BUSINESS AND TECHNOLOGY

BUSINESS STORY

Putting in the fix

Breathing new life into tired office furniture

SHEILA McGOVERN

Montreal Gazette

Monday, December 17, 2001

Zvi Shapiro probably learned many a thing at his father's knee, but he's decided to take one sage bit of wisdom and run with it: "If it's made of wood, you can fix it."

The elder Shapiro was a furniture manufacturer and upholsterer, and the son can remember a childhood that included stripping sofas.

When the boy grew up he, too, went into the furniture business, creating nulook Office Solutions and selling workstations, filing cabinets and boardroom suites.

But with the economy slowing and the stock market unsteady, the demand for new office furniture is weak. "The next six months are going to be survival of the the fittest," he said. Not long ago, you would encounter three companies bidding on a job, he said. Now there's 10.

Time Was Right

So in February, Shapiro and his partner, Howard Pollock, decided the time was right to pursue an idea they'd been researching for months.

They launched a new company, nulook Office Rejuvenation, promising that for 25 to 30 per cent of the cost of buying new furniture, they'll breathe new life into what an office already has.

The business took off faster than anticipated, Pollack said. Clients range from a major law firm to a notary's office. A newly appointed head of an accounting firm hated his predecessor's all-black furniture, so nulook stripped it and gave it a wood finish. A bank decided to consolidate its staff in one location, but its lovely boardroom table didn't fit, so nulook removed a chunk of it. Then it was asked to reupholster chairs to match the new carpet.

A law firm wanted its dark wood lightened.

And they've also been called in by companies that can't afford new furniture now, but don't want to look frayed around the cuffs. "Don't you just hate squeaky boardroom chairs?" Shapiro asked.

Pollack said companies usually call in nulook to handle a single task, to test it out. Then more business follows.

Shapiro and Pollack came to know one another through Business Network International, an organization that encourages entrepreneurs to get to network and refer work.

Shapiro had been nursing the idea of a rejuvenation business, and was already handling repairs in a small way through his other business. However, he envisioned a larger operation that would also include long-term service contracts, and he knew Pollack has a company that handles office equipment, such as photocopiers and fax machines, and was familiar with the service side.

Companies invest huge sums of money in office furniture, Shapiro said, but it is often poorly cared for. People don't use coasters, like they would at home, so conference tables are stained and scratched. Upholstery isn't cleaned and fabric-covered dividers attract dust and germs.

"They invest $100,000 in office furniture, and in five years, it looks like $20,000," Shapiro said.

Before launching the company, Pollock conducted research to size up the competition. In one sense, he found a lot. A company can pick up the Yellow Pages and find furniture refinishers, reupholsters and locksmiths who can install new filing-cabinet locks when the key disappears.

"You can get your jobs done," Pollock said, "but it will take three companies." So nulook is offering to do it all.

Researched Products

Pollock also spent time working with cleaning-supply companies, trying to figure out the best products to use. Sculpted office chairs sometimes have fabric glued on to the cushions, he said, so they require special cleaning products that won't damage the glue. The same goes for cloth-covered dividers.

And the company doesn't just work in wood and cloth, it can clean, repair and reshape laminates.

The company didn't expect to have any employees at the outset, he said. It planned to subcontract the work. But it now has a customer-service representative and four tradesmen who work for the company in return for a percentage of the cost of the project.

The company wasn't expensive to start up, he said. The tradesmen use their own tools, and he and Shapiro together have invested "less than $10,000."

They bought quality business cards and brochures, Shapiro said, but don't do mass mailings. They drop off information where the prospects are good. And they pick up business by word of mouth.

Pollock said the company anticipates sales in its first year will reach $400,000 and could reach $1 million in three years.

The range of services they offer continues to grow, he said. When they get on a job, companies ask them if they can fix this or that, they look into it and figure out if they can. "It's a custom business," Pollock said.

Of course, rejuvenating old equipment isn't as lucrative as selling new stuff. A new panel will cost $300, while cleaning an old one might cost $18. A new 10-foot conference table can cost between $3,500 and $4,000, while a refinishing job will run between $1,000 and $1,200, depending on the condition.

"Yes, there's more dollars to be made in replacing equipment," Shapiro said, and the rejuvenation business might cut into his new furniture business. But he looks at it as short-term pain for long-term gain.

If he provides the service, clients will probably think of him a few years down the road when they do want to replace their furniture. And he might persuade them to sign a service contract to protect their investment.

And when they are handling repair work, they hear that the company is in the market for new pieces. So nulook sometimes provides a mixed bag, rejuvenating some pieces and replacing others.

Getting Ahead

-The partners met through an organization that encourages entrepreneurs to get to network and refer work.

-Companies usually call in nulook to handle a single task, to test it out. Then more business follows.

-The range of services nulook offers continues to grow, he said. When they get on a job, companies ask them if they can fix this or that, they look into it and figure out if they can. "It's a custom business."