Company name: Chariho Furniture
Owners: Ed Smith, Carol Smith (Ed’s mother)
Number of employees: 11
Type of business: High-end country furniture and accessories
Year Founded: 1987
Annual Revenues: $2.5 million
Ed Smith once got a call from a woman who wanted to tell him how much
she enjoyed his television commercial. She didn’t want to order
anything, nor did she ask for directions to Smith’s business, Chariho
Furniture. She wanted to thank him for the 30 seconds of tranquillity he
brought to her home.
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Smith spent much of a recent Friday morning shooting one of those
commercials. The 33-year-old businessman writes them himself. Typically,
they feature a living room or dining room set, arranged in a picturesque
South County field. The camera pans the scene with only the sounds of
Mother Nature. As the commercial closes, Smith simply gives the viewer
the name and location of his store.
The commercials have worked — helping to transform Chariho Furniture
into one of Rhode Island’s most successful small businesses.
“Network television put us on the map,” Smith said. “We never name a
brand, a sale a price. It’s strictly image building.”
Chariho Furniture is located at the intersection of Routes 112 and 138,
across the street from Richmond Town Hall. When the Smith family opened
the business, it looked more like a beaten old garage than anything
else. Passers-by no doubt wondered why Ed and his parents figured they
could run a successful furniture business out of a former gas station.
It wasn’t easy. Smith’s background was modest. He had been delivering
furniture for the West Warwick-based Valley Furniture when the business
closed.
“I started in 1987 with $3,000 and some borrowed money,” Smith said. “We
had to be lean. There wasn’t an option. The $3,000 bought me a used U-
Haul and a Salvation Army desk. I used to unload it, sell it, and re-
deliver it. It’s hard now to stay in the office as much as I have to.”
These days, there is much to do behind his desk. The Smiths have 11
employees. His mother Carol manages the office. Ed Smith has a hand in
every aspect of the business, even jumping on a delivery truck once in
awhile.
Chariho Furniture is busier than ever. In fact, the business has grown
each year since its inception. The company focuses on solid wood
furniture, including bedroom sets, dining room sets, bedding and
accessories.
“In the past five years, we focused on finding a niche,” he said. “And
upper-end country furniture has done it for us. We have never seen a
year with under 20 percent growth.”
That goes back to the early 1990s, when the credit union crisis crippled
Rhode Island.
“During the credit union crisis, we were seeing 50 percent to 100
percent growth,” Smith said.
Raymond Walsh, a furniture factory
representative, is amazed at the success of Chariho Furniture. Amazed,
but not surprised.
“It’s the greatest success story that I’ve seen in this business and
I’ve been in it for 40 years,” Walsh said. “There are no secrets in this
business. It’s early to bed, early to rise. Work like hell and
advertise. That’s what they’ve done.”
Walsh remembers Chariho Furniture before the television commercials and
bright showrooms.
“When they started out they had a recliner on a cement floor with grease
all over it (the floor),” Walsh said.
Smith can’t explain the success. But the hard work and advertising have
paid off. In addition to the commercials, he faithfully runs ads in
weekly newspapers.
“We’ve always believed in advertising,” Smith said.
He has a great relationship with furniture dealers — partly because he
has a habit they embrace. Smith pays his bills — quickly.
“We are extremely conservative,” Smith said. “We pay as we go. Our check
sometimes beats the truck back to Mississippi or the Carolinas.”
Success has led to growth. The business began with 3,000 square feet of
space, and now, two additions later, has 25,000 square feet. The company
did not expand in 1998, but there are plans for another addition soon.
As for 2000, Smith is coy, but it’s hard for him to conceal a smile. He
acknowledges that the coming years could bring even bigger things for
Chariho Furniture.
“I don’t consider myself successful yet,” Smith said.
His mother is ready for the ride — a ride that has been picking up speed
with each year.
“It’s like raising a child and not wanting someone else to raise that
child for you,” she said.
