The brothers who went from turning over $900, 000 to $22 Million in 24 months with the family business
It’s fair to say that times have been unusual for the past few years. Between lockdowns and the cost of living crisis, it makes it a lot harder to predict what your customers will want or need when they are unsure as to whether they should be spending money or not. However it is also in times like these where businesses can really thrive and grow and McPhails is one of those businesses who have done just that.
A family furniture company that was founded by the current Directors dad, Keith McPhail in the 1960s, McPhails has grown, adapted and tweaked their business model a number of times over the past forty years, however nothing could have prepared them for what they would face in 2020.
Barely able to make ends meet, the brothers Casey and Taylor both remortgaged their homes in the hope that this last ditch attempt would keep their heads above water during the harsh Victorian lockdowns. Thinking that they may need to close the business and get jobs out on a farm, the guys tried a few things and ended up getting back on top, turning that $900, 000 business into a $22 million dollar business, growing from 1 Hino truck to 12, a team of 4 to 30 employees and from one shed to renting all 22 available sheds in town but they have since built a 8000 sq metre warehouse.
Casey McPhail shares what they did to revive the business.
We moved Online
We were predominately a shopfront before lockdowns, but when the Victorian lockdowns hit this method was no longer viable. We improved our website, made sure all of our stock was on it and managed to get up and running right before everyone started doing their home improvements. We were not expecting so many people to be spending money during the pandemic, but as everyone was stuck at home they were all looking to upgrade and re-design their homes. We certainly were in the right place at the right time.
We made delivery easier for customers
Two major problems that customers often face when it comes to purchasing new furniture is the cost of delivery and the time it takes to get furniture delivered. There were reports that some people were waiting up to 16 weeks for their new furniture to arrive with some companies.
We had a bunch of stock on hand, but as soon as we saw orders flying in, we ordered way more stock as we knew it would take a while to get the products into Australia. By having the stock on hand, it allowed us to have deliveries to most customers within two weeks.
We also launched an offer of having a $59 flat rate for deliveries within 1000 km of our Wangaratta store which was the game changer for us. Yes our furniture is lovely, but the affordability of the delivery and the convenience is what really set us a part at this point in time. 1000km from us means that we were delivering to the GC and down past Adelaide so much of the East Coast got to know us well over the past two and a bit years. We have had a lot of repeat deliveries too which has been great
FB Marketing
Facebook marketing was also a game changer for us. The ads around out $59 delivery offer went so well that we now spend nearly six figures a month on our ads. It has made a huge difference to our business.
The product
We are now able to design our own ranges because of the greater volume of sales and orders so it now makes sense for us to do this. As Taylor and myself both still work on the showroom floor and talk to the customers directly, we feel that we know our market better than anyone!
Additionally, we name our products after the area that we feel it will do well in or an area that we feel people would be inspired by when it comes to their styling ie. Milan has an Italian feel, the Canberra range suits the Canberra living style, the Mt Eden range suits the country/ mountain living style. While we have done this for a while, we really honed in on the types of customers that we have and what they want. We made sure our designers were creating beautiful, well crafted pieces and we also curated some beautiful pieces from overseas too. It is important to understand your markets and your customers as that is what will keep them coming back.
Casey McPhail is the co-owner of McPhails Furniture a home-grown furniture company that is fast becoming a household name in Australia