Last week, looked like the beginning of the end for quite a few furniture manufactures at the furniture fairs. They were just hoping for that order that could save their business. I’m guessing, that as furniture sales are not picking up at any quick rate, this summer will be rough for many manufacturers, and we will see a spike in number closing down.
This leads me to an interesting story, I heard from a friend who buys for a big furniture retail store. He had some orders, which were pretty simple items, and wanted to help out some of his older higher quality suppliers. He brought the project to them, and told them what he needed to pay. They rejected the price and came back about 20% higher. Now, my friend is very reasonable, and the price he offered was no problem for him to get at good quality factories. He was literally trying to help the factory, because he knows they have very few orders.
2 months later, that factory closed its doors. And, he’s wondering why they would not take an order, just so they can keep their employees salaries going. Maybe they do not make money, since high-end manufacturers have a different overhead structure, but right now, it is about survival. Orders are starting to come back slowly, and the companies who survive stand to be in a good position.
What would you do?
