2008 Dynamic Dozen, No. 12: Covenant Church Furniture

When Blake and Debbie Souter bought Covenant Church Furniture in 2004, they knew adding national sales reps was imperative. Their vision has paid off.

The Ozark-based manufacturer of solid-wood church furniture has increased revenues each year under the Souters, hitting roughly $3.8 million in 2007. Since 2005, when Covenant posted revenues of $2.2 million, revenues have grown 74 percent.

“All businesses are the same,” Blake Souter said. “You just make a different product.”

The Souters should know. They have owned a vending machine route, and janitorial and medical-transcription services. They had sold the latter two in 2004, right before buying Covenant from Ron and Karen Dodd and their son, Ronnie.

“We were looking for our next opportunity … and this became available,” Souter said, noting that Ron and Ronnie Dodd still work for the company. “It was the most incredible win-win … sale you could ever imagine.”

Covenant is distinguished by its solid-wood products, from pews to pulpits, said David Cannon, Covenant’s Texas-based outside sales rep, one of eight based around the country. A lot of other church furniture, Cannon said, isn’t all wood, and it’s sprayed with a veneer.

Covenant’s use of solid wood in its products, and particularly, its pews, helps the company stand out in the marketplace, Cannon said.

“ … It’s truly a pew that grandma and grandpa sat in 100 years ago,” he added.

With Covenant’s hand-applied stain, Cannon said, “You can just let the wood speak for itself.”

Cannon credits much of Covenant’s success to Blake Souter’s open-mindedness.

“If you come to him with an idea, he says, ‘We can do that,’” Cannon said.

Even pews can be innovative, he added. The average pew height, for instance, is 32.5 inches, but Covenant will increase that to 35 inches.

“It’s an awesome idea, and it has just really impacted our sales,” Cannon said. “I show it as a standard. It’s not an upgrade. It’s just something that separates you from something else.”

He added: “You can make a great product and you can have a great marketing effort in the marketplace, but it really does help if the ownership has a can-do attitude.”

Souter runs Covenant the same way he’s approached other endeavors.

“You need to show up on time, be above reproach in your business and treat your customer and employees with respect,” Souter said.

Recognizing that some churches – especially those going for a more contemporary look – won’t install pews, Covenant plans to start selling theater seats as a dealer.

“We’ve been looking for a quality theater seat. … It complements our pew, because we think we make the best pew, and we’re confident this is the best theater seat,” Souter said.

In July 2007, Covenant was certified through the Safety and Health Achievement Recognition Program by the Occupational Safety and Health Administration. SHARP certification recognizes exemplary safety and health management systems. A precertification inspection identified 16 hazards, all of which the company remedied to join the roughly 25 other businesses in Missouri that have SHARP certification.

In addition to safety issues, controlling costs and waste is an ongoing challenge, but Souter believes his company will continue to grow.

“Last year, I said I can’t wait ’til December to see where we’re at. I said that this year (too).”

Information accurate at the time of the honor.