To hear Jonathan Burlingham, CEO of Starfire Direct tell it, today’s marketplace means that in the outdoor category, there’s good news and there’s good news.
“We’re trying to add more space, add more people, add more product in inventory,” says Burlingham. “That way, we can fulfill and facilitate the consumer demand that is coming our way.”
Starfire is about relaxation and offers fire pits, patio furniture, grills and outdoor kitchens for the outdoors and fireplace accessories, including gas logs, for indoors. Virtually all of its business is online, which means that its sales have skyrocketed as American consumers have been stuck indoors with their smartphones and credit cards.
“With the added sales comes the added customer service, added warehousing, and the warehouse administrative salespeople that we need so that we can handle the amount of customer demand,” says Burlingham. “We have always been big on technology but the last two years have exposed the holes in our ship. There are a lot of areas where we can improve so that we will be able to process and fill more orders.”
Within the next few weeks, Starfire Direct will bring software online that will enable many administrative tasks to be automated, effectively freeing up time for leaders to deal with the challenges that are sure to continue.
“Consumers really have expectations that are difficult to achieve sometimes,” says Burlingham. “They want it delivered quick, perfect and at the lowest price. The lowest price sometimes comes with a higher tariff, a container that was $3,500 delivered and is now $20,000, and lead times that are twice as long. We have constantly been getting price increases two or three or four times and we have to update that on the website and let everyone know that there is a delay. And that takes labor and employees.”
Right now, Burlingham is looking to hire several positions. And he isn’t happy with what he is seeing.
“The resumes that I am seeing—they are terribly unqualified in so many ways,” says Burlingham. “I am willing to train, but they want more [pay] and have higher demands. That is a challenge but we are getting through it like all companies.”
One way is through new software that tracks key performance indicators, a series of goals that are set for employees to reach within a certain time frame. The indicators tie compensation and bonuses to the achievement of those goals and because they are tracked by computer, annual reviews aren’t a surprise for the supervisor or the employee.
“We are able to set goals in whatever departments that we want to,” says Burlingham. “Are you maintaining forklifts? Have you completed sexual harassment training? Have you read this book we are recommending? How is your NFI training going? Have you made 20 outgoing calls today? How many five-star reviews did you get this week?”
Burlingham explains that the company started talking about installing KPI a year ago but has just recently introduced it to the workforce. The advantage is that the KPI can make going to the trouble of hiring and onboarding an employee more worthwhile because it sets out clear expectations and a foundation for a fair and meaningful follow-up conversation.
“This helps our team see that this is not just an employee but an ally, a staple to the organization,” Burlingham says. “It’s not only for sales but it’s for every department, including managers. With KPI and goals, there is even a way to hold myself accountable.”
To set Starfire Direct apart from its competitors, Burlingham said he tries to be smart with decisions.
“There are a lot of people in e-commerce who want to sell the product but who know very little,” he explains. “We have the background; we have worked with manufacturers and with suppliers. We understand the product we are selling. We are not just old-school brick-and-mortar but we are e-commerce. We are able to take new school and marry it with old school and it gives us a key advantage because we are able to bring some of our old industry practices into the 21st century.”
Burlingham says that he does believe that the increase in full-line retailers has affected his business, especially those who decide to try e-commerce. The short-term advantage tends to get outweighed by the same problems that beset conventional brick and mortar: Damaged goods, extended lead times, disillusioned customers. Ordinarily, they are quick to reassess if they see additional costs and not additional profits.
“We see them pop up and just as fast, we see them disappear,” he says. “We know this stuff; we’ve worked with manufacturing and shipping carriers. We work—we have already developed the processes to be successful. There is plenty of business to go around, but the ones that shine will outlive those that do not.”
Still, done right, e-commerce works well. Burlingham got into online sales in 2007 because he was convinced that it was the future. Coming up, he has a new website coming that will feature augmented reality—the customer can pull a firepit off the Starfire Direct site and superimpose it on their own patio. The company’s also coming out with the ability to automate text messages with pictures.
Any advice for a casual retailer who may be struggling?
“I have great advice,” Burlingham says. “Stop. Stop what you are doing and look at what is not working. Look at staff and marketing. Where are you spending money? For us, it’s labor, marketing and shipping. Stop and look at those areas and hold them accountable. If the manager is not working, then fire them or train them. What are you doing to help develop your team be successful?
“Times have changed. This is 2022 and people shop in different ways,” he continues. “They buy in different ways. What are you doing to adapt to today’s demographic? If you are still doing things the way you did 20 years ago, then that is your problem. Look at your team. Look at your manager. If your manager is your best friend and doesn’t work and is not an employee who is bringing value, then it’s ‘see ya.’ But before you do, take a look at yourself and train this person. If you have done everything and they are still not learning, then it is them.”
