Furniture retailers have a unique business model to contend with. With customers being able to purchase products online at a cheaper rate, the standards of furniture stores need to be raised in order to maintain profitability and long-term success. Readers who are new to the furniture industry may not understand how it works.
The dynamics of selling sofas, dining tables, beds, even wholesale cabinets, and other home furnishings are very different from selling clothing or electronics. Because of this, there is a lot of financial news that’s relevant for furniture sellers that you may not see impacting other industries. Read on to learn why financial news are a must-read for furniture sellers.
Keeping Up with the Latest in Supply Chain
As a furniture seller, you need to have an idea of what to expect in terms of prices. If you know that certain materials, such as wood, are facing shortages and need to be imported from further away, you’ll know how to adjust prices accordingly. This is especially important for businesses with a B2B model.
As a furniture seller, you need to be aware of issues. You need to know if your supplier is experiencing a delay, and why. It’s important to keep updated on financial news that can impact your supply chain.
Stay Informed on Crucial Business Metrics
The furniture industry is unique in that it has very visible business metrics.
The percentage of gross profit that goes back into marketing to attract more customers is a good example. The amount spent on marketing is often a factor in the success of a furniture store.
It’s not uncommon for a furniture store to spend more on marketing than they do on their actual products. You can stay informed on crucial business metrics that affect furniture sales by reading financial news.
Identifying Upcoming Trends
Furniture is a product that’s in high demand. People need to furnish their houses, and they tend to buy a lot of furniture. That makes trends in the furniture industry highly significant. That said, the furniture industry is a lot different from other industries that might see trends that come and go.
Furniture has trends that are more long-lasting. There are certain furniture styles that have become increasingly popular over the past few years. You can also expect certain furniture designs to make a return. You can use financial news to identify upcoming trends in the furniture industry.