Necessity really is the mother of invention for Nashville entrepreneur Nick Ray, who has turned IKEA’s lack of presence in Nashville into a positive for local lovers of the Swedish superstore.

ModerNash Furniture Supply travels to the Atlanta IKEA every two weeks with orders from Nashville, saving local consumers money on gas and IKEA’s costly shipping rates.

The company does not charge more for IKEA items. Instead, it makes money on shipping, design consultation, assembly and installation. Shipping costs can run from 10 to 40 percent of the order, depending on size.

Consequently, Nashville shoppers often combine to place an order making ModerNash the Atlanta store’s biggest customer, Ray says.

“We can’t beat all their shipping rates, but most of the time we do,” Ray says. “We have families that get together and all decide what products they’d need. We ship everything from a 20-cent cup to a $20,000 IKEA kitchen. We think the service adds value because IKEA ships less than half of what they offer. The other half you have to go the store to get.”

The company recently updated its website and, last November, installed a bricks and mortar showroom at 3656 Trousdale Drive that features some of IKEA’s most popular items. Consumers can either order in the store or go online (modernash.com) to use the company’s custom application.

After a customer downloads ModerNash’s app, they can go to IKEA’s site and drag the item to ModerNash’s shopping cart. The program calculates ModerNash’s total costs, including shipping.

“One of their most popular bookshelves costs $70,” Ray says. “We charge $28 to ship it and IKEA charges $200 to ship it. But if a customer ordered 10 of those bookshelves, the cost of shipping would go down to $18 per bookshelf.”

However, about 35 percent of ModerNash’s profit is through design, assembly and installation. The “self-serve” IKEA model provides neither assembly nor installation services.

Those ancillary services may be the thing that grows the company well beyond its first outings to Atlanta just to get furniture and household goods to craving Nashvillians.

Aimee Spencer, resident manage of Sterling Court Apartment in the Hillsboro/Belmont area, is updating the complex’s units using ModerNash and its installation and design services.

“We’ve remodeled about six kitchens,” Spencer says. “Just as much as the products and the service [of ModerNash], we just really particularly enjoy putting IKEA cabinets in. We wouldn’t be able to get a contemporary kitchen without spending thousands of dollars more.

They knew the challenge we had in taking small dimensions in these kitchens we have that are pretty teeny tiny. They found cabinets that would work in these rooms where we could maximize the drawer space and cabinet space and keep it extremely functional.”

Ray founded the company in 2007 with wedding photographer Dave Molnar, who sold his share to Ray when his other business began to flourish. Now Ray partners with his wife April, who handles the financial end. His sister Aleesha McDonald is the company’s design expert.

ModerNash also offers design, assembly and installation of bed and bath, living and dining room areas as well as corporate design and installation, but the demand for IKEA kitchens remains high as they are normally less expensive than those of other big box stores. They also are considered hipper.

But will the population of Metro Davidson County lure IKEA in the near term? Ray says he doesn’t think so, but when, or if, IKEA does come, his business model will be well-placed.

“IKEA will come to Nashville, but it might me in 10 or 15 years,” Ray says. “We’re growing, and it’s going to hit the market sooner or later, but the way that we have built our business model is preparing for IKEA to come.

“When they do come to town, there’s going to be a massive need for assembly and installation, and we’ve got the upper hand because we’ve been doing it for nearly five years.”

IKEA’s stance leaves regions even relatively close to an IKEA ripe for a similar business model. Many mid-sized cities, such as New Orleans with a population of about 1.2 million, have no IKEA. Consequently, satellite IKEAs are cropping up but not on the level of ModerNash, Ray maintains, given that the company created its own in-house, point-of-sale system.

After a phone call to ModerNash, the similar Las Vegas concern, ModernLV, copied much of ModerNash’s site design down to the same FAQ section. Ray says he didn’t know whether to be flattered or angry but notes that he’s getting phone inquiries constantly.

“I get phone calls on a weekly basis,” Ray says. “I’ve got about eight cities that I am interested in. One of the goals with this model is really to develop it into a franchisable model. IKEA has amazing vision in design, but what they have missed out on is the smaller markets.”

“Secretly, one of my dreams is that IKEA would eventually recognize the model and say ‘Hey, you guys have figured this out. You’re serving the customers well. You’re building our brand. You’re building our business. Let us help you, or, better yet, let us buy this from you.’”