Really big idea: Let's get moving
Ray Allegrezza, Editor in Chief -- Furniture Today, April 10, 2006
Lao Tzu, the brilliant Chinese philosopher, once said, "The journey of a thousand miles begins with a single step."
Earlier this month, when we broke the story of Keith Koenig's plan to allow consumers to finance furniture purchases as part of home mortgages, I felt that Keith had taken the first step of what could become one of the most important journeys this industry has taken in quite some time.
Apparently, I wasn't alone. Soon after that story ran, I began receiving e-mails and phone calls from many of you who also sensed that Keith's idea for a "furniture upgrade option" could be the next big thing.
According to one leading importer, the idea is beyond big. "What Keith is suggesting is huge, and possibly the biggest thing to hit this industry in years and possibly ever!"
Jeff Seaman, the driving force behind Rooms To Go, agreed. In his words, "This is out-of-the-box thinking that is worth pursuing."
In case you missed the story, here's the nuts-and-bolts version of Keith's idea: When applying for a home mortgage, qualified consumers could be approved for an additional 5% furniture upgrade option. For example, if someone intended to purchase a home selling for $400,000 and put down $80,000, they would apply for a mortgage of $320,000. Under Keith's plan, the bank could approve an additional 5% of that, or $16,000, which the consumer would use to purchase home furnishings from participating retailers.
Even if this plan were to be adopted by only a small percentage of consumers, the end result would be an incredible shot in the arm to the industry.
But here's another benefit: Our industry could finally be center stage, telling a unified, good-news story about how what we make and sell has the almost magical ability to transform a house into a home.
During next month's High Point furniture market, Furniture/Today is hosting a meeting with key retailers and bankers to take this idea to the next level.
Keith's idea deserves implementation. I think we need to work together to make this happen.
How about you?
