Are furniture stores profitable?
I am curious.
Are furniture stores profitable?
It seems like they have a lot of overhead.
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Big store space.
Lots of sales people that just stand there doing nothing.
And people only buy furniture once every 10-20 years usually, right?.
Lots of competition.
Then there is Ikea.
What do you guys think?
Yeah, I discussed this with my grandma the other day. It must cost them not even $100 for the furniture and they turn around and sell it for $1000-$3000.
Big profits, little expenses.
You know, now that I think about it how are furniture stores profitable? I know of one store that just sells furniture and has been there forever and a second store that opened up a couple of months ago and is now closed and out of business.
The more specialized the furniture store is (if it caters to a certain market or demographic) the better I think its chances are for staying in business once word gets out about it.
Must admit, had a friend open a high-street store selling really good furniture and went out of business pretty quickly. Seems like a hard question to answer really!
it would depend i guess on your location, your pricing and target market. even if you're selling for just once in a month or so, but the amount of furniture you sold is worth like millions, i guess its profitable! knowing that furnitures are just made of metals, woods, etc... its profitable espe if you are the one providing the furnitures...
In the office market i assume sales are bigger and hence more profitable, but as a high street shop seeing home furniture i can't see how many can survive.
Plus i don't think margin as that high to say they are buying for under 100 and selling for thousands. Leather furniture is not cheap at manufacturer prices or wholesale prices.
They can be, if you can sustain the negative cash flow in the beginning. I had a friend that ran a furniture store. The first time I went over there, he showed me a bed frame and said that most places charge $700. He charges $300. It cost him $50. Crazy. The margins on furniture are huge. But, you also have to buy enough to fill up your store, which may cost tens of thousands of dollars.
I would say it's a great business to get into, if you have enough cash to lose money for the first year until you can get your name out and sales pick up.
If they weren't profitable, then they wouldn't exist.
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It would take a lot of money to start up and get word out, but if you have an eye for good products then I don't see why you wouldn't make money what with the product markups being so high. There seems to be a lack of places selling actual high quality furniture and not pre-assembled stuff.
My friend Steve bought a already established furniture store & factory for 2.5 mil. and he's grown the business even while he's out having cancer treatment done.
So I guess the answer at least on my end is YES! lol
He's doing very well!
His best sellers are the duplicates of antique furniture!
I can't think of the word for it right now, it's still early and my brain isn't switched on yet! lol
Later,
Furniture business always give new opportunity , almost furniture store still profitable until now
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