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Are furniture stores profitable?

Discussion in 'General Business' started by adrian88, Jun 24, 2007.

  1. #1
    Hello.

    I am curious.
    Are furniture stores profitable?
    It seems like they have a lot of overhead.
    Big store space.
    Lots of sales people that just stand there doing nothing.
    And people only buy furniture once every 10-20 years usually, right?.
    Lots of competition.
    Then there is Ikea.
    SEMrush
    What do you guys think?
     
    adrian88, Jun 24, 2007 IP
    SEMrush
  2. EGS

    EGS Notable Member

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    #2
    Yeah, I discussed this with my grandma the other day. It must cost them not even $100 for the furniture and they turn around and sell it for $1000-$3000.

    Big profits, little expenses.
     
    EGS, Jun 24, 2007 IP
  3. chant

    chant Well-Known Member

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    #3
    You know, now that I think about it how are furniture stores profitable? I know of one store that just sells furniture and has been there forever and a second store that opened up a couple of months ago and is now closed and out of business.

    The more specialized the furniture store is (if it caters to a certain market or demographic) the better I think its chances are for staying in business once word gets out about it.
     
    chant, Jun 24, 2007 IP
  4. gordi555

    gordi555 Active Member

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    #4
    Must admit, had a friend open a high-street store selling really good furniture and went out of business pretty quickly. Seems like a hard question to answer really!
     
    gordi555, Jun 24, 2007 IP
  5. drpepper

    drpepper Well-Known Member

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    #5
    it would depend i guess on your location, your pricing and target market. even if you're selling for just once in a month or so, but the amount of furniture you sold is worth like millions, i guess its profitable! knowing that furnitures are just made of metals, woods, etc... its profitable espe if you are the one providing the furnitures...
     
    drpepper, Jun 24, 2007 IP
  6. mgrohan

    mgrohan Active Member

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    #6
    In the office market i assume sales are bigger and hence more profitable, but as a high street shop seeing home furniture i can't see how many can survive.

    Plus i don't think margin as that high to say they are buying for under 100 and selling for thousands. Leather furniture is not cheap at manufacturer prices or wholesale prices.
     
    mgrohan, Jun 24, 2007 IP
  7. R0b

    R0b Peon

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    #7
    They can be, if you can sustain the negative cash flow in the beginning. I had a friend that ran a furniture store. The first time I went over there, he showed me a bed frame and said that most places charge $700. He charges $300. It cost him $50. Crazy. The margins on furniture are huge. But, you also have to buy enough to fill up your store, which may cost tens of thousands of dollars.

    I would say it's a great business to get into, if you have enough cash to lose money for the first year until you can get your name out and sales pick up.
     
    R0b, Jun 25, 2007 IP
  8. ovuh

    ovuh Peon

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    #8
    If they weren't profitable, then they wouldn't exist.

    It would take a lot of money to start up and get word out, but if you have an eye for good products then I don't see why you wouldn't make money what with the product markups being so high. There seems to be a lack of places selling actual high quality furniture and not pre-assembled stuff.
     
    ovuh, Jun 25, 2007 IP
  9. music_city_bound!!

    music_city_bound!! Peon

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    #9
    My friend Steve bought a already established furniture store & factory for 2.5 mil. and he's grown the business even while he's out having cancer treatment done.

    So I guess the answer at least on my end is YES! lol

    He's doing very well!

    His best sellers are the duplicates of antique furniture!

    I can't think of the word for it right now, it's still early and my brain isn't switched on yet! lol

    Later,
     
    music_city_bound!!, Jun 25, 2007 IP
  10. cintasejati

    cintasejati Active Member

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    #10
    Furniture business always give new opportunity , almost furniture store still profitable until now
     
    cintasejati, Oct 20, 2019 IP
  11. Mike2718

    Mike2718 Greenhorn

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    #11
    I like discount outlets - they always draw my attentions.
    There are a lot of chains which are profitable, for sure. E,g, Bob's Discount Furniture
    Ashley HomeStore is profitable for sure.
    There is a store next to me. They sell used furniture and appliances. Here is their business model. For example, when somebody buys a fridge, they take the old one for extra $50. Then they clean it and sell it. I saw some fridges like these and I was surprised that they look like new. Sometimes people buy a new model and they just need to get rid of the old one, but the old one is still in good shape.
     
    Mike2718, Nov 18, 2019 IP
  12. KylieSweet

    KylieSweet Well-Known Member

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    #12
    Furnitures store are still profitable if you properly market it to the right audience. Try to established a blog about your great and interesting furnitures features them in a blog post that describes lots of benefits to your audience.
     
    KylieSweet, Nov 20, 2019 IP
  13. NetStar

    NetStar Notable Member

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    #13
    Furniture Stores are profitable because of several reasons:

    1) HUGE mark up. The couch that you pay $1,100 for does not cost nearly as much.

    2) Commission based Salespeople drive the sale. Meaning, workers with the "gift of gab" will convince you to buy, make you internally feel obligated to buy and/or apply a bit of pressure to buy when there is a bit of doubt in your mind on purchasing. Since there are HUGE margins a big discount can trigger an impulse decision or justify the on the spot purchase.

    3) Buying furniture online SUCKS. You can't see it or feel it before the delivery and the delivery must be arranged. It's a process to order furniture online. Often you will buy something from wayfair and it will show up looking like total crap. Buying from a store guarantees your expectation to be met on quality and value.

    4) They always have huge blow out sales which are basically every day sales anyway. Like a car dealership. "Whoa everything must go for Thanksgiving!! let's take a look at what they have" (then refer to #2)

    There *is* money in it. But I can't imagine you will be successful opening a furniture store unless your career has been focused on furniture sales.
     
    NetStar, Nov 25, 2019 IP
    sarahk likes this.
  14. maximvoloinin

    maximvoloinin Peon

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    #14
    Ikea is a very convenient and profitable store in this regard
     
    maximvoloinin, Dec 5, 2019 IP
  15. StatusCake Partners

    StatusCake Partners Peon

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    #15
    Here in UK, there are a number of online stores that do well and in particular selling mattresses, these products offer a great opportunity to affiliates I think as they have a high basket value, affiliate commission is anything between 8%-10% plus you get a promo codes to market them and free delivery!
     
    StatusCake Partners, Dec 5, 2019 IP