The U.S. furniture industry operates in a multi-tier distribution system that starts with the manufacturer (or importer). The factories sell, directly or via distributors, to the furniture retailers who then sell to the public.
A typical retail furniture store must maintain warehouse inventory and a showroom, commission sales people etc. and incur a fairly high overhead. For this reason it is normal for a furniture retailer to maintain a high markup. A typical piece of furniture that has a “suggested retail” of $500 will usually cost the retailer $175 or so and actually sell for about $350. Ever notice how furniture is always on sale? That’s how it works. It is safe to say that notwithstanding sales and discounts, retail furniture prices are usually about double the wholesale cost.
The best way to save big money on furniture is to have a close relative in the furniture business that will sell it to you at cost. This may make it possible to get furniture at a ridiculously low price. If this is not an option for you, check online for better pricing. Some online furniture stores like RealGoodFurniture.com have very low overhead and sell furniture with a very low markup saving you hundreds or even thousands of dollars.
Buying furniture online can allow you to spend much less, and it can also allow you to upgrade to a higher quality of furniture for the same price. For example, online furniture discounter RealGoodFurniture.com sells high quality solid wood furniture at about the same price as laminate-over-fiberboard furniture would cost at your local furniture store.
And as always, it makes sense to be cautious when making a major purchase online. Select online retailers who publish and honor a proper privacy policy, and who accept MasterCard and Visa. Both MasterCard and Visa will protect you from fraud and refund your money if there is a problem. If possible don’t send a check, money order or wire-transfer when ordering furniture online, or you will miss out on the protection offered by these credit card companies. Using PayPal also provides additional protection. Also, be careful of online furniture stores that ship freight-collect. Deal only with retailers who include the shipping in your price so you will avoid any surprises on delivery. |
