When Scott Horvath took over O’Malia’s Fireplace and Outdoor Living in 2015, the former entrepreneurship and business teacher made some changes that kept the best of what was there and added to it.
What was best was customer service and the idea that a business should give back to the community, which were both values that the original O’Malia’s Fireplace Shop had when Bill and Helen O’Malia opened its doors in Carmel, Indiana in 1966. What was added was more recent accelerated growth in the outdoor category.
O’Malia’s started out in fireplace sales, then added in patio furniture and grills in 2005, changing its name to O’Malia’s Fireplace and Outdoor Living. In 2015, Horvath purchased the business, shortened the name to O’Malia’s Living and hired industry veteran Steve Pulone as general manager
“We haven’t changed the quality of the products or the delivery of customer service but we have grown the outdoor category which accounted for less than 20% of the gross revenues in 2014 to more than 60% of the gross revenues in 2020,” says Horvath. “Most of our growth has been in patio furniture although the grill category has also increased since we purchased the business.”
Horvath’s prior career was in higher education, where he was not only a teacher of business and entrepreneurship but was also an administrator, in a role that included workforce, economic and community development, all of which he uses in leading O’Malia’s
“While we have grown the business since the purchase, we have stayed small with one location in Carmel,” says Horvath. “We value the interaction we have with our community, whether it is through local service clubs, community sports organizations or even the farmers’ market. We support our local community but focus on organizations benefiting faith and family. Our desire is to remain a hyper-local business.
O’Malia’s is facing some of the same challenges that other businesses are facing.
“The supply has opened up a bit but what is available doesn’t necessarily match what we want or need,” says Horvath. “We are stocked well with cash and carry outdoor furniture but the timelines are still way too long for custom furniture. We are hoping to get back into custom furniture but right now the numbers are small. We have done well retaining our staff and in the last two years, we have not only increased our employee benefits but have also completed sales training through the ICFA.”
To get the word out, O’Malia’s uses television, direct mail and digital marketing — and both sponsors and attends community events, such as youth sports.
“We value marketing when we can get our people and our family in front of the consumer or out in the community,” says Horvath.
In a way, Horvath sees the presence of full-line retailers in the marketplace as a positive, because the increased competition helps deliver the sales message.
“Our commitment to community and relationship with our neighbors is what sets us apart from full-line retailers,” he says. “We set ourselves apart from other retailers by being hyper-local and offering in-house support and service. We also specialize in custom products that you will not find at other retailers. Our focus is on high-quality, high-value products that go above and beyond what you would find at a mass merchant.
That local focus helps O’Malia’s compete with online stores.
“With online retailers, we feel our service goes far beyond what any online retailer can offer,” says Horvath. “Our white glove delivery service and in-home design consultations are services that are difficult for online retailers to do consistently and effectively. We make our showroom an experience for customers to explore and learn before they buy. Lastly, we evaluate and negotiate with our vendors to offer competitive pricing. While we do not offer online sales, our website does offer deep information and in some cases is linked to our vendors who have online design tools. We have also added an online chat tool to our website which has proven popular.”
What’s in the future?
“As for the coming year, we are waiting for opportunities but also preserving cash,” says Horvath. “We are in a wait-and-see period to see how the consumer reacts to the economy and will make decisions based on the consumer trends.”
And for those who are struggling, Horvath suggests a number of tactics to undertake right now.
“A struggling retailer needs to preserve cash right now,” says Horvath. “They need to button up and wait out this trying time. I would encourage all retailers to be doing forecasts (projections) for the next 12-36 months. This will help them understand their cash flow. Reach out to their local SCORE office or SBA office for advice. Get a local mentor to talk with. I would also say that it is key for distributors and manufacturers to be partners. Retailers should not be signing agreements to bring products to the floor that they are not comfortable with or do not receive support for. Partnerships with other retailers are also key. We partner with multiple retailers on containers so that we are not beholden to an entire container yet we get the best price available.
“Lastly, it is hard to cut through the fog of online and full-line retailers. It is easy to run scared from the competition, but a specialty retailer is uniquely positioned and rare. We have this advantage and I encourage us to take advantage of it. Go hyper-local. Love your community and build a model of bringing family, friends and neighbors together. This has been our model and is working well. “
