“We find social media advertising great. We spent a lot of money on it, and we got excellent returns. You need to be targeted and have a good, clear add.”
Casey McPhail of McPhail’s Furniture
When COVID-19 swept through Australia, it left a trail of destruction in its wake. Businesses across the country were struggling to stay afloat, and McPhail’s Furniture was no exception. The furniture business was on the verge of collapse, with debts piling up and both brothers, Casey and Taylor, resorting to desperate measures like mortgaging their homes to keep the business running.
But Taylor, armed with a double degree in Commerce and Law, refused to let their dream die. He made a few strategic tweaks that changed everything, taking their business from $900,000 to an astonishing $22 million a year and turning McPhail’s Furniture into a household name in Victoria.
The roots of McPhail’s Furniture can be traced back to its humble beginnings as a removals business in Wangaratta. Their father, Keith McPhail, stored and auctioned off high-quality furniture left behind by customers, laying the foundation for what would eventually become a thriving furniture empire. Today, the company sources furniture from around the world and designs unique pieces in-house, a far cry from its modest origins.
Reinventing the business
“One of our key selling points is the delivery method. We offer a flat rate of $59 for delivery within 1,000 km of their location and typically deliver within two weeks.”
“We were more or less forced into reinventing the business during the lockdowns,” Casey explains. “We had one shed, one Hino truck for deliveries, and one store, but when the world shut down, we no longer had customers coming to our store.”
Despite the challenges posed by the lockdown, Taylor utilised his wide network to transform the company by strongly emphasising social media, particularly Facebook. They spoke to friends who were skilled in various areas and decided to offer a flat rate for all deliveries within a 1000km radius of their Wangaratta store. They invested heavily in Facebook advertising and marketing, which worked like a charm.
“One of our key selling points is the delivery method. We offer a flat rate of $59 for delivery within 1,000 km of their location and typically deliver within two weeks.”
This approach led to a remarkable transformation in the company’s fortunes. Within a matter of weeks, their turnover surged from $50K to $250K a week, and their fleet expanded from one Hino truck to 12, with their staff count increasing from 4 to 30.
The company moved from occupying one shed to renting all 22 available sheds in town, and they have since constructed an 8000 sq. metre warehouse to accommodate their growth.
Diversifying marketing efforts
“Constantly evaluate your business strategies and make adjustments as needed to stay competitive and successful in the industry.”
Casey attributes the store’s marketing success to their targeted social media strategy, which it heavily invested in and saw impressive returns. Along with this, local radio advertising and word-of-mouth marketing also played a significant role in attracting new customers who were drawn to the store’s attractive merchandise.
To further enhance its marketing efforts, the store ventured into PR and media opportunities, resulting in increased traffic to its business. The store places great importance on customer satisfaction, and as such, its dedicated customer care team meticulously inspects each product prior to loading it onto delivery trucks. They also assist customers in addressing any concerns that may arise during transit or assembly.
“Having a dedicated customer care team is also crucial to handle any issues or complaints that may arise. It’s important to address them promptly and provide satisfactory solutions to maintain customer satisfaction.
“In terms of sustainability, make sure to source your materials ethically and ensure that all products meet legal standards. This benefits the environment and shows customers that you are a responsible business,” he advises.
“Constantly evaluate your business strategies and make adjustments as needed to stay competitive and successful in the industry.”
Overcoming challenges
“We made the decision to move our shop online and increase our social media presence through targeted advertising. It was a big change for us.”
When the lockdowns hit, Casey remembers the significant obstacles they encountered. To keep the business afloat, they had to transition to online sales and significantly amplify its social media presence.
“When the lockdowns hit, it was definitely a challenge for us,” recalls Casey. “We were used to having customers come in and browse our furniture in person, but suddenly that just wasn’t possible.”
“We made the decision to move our shop online and increase our social media presence through targeted advertising. It was a big change for us, but we knew it was the best way to keep our business going.”
But even with the shift to online sales, the store faced another hurdle – where to store all their stock. Another challenge presented itself as the store had to figure out a way to store all its merchandise.
“We had nowhere to put everything,” Casey explains. “So, we initially hired all of the available sheds in town just to store our inventory. But we knew that wasn’t a sustainable solution in the long term.”
To overcome this challenge, the store came up with a creative solution. “We decided to create one massive warehouse that could act as both a warehouse and a shopfront for people to come and visit.
“It was a big investment, but it has paid off in the end. Now we have plenty of space to store all of our products, and customers can come in and browse our furniture just like they would have before the pandemic.”
Commitment to Quality
“Social media has been fantastic for us, but we do understand through poor quality and service, social media very much have the opposite effect through reviews and bad comments.”
According to Casey, McPhails prioritises sustainability and complies with Australian laws on timber sourcing. They have agreements with suppliers and trace the origins of timber products to protect the environment. The company’s procedures may also undergo audits by the government to ensure compliance.
“We have a dedicated customer care team. Once the furniture is picked for loading, they will go to the loading docks and individually check the products; they are all boxed and wrapped, so we check any damaged boxes to make sure the products are fine.
“However, some problems can occur, where we cannot see if there is a problem once the furniture gets to the customer’s house and is unwrapped, the customer is directed to our team in order to rectify the issue, and that can be by way of a few different outcomes. We try all we can to not have any issues, from manufacturing to the customer’s home.
“Because we deliver so often to so many different places, we are generally back in the same area every two weeks; the drivers are employed by us and not a third company, so if something needs to be swapped over, we do it.
“Our business is very much based on service, so we cannot let the lack of quality control creep in. Social media has been fantastic for us, but we do understand through poor quality and service, social media very much have the opposite effect through reviews and bad comments.”
When it comes to other products, the store goes a step further and visits the factories where they are produced. “Over the last 20 years, there has been a massive change in working conditions.
“Labour shortages are common in other countries, so to ensure they have the employees, the companies have had to better the working conditions to attract the staff. We want to make sure that the products we source are made ethically and that the workers who produce them are treated fairly.”
McPhail’s Furniture currently offers a delightful range of furniture styles that exude rustic, country, and Hampton vibes, which adds a distinct character to any living space. Each piece is thoughtfully named after towns that best match its style, providing homeowners with the perfect option to create a warm and inviting ambience in their homes.
The success of McPhail’s Furniture serves as a testament to the brothers’ determination and strategic mindset, proving that even in the most challenging times, resilience and astute planning can lead to remarkable achievements.
Website: https://mcphails.com.au/
Keep up to date with our stories on LinkedIn, Twitter, Facebook and Instagram.
