RTA vendors explore tactics for boosting retail sales
By Tom Edmonds -- Furniture Today, October 14, 2001
HIGH POINT — Winning looks at moderate and promotional price points are expanding in the ready-to-assemble category as makers explore methods to kick-start retail sales.
Each company has its own ideas on how to give business a boost.
Bush Furniture, for instance, is prepared to ship its new products immediately, a departure from the normal practice of gauging interest and then deciding whether to incorporate an item or a collection into the line.
"Given what's been happening, we want to get product in our dealers' hands as quickly as possible," said John Ledek, vice president of marketing, explaining that Bush hopes to translate market excitement into retail sales. "We're changing the focus a little to convince the dealer to go ahead and commit."
Bush is not going into this new program without some retail guidance. The company primarily has rounded out collections that were previewed last April. These include Skater, an upscale contemporary youth and young adult collection of bedroom, entertainment and office pieces produced in Europe.
For Sauder Woodworking, the focus is on moderate price points first and then promotional merchandise. "There are certainly some retailers who want to stay at the lower price points, but we also have many who want to work their way back up," said Susan Dountas, vice president of merchandising.
Sauder, too, is adding to existing groups, using finishes such as its Plank Cherry and Bishop Pine that have already demonstrated their commercial viability. Sauder will also offer several innovations. These include several new computer armoires, set to retail from $199 to $399, and office chairs designed to fit inside those computer armoires when they are closed.
"Our customers continue to want more function or size at the same price point," Dountas said. "They are not necessarily demanding lower prices."
In one way or another, Sauder, O'Sullivan and Bush have taken steps to expand into higher price points. For Bush, it's been an aggressive foray into commercial office, and, for Sauder, the acquisition earlier this year of Progressive Furniture is expected to generate a series of imported products, including flat-pack furniture from solid wood, to augment its fiberboard products.
O'Sullivan is expanding its solid-wood program, adding another finish, warm mahogany, to its Scandinavian-made Harvest Antique collection, previously available unfinished or in honey pine.
"To our surprise, we've been more successful with our finished product rather than the unfinished," said Mike Franks, director of marketing services. "We weren't totally ready for that."
Ameriwood Inds., a subsidiary of Dorel, will show more than 100 new products, about 30 more than usual, said Jeff Sternklar, director of marketing. The emphasis will be on office, entertainment and bedroom at promotional price points, Ameriwood's specialty.
"In general, retailers are pushing us more and more to help them with co-op and with their price points so they can advertise the best price point in town," Sternklar said.
Gusdorf continues to refine the modern looks its has developed for the entertainment category, with shapes and colors designed to match the latest generation of televisions and electronics. "We're trying to bring something unique and different to market at a price, without cutting back on the features and benefits," said Ron Frare, vice president of marketing and sales.
In addition to TV stands and entertainment centers, Gusdorf will have projection TV centers priced at $149, $299 and $399. "It's exciting the changes they're making these days in televisions, and we're trying to develop products to match," Frare said.
| The Stratos collection from Bush, available in three finish options and ready for immediate shipping, includes this TV/VCR stand that is capable of housing most 43-inch projection TVs. Retail is $199. |
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