Uph. sources roll out deals
By Gary Evans -- Furniture Today, February 2, 2009
TUPELO, Miss. — This city's market is a place for deals, and manufacturers rolled them out last week.
Known as a source of close-outs, discounts and price promotions, the Tupelo Furniture Market lived up to its reputation with almost every seating company offering values to drum up business.
Edgar Williamson, vice president of Southern Dreams, said the company's offering included four groups in the promotional range with sofas wholesaling for $225 to $250, below the company's usual range of $279 to $289 for its promotional goods. Two sofa/loveseat combinations were priced to dealers at $450.
“That's something we haven't done in a long time. It's basically something to generate business,” said Williamson.
“A lot of retailers will use (price) as a door opener,” he added. “With the economy like it is, everybody from retailers to manufacturers is doing what they can to get the business.”
Affordable Furniture CEO Jim Sneed said the company was offering two special sofa/loveseat groups that retailers could retail for $699 at full margin instead of the usual $799 to $899.
“They're coming around looking for them, let me tell you,” Sneed said.
Tupelo Only Special posters were displayed in many showrooms here, and several factory executives said the first thing out of buyers' mouths was, “What are the promos and closeouts?”
But vendors weren't offering only closeouts and deals. They also touted terms, quick delivery and inventory warehousing.
“It's never been a better time to work off someone else's inventory,” said Kerry Lebensburger, Ashley Furniture president of sales.
“Why buy closeouts when you don't know what's going to happen and whether they're going to sell?”
He said Ashley had “rolled back prices” on several case goods and seating groups, packaged others for a larger sale, and was providing sports tickets, electronics, vacations and even honeymoon trips for consumers as a “hook” to stimulate purchases.
Backed by an advertising effort, new offerings included a sofa, loveseat, three tables, two lamps, a rug and an accessory package — 14 pieces in all — for $999 retail.
In addition, every consumer who purchases a package receives a coupon for $100 in groceries. Other promotions include a free Apple iPod shuffle with the purchase of a recliner, and sporting tickets for certain other products.
“In today's environment, not only do consumers want a deal, they want something else,” said Lebensburger.
Lifestyle Furniture offered immediate shipment on a dozen best selling groups with no minimum purchase, said President Danny Dempsey. He said that keeping inventory lean might be more prudent for retailers than buying closeouts and cheap deals.
“Ugly is ugly even at half price,” Dempsey said.
He said immediate delivery is possible because the company uses domestic fabrics from Culp, Chambers and STI, and also buys from Morgan, which warehouses imported fabric.
“It's more important now than ever to get what you want when you want it,” he said.
American Furniture also is taking advantage of its capacities to offer immediate delivery, said President Lyle Harris. In addition, the company is packaging upholstery and rugs for a bigger ticket sale.
“We're trying to position ourselves as the retailer's warehouse,” said Harris, noting that the company's warehousing capability has been restored since a fire destroyed the company's main facility here last summer.
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