How profitable is furniture business? 7 best practices to improve my business (2024)

Here are what you need to pay attention to boost sales in the furniture business:

Step 1: Recognise customer’s needs

Before jumping on anything, you must understand your customer’s needs. Find out your target customers, their pain points, their desire, their expectation of your products and service, as well as the price they’re willing to pay.

Knowing these aspects, you can create buyer personas. It is a thorough description of your ideal customers, including the problems they confront and what they want from a solution.

Step 2: Deliver an omnichannel experience

Customers now expect to be served anywhere they can find you. Omnichannel has become an essential feature for furniture businesses to increase sales. Therefore, your store has to operate seamlessly across all channels, both online and offline, providing a consistent experience for customers. You can use the O2O approach to get customers via advertising and product display methods, then entice them to visit the showroom.

Step 3: Engage with customers via social media

Today, customers seek an engaging experience, with social media being the top platform for engagement. Try to leverage social media in your furniture marketing plan. After determining the target audience and their favorite social network, you should aim for engagement that can make your brand stand out, increase awareness, and connect with customers. Some tactics for this include:

  • Provide information about the products and industry that is instructive or amusing;
  • Recognize customer pain points and suggest a solution;
  • Create high-quality and shareable photos or videos with storytelling a style that addresses customer challenges and solutions.

Step 4: Pay attention to the website

Website is an important touchpoint to show what a business can offer. Having a fast, well-designed website with eCommerce features not only creates a good impression, but also drives online purchases. Ensure your website is up to standard for eCommerce, and able to showcase products in an interactive way. Here are what you can apply to create a user-friendly and convertible website:

  • Create life-like pictures of the products by using ImageScripting and 3D modeling, offering customers a 360-degree view of the items;
  • Showcase the items in great detail with a variety of styles and colors to assist consumers in making purchasing decisions;
  • Add categories and search options on all pages to help visitors find what they want as quickly as possible.

Step 5: Train your sales personnel

You should train your sales representatives to ensure:

  • They have deep knowledge of furniture products;
  • They’re kind, helpful and have strong communication skills to consult customers and build connections with them;
  • They can use software to make their job more efficient, for example checking for the availability and the location of items, and quickly serving customers during checkout, shipping, or return.

Step 6: Provide excellent customer service

Customer service is crucial to make customers happy and keep coming back. Make sure that your furniture business creates an experience that exceeds consumers’ expectations. This establishes a long-term relationship based on trust and loyalty, which will lead to future sales. Speak properly and answer customer queries as soon as possible.

Step 7: Offer a speedy and pleasant delivery

Most furniture needs delivery service. This is the final point of contact with customers, and you want to close the shopping journey with a smile from your customers. Some advice for your delivery service are:

  • Agree on a delivery day and time with customers in advance;
  • Require your delivery personnel to be well-dressed and courteous;
  • They should handle the furniture properly, and have tools ready to solve minor issues, such as touch-up pens and screwdrivers.
How profitable is furniture business? 7 best practices to improve my business (2024)

FAQs

How profitable is the furniture business? ›

The profit compared to wholesale is about 40%. Most furniture retailers have a net profit of 2% after operating expenses and salaries, bringing in more than $1 million in annual sales. As a business owner, you can enjoy an annual income of $150,000—300,000.

How to make profit in furniture business? ›

Here are what you need to pay attention to boost sales in the furniture business:
  1. Step 1: Recognise customer's needs. ...
  2. Step 2: Deliver an omnichannel experience. ...
  3. Step 3: Engage with customers via social media. ...
  4. Step 4: Pay attention to the website. ...
  5. Step 5: Train your sales personnel. ...
  6. Step 6: Provide excellent customer service.
Oct 4, 2022

What is a good profit margin for furniture? ›

Low markup

This reduces profits. For the unaware, the average gross profit margin for a retail furniture business is over 40%. But that figure drops between 3% to 6% after accounting for marketplace fluctuations pre-tax. Even so, there are ways to increase furniture profit margins.

What is the target market for furniture business? ›

Common segmentation variables in the furniture industry include age, income, and lifestyle. For example, you may segment your target audience into young professionals, families with young children, and retirees.

Is it profitable to sell furniture? ›

A furniture flipping business can be incredibly profitable, and it's a great way for you to earn some extra cash on the side — or even replace your current income. Restoring and reselling used furniture is also an excellent means to build up capital to start your own Amazon or ecommerce business.

What is the most profitable furniture to build? ›

To get you started, here are some top DIY furniture projects for you with links to plans and videos from woodworkers on the web:
  • Floating shelf.
  • Coffee table.
  • TV stand.
  • End table.
  • Dining table.
  • Nightstand.
  • Bed frame.
  • Desk.

Is furniture sales lucrative? ›

As of Jun 1, 2024, the average annual pay for a Furniture Sales Representative in California is $68,513 a year. Just in case you need a simple salary calculator, that works out to be approximately $32.94 an hour. This is the equivalent of $1,317/week or $5,709/month.

Is 7 a good profit margin? ›

But in general, a healthy profit margin for a small business tends to range anywhere between 7% to 10%. Keep in mind, though, that certain businesses may see lower margins, such as retail or food-related companies. That's because they tend to have higher overhead costs.

How to scale a furniture business? ›

Your business is worth it.
  1. Step 1: Understand Who's Buying Your Furniture and Meet Them Where They Are. ...
  2. Step 2: Make Your Website as Gorgeous as Your Furniture. ...
  3. Step 3: Close (More) Furniture Sales. ...
  4. Step 4: Manage Your Furniture Business, Not a Furniture Database.

What is the future of furniture market? ›

The global furniture market is expected to grow from $541.52 billion in 2023 to $780.43 billion in 2030 at a CAGR of 5.36%. That's a healthy level of consumer spending, driven by a healthy interest in home renovation and using furnishing to make a house feel like a home.

What is the potential of furniture business? ›

The India furniture market is anticipated to achieve a CAGR of 10.9% during 2023-28 to reach $32.7 Bn by 2026. The commercial sector is further sub-segmented into non contracting and contracting. The demand for furniture has been observed to majorly generate from northern and southern India.

How do furniture stores attract customers? ›

5 Ways to Improve Furniture Store Marketing
  • Keep your website updated. Most customers will research a company online before they shop in-store. ...
  • Create a comprehensive marketing strategy. ...
  • Engage your audience where they are. ...
  • Keep your customers coming back. ...
  • Give your sales team what they need to deliver results.

Do furniture salesman make a lot of money? ›

$30,600 is the 25th percentile. Salaries below this are outliers. $44,900 is the 75th percentile.

Can you make money from selling furniture? ›

Some of the rise is down to savvy furniture flippers who are turning old chairs, sofas and tables into desirable pieces — and making a tidy profit. They say it's easier than you think to make money by 'upcycling' unwanted items listed on eBay, Facebook Marketplace, auction sites and Gumtree.

How much does the furniture industry make a year? ›

The market size, measured by revenue, of the Household Furniture Manufacturing industry was $23.5bn in 2023. What was the growth rate of the Household Furniture Manufacturing industry in the US in 2023? The market size of the Household Furniture Manufacturing industry declined -4.7% in 2023.

Do furniture designers make money? ›

As of May 26, 2024, the average annual pay for a Furniture Designer in California is $53,009 a year.

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