This is my first time buying furniture, not counting cheap Walmart and Ikea stuff while I was a broke college student. Searching the Googles on the interwebs shows that many people say yes, negotiate! Well unfortunately, unlike cars where there are ways to get regional average sales figures as reference points for negotiation, I have no idea just how much to haggle. Yes, there’s a large markup on furniture and it’s always on sale. I can state quite authoritatively that the markup on furniture allows for haggling. Furniture prices aren’t set in stone. The typical markup is 80 percent or more, according to Market Watch, so prices usually leave a margin for negotiation.
Furniture World Magazine Article:: Gross Margin Is In Your Head, David McMahon presents proven strategies that can produce 50 to 60 percent gross margins even in highly competitive markets. Although furniture is considered a major purchase for most buyers, it has a surprisingly low net profit margin due to the cost of doing business in the retail furniture industry. What Is the Average Profit Margin for a Fruit Smoothie? Markup Vs. Profit Margin. Architects never, in my experience, mark up their furniture buys.
Ever notice how mattresses and furniture are always on sale? What’s even more shocking is that the average markup is even higher for soda. They know you want the furniture or you wouldn’t be special ordering it, but the mark up on furniture is high. If the regular salesperson doesn’t want to give you a deal, ask nicely to talk to the manager, that usually works. As a commission-only sales person (which is what most furniture sales people are), I’m losing money in my paycheck with every dollar a customer gets in discount. The markup on furniture is second only to the markup on jewelry.