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For FURNITURE and only furniture, not fabrics, there is the Internet Minimum ADVERTISED Price. (IMAP) That’s the price that’s shown, on the product page before you put it in your cart that is a 120% markup. Sometimes they throw in the “shipping.” Shipping is not the same as delivery.
The typical markup is 80 percent or more, according to Market Watch, so prices usually leave a margin for negotiation. Even if a item already is discounted, ask for.
Our typical fee structure is a design fee of $1,500 per principal room (i.e. living room, dining room, etc, not baths, closets) retail for fabrics, upholstery and lighting, and net plus 25% on.
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This only adds to the confusion because the assumption is that retail markups are the same across the board when it comes to home furnishings and no way! It’s a lot like a restaurant. The steak- low mark up. The coffee-insane markup. Nobody’s complaining. And nobody’s ASKING either. Yes, we are talking about a lot less money.
· Yes, there’s a large markup on furniture and it’s always on sale. We were just at the Knoxville Wholesale Furniture store in Knoxville, which is owned by the same person who owns the Ashley store in Knoxville. They were having a we pay your sales tax sale on top of a pre-BF sale, so the MSRPs were jacked up.
· For example, a product costs you $100. You want to mark up the product by 100%. For a 100% markup, you raise the price by the cost, or by $100. Then, you sell the product for $200, or $100 more than its cost. This is what the 100% markup looks like: Cost of Product = $100. $100 X 100% Markup = $100. $100 + $100 = $200 Selling Price.
· Try starting at the back of the mattress store — those tend to be much cheaper, and you can still negotiate those. And compare prices between stores. It’s possible the mattress store has a price matching program, or even better: Lehrman said you might even be able to negotiate a mattress’s sale price for another mattress that isn’t on sale.
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Editor’s note: This is the first of a four-part series about life during the COVID-19 pandemic. We’re all in a constant state.