blinds to go

BLINDS TO GOArun Raj M Koushik BharathMagesh Kumar C Nandhini KSiva Kumar A (Team 16)

BLINDS INDUSTRY• Other retailers in All window coverings relied on 3

tiered distribution – retail outlet, fabricator & manufacturer

• Matured industry – slow growth• Customised blinds – high price, 6-8 weeks waiting

time• Manufactured in Far east due to low cost

BLINDS TO GO• Shiller Family started in 1954 by selling bedding products from

trunk of his family’s Chevrolet• Started to sell carpets, floor coverings, draperies and fabrics• Mid 70s started selling blinds• Headquarters – Montreal, Canada, 120 locations in NE states• During past 20 months revenue over US$100 million• Producer of Made to order window coverings• Retail Gross Margins were 45%

FABRICATION PROCESS• 20,000 different combinations of blinds• Valance, Slat, Cord, Wand, Bottom Rail

PROCESS OF SELLING• Bonding• Select product• Present price and close the sale• Deduct a coupon• Introduce customers to managers

MONTREAL PLANT• 8-10 hour shifts• 20,000 orders per week• Maximum volume of 24,500 orders per week• Training for first 4 weeks• Employs 400 people• Supply to 120 stores

LAKEWOOD PLANT• Handles 14,500 units per week• Employs a total of 250 people• During the initial stages defect rate was as

high as 10%• Currently defect rate is improving• Supply to 80 stores

ISSUES• High defect rate at Lakewood plant• High training costs (double of allotted budget)• No formal instruction manual for new joinee• Loss of experienced personnel• Increasing number of shifts reduced efficiency

DILEMMA• Should the company go with a new factory to

supply blinds to the Florida market?

FLORIDA DECISION• Florida market is worth $400-$500 million• Capacity of atleast 40 BTG stores• Each store has a capacity to earn atleast $1

million according to past data• So yearly sales could be in the $40-$50 million

region.

• Start to build the Florida plant while selling in Florida simultaneously.

• Partial supplies to the Florida stores through the Lakewood plant.

• Once Florida plant is up and running at maximum efficiency complete supplies to flow from the Florida plant.