20 Nov 2019
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Pobles, d. o. o.

By EY Slovenia

Multidisciplinary professional services organization

20 Nov 2019

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  • EY Family Business Slovenia 2019 (pdf)

Boutique furniture manufacturers offering their customers a one-stop shop

The story of the Pobles family business began in the 1990s, at the location of the failed Brest woodworking company in Cerkno. The head of the family and company founder Branko Petrič used the courage and experience he had accumulated in his almost 20-year-long stay in the US, where he worked as a carpenter. After Brest, where Branko had worked, went bankrupt, he and a few other like-minded employees purchased part of the company with their own savings and started writing the story of their now successful family business, which employs 20 people. 

A new company grew on the foundations of the former woodworking company

Primož’s father, Branko Petrič, started producing custom-made furniture with a small group of carpenters. This was not usual in 1995, quite the contrary, but they received regular orders and produced mainly small pieces for kitchens, which they also installed and repaired. Primož remembers: “We were ordinary craftsmen; this was not a real business yet.”

Primož Petrič joined the company at the turn of the millennium. “I took up the management very spontaneously. I knew there was a lot more that could be done and that there was no future in the production of low-cost furniture. But I had a vision of becoming a star in the furniture industry in the segment of complex, expensive furniture.” To accomplish his goal, he sought out partners among recognized designers and architects and together they designed a strategy for the company and began to implement it. They visited furniture fairs, of which Ljubljana was especially important for them according to Primož because it had so many visitors between 2005 and 2010. The fairs were their springboard, allowing them to gain a great number of new customers and build brand recognition. “We spent a lot of money on this, but it paid off,” says Primož honestly. Market competition was not as intense in those days. “We became known as manufacturers of exclusive, more expensive, quality furniture and we started cooperating with eminent architectural bureaus.” 

We also had luck in our business. We were one of the first custom-made furniture providers. We knew how to address customers with greater purchasing power.

Primož Petrič

 

 

Main principle: meeting the customer’s wishes 

“Our approach to customers was integral; we listened to them and fulfilled their wishes,” explains Primož. “Our important competitive advantage is that customers can get everything in one place. They come in and tell us their wishes and we take care of everything else, from the conceptual design of a house to the project plan. With the help of our own architect, we provide complete solutions for all areas of the house, so everything can match. In our own workshop, we then produce, assemble and if necessary, also repair the furniture.”

Individual customers take up a lot of their time, but Primož is aware that if they are paying up to €70,000, they deserve to be satisfied. He proudly adds that in all these years they have not had one major complaint and they have repeat customers. This is the cheapest advertisement and at the same time the greatest confirmation and reward for their work.

They have numerous customers with different personalities and wishes, including boutique, complex productions, where each piece is unique. “Those are the disadvantages in our company and partly the reason for our stress,” says Primož. “But in the end, it adds to the greater added value and smaller risk.

Primož is certain that you also need some luck in any business. “We were lucky to be one of the first suppliers of custom-made furniture and we were able to address buyers with greater purchasing power, who could afford more expensive items. Such a tradition did not exist in Slovenia before.”

The goal of the family business was to become a boutique producer of unique furniture in a higher price bracket, which they succeeded in doing.

The competitive advantage of Pobles is their personal, integral approach. Customers find everything in one place, from conceptual design, planning and production to assembly and repair.

Careful decisions ensure constant growth

Between 2005 and 2010, they built upon the company brand. They expanded their employees from 5 to 22. However, the economic crisis halted the growth of Pobles somewhat and according to Primož, they faced difficulties during that time. Luxury was the first thing people gave up, but they have survived, and each month they gain between 5 and 10 new customers. For many years, they have been experiencing steady growth of 5% to 10%. They employ 20 people, sometimes even more. 

Ninety percent of their customers are private individuals. “I always wanted to prove myself to people. It’s nice to make someone happy when you create the most beautiful kitchen for them, a unique space, and when this person then excitedly recommends you to someone else,” he says, smiling. They do not participate in public tenders, nor do they furnish hotels and hospitals. He admits: “I play it too safe. I always feared that one of the larger contracts would not be paid and we would be risking bankruptcy.” He stresses that it was a wide and varied portfolio of individual buyers that saved them during the economic crisis. They were never dependent on big business or a handful of larger customers.

This year they have built a new, state-of-the-art warehouse

There is no business without my father and brother 

Roles in the company are defined so that it is clear who is responsible for what. Samo Petrič and his brother Primož each own  half of the company, while their father has officially retired, but still comes into the company every working day. The sons consult him on all major decisions and he maintains the premises and takes care of logistics.

The Director, Primož Petrič, deals personally with every customer, handling the financial side of this relationship. Samo Petrič takes care of technology, precise measurements and prepares everything necessary for production. The third member of their manufacturing triumvirate is in-house architect Maja Bavdek, who manages projects and designs. 

When we ask Primož about the advantages and drawbacks of a family business, he says that he only sees advantages – of course provided that the family members get along. Their greatest advantage is that they know each other well, trust each other completely and work towards the same goals. “I cannot imagine our business without my brother because he is detail-oriented, good and honest, nor without my father because he is its founder. It is the right thing to show him respect.”

Primož’s greatest advantage is that he knows every detail of his company. “When it became evident that my student career wouldn’t happen, my father said that I could just work at home and he sent me into production,” he says, smiling. “This was a year of hard work. Every morning at seven, I stood at the machines, carried things, mounted them... This was the best move because I got to know the entire working process.” Branko began leaving work earlier and Primož suddenly became a sales specialist, started issuing invoices and took over the finances. “This is why today nobody can play me for a fool. I know exactly how things work and how much time and money they require.”

This year they have built a new, state-of-the-art warehouse

Overrun with orders, which is why they are not worried about the future 

Members of the Pobles team have their hands full dealing with orders. Primož is earnest when he says that there is often no time to think about the future. They have no problems in their settled process of obtaining suppliers; because they pay well and regularly, they get the best. However, to produce high-quality products they require modern technology. “This is what’s most expensive in our business. If we want to maintain the quality, we need to replace our machines every 10 years, and each machine costs €150,000 or more.”

According to Primož, they could start working more on advertising and marketing. “This is something we have neglected for the past few years, but there is no time for all that. I am convinced that it is the premium products that help us grow and which spread our good name.”

The majority of the Pobles team has been employed there for years, some even since the beginning. This explains why their production is so cohesive and they know each other so well. Primož states that they do not plan explosive growth in the next few years. “At the moment, I can control everything. I can look everyone in the eye and regularly talk with my employees. We also take time to socialise. We do enough business,” he adds. 

This year they have built a new, state-of-the-art warehouse

Ninety percent of their customers are private individuals who want a personal approach and exclusive, exceptional products. 

Primož and Samo Petrič, co-owners

Company Name: Pobles, d. o. o.

Number of employees (2018): 20

Net sales revenue (2018): €1.0 million

Summary

Pobles in a nutshell: exclusive, exceptional, professional, boutique, hand-crafted

About this article

By EY Slovenia

Multidisciplinary professional services organization