Every person — every business owner — can probably look back to a defining moment that made all the difference.
For David L. Jacobs of Jacobs Custom Living in Spokane Valley, Washington, it was a chance meeting in 2005 at the Las Vegas Furniture Market with sales rep Dennis Thurmer, who sold several different brands of outdoor furniture.
That year, Jacobs brought back an O.W. Lee mesh table and Artisan chairs, and a Kingsley Bate extension table and chairs.
“It changed our life,” says Jacobs.
Always a family business, the company began in 1959 in Clarkston, Washington, created by Jacobs’ father and grandfather as a custom reupholstery shop — upholstering everything from cars to living room furniture. Now run by David Jacobs, two of his brothers and a sister following their father’s passing in 1999, the business has expanded into outdoor furniture retail sales.
“Dad was always looking for something not so labor intensive to be involved with,” says Jacobs. “While the reupholstery business still accounts for about 40% of the business, we are really driven by the casual furniture side.”
Jacobs says that this year, his business is similar to many other retailers.
“At this point, I probably have enough inventory for a year and a half,” he says. “We are definitely working on merchandising and have actually taken a few sets off the floor to open up space and not look so crowded. As hectic as the world continues to be, we want a relaxed atmosphere when a customer comes in, and I think that space calms things down a bit.”
Jacobs says that lead times are improving, but it will be interesting to see how manufacturers handle it if sales continue to increase.
“While traffic to the store is quieter, sales for January and February combined were our best,” says Jacobs. “The folks coming in and calling are ready to buy and don’t want to be caught like the last few years without being able to get what they want. It would not surprise me at all for things to slow down midyear with the Fed trying to get inflation under control. “
Jacobs says his area is fortunate in that it doesn’t go too high or too low in these business cycles.
“We have good inventory that is mostly all paid for at this point,” says Jacobs. “We will continue to advertise the lifestyle of casual outdoor living. Interestingly, every time there is a dip in the economy the reupholstery side of our business gets busier.”
Jacobs says that one of his biggest challenges has been manpower. Last month, the store advertised for warehouse workers and delivery drivers and managed to make a couple of good hires, which will help as the store hits its busy season.
On the sales front, Jacobs says he tried a tactic of another seller who delivers the product and if it doesn’t fit, offers to bring it back. He has used that method twice and wrapped up sales, versus the customer leaving and hoping they return.
“It is like when they know they have that option, it takes another brick in the wall down of opposition,” he says. “We will be talking with the rest of the staff about the concept going forward.”
He also uses a somewhat unusual tactic in deciding on what merchandise to bring in.
“When I am at market or if someone contacts me on the phone, if I am interested in their product, I will ask them where else they have their product,” Jacobs says. “If they excitedly tell me which box stores they have them in, I am pretty much done with them. Also, if I am going to be competing with the manufacturer online for sales in my store, there will need to be a pretty good advantage for me to carry the product.”
To get the word out, Jacobs says he has historically advertised on the radio year-round — and with the recent chance in agencies, has expanded digital advertising somewhat.
“Most of the sales we have made this year, people have heard the radio, have seen the digital ads and have been to our website and seem to come in ready to buy,” says Jacobs. “So, on a small scale, it is all working together. Our advertising is not sale-driven. It is mostly promotion of lifestyle, buying quality. This year we are going to stretch a little and start nudging the process a little more and actually try to encourage the sale.”
Setting themselves apart from others isn’t much of a stretch, says Jacobs.
“Being a full-service upholstery business, we are able to do custom cushions in-house, he says. “We have been able to add a couple of seamstresses to our production area that are working specifically on patio furniture cushions. There are a couple of manufacturers that we bring frame only in and then have in-house stock cushions. Custom cushions can be done in two to three weeks. Nobody around us can do that. In fact, we have many competitors that will send their clients to us because of our inventory and customization ability.”
Online will always be a challenge for small independents, who don’t have the staff to go all in on online. The best that can be done is to keep the site updated and be willing to go on chat and email to exchange information.
The other main competitor — full-line retailers entering outdoor — have been both a minus and a plus, Jacobs says.
“Yes, I think we are losing some market share to some of them, but at the same time it is kind of solidifying us as the professionals in the area,” he says. “People constantly come in that are told by other businesses that we have the most knowledge, most variety and we are able to help in ways that the other stores can’t touch.”
Additionally, full-line furniture stores can’t deliver like the specialty retailers can — but they do remind customers to go TO specialty stores.
“I just don’t see the full-line guys around us being able to provide the variety that we have,” says Jacobs. “They are able to bring in one or two sets from a manufacturer and they will clean out an area in the front of their stores for a couple of months. I think it is good because it is another place reminding folks that they need new furniture.
“They come see us and we have 7,000 feet all patio all year. Now I have read of some of the big stores dedicating thousands of feet to patio and in those areas I think it will take share from small retailers. Then the small guys will have to do what they are able to do best. Be small, be real, be responsive, be a neighbor.”
For his part, Jacobs says his store is going to make some improvements this year, by bringing its inventory up to bar coding and abandon its former practice which apparently involved a rock and chisel. His to-do list includes attendance at the Casual Market Atlanta in July and making Wednesdays known this summer for being days off work and on his pontoon boat.
Any advice for struggling casual retailers?
“If you are not already, join the ICFA,” says Jacobs. “Attend markets. Join online retail groups. See new product. Visit with other people in our business. You don’t have to reinvent the wheel. Most likely someone else has experienced the same thing. If you are short on product, it seems like all the manufacturers are either catching up or have excess inventory and are pushing sales to us as hard as we should be pushing sales to our customers.”
