Asadorian Rug Co. imports and sells some of the finest Oriental rugs
St. Louis Business Journal - April 6, 2001by Ron Janecke
Business activity: The lifting of the United States embargo on certain goods imported from Iran, including Persian rugs, has opened another door for Asadorian Rug Co. Inc.
The third-generation, family business that imports and exports Oriental rugs is run by Rich Asadorian and his cousin, Stephen. They work out of their showroom on Natural Bridge Road, near the University of Missouri-St. Louis campus.
The showroom has a large selection, ranging from mats to 14- by 27-foot rugs. The average size sold, 9-by-12 feet, sells for about $4,000. The company started selling imported rugs about 85 years ago.
"You can basically add a zero to the costs of rugs today, compared to what they sold for when my grandfather ran the business," said Rich Asadorian. "Those $200 to $300 rugs now cost from $2,000 to $3,000."
An inventory at the end of January showed Asadorian had 7,000 pieces in the store, including rugs being repaired or cleaned. Restoration and repair is a key component of the business.
Asadorian picks up the rugs and does the work at its Bel-Nor location. Everything is repaired, from burns to damage done by flower pots to areas chewed by dogs. Oriental rugs are extremely durable and can go six or seven years without being cleaned.
Four times a year, Rich Asadorian travels to the Far East to order rugs and to see the latest products being handmade by weavers. In August, he visited Nepal for three weeks, traveling to remote villages where women spend their entire time weaving, eating and sleeping in a community.
Asadorian has established relationships with agents, who scout markets before he makes the trips. He pays agents and shares them with other rug dealers whom he has gotten to know. His travels have taken him to India, China, Egypt, Pakistan, Turkey, Romania and Nepal. He's also been to Hanover, Germany, one of the biggest rug markets in Europe.
"I try to learn enough about the country and the various tribes so not to show my ignorance," Asadorian said. "When I'm in one of these villages, I eat and drink what is offered me so I don't offend them."
Shipments of 30 bales each, averaging seven to 10 rugs a bale, are imported four times a year.
During the Iran import embargo, Asadorian was used as an expert by U.S. immigration officials. They brought him rugs confiscated at the airport to see if the rugs had been imported illegally from Iran.
Besides retail sales in St. Louis, the company sells rugs wholesale to dealers in Atlanta and on both coasts. A large percentage of the business locally is in the St. Louis metropolitan area, with much of it in west St. Louis County. Customers also come from Carbondale, Jefferson City, Cape Girardeau and Kansas City.
Executives: Rich Asadorian, 49, is co-owner and in charge of imports and sales. A native of Granite City, he graduated from Eastern Illinois University in Charleston in 1973 with a degree in business and finance management. After living in an area of Granite City where there is an Armenian community, he moved to Missouri with his wife and two sons two years ago.
His cousin, Stephen Asadorian, 32, is co-owner and in charge of the restoration and cleaning side of the business. A graduate of McCluer North High School, he entered the family business in 1986.
The other full-time employees are Dave Ellis, who has been with the firm 49 years, and Teo Brick, a native of Bosnia. Ali Shirazian, a native of Iran, weaves part- time restoring rugs.
Company history: Rich Asadorian's grandfather, Stephon, emigrated from Armenia in the early 1900s. One of four brothers to come to the United States, he went to Granite City to work at the American Steel Foundry.
He also began doing repair work at night on rugs for May Department Stores and Scruggs, Vandervoort and Barney and in 1926 opened the first Asadorian store, featuring elegant oriental rugs. He also had a brother in New York who sold rugs when New York served as the port of entry in those days.
Rich's father, Edward, and his uncle, Higus, took over the business from the founder, with Edward joining the company in 1944 after serving in World War II.
When Rich graduated from college, he entered the business. "I came in with my own ideas about how to run the business, and my dad and uncle gave me just enough rope to hang myself."
Asadorian was helped by the strong economy in the late '90s and in 2000 and by a trend to more hardwood floors in homes. "In the 1950s, everyone went for broadloom carpet," he said. "With the development of new coatings to treat hardwood floors, more people wanted hardwood floors. The boom in new housing also helped us."
Revenue: Sales hit $1 million in 2000, a growth of 8 percent over 1999. Revenue jumped 12 percent from 1998 to 1999.
Professional services: Lee Koch at First Bank handles financial dealings; Pat Badalamenti of Badalamenti & Associates is the accountant; Laura Slay at Laura Slay & Associates Inc. does public relations and marketing. Asadorian does not deal with a law firm on a regular basis.
The future: April 28, the company will have a showing of rugs from Iran, including collectibles made by villagers. Asadorian also plans to revisit Iran later this year, now that the embargo has been lifted.
rjanecke@bizjournals.com"
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