Before and After the Economic Meltdown
Twenty years in the furniture retail business and still ticking (my heart that is). I think it’s time to recap our story. In the beginning BEM (before economic meltdown) times were filled with only endless possibilities. My partner in Los Angeles as well as us only saw a graph line that went basically up. Mistakes were hard to make because the market absorbed everything we did. Experimentation, and I don’t mean the 60’s type, was fun because if something didn’t work… a little floor model sale took care of it.
Print advertising was our friend; all that money thrown out seemed to bring all sorts of new clients. We mixed in a great 24-page product catalog sent to a five hundred thousand people, cost six figures, but no worries; it was well worth the effort. Discount, yeah right, the opposite was true, you want it, you better buy it…because the next customer would swoop up that floor model.
Shows were always fun, a race to tie up a product line before your next door neighbor got there, (when we had a next door neighbor). That minimum order the manufacture required, a little obnoxious, but o.k., no problem with cash flow. Now there are times we think manufactures are crazy to require that much in order to buy into their products.
The days of waiting the unnecessary amount of time to get into a restaurant in Highpoint just to wait longer and once seated not able to hear what anyone was saying, because it was too loud. This was o.k. though, because this represents the success of the times. With success came a few necessary inconveniences. We were all at the top of our game.
Just one last note about those days, didn’t have to worry about the Internet, basically the porno industry was really the early benefactor of this new domain. I believe it’s only recently that legitimate industries now own the majority of internet searches. And lastly China, that scary communist country that was only emerging from the strangle hold of the Cultural Revolution, no threat from over there. Little did we know that the all-American company Wal-Mart, the founder of which embraced the American manufacture, would turn the world’s supply chain on it’s head. Cheap labor =cheap products=lots more consumption. A perfect recipe for an economic disaster that only a few fringe economists foretold.
Well, what will the next 20 years look like when my partner Jerod of Mortise & Tenon in Los Angeles and I reflect back on these times? AEM (after economic meltdown, just a reference for those that already forgot how our article began). Are we just part of the American economic miracle that adjusts itself on occasion or will nothing ever be the same again. Will the average American consumer forget the lessons of reckless spending? Will Wal-Mart reinvest in America and reverse the trend we believe they helped to jump-start? Does this new Gen-Y group 80 million strong even care where things are made? Where to buy them or is it a race to the bottom? Manufacture wherever the cheapest labor is, the least regulations, where government doesn’t mettle into the business practices of companies. Will China become so polluted that no one will have to wear clothes because it will only be possible to see 2″ in any direction? (maybe it’s not that bad 6″ is more realistic).
Oh, how we miss the good old days.
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www.YourFurnitureLink.com
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Nick Garrett commented:
No one knows what will pan out. Events are coming in from all sides. At first we all clung to the quality keynote... then diversification, innovation. At the end of the day we are in a negative trap. It will be 5-10 years of unpredictable developments. But I feel the industry needs to snap the biscuit and try to support each other whenever possible... but to pay for our industry we need grass roots jobs and a manufacture sector rebuilt. We are in ground zero.
Lisabeth Rosenberg commented:
The advantage of not having climbed so high is not having as far to fall.
Never could even have considered spending 50K for a catalog. Would have rather invested that in new inventory.
Just trying to stay steady by continueing to offer someting truely unique and great service.
Wondering about the affiliate marketing approach and where that would fit in with what we do.
It's a new world. Everything has changed & continues to evolve. There's a need for constant evaluation of the current circumstances. Grateful for our metal acuity.
If you are alive and breathing right now, just stay strong and physically healthy. This is what "true" prosperity is about. The economy is secondary.
Still wondering about the affiliate marketing approach. Would that even work for us? I think we would lose a lot of what makes us original and vibrant. Couture linens is different than furniture; it's a niche. Most people do not understand it nor appreciate it.
Big M commented:
The good Ol days will return but not until 2013 or so when the correction is truly done. The scary thing is in the meantime the amount of people getting out of this business now and the lack of hardly any young people coming in. Who is going to be in the business to enjoy it? Who will be left in business from manufacturing to retailing?
Dennis M commented:
Rather than BE the trend setter, I prefer to be brilliant at the basics. It all depends on location, and age population. But still, everyone still needs to have the basics and it doesn't take big trendy items to draw them in and stay afloat.
Joe Miglio commented:
Business is changing big time. Have to stay ahead of the game.There will be a big surge in better goods 12-18 months down the road, and be prepared for it.Align yourself with niche players that are cutting edge.
