We have been having a hard time finding good, affordable rugs in this town. Yesterday we found a new entree in the middle to upper ground: The Rug Company. Located in Soho and run by nice, unstuffy folks (Brits actually), they feature a wide variety of contemporary rugs in wool and silk with prices ranging from @ $40 to $135 per square foot (8x10 = $3,200 - $10,800).
What sets The Rug Company apart is their Designer Collection by well known designers such as Paul Smith, Diane Von Furstenberg and Allegra Hicks among others, who have done some god awful and some beautiful things with rugs. The variety is fun. In addition, you can customize your own rug by size and color and it won't run you any more. NYMag says: Editor's Pick 2005 - The Rug Company’s portfolio of designs will give the space a needed 'playful, colorful' jolt.
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(Note: This is an update. First reviewed on 11.23.04)