Close X

Leave a comment


Name:
Email:
Comment:
  I have read and understand the terms and conditions
 

Please click the post button only once - your comment will not be published immediately

Sales and marketing

FEATURED CONTENT

Cisco Customer Kings Cisco Customer Kings

Real Business and Cisco are looking for entrepreneurial firms that provide the very best in customer engagement.
Click here to enter your firm.

  • hot
  • hot

Online entrepreneur: "We deliver within 90 minutes!"

by Rebecca Burn-Callander - Wednesday, 17th September 2008 -

Online entrepreneur: "We deliver within 90 minutes!"

Clever warehousing can help you get products out faster, safer and in better condition. Your customers will love you, and fewer breakages will tickle your bottom line. Here’s how Sofa.com cracked the knack.

Co-founders Pat Reeves and Rohan Blacker founded Sofa.com with the aim to flog low-cost, high-quality sofas to the masses with zero hassle.

Part of this pledge involved ditching the industry’s traditional “12 week” delivery rule, and getting the products to their new owners as quickly as possible. But it’s expensive to house every single item in a warehouse, so the pair have honed a special system to ensure that 99 per cent of items are in stock around the clock.

“All of our sofas have removable covers,” says Blacker. “We keep 50 carcasses of a particular sofa in stock, and the 250 covers in different colours and fabrics. So, the order comes in, we pick a carcass and we drape it with whatever cover the customer requires. This means we can keep quite a large amount of stock.”

After two years in business, the pair have also picked up on buying trends and popular styles. “We’ve got a pretty clear idea of the types of things that people ordinarily order,” says Blacker. “If you want to order something unusual, a strange colour of crushed velvet, for example, we might not stock it. If you want to buy an oatmeal sofa, without a doubt we’ll have it.”

Sofa.com customers have the added bonus that the firm manufactures in England, so even if products are out of stock, there’s no six-week delay while products are shipped from China. “We usually deliver within a week,” says Blacker. “The maximum people have to wait is around four weeks. Our record is within 90 minutes.”

The London-based company turned over £4m last year. And margins are pretty healthy at 45 per cent.

Related articles
“Buying a sofa shouldn’t be hell on earth,” says sofa.com founders
Domains, dodgy deals, sofas and strippers
Art storage firm escapes CGT hike

Picture source

BUSINESS NEWS >>

“I will survive this recession,” says Kelly Hoppen

By Rebecca Burn-Callander - January 08, 2009 3:46pm GMT

Designer to the stars, Kelly Hoppen, talks to RB about preparing for her second recession, capitalism and the sad demise of Wedgewood.

Lloyds TSB provides relief to SMEs

By Catherine Woods - January 08, 2009 3:02pm GMT

Lloyds TSB will pass on the Bank of England’s 0.5 per cent base rate cut to all its small business customers with variable rate loans and overdrafts.

How much do you need to retire?

By Stefan Wissenbach* - January 08, 2009 2:44pm GMT

The story of an entrepreneur can often be traced back to his past. But his future is also a vital influence on his business narrative.

Interest rates: reaction to the record low

By Catherine Woods - January 08, 2009 2:04pm GMT

Interest rates are now at their lowest figure ever following the decision by the Bank of England’s Monetary Policy Committee to cut them to 1.5 per cent.

Interest rates cut to 1.5 per cent

By Catherine Woods - January 08, 2009 12:08pm GMT

The Bank of England’s Monetary Policy Committee has cut interest rates by half a percentage point to 1.5 per cent.


BUSINESS COMMENT >>

Valentine’s Day PR puff is starting already

By Catherine Woods - January 08, 2009 4:54pm GMT

My views on Valentine’s Day are well documented.

Do you have a moral compass?

By Catherine Woods - January 08, 2009 3:40pm GMT

Is selling stuff to people who are sick morally wrong? One entrepreneur thinks so and has taken issue with Real Business for writing about companies that do so.

From concept to launch: a start-up's video diary

By Rebecca Burn-Callander - January 06, 2009 5:41pm GMT

Clive Payne has invented a new fitness product. Having turned down a contract with a big American manufacturer, he's decided to launch it himself. Week by week, he will document his progress. We're going to follow him!

The future's not so bright

By Rebecca Burn-Callander - January 05, 2009 4:22pm GMT

The only thing going up in 2009, aside from unemployment, will be sales of antidepressants, says Professor Marvin Zonis

Depressing days and Dave's Big Idea.

By Catherine Woods - January 05, 2009 4:15pm GMT

It comes as no surprise to me that today is considered the most stressful day of the year. I wonder if David Cameron feels the same after his big saving announcement?


Click here to sign up for the Real Business newsletter

In association with
Real Business Front Cover