Workshop, "The Duke", Purchase with a surprise, Hunting...




Gleb Erokhin is the owner and head of the company, which develops and implements enterprise management systems. At the end of 2006, he decided to diversify his income. The idea to buy a small furniture production came to Erokhin in the head accidentally, when he was going to change furniture in his own apartment. After spending a couple of months studying the proposals, in January 2007 he bought 80% of the Moscow furniture factory "Duke", in fact a small shop located in the south of Moscow. The acquisition of a control, but not a 100% package, the businessman explains simply: he did not have the task of becoming the sole owner of the company, he just wanted to make a profit from the work of the already established mechanism.

Purchase with surprise

Trademark & ​​quot; Duke there are three years, although the shop itself is on the market for 10 years. The names changed, owners changed, but the core of the collective was preserved. Here they make all kinds of cabinet furniture for individual orders: cabinets, chests of drawers, furniture for bedrooms, kitchens and children's rooms, beauty salons, shops, etc. The price level is above average - usually the order amount in Duke is 75-150 thousand rubles. (for one or two products). But the profitability is high - if the manufacturers of finished furniture it does not exceed 20%, then in the segment of individual orders it reaches 30%.

The main customer supplier for Duke was its CEO and former owner, who after the transaction had 20% of shares. Thanks to ten years of experience and connections, he provided about 70% of incoming orders. The rest of the customers found "Duke" through the Internet or by phone, whose numbers have not changed since its opening.

Becoming co-owner of "Duke", Erokhin, being a specialist in accounting and management accounting, soon discovered that not all money for completed orders falls into the firm's cashier - some of them settled in the pockets of several top managers. With swindlers, including the former owner of the company, had to part. So Erokhin became the sole owner of the factory. But the number of orders by June decreased by almost 80%, since the CEO, leaving Duke, "led to his his customers. The company began to think about how to attract new ones.

Hunting in the entrance

After the departure of the former administration, "Duke" was not only without customers, but also with virtually no working capital. The volume of orders was required to increase urgently, but there was no money for marketing. "We posted advertisements in the entrances," recalls Erokhin. - But according to such announcements people are calling who want a nightstand for 1 thousand rubles. It's still not our client. We're working in a more expensive segment,

We decided to use the potential of the Internet. The company had a website before, but it consisted of a couple pages and was not supported in any way. As a rule, it was visited by no more than 15 people a day. The site has been completely redesigned. In addition to contact details, it posted detailed information about the company and its services, a lot of pictures of the product "Duke". The money was allocated for the promotion of the resource in the search engines and on thematic furniture sites. As a result, the site's attendance grew to 150-200 people a day. Approximately 30 of them decide to call the company, and three or four callers become customers of "Duke".

Logically, assuming that the search for new interior solutions, potential customers "Duke" come to the design studio, Erokhin set out to establish cooperation with such companies. Partners among them are Duke were before, but their number needed to be increased. "In September we compiled a list of Moscow design studios, which turned out about 300 titles, and began offering them their services," recalls Erokhin. - Approximately one third of them, as it turned out, has its furniture suppliers, another third owns its own furniture production. The remaining companies are our potential partners. "

Massive attack on interior designers begins to bear fruit only now: after all, it takes several months to persuade the company to cooperate with the new furniture manufacturer, even to convince her to make a trial order. Now Duke conducts business with six design studios, which recommend the shop to their customers. Booklets and CDs with information about Duke unfold on the branded mirror stands in the premises of the partner companies.

New Horizons

Duke's marketing budget is $ 1,5 thousand per month. It is spent on advertising on the Internet: about $ 1,000 goes to the promotion of the company's website in search engines, another $ 500 - to place links in thematic web directories. Thanks to these measures, the volume of orders "Duke" reached its previous level in August, and by the end of the year its turnover increased to 1.7 million rubles. However, the production capacity of the workshop allows producing twice as much production. Obviously, existing mechanisms for attracting customers are not enough.

Such Duke small companies specializing in the production of furniture for individual orders, only in the Moscow market hundreds. One of the most common ways to find customers for them is to install the "Orders table" in a furniture shopping center where people can get acquainted with the products of the company and immediately discuss the working conditions. But such a promotion is very expensive. To organize order table you need to create a rack for placing materials, print the booklets yourself, pay the "admission ticket" to the shopping center, monthly to pay the rent and the salary of the receiver of orders. If it is a large shopping center like Grand, the total cost, according to Erokhin, can reach $ 30,000 per year. But, being successfully located, such a point is able to bring a considerable income: the monthly turnover of the furniture shop can grow by 2-3 million rubles. for five to six months.

Creating such an "order table" immediately after the departure of the former CEO was "Duke" it is too expensive. But even now, when the client base was able to return to its previous level, Erokhin is not sure that he is ready to give such money for him. "Guarantees that the expected growth in turnover will occur, no one gives," he explains. "A few tens of thousands of dollars is a lot of money for us." To hedge, Erokhin is considering entering the mall of the "Grand" shopping center: setting up the "orders table" in this case, it will cost, according to his calculations, twice cheaper, but also a monthly turnover of more than 500 thousand rubles. it is unlikely to grow.

In the fight for customers, "Duke" is going to bite off some of the pie and the design studios. Until recently, the company provided only services to create furniture design. But in December she also had an architectural bureau that designs the premises. True, for construction and maintenance services "Duke" until it is taken. "In the long term, we want to create a" one-stop-shop "system, so that people can get maximum services to create a new interior, referring to us," says Erokhin. - Now we do not have enough link, which would be engaged in finishing the premises .

Another way to attract customers is to offer them credit. Now 80% of the cost of the order is paid before its implementation (in companies that make furniture to order, the prepayment amount is traditionally large). But the firm is negotiating with the Moscow Bank for Reconstruction and Development to provide bank loans to its customers.

thematic pictures

Also We Can Offer!

Other services that we offer

If you don’t see the necessary subject, paper type, or topic in our list of available services and examples, don’t worry! We have a number of other academic disciplines to suit the needs of anyone who visits this website looking for help.

How to ...

We made your life easier with putting together a big number of articles and guidelines on how to plan and write different types of assignments (Essay, Research Paper, Dissertation etc)