Just give us stability
Retailers used to worry about picking products that would sell, and manufacturers used to worry about getting retailers to buy.
Life was simple then.
Now both segments of the furniture chain have a new worry. It’s stability.
Retailers want to know if their vendors are financially strong enough to weather the rest of this recession, and keep the goods flowing so stores don’t end up with empty spaces on their retail floors.
Vendors want to know that they’re going to get their money for goods delivered.
As we’ve learned from the banks, financial institutions and giant insurance companies, nothing is sacred anymore, and nothing can be trusted. And with the economy weakening so many stores and factories, there’s definitely cause for alarm.
More and more, I hear vendors promising to help dealers in any way they can to keep them in business. Without that support, they say they may not have dealers to sell. Without dealers, they can’t stay in business. It’s a survival win-win.
What’s your take on it?
Derrick commented:
I believed that quality product come with a price. When you ask the manufacturer to give you a 10% discount during tough time. I believe they will agree provided this 10% discount does not make them lost money. I know so many manufacturers that agreed on lower price just to cover their factory expenses. They all know this is not going to last long. They are also depended on the retailers and wholesalers as well. So everyone in the cycle must try hard enough to keep everyone stay in the game. Once the extra over, it is time for trophy!
J Healy commented:
I own a small "high end" retail boutique in Charlotte NC. I am located in the middle of an area that demographics show as one of the top income brackets in Charlotte. I am fighting to keep my store open. I have changed my game plan from "high end" to very competitve pricing. Running sales brings people into the store. Customers are looking for quality product at a discount. I have often thought "if only the vendors/manufacturers could give us a 10% break, that could change a lot for a small dealer like myself. Though, I realize 10% may mean the manufacturers death.
We all exist symbioticaly in this industry, as with most industries. It would be great if we could find a way through this storm together.
Tom commented:
I think there is a profound change going on in the furniutre marketplace that is being masked by the current economic climate. While it is easy to blame the economic downturn for our malaise, it might be wise to look inward for solutions that guide us to how we serve that consumer that is buying. It isn't just a strong balance sheet, it's the business model that looks forward, instead of how we used to do it. The consumer is changing, and we must change to meet her.
abbie commented:
Indeed, it's all about stability. Only the strong would survive this time. As far as manufacturers are concerned, only those with a solid financial foundation and the willingness to continue investing on new designs would stay in this business.
