Labour of love: How the McPhails turned their struggling family business into a $22m success

When the COVID-19 pandemic lockdowns were announced, Victoria-based furniture business McPhails took a massive hit and was on the brink of closure. It was nearly unsaveable and owners Casey and Taylor McPhail thought they would have to shut the doors of the business their father Keith McPhail founded in 1969 for good.

But the brothers couldn’t let that happen. Instead they set out to reinvent the family business.

Close to going broke during the lockdowns, both brothers refinanced their homes to try and keep the business afloat, although they believed there was a chance they would need to close down and start working on farms. 

However, in a last-ditch attempt, Taylor – who has a double degree in commerce and law – made a few tweaks that changed the game for the family business and made the McPhails brand a household name across Victoria.

In 24 months, the brothers grew the business from $900,000 a year in turnover to $22 million.

Game-changing moves

So what led to this change in fortune?

First, Taylor introduced a $59 flat rate for delivery at a time when everyone was doing home projects or buying property. McPhail’s also started offering deliveries within two weeks, whereas many of the big furniture brands were taking 16 or more weeks to deliver. And the business turned to social media, especially Facebook, where consistent advertising has paid off.

The McPhails also improved the company’s website and started running a PR campaign.

Within a few weeks, the business’ turnover went from $50,000 a week to $250,000 a week. The business grew from one Hino truck to 12, a team of four to 30 employees, and from one shed to renting all 22 available sheds in town. Since then, the business has since built its own 8000 sq metre warehouse.

“We went up to 12 Hino trucks and now have six with three on order due August. We also have a Volvo prime mover and three tri axle trailers. We have five smaller LDV vans/utes too for local deliveries and servicing,” Casey McPhail explains.

At one point, the business had as many as 34 employees, says Casey, but it now has a team of 25. 

“We are looking for around two to three new team members but would only put on those of high quality as it is far too hard to deal with anything less,” he adds. 

Taylor McPail recalls the time when he and his brother thought they would have to close the family business for good. 

“When the lockdowns were announced, our business took a massive hit. While we had a website, we were not driving much traffic to it pre-lockdown, as people were travelling from all over Victoria and ACT to come to our store to shop. Thankfully, that has picked up again too,” he said.

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“Our business was nearly unsaveable. We thought we would need to shut down shop and go work on farms instead. However, we decided to have another run at it. Casey and I remortgaged our homes to pull money, whatever money, we could together. We spoke to some of our contacts, and I utilised some of what I learned in university. We decided to try Facebook and radio advertising.” 

But it was the $59 flat-rate delivery offer that changed the game for the McPhails, says Taylor.

“A lot of people get stung on delivery fees when it comes to furniture shopping, so the $59 rate proved to be a winner for us. Lots of other companies couldn’t offer anything near as competitive, but because we do our own deliveries, we can,” he says.

“We used that messaging in our Facebook ads and it took off. Once we saw that an ad was working, we pumped more money into it. We were spending around $100,000 a month on Facebook advertising, and it was delivering major returns for us. It was also driving a lot of traffic to our website.

“Facebook’s targeting capabilities are second to none. You can set your ads to be so specific, so you are only really spending on relevant clicks,and reaching people who would be interested.

“It has been game changing for our business. Especially, because more people look at Facebook for homewares these days because of Marketplace.”

From farms to furniture

The Victoria-based business was founded by Casey and Taylor’s father, Keith McPhail, a fourth-generation farmer. After becoming a promising stock agent and the youngest branch manager for Victorian Producer in Finley, he changed direction and brought a removals business in Wangaratta with his wife Bev.

In the 1960s he realised many customers were leaving plenty of good quality furniture behind when they moved homes, so he started storing it in a warehouse and auctioning it off at the end of each month. 

Keith started attending weekly auctions and adding some new furniture to the existing business and in 1969 McPhails was born. Now, some of the furniture is sourced from overseas and other pieces are designed by the McPhails team. 

In 1995 Casey, then 22, joined the family business. A year later, at the age of 50, Keith unfortunately died of cancer so older brother Jason stepped in to help. 

The youngest brother Taylor joined nine years later in 2014 after finishing university and a few years later, Jason stepped out to do his own thing, leaving the business to Casey, Taylor and their partners Kacey and Tayla.

Taylor says the entire McPhail family has worked hard from the ground up to make the business a success. 

“The family have worked really hard on the business for over 40 years, starting with my parents Keith and Bev, and now with myself and Casey at the helm,” he says.

“There is a lot of history there, and especially now that my dad has passed, we want to keep that memory alive.

“Casey and I both really enjoy it too. From designing much of the furniture to setting up the showrooms, exploring more Aussie timbers that we can use, to setting up truck routes. It is a busy game, but an interesting one to be in.”

Taylor says although it has honestly been a lot of hard work, he is thrilled to see that work come to fruition with many lessons learned. 

“Hire well. Many of our team have been with us for at least four years, and they are brilliant to work with. However, you can get a challenging employee now and then, and it really brings things down for everyone,” he advises.

“Facebook marketing is king. It has changed the game for us.

“Think of the customer. What do they want for their homes, how can you get it to them and have them enjoy the whole end-to-end experience as they do so. Casey and I spend a lot of time on the showroom floor, so we ask people what they like and what they want, then we design our pieces accordingly.

“It is very hard to have a work-life balance when you are bringing a business back from the brink. We hope to achieve it again someday.”