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Published: March 2007
Want to buy upscale furniture but don't want to be hassled? Paul Balzer discusses his business philosophy and why you should head over to European Comfort.
Success Magazine: Paul welcome, What does success mean to you?
Paul Balzer: Success to me means feeling I'm involved in worthwhile endeavors that make me feel fulfilled. In business I want to feel like I am delivering a service to my community that fills a void. I don't just mean that in terms of the products my store offers. I also want the manner in which we do business to be refreshing to our customers. In retail furniture sales, I believe that means offering a relaxing pressure free buying experience.
SM: We recently had an article on getting started in a corporate structure and starting your own business. How did you get started in this business?
PB: I had never been in the furniture business before. So this business has really been a learning experience, and the way I got into the business was more fate than anything else. Three years ago I went down to Florida to help my Dad with damage he had from hurricane Charlie. While there I met my father's boss, a man named Charlie Brooks. He owns three furniture stores in Florida. Charlie is a great guy and a great business man that has been very successful. We liked each other right away, and by the time my 10 day visit to my father was over, I was in the furniture business. With Mr. Brook's guidance and business model I put together a business plan and was able to attract some investor's. My father has also been a tremendous help. My Dad has been in the furniture business for over 50 years, so his advice has been invaluable. I'm not saying I listen to it all the time, but as he reminds often; when I don't I usually learn something the hard way.
SM: That's quite a decision to make at that point in your life. Now were you involved in business or management before?
PB: I was most recently a General Manager of a Land Rover, Jaguar, Volvo dealership in Cleveland, Ohio. So I had had some experience in retail sales, advertising and management.
SM: Did you use the experience from that to create your company?
PB: Yes, I used both my good and negative experiences to guide me in creating the kind of business I wanted. One of the things I never liked about high line car sales was the pressure placed on not only the sales people but in turn on the customers. I always believed you can be more effective in sales if you help guide a customer, be informative and listen to a customer's needs. In doing so, you give a person the opportunity to feel comfortable enough to decide for them selves. I see that kind of buying experience as a service to our customers. And one that we are told over and over again is greatly appreciated.
I also want my sales people, delivery people and office people to feel that we are a team. And our team's goal is to give our customers a buying experience that from beginning to end is about accommodating the customer's needs. Our customers pay a premium for the great quality Stressless furniture and Tempur-Pedic bedding that we carry. I feel the extra services we provide should be done at no extra charge. So we do not charge for delivery. Our return policy does not have a restocking charge or even a pick up charge. And once a customer has decided to purchase, we do not up sell other products or services. Our products are about comfort, support and relaxation. We want the buying experience to be consistent with our products philosophy.
SM: And I'm sure your customers appreciate that.
PB: They do. And it is very gratifying when they tell us how different and enjoyable their buying experience was with us. We don't just want to sell quality products that help relieve stress and help you relax. We want a customer's buying experience to be stress free.
SM: Did you develop a business plan, marketing strategy? You don't just walk into this; you have to obviously set up a financial structure so that the banks will help you get through the first year. How did you set that up?
PB: I did put together a business plan and did a fair amount of market research. My business was privately funded by myself and three investors. One of the investors, Charlie Brook's the furniture businessman from Florida, also supplied the business with his established relationships with our two key product suppliers. That was invaluable in getting favorable financial terms for floor inventory and warehouse stock.
My market research scared me a little bit about this region. I wasn't sure if upstate New York was ready for a modern furniture store. But with the baby boomers maturing, and the fact that Scandinavian furniture is now coming back in style, I thought the time might be right for our concept. I'm glad to say we have been very warmly received by this area. Our first year's sales have far exceeded my projections. I also think the fact that we carry two quality product lines that have a health component created a niche market for us. We don't just sell beautiful furniture; it's also the most comfortable furniture in the world. Perfect for any living space, but especially perfect for the emerging home theatre market.
SM: What was your advertising plan for your new business?
PB: As far as a marketing strategy going into this business, I would have to say that has proven to be the biggest learning curve. Not having retail furniture marketing experience really hurt. I tried many medias in what I would have to characterize as an uncoordinated effort. I tried to do it all myself, spent too much, and learned after a year and a half of trial and error, that I needed the help of an agency. So six months ago I hired Kelley Shaw Advertising. That was a good business decision. Our efforts needed to be more consistent, more targeted, and the expense of our advertising needed to be controlled.
SM: Was there any time you had doubts about starting your own business?
PB: Yes I had doubts, and still do. I think any entrepreneur has his or her share of sleepless nights the first few years of a business. At this point my sleepless nights come less often. I have always been a risk taker, and at this point in my life, at age 51, I felt all my successes and failures in the past had prepared me to go into business myself. We are still a new business and by no means are we out of the woods financially, but we have had a very good start. I know that 10 years ago I would not have been able to succeed at this.
SM: If you had to change anything in the course of what you have done so far, what would that be?
PB: I was initially too hands on with advertising and that just didn't work since I had my hands full running all aspects of the business. I would have turned over the advertising a lot sooner to a professional.
SM: Any advice for new business people?
PB: In your business do the things you do best, and don't try and do too much. Surround yourself with good people that are positive. Those people should have the skills and expertise that you don't. That way you are not duplicating work and you're filling in the gaps. Look forward to the challenges that face you. And most importantly, believe in the success of your vision.
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