Unique, classique and antique

Bay Design Store occupies a point of land formed by the intersection of Division and Detroit Streets on the north end of Ann Arbor's Historic District. Susan Bay is the very organized owner of the building, an attractive, renovated structure that was once a Mercedes-Benz dealership but now is home to her high-end furnishings showroom, office, design studio and warehouse.

Three years ago she opened a second store with partner James Kunstel in Naples, Fla., where she owns a second home. Kunstel was a design student when he first came to work for Bay in 1991. Their shared styles, attention to detail and ability to provide finishing touches have created a loyal clientele. Combined, the two stores gross about $5 million a year.

"Though we basically display a traditional look, we have a diverse collection of styles including modern," Bay said. "We carry a few antique accessory items such as Turkish and Moroccan storage jars, 18th and 19th century prints, and old dough bowls." Bay adds maintaining an inventory of unique items requires a lot of work and travel. "Retail has changed. It's getting harder and harder to find something different that everyone else doesn't have." She attends both High Point markets and maintains several sources for antiquities.

Bay Design's sales are about 35% accents and 60% furniture. "We don't charge interior design fees for work pertaining to purchases, so our design services are a small percentage," she said. "However, approximately 65% of our sales are designer driven. Clients become customers and customers become clients."

Things are kept moving with markdowns. "It's all about turnover. The first time an item is marked down, it's at 30%, and 10% thereafter." An attached warehouse holds clearance items and is open to customers at all times. Advertising runs about 8% of the annual budget, "We run full page ads in four or five magazines, including Florida Design, which reaches clientele in Ann Arbor as well as Naples," she said. "We also reprint our brochure every few years and send out mailings and sale cards to our customers several times a year."

Bay grew up in Rochester Hills, a suburb of Detroit. She credits her early interest in design to a mother who always had a decorating project, and a favorite aunt who was a remarkable hostess with a great sense of style. "The most enjoyable part of my job is working with customers and clients," Bay said. "They are so enthusiastic about our store and pop in on a frequent basis to see the new arrivals."