Furniture Sales

[ADW]

Hi all,

Looking at a venture into sales of various furniture items such as chairs/sofas, tables, lamps etc. I would imagine it's quite a high end range and niche styling with a decent usp. Anyone know the expected margins into retail for these types of items? I have heard 2.25 to 2.5 but that was outside of UK.

Thanks

 

[Esk247]

Depends on where you're selling e.g. UK market only? and is this a web based venture or a high street venture?

Are you thinking more Barker and Stonehouse?

I only ask that because the high end niche products attract a better markup in my experience but they won't sell like hotcakes.

 

[ADW]

It would be the UK only initially. I would imagine it is Boutique/ Designer type retailers rather than DFS side of the market. Not expecting high volume sales really due to it being quite unique in style.

 

[DJR51]

ADW

Don't post too many more posts on the forums - otherwise you'll risk losing the line "I'm part of the furniture around here" under your name, and that is just too perfect to lose!

 

[ADW]

ADW

Don't post too many more posts on the forums - otherwise you'll risk losing the line "I'm part of the furniture around here" under your name, and that is just too perfect to lose!

I was a bit slow on twigging what you were on about then but eventually got there

 

[MOIC]

Hi all,

Looking at a venture into sales of various furniture items such as chairs/sofas, tables, lamps etc. I would imagine it's quite a high end range and niche styling with a decent usp. Anyone know the expected margins into retail for these types of items? I have heard 2.25 to 2.5 but that was outside of UK.

Thanks

It would depend on your buying power.

If you can buy from China, you can achieve over 300%.

If you buy from the UK, your margins are likely to be around 225%

There are always exceptions.

 

[ADW]

It would depend on your buying power.

If you can buy from China, you can achieve over 300%.

If you buy from the UK, your margins are likely to be around 225%

There are always exceptions.

The range is already in place, just deciding whether to take it on for just UK or add some of the European countries as well. It's all a new market sector to us but so was our current set-up and previous business to that. It will be bit of a learning curve but the basics of a sales orientated business are largely the same on whatever you sell.

 

[speedy_s]

Surely better to work it out the other way by looking into your costs...i.e rent, sales people salary and other overheads? How many do you think you can sell? 1 a month or 1 a week? How much investment are you making and what return do you want on that? I.e perhaps you want to earn 10% on the cash at risk, plus your salary/time etc...

I only have an online shop and would assume 2.5 would be the ballpark..2 maybe if your overheads are particularly lean

Have a look at made.com ....quite innovative furniture startup..their showroom is some unused office block in West London and they hire just 2 people there (receptionist/admin and one sales for the floor)..however you can only buy online...

 

[ADW]

The 2/2.5 mark up I was looking into to get a ballpark rrp on the items. This is not our margin but our anticipated customer base. If we can sell direct then our margin is higher than this but that's the trade off against higher volumes. Early days yet but just getting some figures in place.