Every day is Small Business Saturday at Bailey’s Discount Center in North Judson.
It started with some kerosine heaters and an hour after a hard day’s work at the factory.
Mark Bailey was just 20 years old when he came up with a crazy idea: start a business selling bargain items out of a small building in the middle of nowhere. If he could make more money in one hour selling close out heaters door to door than an entire day working in a factory, he could make it work, right? He noticed that people jumped at the chance to score a deal and he had the passion to see if he could do it full-time.
Brother Matt and Mark pose at the original Bailey’s Discount in the early years.
So he did what most people do when starting a business – ask his 15 year old kid brother Matt for help and start filling that in the middle of nowhere building with any bargain they could find.
Turns out, that crazy idea wasn’t so crazy: 38 years later, Bailey’s Discount Center is still arguably in the middle of nowhere – about 5 miles east of North Judson, population 1712 – but their now 200,000 sq. ft. building provides eight times the retail space and has grown from two brothers making ends meet to a staff of more than 100 people.
The original “off the beaten path” Bailey’s Discount store circa 1985.
In 1985, their biggest challenge was building connections to find those bargain items to fill the shelves. The first few years that process was slow, but thanks to grandpa Beecher’s smattering of experience selling mobile homes and railroad salvage close-outs, the three had a solid foundation. They started to visit trade shows and pitch their niche business model – sell any bulk or closeout item, no matter how obscure or unique, at a discount price. Business started to pick up: manufacturers liked Bailey’s out of the way location because they could hand over closeout items to the Bailey brothers who in turn could sell those items for a large discount at an out of the way location without upsetting their regular customers.
Bailey’s had no problem finding their own customers. They came from all over – driving south as far as two hours from Chicago and 2 hours north from Indianapolis. The concept of their business created a fun and exciting shopping experience. Not only are customers guaranteed to find a deal, but they also never know what kind of niche product they might find at Bailey’s – and they had better buy it right now, because this might be their last opportunity. That’s no joke – a lot of what you see at Bailey’s Discount won’t be made ever again.
Mark in the original store circa late 1980’s.
From retro refrigerators to boutique coffee in a can and weighted plush animal sets for people with sensory disorders to men’s blazers and dress pants, you really can find just about anything at Bailey’s. Every item is guaranteed 40-60% off retail price.
Mark’s son Dalton compares Bailey’sshopping environment to Costco or Sam’s Club, at a fraction of the cost and without any membership fee. The idea is that anyone can walk in their doors at any time and score a deal.
That approach keeps Bailey’s relevant no matter what the economy looks like. When times are good people have fun finding a deal and when times are not so good, they shop at Bailey’s because they now rely on those deals.
A deal every day, no matter what day. From the beginning, Bailey’s has steered away from running specials. Their “close” customers drive an average of 45 minutes to shop. But on the weekends, some customers spend so much time just getting to Bailey’s (up to 2 hours) that Mark didn’t want them missing out on a special because they couldn’t make it in that day.
Church chairs are just one of the close out items you can find at Bailey’s Discount.
Mark, Matt and Dalton appreciate the idea of Small Business Saturday – a day dedicated to shopping at local small businesses – but shouldn’t every day be a good day to shop small?
Dalton started helping his dad with the business when he was just 7 years old. He remembers the excitement of traveling to trade shows, where he learned the art of building business relationships and what products would likely fly off the shelves back at Bailey’s.
38 years after opening, Mark and Dalton still rely on those relationships. It’s a full-time job – Dalton attends about 40 trade shows every year, where he pitches Bailey’s business model to find new and unique products. The relationships are key: their portfolio of clients know that when they have excess product sitting around, Bailey’s Discount Center will take it off their hands.
Medical scrubs are another item you can find at Bailey’s.
Dalton’s grandfather Beecher, now 80, is a still a fixture at Bailey’s. He walks the floor every day and loves being involved. Three generations of Bailey men share office space on the second floor of the store and take advantage of the close quarters: all three Bailey’senjoy hearing the other’s opinion on a deal they’re working. Dalton calls it a fun environment – not every family can say that!
Bailey’s also has a strong social media presence. Customers can now see a few deals highlighed every week on Bailey’s shelves before they walk through the doors. The store has 50,000 followers on Facebook – new customers on the hunt for a specific item that will likely return for another great deal.
What started 38 years ago as a crazy idea is now a solid business model. Everybody loves a good deal, and the Bailey family has perfected the art of finding those deals. What is now third generation family business has the legs to span many more.
