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Uncommon style in the desert

Story By Lisa Casinger -- Home Accents Today, 3/1/2006

 Moses Zabec

 Moses Zabec brings his infectious, positive outlook to his eponymous Albuquerque showroom and the industry.

Moses Zabec is an interior designer turned retailer. He and his wife Terri had a design firm for years and business was good. Their focus was commercial interiors and model homes so when they got their first request to do a residential project, Zabec viewed it almost like a penance, though he's since changed his mind.

The business grew and with it their frustration over the lack of resources for their projects. After two years of contemplating, the couple opened their own home furnishings/design center, Moses at Home, in Albuquerque, N.M., in 1997.

"We started out in a 1,000-sq.-ft. space," Zabec said. "The first three months were terrible but we kept at it. We doubled our sales the first two years and needed more space so we moved to our present location."

Zabec, who has a master's degree in design, blended his interior design background with the store and creates synergy between the two parts of the business, which are both successful. When he moved to New Mexico in 1976, the commercial business was booming. Several years and half a million people later, the residential design business far surpassed the commercial, and it continues to be an integral part of Moses at Home.

Zabec sees his interior design influence as the reason Moses at Home stands out from other retailers because it doesn't look like a retail store but rather an upscale casually elegant design gallery. The home furnishings industry apparently agrees; Moses at Home won the ARTS award in 2005 and was nominated again this year.

The demographic in Albuquerque covers the financial spectrum and Zabec offers something for everyone in his store. Shoppers can find everything from lamps and lighting, furniture and candles to wall decor, rugs, bar and desk accessories, gifts and permanent botanicals.

 Moses at Home  Nearly 40% of Moses at Home's sales are from home accents, which are displayed in well-appointed room scenes. Here a Sarried chandelier, Vanguard table, Lane chair, Imax vases and East Enterprises Oriental statues add drama to a bedroom vignette.
 Zabec is an astute businessman, but doesn't take himself, or his store too seriously, as is evident by whimsical pieces shoppers find throughout the showroom, like the oversized fish from CBK. Moses at Home 

His mailing list of 20,000 is aimed at his target customer, 30- to 55-year-olds in the middle- to upper-income bracket. Moses at Home also reaches customers via its Web site, mosesathome.com, and through e-mail. Word of mouth and product donations to fundraisers for women's shelters also act as goodwill ambassadors for the store.

Good and bad ideas

Zabec phased out markdowns and sales two years ago because he said it trained shoppers to wait for them. They still have a 50% off event after the holiday season, but otherwise he prefers to donate slow-moving items to charities.

In the past Moses at Home has held educational events in April and September covering topics like color, faux finishing, draperies, floral arranging and more. The free events were great traffic builders, drawing up to 125 people under a huge rented tent. Though a busy schedule kept them from hosting the events last year, they're a good idea Zabec plans to employ again.

 Moses at Home  An elegant tabletop story unfolds with Tag napkins, American Atelier tabletop, a Four Hands Himachi pot, Allstate vases, Raz birds and Dessau Home pewter items.
 Blue, green and white accents like Three Hands candle lanterns, Company C bedding, and Import Collection porcelain dogs brighten up the darker looks of the Wildwood candelabra, Dovetail bed and the Grass Roots mirror. Natural elements are brought in with Paragon fern art and an animal print bench from Grass Roots.  Moses at Home

"One of my best ideas was marrying my wife," Zabec said. "We're a team. I'm the interior designer and Terri's the retailer. I'm responsible for buying and she's the one who talks with the people and does the community events. We've been married and working together for 26 years."

Though Zabec clearly has an infectious passion and joy for his work, he admits there are some bumps in the road and challenges.

The biggest challenge, one many retailers can empathize with, is getting everything in the store on time, especially when you do a lot of custom orders.

"Our purchasing department is great," Zabec said. "They handle the product flow and keep it going, but sometimes it can be a headache with back orders and delayed shipments from manufacturers."

This challenge contributed to what Zabec said was one of their bad ideas. When the store first opened, the idea was to set up themed sections in the store — one area was French, another English and so on. The idea in itself wasn't the problem; the problem was the product didn't come in as expected. "It was a total disaster. That's when we learned the word eclectic," Zabec said. "We mixed it all together. If you worked a year in advance you could make the idea work, but we change the store every six months and every three months we're painting. We move too fast to have half full sections waiting on product."

Though on the surface eclectic seems to be the catchall phrase for mingling different looks and styles, Zabec says it's a confusing term for shoppers.

"Eclectic is harder to achieve if you do a good job of it," he said. "It's much harder to create a great eclectic look, mixing styles together that make sense, than it is to stick with one style or theme. Consumers don't always understand that and have the ability to do that; that's where designers come in."

Zabec credits Terri with finding good employees for the store. She typically spends three to five months in the process and looks for people who have a desire to learn and work, not necessarily with prior design knowledge. This diligence pays off as turnover is incredibly low.

"Our five in-house designers all have degrees," Zabec said. "But when it comes to other employees, we're looking for people interested in the product or who have great people skills. Most of the people who want to work here are interested in home furnishings to start with."

Moses at Home has 15 employees who receive medical and dental benefits, vacations and holidays, employee discounts (cost plus freight) as well as being rewarded for doing a good job. Employee training comes in the form of monthly meetings and market wrap-ups.


 Zabec gives a nod to spring in a tabletop display, above, featuring Raz Easter items, Traditions canisters, and tabletop from Artland and American Atelier. Moses at Home 
 Moses at Home  Though Zabec describes the showroom as eclectic, hints at sophisticated contemporary styles are found in a living room vignette centered on a Vanguard sofa. Dark chocolate walls make the Global Views mirror pop and touches like Roost seashell balls, an Oriental Danny porecelain box and a Trade Am rug round out the look.

Positive outlook

If you've ever met or talked with Zabec you know he has one of the most positive outlooks in the industry. He laughs, he smiles and he loves what he does.

"There's nothing bad about what we do," he said. "Interior design is great; you deal with different people and places and you travel. With the retail store we felt the area was so lacking in a store and we're helping bring the population to a new level of understanding design and style."

His advice to others in the industry is to put God first, never stop and don't give up because good things are just around the corner.

"It's all about finding the right key," Zabec said. "We didn't come out of the shoot looking like this, it's a lot of trial and error. There were so many times in the beginning that we didn't know how we would make it, but you have to keep believing and doing what you know is right in your heart. I grew up in Pittsburgh and put myself through college and during that time this wonderful Jewish lady said to me 'If you go after your dream and do what you really love, the money will follow.' She was right."

 Moses at Home prides itself on not looking like the typical retail store. Though shoppers can find everything from vases and floral arrangements here, they'll also find furniture and a knowledgeable design staff.  Moses at Home
 Moses at Home  A citrus color story comes to life with a Grass Roots screen serving as a divider. Ashton Art picks up the hues in the sofa from Vanguard and accessories from Global Views, Continental Home, Sylvestri and Trade Am complete the scene.

 

Moses at Home

Founded Oct. 1997

Location Albuquerque, N.M.

Selling space 3,500 square feet

Employees 15

Average annual sales $2 million

Annual sales compared to previous year About even and thankful, but we were ahead about 30% for Christmas.

Sales per square foot $400 square foot without design services

Accents as a percent of total sales 40%

Average stock turns 13 to 18. We turn a lot of accessories and Christmas skews that.

Gross margins 2.25 or 2.35. Margins have been affected by the increase in freight charges, we were at around 7% for freight and now it's up to 12%. Upholstery has gone up about 10% because of the foam (petroleum is a key ingredient).

Key retail price points lamps $129 to $329; rugs (5×8) $359 to $550

Dominant style themes We change our style every year but we try to stay in a classic European niche. We try to find things with European roots, world imports with a little twist of contemporary. We did contemporary three years ago too soon for the bandwagon. We were heavy into Moroccan all summer. The desert being the desert, we do a lot of product from India because it doesn't crack in our dry climate, we're the fifth driest location in the world. We had Indonesian product on the floor and it got huge cracks. We also have a hard time buying furniture because of the lack of humidity here. This summer we're going with a lot of Spanish accents (Italy, France and Spain) because of the Spanish heritage in the Southwest.

Order frequency Because we handle so many vendors it's at least every other day.

Average wholesale value of inventory $150,000

Major vendors Three Hands, Palecek, Arteriors, Murry Feiss, Global Views, Paragon, Shadow Catchers, Ariel, Orbit, Imax, In Detail, Roma, Vanguard, Kincaid, Lane, Hickory Chair and more

Trade shows Atlanta, Dallas and High Point

Return policy Store credit. Customers can take product out on approval for 24 hours and that really cuts down on the return rate.

Percent of budget spent on advertising 4–5% with direct mail and billboard campaign

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