Buying wholesale can be challenging for any interior designer, decorator, or real estate stager. Finding vendors that offer the quality standards, customer service, and reliability that align with your business may take time. In this article, we'll explore some options to help you develop strategic partnerships that expand your resources and empower your revenue growth.
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To understand the complexity of wholesale furniture purchasing, it is beneficial to understand the wholesale tiered pricing structure so you can then weigh the pros and cons of each and determine which will serve your goals best.
To get started, some manufacturers set a Manufacturer's Suggested Retail Price, but not all do. For those that do, base the pricing tier discounts on the MSRP.
MSRP: is a guideline, not a requirement, intended to set a standard price throughout retailers that allows for profits after overhead cost considerations. Because this isn't a requirement, retailers can set their own prices based on competition or aging inventory.
MAP: is the lowest retail price a piece may be advertised and sold in-store or online. The violation of this requirement could result in the account holder, the wholesale purchaser, losing their account with the vendor.
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Wholesale tiered pricing was developed to offer discounted rates to retailers who purchase in bulk, an incentive to order more significant quantities of goods.
Tiered Pricing
To distribute products to a wider market, increase sales volumes, and optimize production efficiently, manufacturers and wholesale furniture suppliers individually set "tiered pricing" programs based on the volume of the goods purchased within a single year.
First in this pricing structure is the Designer Discount, also known as a Trade Discount, To-The-Trade pricing, Designer pricing, or Boutique Pricing.
Designer Discount: is a set percentage off the MSRP, usually ranging from 15% to 30% off MSRP.
All registered home design industry professionals are offered this pricing level, and the minimum annual purchases are not a requirement. But, depending on the percentage, the "Designer Discount" price could still be higher than what is sold online.
The wholesale level can be complex; some suppliers offer just 1 tier pricing with no annual purchase requirement, while other suppliers and manufacturers offer multiple tier levels, sometimes as many as seven, and require high yearly purchases. Once an annual purchase requirement has been proven, the account may qualify for the following pricing level, which can range from another 5% to 20% off. Each vendor has different account requirements to achieve or maintain the best pricing tier. From opening orders, buy-ins, and annual purchasing volumes to how many accounts are in an area and what those accounts may offer the Trade, such as access to products and/or Trade pricing in their showroom.
Wholesale: pricing can start anywhere from 40% to 50% off MSRP, with an annual minimum purchase requirement starting around $20k.
Stocking Dealer: Many offer this level as their best possible price point. It is usually reached when purchases exceed $50k or higher in a year and can be a 60% or greater discount.
Volume/Container Pricing: Accounts granted this pricing level typically have annual purchases exceeding $100k. This pricing tier may receive a 70% or greater discount.
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Sourcing
Visiting trade shows are a great way to explore a variety of products from different vendors all in one place. Showrooms are filled with on-trend styles and new-to-the-market pieces. Knowing the manufacturing behind a brand will help you decide which vendors you prefer. Networking with other design professionals can also help narrow down your search.
Purchasing
Purchasing furniture at a wholesale cost where profit margins are large enough for small-scale businesses can be challenging.
The Designer Price program was created to protect the pricing integrity of the furniture brand, much like MAP regulations. Eliminating the possibility for design professionals to discount products too heavily for their clients.
In today's world of internet shopping, "designer discounts" are not competitive. Many wholesale furniture suppliers and some manufacturers have taken the direct-to-consumer approach, bypassing traditional distribution channels and offering their products directly to the consumer by establishing online retail sites. They may sell their products at lower prices than design professionals can purchase.
Strategic Partnership
Due to the traditional wholesale tier pricing structure, wholesale furniture purchasing for design professionals has been a longstanding challenge. However, with the recognition of these obstacles, alternative purchasing options are emerging, providing designers with opportunities and greater flexibility.
At Bello Lane, our goal is to empower you, the home design professional, to buy at better rates and help you achieve your full profit potential. We understand the challenges of purchasing wholesale in the home design industry and are here to provide you with the necessary resources and support.
We do this through our established and proven vendor accounts that allow you to purchase at the best pricing tiers through us. We enable design professionals the ability to purchase at costs that maximize their profits and help reach sales margin goals through tools that analyze performance.
Expanding buying resources through our curated list of trusted manufacturers and suppliers makes it easy for you to find everything you are looking for in one place and purchase from several different vendors. We are the buying agent handling all the details, streamlining the buying process, and saving you valuable time and effort.
Shipping and delivery costs can add up and cause time-consuming work; we handle the shipping details when purchasing through Bello Lane. Giving cost estimates, regular updates, and handling damage claims if any occur. We can also help identify trusted receiving warehouse providers.
If you are a home design professional looking to take your business to new heights, our sourcing, procurement, and logistics services provide an elevated buying experience on a per-order basis; no membership is required.
Contact us at hello@bellolane.com to discuss our services and discover how we can help you expand your buying resources and increase your revenue growth.
Bello Lane is here to support you every step of the way.