If you ever wanted to start a patio store, Judy Miller would tell you that a good first step would be to take a look around.
In 2000, recognizing that Marble Falls, Texas is in Highland Lakes—in the middle of surrounding communities, wineries and lakeside resorts—and recognizing that people might want to have a place to sit down, Miller started pursuing the idea of starting a patio store.
“I really did want to have my own business and a friend of mine was in this business,” says Miller. “I could get her to help mentor and she did. I knew this area needed patio furniture, around the lakes, and I thought I would give it a try.”
And she did, starting up OutBack Patio Furnishings. It expanded to a second location in Kerrville, and today, this former programmer for USAA is 22 years more experienced and still happy with it.
“I was tired of corporate America,” says Miller. “I wanted my own business. For me, I always loved the fact that your customers are always happy when they come in. This is a luxury item. This is something where you are looking to make life better. This is not having to replace a broken dishwasher—this makes life better and more fun. That’s the appeal for me.”
Business has changed over the past couple of years, which means it’s essential to update business strategy.
OutBack sent its salespeople to a SalesRX sales training program sponsored by ICFA to learn more about the best sales tactics that can be used; added two new manufacturers to the mix and is adding a new warehouse to store the inventory it has ordered and is beginning to arrive. That’s because customers are buying differently, having lost patience with how long special orders take to be delivered.
“It has kind of pushed us to do a lot more neutrals on our cushions to be able to appeal to the widest audience,” says Miller. “We have really tried to make a concerted effort to buy US-based products but many are themselves relying on imports and they are doing the best they can to keep up.”
Since the pandemic began, Miller says she has had challenges in obtaining fabric, foam and frames.
“Foam was a big issue and fabric has been a major issue for us for quite a while,” says Miller. “It comes and goes, depending on what you are looking for. With aluminum, we have had issues with hardware, even our U.S.-based companies rely on hardware from overseas and that creates another bottleneck.”
The solution has come from developing patience, by asking customers what they want—and by asking them whether what OutBack actually has in stock will work.
“Last year was crazy—even in January, January was off the charts last year,” says Miller. “This year, January was back to more of a normal January. We were training people on Sales RX and we had new people who we were trying to get up to speed because it was so busy. People wanted furniture, period. We sold a lot of stuff, everything we had in our warehouse and I thought that it was great because we were getting rid of stuff we have had for too long.”
Inventory is now arriving that was purchased last spring and summer.
“You really have to take your best guess on what will sell and you hope that you have got it when the customer wants it,” says Miller. “The person who has inventory is the person who is going to survive.”
The key, says Miller, is to have a plan and implement it. The season runs from February through August with a bump in October, but no matter what the season, the customer is the focus.
“Our goal is to create an awesome environment for them to walk into and see settings that they can imagine in their location,” says Miller. “We highly train our salespeople so they know what sets our furniture apart from others. We do not work on commission; we work together to come up with the best solution for the customer. They see it arranged rather than seeing it in rows and rows of patio chairs.”
Miller isn’t concerned with full-line retailers—or online retailers —who decide to get involved in outdoor furniture.
“They are indoor people and they don’t have the luxury of having as much knowledge as we do,” says Miller. “We come in as outdoor professionals and we can help provide people with a better solution. What we want to do is do deal directly with the customer and provide them with the white glove experience.”
Any advice for struggling casual retailers?
“If they are struggling in this economy or last year, it might not be the right business for them,” says Miller. “I will tell you that I used to stress out every December and every January about how we are going to make it. The last couple of years, I haven’t done that.
“I do worry going forward about what this year is going to hold. Are the supply chain issues going to be too great? At some point, is the customer going to say that they are not going to pay that much for a club chair, as we have experienced price increase after price increase after price increase.”
Right now, it boils down to the basics.
“We are going to keep going with what we have got and keep building inventory so we will have product when people are ready to buy,” says Miller.
