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Tupelo, Miss. — Case goods companies offered the usual specials at the Tupelo market, but they also showed new goods at better price points.
The idea is to help retailers make more money by selling step-up goods, exhibitors said.
Resource APA Marketing said it always has generated strong traffic in Tupelo with specials and closeouts in casual dining. At this month's market, the importer also attracted interest in its more expensive home entertainment line, according to Bob Lephart, sales and marketing manager.
What retailers need
Ray Steele, vice president of sales and marketing for Ultimate Accents, said that every store has enough dogs to be marked down. What retailers need, he said, are some goods that they can sell up reasonably.
He said the key is finding a niche that isn't well served, or selling goods that have a higher perceived value. He said a retailer can settle for a typical 47% margin on bedroom or dining room furniture, but can get more for certain items such as an accent chair or sink vanity.
APA took notes on improving its home entertainment lineup from attending the past two Consumer Electronics Shows in Las Vegas. Modifications to the pieces were aimed at giving store sales associates something to talk up to the consumer, such as bigger wire management holes because electronics have more wires than ever.
Heat dissipation also is becoming an issue with electronics storage. Components such as DVD players and stereo receivers can overheat in an enclosed space. Lephart said APA's bigger wire holes help, as do the cooling fans the company has mounted in some side piers. This cuts the ambient temperature inside by up to 30 degrees, he said.
Two years ago, Discovery World Furniture created a must-have youth piece with its patented all-in-one bed unit, combining sleep, study and storage in a small footprint. It licensed others to sell the piece, such as Woodcrest and The Powell Co., and protected its patents against knockoffs, according to Glen Moller, vice president.
This market, Discovery introduced two variations on that design that were lower and a little sharper priced. Some youth rooms have low ceilings that don't give much clearance above the loft bed, Moller said. In the low-profile model, the storage drawers have been reduced from four to two and the desktop computer space is replaced with a pullout work surface for doing homework or using a laptop computer.
Fred Holland, executive vice president of Holland House, said retailers who are advertising their specials and unique items are doing well this year.
"Those who are sensibly being aggressive in advertising, without relenting, they are being successful," he said.
Holland said his company's 2004 sales were up 13% from 2003 despite the uncertainty created by the antidumping petition on Chinese wood bedroom furniture. He said the company had practically no bedroom shipments for two months, but sales rebounded once the U.S. government announced relatively low duty rates — in the single digits for most companies. Business has been excellent so far in 2005, he said.
Mixing it up
Some Tupelo exhibitors have found success mixing imported goods with their U.S. product. Tupelo is known for its promotional MDF and laminate producers such as Kathy Ireland Home by Standard, Founders Furniture, South Shore, Orleans, Dynamic, Harden Mfg. and Hart Furniture.
Now, some of these companies are blending in imported bedroom groups.
Hummerz by Orleans, introduced at the October High Point market, already has sold out its first two cuttings, said Dan Ide, vice president of national accounts.
Harden Mfg.'s sales jumped about 30% in 2004, thanks to a mix of hot domestic and sharply priced imported bedroom suites, said President Craig Smith.
Sales already are up another 45% this year, and after a great response at this market, Smith said he may revise that percentage upward.
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Better price points spotlighted in wood
Feb 28, 2005
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