I.O. Metro offers consumers instant gratification
By Furniture Today Staff -- Furniture Today, June 24, 2007
High Point — At I.O. Metro in Rogers, Ark., CEO Jay Howard, who is overseeing the final plans to open his sixth store in less than three years of business, is generating growth by paying attention to a marketing idea that's been used for decades with cars and clothing but not with furniture.
The store only sells what's in stock — with the goal being for the customer to have what she has picked out in the showroom in her home within seven days. It's rare for I.O. Metro to have a piece of furniture in inventory for more than 30 days.
"We have had a lot of success in by being unique, by delivering the instant gratification that you see everywhere but in the furniture business," said Howard. "The local competition can't offer that and that's where we have an edge. Our goal is to keep it in stock and keep price points low."
To achieve this, Howard, his director of sales and his purchasing manager meet every Tuesday and Thursday from 7 a.m. until 10 a.m. to review what's working and what's not in terms of product.
Each year, the store also plans for two merchandise re-dos in April and in October. Howard said that he between 30% and 40% of the styles carry over from one six-month cycle to the next.
For the store re-sets, an exhaustive review of the products is done, to determine which ones make sense to continue. Howard said that he keeps the top items and tries to predict whether more upholstery, for example, is needed for the next sales cycle. Orders then go out to factories in 14 countries, with delivery timed to arrive just in time for the next floor re-set.
The prices run from $499 to $1,999 retail for a sofa, $300 to $900 for upholstered chairs; $400 to $1,000 for dining tables and $79 to $199 for dining chairs. Howard said that once customers see the prices in the showroom, they generally pull out their cell phones on the spot and call their friends.
"In slower times, our business has gone up, because the business model makes even more sense," said Howard. "The person who thought he had to have the $3,000 Henredon (set) has decided that he can get the same look today at I.O. Metro for less than half that. It's going to be solid wood and you are not going to find it at your neighbor's house."
Fresh thinking pays off for I.O. Metro
08/05/2007Beyond the Top 100
06/24/2007I.O. Metro bucks trend, opens Dallas store
04/13/2009
