Archive for Office Chairs

Sean Belnick – BizChair – The Inventory Question

Sometimes it’s not about the produce that you sell but how you sell the product.

Sean Belnick must have had an inkling of that idea when he started BizChair, a company focused on providing businesses and individual customers with chairs in 2001. Picture this; 14-year-old Sean introduced to a brand new platform called the Internet. The possibilities are endless and frankly, too much to think about. So, Sean took advantage of the new and confusing market and provided a simple plan to people. Drop shipping, a system that was simple for any customer who wished to order a chair or two, became the primary business model. This method involved no inventory, but rather a system of instructions relayed to a manufacturing company via BizChair. This system was advantageous in the early days of BizChair because nobody had massive amounts of inventory on the internet yet that would cut into the Sean’s revenue. He also saw that it would cost too much to keep inventory that had no guarantee of selling. This goes double for office chairs. Who thinks of office chairs?

So, Sean envisioned the ease of drop shipping and used this exclusively in the beginning, but he was also smart enough to know that it wouldn’t last long. This model was great because it kept costs low, production easy and location a no-brainer; wherever your computer was, the company was there. The problem is that other competitors knew this too. It was too easy to lose out to others. Once sales were steady enough, BizChair switched tactics and kicked things into high gear. They had a name, they had funds; time to mass produce and under-cut those with their former business model by always keeping inventory and applying to a wider customer base. This allowed them to sell each products by 10-15% lower then before.

Another way Belnick had foresight into the internet world is the eventual emergence of thousands of online retailers. What would differentiate him from the rest? Excellent customer service was the key. From day one, he maintained a free-shipping policy and a 60 day money back guarantee. He credits this for much of his growth and success in the early years.

Even today BizChair maintains a professional outlook on serving their customers. Belnick says that drop shipping was critical but notes that the switch to an inventory based model was one thing that sustained the business in the coming years.

I think this principle is important to remember because it’s not only about starting a business; its about maintaining it and always looking forward.

Office Chair Empire

Sean Belnick was your average fourteen years old buying, trading, and selling Pokemon cards. Sean found out that he could sell his most expensive pokemon on eBay. This sparked Sean’s interest in selling things online, he started selling things online and started to make some good money for a fourteen-year-old. One summer Sean went to go work with his dad at his furniture store. When he was there he realized that he could sell furniture in a fast and easier way. When he discovered this he locked himself in his room for three days and made the website we know today as Bizchair.com. He did this with five hundred dollars for advertising and one hundred dollars for the website. He started by selling a handful of office chairs by drop-shipping them to his customers.

With his advertising, he started to gain more tracking as a company and when he was twenty years old he mad thirty-eight million in revenue. He has sold over twenty-five thousand office chairs to  Microsoft, Google, and Abercrombie and Fitch. Sean was really a pioneer in the office chair industry. He was one of the first companies to sell large amounts of office chairs to consumers online. This made the buying process easier for companies by being able to buy large amounts of office chairs from one website. By doing this it streamlined the process of getting office chairs to the customers. Today Bizchairs has so many options for office chairs it appeals to a wide variety of people. Sean Belnick really changed the way people bought office chairs and has made some good money doing it.