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Is There A Explanation Why Furniture Retailers Are Constantly On Sale?

Written By Tao on dimanche 1 septembre 2013 | 05:32

By Michael Johnson





We've all seen those TV adverts promising large money discounts on a wide variety of sofas, nevertheless it may surprise you to discover that it is not only the lower end of the market that have a passion for advertising cut-price furniture on a close to constant basis. As any business student with tell you, cutting prices can be a sure-fire way to increase sales yet which each and every price promotion reducing profits, why are furniture companies often on sale?



The answer seems to lie in the nature of furniture production, which in recent years has turned into a mass produced consumer good in a international age. With profits delivered by cutting costs by outsourcing to reduced price destinations, sofa retailers have been ever more keen to reduce prices in an attempt to secure market share via sheer sales volumes. Nonetheless, as the marketplace has merged around a smaller number of retailers, competition has grown to be extremely fierce, applying further downward pressure on prices which has made sale prices ever more popular.



It wasn't always this way. Originally the preserve of a prosperous elite, sofas have always been a great exclusive luxury item with a rich established heritage stretching back via royal dynasties all of the way to the Ancient Egyptians. Even a hundred years ago, right after the impact of the industrial revolution, sofas were nevertheless mostly manufactured within the home market in a range of artisan workshops , making use of techniques that had scarcely improved more than five hundred years of Western history. In such circumstances, sale promotions were basically unprecedented, with retailers able to clear nearly all of their inventory at full price as the rising middle classes sought to enhance their residential decor.



Fast-forward to the present day and we see a very different picture. Nowadays the regular sofa sale has shifted from being a common bi-annual occasion to becoming the modus operandi for mid-market and cost leader suppliers looking to enhance their top line revenues. Within this new atmosphere, continual sales messaging is making buyers a lot more sensitive to price which critics argue is leading quite a few companies to cut corners in terms of build quality, upholstery and materials. Arguably this is one of the key causes why luxury sofas have grown to be increasingly popular in recent occasions, as customers shift away from mass-manufactured products in favour of higher quality alternatives.



Ultimately even luxury producers run sofa sale periods though these tends to be a far more subtle events. One particular instance of this is the rise of online flash sale websites like Secret Sales, Made and Achica who successfully make their income by acting as discretionary clearing houses for high end brands who do not wish to devalue their merchandise by running a sale but nevertheless need to locate a way to sell their surplus inventory with each new season. Buying on the web using these websites is a excellent way to uncover a genuine bargain, where you pay a low cost but receive a considerably higher quality product then you would otherwise expect. In these challenging financial times, it is most likely that such sites will grow to be ever more popular in recent years.









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