply chain. His company’s trademarked slogan,It’s All Connected,
    describes his approach and his software which is designed to connect
    consumers, retailers, importers, distributors, and big box stores to each
    other and to their respective manufacturers.

    Mitch's solution based approach has resulted in applications and services
    that are flexible and customizable and that address the whole company
    including: inventory management, warehouse management, claims, sales,
    CRM, logistics, sophisticated pricing, promotions, commissions and ABC
    cost analysis options.

Mitchell Dancik
Dancik dares to be different, Engineering
solutions for a specialized clientele

Floor Covering News  September, 2009

By Steven Feldman
CARY, N.C.—There are a myriad of software providers to the floor
covering industry, most operating under the same business model:
streamline accounting and ordering, and now B2B. And then there
is Dancik International. For years the company had built its
reputation on focusing on the distributor, but today it serves every
faction of the channel with a quality-not-quantity, Neiman Marcus-
like approach.

“We see ourselves as the largest software company that
specializes in flooring,” said Mitch Dancik, president. “Of this
industry’s $19-plus billion [in wholesale], $6 billion goes through
our system. We only do a little business with the large carpet mills,
but we represent half the total hard surface business.” This despite
having only 135 customers compared to the leading store-focused
software vendors with more than 1,000 customers.

Of course, in this case size does matter. Dancik claims 29 of its
customers do more than $100 million in revenue and another 30 do
between $50 million and $100 million. He estimates his customer
base is a 50/25/25 split between distributors, manufacturers and
large retailers.

“Our market view is different,” Dancik said. “We are selling to
retailers who are either too big for the other available solutions, or
have an unusually keen focus on inventory, logistics and
operational efficiency. Our customer, regardless of his current sales
volume, is the person who sees himself as running an enterprise,
not stores; a business that needs a professional software company
that can meet challenging requirements and program to its specs
when needed. We sign you today with the intent of keeping you a
customer forever,” although Dancik admits that in any given year
new customers are a very small percentage of its business.
Creating opportunities for the
floor covering industry
Today, more than half of all the hard-surface flooring sold in North America is processed by Dancik software at some
point on its journey from the plant to the home. Mitch’s company, Dancik International, has been a consistent sponsor
and participant in many industry organizations, including the North American Association of Floor Covering Distributors
(NAFCD), the Ceramic Tile Distributors Association (CTDA), the Tile Council of North America (TCNA), the Floor covering
Business to Business Association(fcB2B) and the World Floor Covering Association (WFCA).   
Mitch Dancik             
Ph: 919.379.3753
Read About Dancik in Floor Covering News

Dancik Professional Services

    System Audits
    Increase business efficiency
    by engaging Dancik for
    System Audits. Accounting,
    Operations, and Technical
    audits are available.

    Education and Training
    Increase system and industry
    knowledge through training
    and educational opportunities.

    Application Development
    Gives you the ability to
    acquire system extensions
    and modifications to the
    available Dancik software

    Technical Services
    Keep your business up and
    running without interruption
    with Dancik Technical
But its customer base is just one differentiator. Dancik’s overall philosophy is what truly sets it apart. “We are an
engineering company that engineers and sells flooring systems,” Dancik said. “Most of the other software companies
are sales companies that create a product based on what they feel the industry needs.” In illustration, Dancik employs a
bunch of software engineers but just one salesperson, Tony Thomas, its vice president of sales.

Dancik admits his system is not for everyone. First, the price tag, which includes hardware, software, implementation,
training, maintenance, hotline and updates, is “somewhere north of $80,000 at entry level.” That can be four times the
competition, eliminating many potential buyers. (Actual cost is tiered based on revenue.) “If all you’re concerned about is
how well a system takes an order at point of sale, Dancik is not for you,” he said. “We make a product that only gets
qualified companies to buy. We turn down business if we don’t feel it’s the right fit.”

Aside from the basics, Dancik shows how a company can make money. “Most retailers don’t understand how to run a
high-volume, low-margin business. They have no idea how a big distributor can make money on a 4% margin to Home
Depot. Most retailers can’t imagine how to make money on 11%, 15%, and luckily most work on healthier margins.

“You wake up with either a logistical focus or a sales and product focus. Much of our focus is on the logistics, where you
look at computer screens knowing exactly how you made a half-point more, and where you can make as much money on
containing costs as on sales.”

So what do you get for the $80,000-plus fee? According to Dancik, the significant difference from the more popular, less
expensive solution sets is the level of training and commitment. Training spans a six-month time frame, and only if
Dancik deems the customer ready will it certify them to go live. Then Dancik remains on site for the first seven days and
remains actively engaged thereafter. “Our goal is that even after many years, the customer still enjoys the value he gets
from our continued support.”

System highlights

    • Inventory selection automation. No order entry person ever has to select a piece of carpet or shade of tile,
    Dancik said. The system will manage what comes from stock, what gets transferred, what gets purchased from the
    mill. There is no human intervention. “The system knows all the rules that the owner of the business has taught it.

    • State-of-the-art warehouse management system. Without a single piece of paper, a handheld unit can provide a
    warehouse person with a directed work flow. “It knows how to build a tile palette—pick the 18 x 18 first, then 12 x
    12, etc. Guys with a wrinkled piece of paper don’t always know this stuff.” It can also automate quarantine areas
    for FSC-certified wood.

    • Claims management system. This module ties the retailer to the distributor to the manufacturer with a directed
    work flow. Ten steps begin with acknowledgement of the claim and tracks the progress all the way through
    resolution. Included are invoice numbers, the purchase order that went to the manufacturer, the color, the
    quantity, the price, etc.

    • Selection sheet manager. This component manages high-end showroom sales, including appointment follow-up
    and CRM. “It tracks every customer who walks through the showroom, including everything they have selected. It
    also tracks related parties to the sale, such as the referring design company, realtor, builder, etc., and integrates
    it into the order processing system. So when the customer finally makes up her mind, all you have to do is push
    one button.”

    • Logistics management capabilities. This includes truck loading, and inbound and outbound truck routing. “It also
    can manage containers in vessels on the sea.”

    • Trip and promotions management. This module easily keeps track of points and dollars earned by retailers
    toward manufacturer or distributor-sponsored trips.

    • Sophisticated pricing and commissioning. Retailers can base salesperson commissions on sales, margins or how
    much they discount off the store price. “Flexible yet automatic pricing for our retail and distributor clients is the
    difference between making and losing money. They can tie that back to any referring parties, so that everyone is
    taken care of.”

    • The basics, like accounting, ordering and inventory management, and a full range of add-on modules to
    automate a Web site, integrate with UPS and FedEx shipping systems, integrate with carriers, and manage B2B.