Half a Century of Furniture Rep Wisdom

My father Emmet Root, a still active Furniture Rep with over 50 years experience in the industry, wrote the following article for the publication RootNotes. He has seen many business slumps over the decades and has always felt there was a significant need for the traveling furniture salesman. In this article he suggests that times may be changing. For a complimentary copy of RootNotes Online register at www.MikeRoot.com. Here’s what Emmet wrote:
A frightening scenario is taking place in the rep business. From conversations with dealers who are close to several factory salesmen, a report from associates in the Midwest and visits at annual golf outings we are concerned that independent reps are forced with a herculean struggle. A squeeze from fewer dealers, reduced commissions, and dramatically increased costs is causing may experienced salesmen to question their future.
The two factors that are exacerbating the struggle are: the Ashley model as well as the growth of the large retail stores. Firstly, the Ashley model, which floods territories with factory salesmen with lots of product and a small geography. Because of their model of being a manufacturer, a distributor, and a retailer, Ashley blankets states. Their network dominates many independent retailers who dislike having their furniture in all competitor’s stores but are hooked on the breadth of the line and the quick service. The second factor hurting factory salesmen is the growth of the retail giants. Chain stores, Mega furniture retailers, the internet, and national rent to own chains are gobbling up an increasing percentage of the furniture dollar.
The days of covering a state town by town and writing orders along the way is caput. So much business now takes place in management meetings with major buyers or at either High Point or Las Vegas shows that the “road” is for service, training, or an occasional special or closeout. The demise of the independent rep has been predicted since the 60’s when Levitz, Wickes, Sears and a few others were going to be factory direct. This time around the Perfect Storm of lost commissions and extraordinary expenses may do the trick!
This trend saddens us because the smaller dealer will have less service if they choose not to turn over their entire store to Ashley. The large stores will still partner with key account sales execs to build their programs. But as an industry will we be better off if the independent rep disappears? Will the lack of selection and service lead to the demise of the independent furniture store? Let us know your comments