Bernhardt sets minimum retail pricing
By Powell Slaughter -- Furniture Today, November 18, 2001
LENOIR, N.C. — LENOIR, N.C. — Effective this month, high-end manufacturer Bernhardt Furniture has instituted a minimum pricing policy on its case goods line.
"We're ensuring that our dealers end up being profitable on the investment they've made in our line," said Rountree Collett, chief financial officer and executive vice president of Bernhardt. "There are markets around the country where (our line prices) vary significantly."
Bernhardt expects to lose a few dealers who don't want to institute minimum pricing, but thinks the benefits will outweigh any losses.
"There's bound to be one or two of them who don't like it, and we're going to part ways," Collett said. "Over the long run we're certain this is the way to grow our business. If dealers know their investment will be profitable, it will draw more people to us."
The company has issued a price list that indicates a minimum price for each case goods SKU.
"The list will end up being a floor, not necessarily where dealers will price the line," Collett said.
He did not disclose an average percentage over wholesale for the pricing, or the current size of Bernhardt's dealer base.
"We have somewhat restrictive distribution because we're a high-end line," he said. "We're not typically in smaller markets since we need a critical mass of population to have enough potential consumers for our product."
Several other manufacturers, including Thomasville and Century, also have minimum-pricing policies in place.
As first reported in eDaily
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