At Sarasota, Florida-based Patio Factory Supercenter, the leadership knows well how the inventory is made because the retailer started out as part of a factory.
Mark and Kimberlee Beede’s business grew out of a patio furniture factory that Kimberlee’s parents ran for 30 years. Kimberlee, who is now the owner, and Mark, who is director, moved to the retail side in 2007 and within two years, had grown to three stores.
Mark said that he believes that these days, diversity on pricing will work best for retail success.
“With price, people are looking at what they are spending, and I am middle to high,” says Beede. “Where we fit in is that we have Lloyd Flanders and Woodard’s and Three Birds, but we do carry Ashley products, too. People want value and good looks. I think it’s a combination of looking versus pricing. People coming in are coming in to buy, but that $6,000 doesn’t go as far as we used to.”
Beede says he saw some slowdown in sales last February and to counter it, began adjusting prices downward, but then saw an uptick two weeks before Labor Day as buyers started coming back to the store. He said that he believes sales will adjust rapidly upward this fall because of long-overdue insurance settlements in Port Charlotte, which sustained significant damage from Hurricane Ian in September 2022. He said that so many insurance companies went under that the state is now paying claims, but that the checks have been delayed.
“My projection is that by October or November, Port Charlotte is going to see people with money in their pocket or coming down from up north with checks in hand, coming down ready to buy,” says Beede
Accordingly, Beede uses direct mail, which can be used to target areas that were hardest hit by flooding and wind damage, along with online, outdoor and other advertising methods.
To choose what to offer, Patio Factory Supercenter goes with those who will back up their product, such as Lloyd Flanders, Woodard, Gensun and Three Birds Casual, along with Ashley at the lower end. And to make the sale, Beede hires salespeople and pays them a salary, instead of a salary and commission.
“If someone comes in, they will leave with furniture,” says Beede. “I pay them a salary and what I pay them for is to educate people on what they are looking for. If they come in my door, they are not after a commission. It’s ‘you tell me what your budget is,’ and I know they are not going to go somewhere else and buy it.”
That method of sales — coupled with price, variety, quality and service — is what Patio Factory Supercenter uses to set itself apart from its competitors.
“Our service is great — we are seeing a 4.8 on Google reviews,” says Beede. “Now, you are going to have a keyboard tough guy mad because he ordered something special order and he can’t now return it. But on our service, we are going to bend over backward for customer deliveries — we will break even on them. The main thing is that we cover our costs on that part of it. Service is a big thing for us — we want to make sure people are happy.”
For that, the delivery drivers ask customers to fill out a questionnaire, listing the condition of the furniture when delivered and asking whether they were happy with the delivery. Beede says that helps cut down on after-the-fact complaints. If something does go wrong, the customer can bring it to Patio Factory’s corporate headquarters, which will deal with it.
“You come to us and we go to bat for you because we buy a lot more furniture than you do,” says Beede.
He said that he had one customer who bought almost $9,000 worth of furniture and set it out on the beach for eight years. It changed color slightly. Beede spoke to the manufacturer, and the manufacturer replaced it without charge. That customer has now sent Beede five customers.
“That’s great service, that’s giving them a quality product. I am able to go and back it up with great prices because of the volume I have, and all of that plays into the success of the business,” says Beebe.
He says that he doesn’t believe that full-line retailers will affect his business, partly because their salespeople are not as qualified as his, and partly because they make a better commission for selling indoor furniture. Online also doesn’t tend to work with his customers, who are specifically seeking out mid- to high-end outdoor furniture.
“At my store, all you are going to get is what you are looking at,” Beede says. “Brick and mortar is brick and mortar. Sitting at a keyboard and ordering a product that is being shipped to you — furniture is not like buying a Nike shoe in a size 10. If you have a problem with us, you can drive to the store and talk to someone face to face. We are here and we are a local company.”
Any advice for a struggling casual retailer?
“If you are struggling, you’ve done things wrong already,” says Beede. “I would recommend for you to get with a group of buyers so that you can get better buying power. Seek out a partner that is big and that will give you better deals on the product you are buying. Obviously, if you are buying less, your margins are going to be less, but never get rid of the margins principles because you don’t want to give the stuff away.”
And find a way to get help.
“Go to the trade shows,” says Beede. “It is imperative for a business. Little companies can’t afford not to go where you meet people who can help you buy better and know the product. The new Atlanta market was beautiful. They have a successful market there — I love the way they have laid it out.”
