Publication - Business World Magazine

2 | Decorating Den Interiors
T
he
interior
decorating/design
“This can be a very lonely business,” he
business can seem like an isolated
said, “and a big part of our culture is the
enterprise.
camaraderie and team spirit that we have
But one of the advantages of the Deco-
among our franchisees.”
rating Den Interiors franchise concept – ac-
Toward that end, the Maryland-based
cording to its president and chief executive
company fills its annual calendar with events
officer, Jim Bugg Jr. – is the strength that
specifically intended to enhance the idea
sheer numbers provide.
that none of the nearly 300 franchise operaDecorating Den Interiors | 3
tors across the United States and Canada are
the corporate office and each other, to set
in it by themselves. Numerous area-specific
up their individual customer-management
training events are scheduled throughout the
systems and to participate in chat forums to
year, and all franchisees are invited to attend
share design or customer ideas. Additionally,
the annual Lifestyle Conference, whose 45th
a one-stop element of the system was recent-
edition is set this year for April 27 through
ly launched to allow users, if they choose, to
May 2 in San Diego.
develop, design and implement an annual lo-
The supportive approach is further buf-
cal marketing program with a single button
feted by in-house systems such as DecoNet,
push.
a private online information and communi-
“Our goal is always to make our business
cations system that was created by Virginia-
as easy as possible on the back end, so that
based FranConnect and is made available for
they can spend the majority of their time on
exclusive use by Decorating Den franchisees,
the front end of their business, which is deal-
regional offices and preferred suppliers.
ing with their clients and designing beautiful
It allows franchisees to communicate with
rooms,” Bugg said.
4 | Decorating Den Interiors
AT A GLANCE
WHO: Decorating Den Interiors
WHAT: Home furnishing company
that offers window treatments, bedding ensembles, carpets, area rugs,
wall covering, accessories, lighting
and furniture
WHERE: Headquarters in Easton,
Md.; Franchise operators across United States and Canada
WEBSITE:
BC half page ad BWM :Layout 1
4/24/14
4:23 PM
Page 1
www.DecoratingDen.com
There’s nothing casual about our approach
to the Wicker and Rattan Business
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a wicker and rattan program expertly
woven with all the tools necessary for success at retail. We pair innovative,affordably
priced designs with an expansive library of
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wood and paint finishes for unparalleled
special order and custom capabilities, available in 30 days or less. It’s a winning strategy
expertly tailored to your needs, from a
service-oriented company that’s as serious
about producing furnishings for casual
lifestyles today, as we have been for more
than 40 years.
The Braxton Culler Showroom, 310 S. Elm Street, High Point, N.C. 27260
Showroom: (336) 889-7333 Corporate office: (336) 861-5800 www.braxtonculler.com
Proud to be a Decorating Den Partner!
Decorating Den Interiors | 5
“Our business allows you to be in busi-
the very, very elite and wealthy. My mother
ness for yourself, but not by yourself.”
always believed – in her own business before
The company was founded in 1969 by an
we joined the company – that interior design
Indianapolis-based fabric salesman whose
is a service, and being a service, it should be
goal was to provide affordable custom win-
made affordable to those that desire that ser-
dow treatments directly to homeowners, a
vice, and not just for the top 3 percent of the
niche he believed was not being filled in the
income bracket.”
marketplace. Bugg’s parents – his mother
Decorating Den’s corporate model is sup-
was an interior designer and his father had
ported by agreements it’s entered into with
a background in real-estate franchising with
national brand-name vendors, from whom
Century 21 – purchased the business in
individual franchisees can buy products di-
1984.
rectly at a company negotiated wholesale
Bugg joined the company out of college
price. The franchisees are able to sell the
and helped evolve the endeavor from a shop-
products to clients at a competitive retail
at-home window treatment business to more
price and able to maintain a profit margin
of a full-service interior decorating opera-
without the need for showrooms or other as-
tion. Expansion into carpeting, area rugs and
sociated overhead costs.
wallpaper was the first move in that direc-
Among those vendors is Chino, Calif.-based
tion. Furniture and accessories were added a
Darafeev Fine Furniture, a company whose
few years later – and now make up 35 per-
beginnings trace back to its founder, Mikhail
cent of the overall product mix.
Darafeev, building furniture in his garage in
Also playing a large part: The tidal wave
the late 1950s.
of design shows on cable television.
“Throughout the ’90s and from 2000
setting new standards in comfort,” said Paul
on, the interest by the masses in home fur-
Darafeev, the company’s owner. “Our dealers
nishings and decoration has been incred-
often share their client’s comments like ‘This
ible, and a lot of that was certainly sparked
is the most comfortable chair I have ever sat
by HGTV and the decorating magazines,”
in.’”
Bugg said. “Decorating, prior to that, was
Design services are complimentary as
believed to be something accessible only to
part of the individual client projects, which
6 | Decorating Den Interiors
“Our flexback chairs and stools are quickly
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sets the franchises apart from traditional re-
have remained a one-person, owner-operat-
tail competitors. “Our goal is to develop a
ed entity by design.
relationship with a client, so that we become
“We still have many franchisees that
their decorator for life,” Bugg said.
choose to keep it as a one-person show and
The organization is comprised exclusively
operate out of their home and do it very effi-
of franchises, except for one corporate-run
ciently and enjoy a good business and a good
operation that’s maintained for testing pur-
quality of life,” Bugg said. “And others have
poses. Most of the franchises begin as home-
chosen to grow the business. It’s one of the
based operations, though some have grown
beautiful parts about our franchise system,
into large enough entities to warrant having
not being tied to a retail location, you have
a commercial studio space in a light indus-
the ability to grow the business as large as
trial or light retail facility. Some of the larg-
you like.”
er operators also have a team of decorators
Twenty-three franchises were added in
and administrative support staff, while many
2013 and Bugg said the goal for 2014 is to
Decorating Den Interiors | 7
8 | Decorating Den Interiors
double that number. Some of the growth is
Bugg said. “Over the last four or five years
organic, he said, and comes either by referral
with the economic climate and the housing
from other franchisees or from employees of
market, we were able to sustain better than
franchisees who decide to strike out on their
most competitors out there. Today there are
own.
fewer competitors than there were five years
In addition, the company markets the
ago. There’s a tremendous amount of pent-
franchise opportunity in “places where peo-
up demand with people who put the brakes
ple who have a love for design and a flair for
on projects four or five years ago, and now
color” would normally look, he said, includ-
that living room is four or five years more out
ing design-centric magazines, social media
of date and more in need of re-do.
and appropriate trade publications.
“We’ve seen a tremendous uptick in busi-
The longer-range intent is to double the
ness over the last 18 months and we’re look-
size of the entire franchise roster over the
ing at this as an opportunity to grow our
next three years, an optimism that’s fueled by
market share while the larger competitors
steady recovery from several years of nation-
and other competitors have a slower reac-
wide fiscal uncertainty.
tion time to building stores and re-entering
“We believe that the timing is right for us,”
the market.”
Decorating Den Interiors | 9