Business of Home Podcast: A To-the-Trade Approach to DTC Sofas – How Benchmade Modern Breaks the Rules

Released on February 17, 2025, the "Business of Home Podcast" hosted by Dennis Scully delves into the evolving landscape of the interior design industry. In this episode, Dennis interviews Dan Campbell, the President of Benchmade Modern, to explore how the company is revolutionizing the direct-to-consumer (DTC) sofa market by integrating traditional trade lessons with modern e-commerce strategies.

1. Introduction to Dan Campbell and Benchmade Modern

Dennis Scully introduces Dan Campbell, highlighting his unique background as a 17-year veteran at Holly Hunt and his current leadership role at Benchmade Modern, a part of Artisan Lane’s US Manufacturing group. Unlike typical DTC companies that heavily rely on digital advertising, Benchmade Modern distinguishes itself by maintaining in-house manufacturing capabilities.

• Dan Campbell explains the company's core operations:

  "Benchmade Modern is upholstery focused. So we do custom upholstery and it's online e-commerce for both direct to consumer or the trade. And what we've done is created a process where you can customize your piece... and it's still all hand." [10:50]

2. Dan Campbell’s Career Path and Industry Insights

Dan reflects on his journey from architecture to the furniture industry, emphasizing the transition from creative aspirations to the practicalities of project management.

• Dan Campbell shares insights from his time under Sally Serkin Lewis at J. Robert Scott:

  "Quality was really my biggest takeaway from her. Just the detail and the level of making things perfect and always striving for the best quality." [03:23]

He discusses how these lessons have influenced his approach at Benchmade Modern, focusing on unwavering quality and meticulous attention to detail.

3. Transition to Artisan Lane and Embracing E-commerce

After 17 years with Holly Hunt, Dan transitioned to Benchmade Modern under Artisan Lane’s umbrella in 2019. He describes this move as a significant shift from an analog to a digital business model.

• Dan Campbell on embracing digital:

  "What I've learned is very different from my analog life at Holly Hunt. So it's actually made me a much fuller. It's learning something completely new and different to me." [08:49]

4. Benchmade Modern’s Business Model and Customization Process

Benchmade Modern leverages a robust online platform allowing customers to fully customize their sofas. Orders are expedited by synchronizing production processes, enabling delivery within four weeks.

• Dan Campbell outlines the order process:

  "Once it's put in the system, it literally goes in the next day... everything is happening at once." [17:04]

This streamlined approach contrasts with competitors who often face extended lead times due to sequential manufacturing steps.

5. Digital Marketing Strategies and Enhanced ROAS

Dan emphasizes the critical role of effective digital marketing in Benchmade Modern’s success. Initially facing challenges with low Return on Ad Spend (ROAS), the company revamped its marketing strategy by collaborating with a new ad agency, resulting in ROAS improvements from 6-8 to as high as 15.

• Dan Campbell explains ROAS:

  "If I spend $100 and my ROAS is 8, I'm getting $800 in sales. If it's 12, I'm getting $1,200." [23:43]

He highlights the importance of creative assets and continuous optimization to maintain high advertising efficiency.

6. Balancing Trade and Direct-to-Consumer Markets

Benchmade Modern is expanding its reach into the trade sector, recognizing the importance of designers in driving sales. By employing dedicated representatives who understand both the product and the industry, they’ve increased trade business from 2% to 10%.

• Dan Campbell on trade growth:

  "When a designer starts using it and understands it, they're buying two sofas a month because they're like, this works, this is easy, it takes no time." [28:51]

7. Challenges in E-commerce Furniture: Freight and Logistics

One of the significant hurdles Benchmade Modern faces is managing freight costs. Despite offering flat-rate shipping, the escalating costs of delivering large furniture pieces require the company to absorb excess expenses to maintain competitive pricing.

• Dan Campbell discusses freight challenges:

  "We're consuming the excess freight because it is. It does cost way more than we charge." [35:32]

Dan underscores the complexity of ensuring reliable delivery while keeping costs manageable for consumers.

8. Emphasizing "Made in America" and Supply Chain Resilience

Benchmade Modern prides itself on its "Made in America" model, employing over 2,000 craftspeople and maintaining vertical integration to minimize reliance on external suppliers. This strategy not only supports local manufacturing but also mitigates risks associated with global supply chain disruptions.

• Dan Campbell on the American supply chain:

  "Everything is made here... we really try to work with as much as possible, all us, because we survey people that buy from us, and they care about it." [38:33]

9. Product Design Trends and Consumer Preferences

Dan observes shifting consumer preferences, noting a dramatic move away from gray towards warmer tones like tan, green, and unique hues such as "zinnia" (a rust-like color).

• Dan Campbell on color trends:

  "The sales we were seeing in every shade of gray has probably gone down 50%. And then every shade of tan has taken that up." [44:15]

He highlights the importance of adapting product offerings to align with evolving aesthetic preferences.

10. Strategic Partnerships and Branding

Benchmade Modern collaborates with lifestyle influencers like Eva Mori to create authentic, relatable branding. The partnership showcases how products integrate seamlessly into real-life settings, enhancing consumer trust and engagement.

• Dan Campbell on the Eva Collection:

  "She does a lot with the home, but she's also a mom and a wife, and she talks about how the furniture actually is part of her life... that authenticity resonates with people." [46:15]

11. Future Vision and Expansion Plans

Looking ahead, Dan envisions Benchmade Modern becoming a nationally recognized source for custom upholstery, with plans to establish physical showrooms in key markets like Dallas and Chicago to enhance customer experience and brand presence.

• Dan Campbell on future goals:

  "My goal or objective would be to become a truly known source for custom upholstery... having 10 to 15 locations would be a great way to help people understand what we do." [49:10]

12. Conclusion

Dan Campbell's leadership at Benchmade Modern exemplifies a harmonious blend of traditional industry expertise and innovative digital strategies. By prioritizing quality, embracing customization, and effectively navigating the challenges of e-commerce, Benchmade Modern is setting new standards in the DTC sofa market.

Notable Quotes:

• "Don't let best get in the way of better." – Dan Campbell [07:31]
• "It's the design that matters most to the consumer." – Dan Campbell [16:28]
• "You need both... be digitally savvy and have people who care." – Dan Campbell [32:11]
• "We're just pushing through our plans, and they've all worked." – Dan Campbell [42:30]

This episode offers valuable insights into how traditional industry experience can be effectively leveraged within the modern DTC framework, providing a blueprint for success in the competitive world of interior design and furniture manufacturing.