The Best Kept Secret

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Alex Nemet will celebrate the 10th anniversary of his Northeast Factory Direct this year. In that time, he’s won the Weatherhead 100 Award for Fastest Growing Business—three times. Photos by Benjamin Margalit

Alex Nemet will celebrate the 10th anniversary of his Northeast Factory Direct this year. In that time, he’s won the Weatherhead 100 Award for Fastest Growing Business—three times. Photos by Benjamin Margalit
“My formula is simple. I deal in volume and we don’t have a fancy showroom floor. By keeping costs down, I save my customers thousands.”

Northeast Factory Direct carries everything from leather sectionals to outdoor pools—for thousands below regular retail prices. Here’s how they do it.

By: Beth Newcomb
Date: 06/03/2008

Here’s a little something most big box furniture dealers don’t want you to know. Northeast Factory Direct sells items like sofas, sectionals, bedroom suites, hot tubs, pool tables, pools, mattresses, outdoor fireplaces and accessories for way less than you’ll find at any other store in the area.

But it’s a secret.

“We’ve been in business for just under 10 years and most of our customers have come to us by referral,” explains Alex Nemet, owner of Northeast Factory Direct, a bare bones, 25,000 square foot, brightly lit warehouse setting that houses an extensive selection of some of the same furniture and leisure items that Alex says can be found at a number of large furniture stores, but with one significant difference: His items are priced at thousands of dollars below regular retail.

And to keep costs down, Alex has eliminated the pomp and circumstance found at other stores.

“My formula is simple,” he insists. “I deal in volume and we don’t have a fancy showroom floor. I’ve cut out the expensive overhead and my staff doesn’t work on commission. There is never any pressure to buy and I encourage customers to check around at other places to comparison shop. I do that because I know they’ll be back. The big guys don’t like me, but my customers sure appreciate the savings.”
Most days Alex helps unload the shipments himself and everyone is dressed in polo shirts instead of a suit and tie.

Like most entrepreneurs, Alex started out small and grew as the demand for what he could offer increased. “I started with one dining room set and worked out of a friend’s garage. I knew I was on to something because I ran out of room, fast,” he recalls. “It didn’t take me long to realize that I could be just as successful buying in volume and offering products for a few hundred dollars above my cost, as I could if I were selling the same thing and making a few thousand dollars like the big stores do. Everyone loves to get a deal.”

In fact, Alex’s brand of doing business has been so well received, he’s won the Weatherhead 100 Award for Fastest Growing Business three times. “Other stores would like our customers to believe that we’re a fly-by-night operation because of the savings we offer, but I think our track record speaks volumes about us,” Alex adds. “I only buy high quality products and we get very few returns.”

They also offer a 100-percent satisfaction guarantee.

In a time when others stores are looking for ways to muddle through the economic crunch, business at Northeast Factory Direct is up 30 percent. “People are looking for value, particularly now. We are without question the best value,” he insists.

And here’s just one reason why. A six-person hot tub that comes fully loaded with two pumps, 50 stainless steel jets, LED lighting and a waterfall, typically retails for $7,000. At Northeast Factory Direct you can get it for just $3,800. “I’ve recently become an authorized dealer for Dimension One,” Alex says with pride. “They’re the Mercedes Benz of hot tubs. Unlike other dealers, we’ve got more than 60 hot tubs in stock, ready to go.”
Looking for a new bedroom set? Northeast Factory Direct offers their Manhattan Bedrooms set—which includes a queen-size bed, dresser with mirror, chest and nightstand with dovetail drawers, wood on wood drawer glides, chrome hardware, and felt lined top drawers—for just $1,595. A super thick pillow top queen-size mattress and box spring that normally retails for $1,200, is just $399.

The 10-piece Louis Philipe dining suite includes a dining table and leaf, set of six upholstered chairs, lighted hutch and a buffet for just $1,595. Elsewhere, expect to pay $4,995 for the same thing.

New this season at Northeast Factory Direct are the above ground pools. A stunning 24-footer, complete with pumps, filters, a ladder, and a 40-year warranty, would normally cost you $3,600. They’ve got it for just $1,695. You couldn’t take a family vacation for that amount of money. But at that price, your entire clan, including the in-laws, could be splashing around in your new pool for the entire summer. You might even take the savings and splurge on a new pool table, because they’ve got those, too, starting at just $995.

And if keeping the family entertained is what you had in mind during the warm weather months, then add a shuffleboard game for just $995, a foosball table for $100, and a three-in-one poker table and chairs for just $999. Finish that media room with leather theater seating starting at just $999 and you’ll have enough money left over to splurge on the high definition big screen you’ve been longing for.

There are a number of leather and micro-fiber sectionals, couches, chairs and loveseats to pick from in colors to suit most decorating styles. 

“We keep things simple here, but we know that every person who walks through the door has their own unique style,” Alex describes. “To appeal to everyone, we offer accessory shopping primarily through our catalogs. There are hundreds of items to pick from and customers can still realize a significant savings. It’s just another way for us to keep our prices down.”

It’s also important to note that Northeast Factory Direct is not a club and there are no membership fees. It’s just a simple format for presenting customers with a simple way to save huge amounts of money.

But if it makes you feel better, you can bring a fancy latte to sip while you shop—just for the effect.

Northeast Factory Direct has two locations. Find them at 3321 W. 140th Street in Cleveland. The phone number is 216-941-7727. In Eastlake, the address is 33599 Curtis Blvd. and the phone number is 440-942-7945. Hours are Monday through Friday from 10:00 a.m.-7:00 p.m., Saturday and Sunday from 10:00 a.m.-5:00 p.m. Other times by appointment. Get directions from anywhere when you visit the website at www.NortheastFactoryDirect.com.


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Northeast Factory Direct

3321 W. 140th Street
Cleveland, OH
216-941-7727
www.NortheastFactoryDirect.com
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