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Step By Step's SOHO success (Reprinted From Furniture Today)
Retailer serves growing niche with RTA-only lineup

By Gary James

Cincinnati -- There's no question that discount mass merchants and office superstores are huge forces in the retailing of ready-to-assemble SOHO furniture in communities throughout the nation.

But, in many cases, store formats allow only a limited amount of furniture to be displayed - usually a handful of best sellers in a narrow range of price points and styles.

Recognizing a potential void in the market, brothers Steve and Jon Marshall launched a specialty store here in October 1998 focused on RTA home office, entertainment and bedroom furniture. Because of its targeted approach, Step By Step is able to show more than 400 pieces of RTA furniture in its 5,500-square-foot showroom, ranging from $19.95 to $449.95.

"Two of the hottest commodities today are televisions and computers," said Steve Marshall, who entered the furniture business with his brother after the two lost their jobs as buyers with the bankrupt Steinberg's appliance and electronics chain.

"There's a lot of stores in the area that sell computers and TVs, but they don't put much emphasis on furniture. And nobody has the selection that we offer."

Step By Step features furniture from just three key vendors -- Sauder, Bush and O'Sullivan. In addition, it carries office chairs from Office Star and lighting from Holmes. About 50% of its lineup is in home office, a category that accounts for more than half of the company's $1 million in annual revenues.

"We wanted to go with the very best suppliers we could find," said Jon Marshall. "Each of these companies makes an excellent product, and they back it up with a high level of service for us and our customers."

Product quality plays a critical role in the retailer's success, he added. "We've probably have taken back less than a half dozen pieces of furniture in our three years of business. And if someone does have a problem, our vendors work with us to solve it."

Step By Step studies each line hard to determine which products will sell best in its market, said Steve. "We try to buy the hottest products and the freshest looks," he said. "And if a piece isn't successful, we'll drop it and replace it with something new."

The store carries a full assortment of home office furniture, from small carts and files to executive desks and workstations. Merchandise is shown in vignettes, with complementary pieces grouped to encourage add-on purchasing.

"At one of the chains, consumers might see three or four desks on display," said Steve. "We offer dozens of desks and other complementary pieces, and they don't have to drive all over town to find them."

Step By Step also has a special-order program for products in the Sauder, Bush and O'Sullivan lines that aren't on the floor. Deliveries are usually made within a week.

"These lines are so deep - we can't offer every single model," said Jon.

And for those customers that want instant gratification, Step By Step makes sure that all of floor displays remain in stock in its warehouse.

Because discount chains are known for low prices, the Step By Step team works hard to keep their own pencils sharp. Jon and Steve make regular pilgrimages to their competition, and adjust their pricing to match what's available.

"We are never undersold," said Steve. "We'll match any price that's out there on the same piece, even if a customer has already bought from us and then finds it cheaper somewhere else."

But Step By Step isn't aiming to be the low-end leader in its market. "You won't find a desk for $39 here; we start at $89. And you won't find a bookcase for $9.95 or $19.95; we're at $39.95.

"We're known for strong values - not dirt-cheap pricing."

Step By Step's customer-first philosophy extends to the level of service offered by the brothers and their six employees. The Marshalls put a high premium on product knowledge, providing customers with detailed information about furniture styling, features and construction.

"It's tough for consumers to get help about RTA when they're in a discount store or even a typical furniture store," said Steve. "We take the time to talk with customers about their needs and answer all of their questions.

"And after the sale is made, we'll even load the furniture in their car if they need help."

Delivery and assembly also are offered for a fee.

To make sure they can answer customers' questions about assembly, the Marshalls put together the floor models themselves. "We're very hands-on," said Jon. "One of us is in the store at all times, working directly with our staff and customers."

As they head into their fourth year of business this fall, the Marshalls are keeping their eyes open for a larger location.

"We're 'landlocked,' with no more room to grow," said Steve. The brothers would like to eventually move to another larger site where they can show a deeper selection of product from their current vendors as well as a few new ones.

Even if it does move, however, Step By Step will keep a tight focus on value-priced RTA rather than adding assembled furniture.

"We want to keep our clear identity," said Jon. "We want to continue to be the destination store for RTA in Cincinnati."

Store works hard to reach local students
Cincinnati - With at least five major colleges and universities within a 15-mile radius, Step By Step Furniture is a popular destination for students looking for functional and affordable home office furniture.

"Students buy a lot of RTA furniture," said Jon Marshall. "They're on tight budgets, and they like the fact that they can take their furniture home the same day that they buy it."

To reach this market, Step By Step circulates flyers in both the university and elementary and secondary school communities.

The retailer also runs regular print and radio ads, and operates a Web site as an informational outreach. The Web site recently resulted in a nice sale from a Denver family whose daughter was moving to Cincinnati for college and needed home office and bedroom furniture for her room.

Step By Step also has benefited from a feature story in the local Business-Courier newspaper as well as its listing in a 1999 issue of Cincinnati Magazine as the area's best source for "instant home office."

"Word of mouth has been very important to us," said Jon.

And Step By Step's reach isn't limited to the student market. Because it offers a range of solutions, including sophisticated workstation and desk/hutch/credenza combinations, the store also generates good business with SOHO users, including small businesses looking to save money.

"We get at least one commercial sale a week," said Steve. "One of our biggest was a sale of 40 desks plus bookcases and file cabinets to a local real estate office."

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8415 Colerain Avenue | 513-245-1366 | stepbystep@stepbystepfurniture.com