How Furniture Stores can deal with Rising Costs
Updated: Dec 14, 2022
It is no secret, that furniture Brands and Retailers across the world are struggling to preserve cash at a time when everything from labour to materials, energy and transportation are becoming costlier on a daily basis. As a consequence, many brands have raised prices and passed on the increased costs to the end customer. As a result, almost everything has become more expensive and there is a sense of scarcity in the market as it seems to be a supply-driven economy at the moment. But we need to be aware that raising prices alone won’t be enough for businesses to maintain healthy margins and survive in the long term. So what are some of the things that furniture brands and retailers can do, to manage inflation and keep their business on the right track? Here are 6 Tips and Tricks for you.
1. Buy in bulk: It is obvious that if you buy in bulk you will be able to get better prices and therefore retain your margins, offer better prices to customers and have a strategic advantage in the market. But buying in bulk also means blocking precious cash in the business and here the #OfficeFurniture business is a strategic advantage because the products have a much longer shelf life than home furniture which has seasonality and design trends that can make excess inventory unsellable in the next season. But that is not the case with office furniture, where design, material and colour changes are not so frequent and do not render your inventory obsolete so fast.
2. Negotiate better rates with suppliers: Naturally, suppliers are also facing the brunt of the pandemic and increased costs. But if you want to negotiate better rates with your suppliers, you will have to be clear about how you can do so. Buying in bulk gets you a better rate and also removing some non-essential features could bring down prices. But our most important tip here is "cut costs - don't cut corners"
3. Use deadstock: A lot of times there is deadstock that gets accumulated in the supply chain - with the factory or the wholesaler, distributor or retailer. Have a look and explore - some of the stuff may be in perfect condition and good to restock and sell. Maybe you get a throw-away price on some of these products.
4. Introduce lower-priced products: There is a fine line between lower priced and lower quality. The two may not always be synonymous, however. Companies like Stellar Global often use innovation and technology to offer products at a lower upfront cost or to help reduce freight costs etc. At the same time, you get a #warranty which may not be possible at such price points on any other product.
5. Find ways to reduce freight cost: Increasing freight cost is a dampener for almost all businesses worldwide that need to import/export products. This is further exaggerated by the reduced availability of containers and delays in the supply chain. Companies like Stellar, have introduced engineering innovations to offer you chairs that can fit over 40-50% more per container and help you save precious #freightcost. These chairs can also be assembled quickly and easily using the assembly instructions provided with every box. This cost-saving goes a long way in establishing your business and staying competitive in a difficult market.
6. Invest in better customer service: This is again a common-sense approach but in every economic upheaval there are winners and losers that emerge from the chaos. If you want to survive these difficult times and emerge victoriously, you must invest in better relations with your customers and focus on the long term.
Stellar Global is an international office and hospital furniture manufacturing company that has been in the business for over 32 years and exports furniture to over 80 countries worldwide. We regularly export furniture to hundreds of retail stores and retail chains and have helped plan and execute several large scale projects in different parts of the world from co-working places to commercial offices, government buildings, educational institutions - schools & colleges, libraries, auditoria, hospitals, operation theatres and clinics.
Get in touch with us if you're looking for an office/medical furniture manufacturer or if you're planning any large scale commercial project and need help with any type of commercial furniture.
Visit us at https://www.stellarglobal.online