Why should you invest in furniture?
Why should you invest in furniture?
I would like to explain in this article why it is still profitable to invest in furniture, even if the market is full of big chain stores, and how can you make it work.
Every now and then, I hear from some of my contacts that big chain furniture stores are “eating them alive” with their low prices, discounts and cheap furniture, but hey!, there are still a lot of customers who want to buy good quality furniture that are more durable or unique. But not finding these customers is the big secret of having a profitable business, but teaching them about value and the difference between your prices and chain store prices.
Most people don't realize that home furniture has a 200% to 400% markup on it. And this is how the big chain stores became so big. So when these big stores advertise in the local papers with 50% off MSRP (manufacturer's suggested retail price), they still double their investment. Not only that, but many stores advertise their sale prices are 50% off MSRP, yet if you dig a little deeper, you might find that they never sold the pieces at MSRP to begin with, so they are really just dropping their price maybe 5 to 10%.
But this is not the case of small local furniture stores, as they sell their products at a lower profit margin, and sometimes even without much profit left in order to stay in the game.
So how can these small stores survive?
Firstly, ADVERTISING is a must. Even if you don't have considerable budget to invest in advertising, in this internet era you have many options to promote your store and products for just pennies. You can choose between numerous social/ sales portals or create a personal website. Advertising is really the heart of selling, so it should never be neglected if you want to be successful.
Secondly, it is very important to inform the customer about the differences between you and a competitor. It is also very important that you show value to the customer and for that you need to evaluate and to know your values. To know what are your strong points and weak points in business and to try to work on the weak ones; - if you are located in a bad area with small visibility at your store, find a new location and move, if your products dated find a new source and always keep up with the market changes. Investigate the area from where your customers come from and see what they need: if they like modern furniture more or different style of furniture etc – and you can find a lot of information if you ask, make research and study the market. My customers who are successful in this business always know which offer is good for their target clientele and which isn't. They know what furniture style they can sell, at what prices and where.
And the best news is that we can help you always with different furniture offers, different prices, different style, suitable for every market and every budget - and this is a proven fact; our long list of regular furniture buyers from all over Europe, Africa and even some parts of Asia prove the profitability that exists in our offers and in furniture business even for smaller shops.
You can purchase different quality furniture between 15% – 30% of their retail value, where you can “play” with the prices, you can sell them at a higher price or cheaper, depending on your market, because you will still have margin for profit.
So, what are you waiting for?! Check our offers and contact a sales manager who can definitely help you to choose the most suitable offer for your needs.
Get in touch with us TODAY and start making profit with exquisite models and premium quality furniture!
Török Cecília Ágnes
International Sales Manager
ATTRACTING REAL LEVERAGE Ltd