Patio Productions on track for record-breaking year

Retailers have challenges with wholesalers and wholesalers have challenges with retailers.

Ben Harvey of Patio Productions in San Diego knows that territory well because he’s both at the same time.

In 2008, Harvey and his San Diego-based outdoor furnishings store were doing fine with imported goods.

“We had a good line from an Asian importer, nice stuff, and we were doing well with it and it was selling well,” Harvey says. “And the supplier went out of business and suddenly, I couldn’t get the line anymore. I took over exclusivity on the line and brought in our own containers.”

Fifteen years later, Harmonia Living, with seven different factories in three different communities, is thriving, supplying not only Patio Productions, but 30 or 40 other dealers in both outdoor furnishings and since 2010, indoor furniture as well.

What it means for the overall business is that it accounts for a high percentage of revenue and it’s scalable. And what it meant during the pandemic is that Patio Productions didn’t necessarily have to compete with scores of other patio stores for stock; instead, it could order its own from its own importer and ship it out in just a few weeks, versus several months, as has been the case with many retailers.

“We have plenty to sell, but we don’t have everything that we would like to sell or would want to sell,” Harvey says.  “But having it is a good start to making a sale.”

Inside the store

At Patio Productions, the day-to-day business, the location, the attitude of sales associates, even the laid-back vibe of the surrounding San Diego area, make the biggest difference.

“While we shy away from sales events, we focus instead on creating a no-pressure and fun shopping environment every day in our store,” Harvey says. “The first thing a customer experiences when they walk into our store are friendly hellos and an earnest welcome. We are lucky to occupy a beautiful old industrial building with high ceilings and great views that overlook train tracks and the San Diego skyline. The combination of zero sales pressure, friendly employees and a great space has been our recipe for success.”

To set themselves apart, Patio Productions specializes in pricing and being intentionally low-key.

“Before we had our brick-and-mortar retail store, we had a thriving e-commerce site, which we still operate,” Harvey explains. “So we came into the brick and mortar side of our business with the mindset that we had to offer excellent value. With online, it is easy for customers to shop around to find the lowest pricing so logically, in order to succeed online, you have to offer great pricing. We carried this low pricing strategy into our physical store. We offer the same great prices in our store that we offer online. And because we always offer low prices, we do not play games with our pricing in our store like I see other retailers do, where if you buy today, you can enjoy huge savings. Instead, we always offer low prices and never try to squeeze our customers to buy with pricing tricks.”

Patio Productions has also begun offering custom cushion replacements, manufactured in-house, which gives them the ability to service San Diego customers that are looking to replace their outdoor furniture cushions instead of purchasing an entirely new set. Harvey says the new offering has resulted in a nice bump in business this year.

Challenges in inventory

In addition to its own imported outdoor furniture, Patio Productions offers Homecrest Outdoor Living, Lloyd Flanders, Sunset West, Treasure Garden, and Ebel, among others. And accordingly, the big challenge right now has been longer lead times.

“Many of the brands we represent are taking four months plus to ship,” Harvey says. “These long lead times are giving customers pause. Thankfully, most customers understand the delays caused by the pandemic by now, so we are not getting too many shocked or upset customers, but that does not mean that everyone is willing to wait out these long lead times. To combat this, we began stocking up on popular items last year and we are currently in a really good stock position. The result is that 2022 is already shaping up to be a record-breaking year.”

Harvey says that he is certain that the increase in the number of full-line retailers offering outdoor furniture has had an effect on his business.

“When I look at some of the full-line retail stores’ outdoor assortment, I am often impressed,” Harvey says. “They have come a long way in quality and design. I am sure full-line retail stores have begun to attract sales away from specialty casualty furniture stores.”

Brick and mortar or online? Yes.

As it happens, Harvey doesn’t worry about online retailers, because he is one. He said that he has to smile when he hears other brick-and-mortar stores talk about how easy it is to add e-commerce to their store offerings. With Patio Productions, the website came first, the physical location came later.

“It is a ton of work,” Harvey says. “Our website is in a constant state of being updated, especially in pandemic times when pricing from our suppliers is changing all the time. Also, the demands of an e-commerce site are always increasing so we are constantly working to improve our website functionality. Luckily, it all pays off. Our website has been an anchor for our business for over a decade and continued to be so during the pandemic.”

Any advice for struggling casual retailers?

“Hang in there!” Harvey says. “It is a really fun industry to be in. Watch your margins, stay focused on product quality and customer service and you will earn repeat business.”