Refusing to place your shops in prime retail space might sound like madness to many but the strategy has meant a high volume of business for local electronics chain Audio House.
Audio House's founder and guiding light, Mr Alvin Lee, is living proof that in business, sometimes less can mean more and that size doesn't always count.
His against-the-grain approach has built a multi-million-dollar business - turnover last year was $50 million - that operated out of just one store for its first 15 years.
That store was carefully located away from Singapore's coveted retailing zones.
Mr Lee, 42, told The Straits Times that he defied conventional retailing wisdom by avoiding those high-rent enclaves.
'I did my calculations and decided against locating my store in the main shopping areas,' he said.
'With what I saved on rent, I channelled into marketing campaigns and other cost-savings for my customers because I strongly believed that it would be better for business.'
Location, however, was still never too far from his mind.
After leaving school at 16, Mr Lee worked for a cousin running an audio equipment sales business at Albert Complex.
That was his first real job and, despite enlisting for National Service two years later, he continued to work part-time for his cousin.
But after logging more than seven years as a salesman, he decided to strike out on his own.
'Audio House first started life as T&K Electronics in 1990,' said Mr Lee, the firm's managing director.
'I used all of my savings - amounting to about $30,000 - to set up the business at a 300sq ft shop unit in Fu Lu Shou Complex.'
He chose Fu Lu Shou Complex because of its proximity to the Rochor Road area where many foreign workers congregate.
'Fu Lu Shou was near the bus services which many Malaysian and Thai workers used to return home,' he said.
'On their way, they would want to buy items like Sony Walkmans and hi-fi stereo sets, which I sold at lower prices because my rent was low.'
Two years later, Mr Lee spotted another emerging shopping area in the Tanjong Katong-Geylang area and moved his store to City Plaza, only to encounter another challenge commonly faced by smaller retailers here.
He found that if he could procure goods directly from manufacturers, he would not have to pay the middlemen or agents who always took a piece of the action.
But that was easier said than done.
'When I approached the manufacturers, they told me that because my agent was also a customer, they could not deal with me directly as it would mean they are stealing my account from the agent,' said Mr Lee.
'So to get around that, I changed the name of my company in 1994 to Audio House and dealt directly with the manufacturers as a different business entity to get around the problem.'
Business was thriving and it was only a matter of time before the store outgrew the City Plaza unit, particularly as there was not enough space to display electronic goods at the Guillemard Road mall.
'Initially, we could hold roadshows at the mall's atrium right outside my unit, which was even smaller than my first shop at Fu Lu Shou,' said Mr Lee.
'But after some time, the management decided that they did not want to allow us to monopolise the space. That prompted me to look for a new location with more retail space.'
The search turned out harder than he expected.
It was only in 2001 - almost nine years after he moved to City Plaza - that he finally found a location that offered him the space he needed - at the SCN Industrial Building in Sims Drive. Not exactly retail territory.
'My family members asked how I was going to attract customers to my store in an industrial estate,' said Mr Lee, a dad to two girls, aged four and three, and a nine-month-old boy.
But he stuck to it, confident that he could draw the crowds.
'I believed that in retail, there are two ways you can depend on for customer traffic: One is to locate your store in a mall to get a share of its traffic.
'The other is to attract them to come because they know they can get a good deal wherever you are located.'
To draw customers to the 3,000 sq ft store, he organised midnight sales - a first in Singapore then.
He sold rice cookers and electric fans for just $9.90 - a bargain for items that usually cost about $30.
Buyers turned up in droves and he made a pretty penny. The success got him thinking about the next stage of growth.
'The larger, multinational brands like Courts and Best Denki were setting up many branches in Singapore at the time,' said Mr Lee.
'And I knew that if I didn't do something fast, I'd end up as a small fish being eaten up by a big fish.'
His response was to set up his first mega-store in the city. The Liang Court outlet was only the second Audio House branch in Singapore.
And as a way to ensure that he could offer something other retailers couldn't, he engaged the services of a research agency to conduct a market survey.
'The survey found that all customers - no matter what income group they were from - wanted three things when they shopped,' said Mr Lee.
'They are low prices, quality service and range of products - so my goal was to ensure the company delivered on these.'
Today, aside from offering a wide range of electronic products, Audio House remains the first in the electronics retail business that gives all customers a money-back guarantee.
'Our guarantee is not only on our low prices or quality of products, but more importantly, it's on service,' said Mr Lee.
'We all know that we can, more often than not, expect good service when we are at the store wanting to buy something. But what I found lacking was the quality of service rendered after the sale was closed.
'Now that's even more critical when you want happy customers and that is the guarantee that makes Audio House truly unique.'
Service seems to be the main theme of Mr Lee's customer-centric initiatives at Audio House.
And it is also a key reason his store number will 'not be more than three' here.
'Singapore is not a very large country; people get from one place to another easily so there really isn't a need to saturate the market with stores,' he said.
'Plus, it will enable us to better control and maintain the high service standards Audio House promises to deliver.'
In July, Audio House revamped and expanded its Liang Court branch. The outlet now covers 50,000 sq ft.
It includes special concept corners housing niche audio and video products and Singapore's longest high-definition TV wall.
The firm, which started with just one employee in 1990, now has a staff of more than 100 and, according to Mr Lee, is on course to achieve its target turnover of $65 million this year.
This article was first published in The Straits Times on September 17, 2008.
