by LAS VEGAS – A group of retailers participating in one of the panel discussions at FMG’s 2022 Jan 20-22 Symposium here shed some new light on how things have changed for them during the pandemic and what things might look like going forward.
The panel, moderated by Bill Flansburg, of Syracuse, N.Y. -based Dunk & Bright Furniture, included Adam McDaniel, of Spokane, Wash.-based Walker’s Furniture; Dave Koehler, of Laurel, Del.-based Johnny Janosik World of Furniture and Joe Beiter, of South Williamsport, Pa.-based Beiter’s Home Center.
Flansburg kicked off the conversation discussing how demand rose for custom-order stationary upholstery where lead times had stretched out to 26 weeks on average. Yet many people were willing to wait for higher-end solid wood product. Retailers on the panel agreed that this type interest from consumers, created demand for step-up goods, which in turn boosted sales during the pandemic.
McDaniel noted that custom order upholstery business rose, but that demand for higher priced bedroom also rose, shifting demand from the starting priced $999 four-piece bedrooms to $2,799 for the same pieces.
“The upper middle to upper end, they are still buying it,” he said, noting that he is watching the demand with a cautious eye. He also noted while customers that haven’t shopped for furniture in some time may not be as sensitive to rising prices, and salespeople still have to believe in what they are selling, particularly for goods with higher price points than they have seen in the past.
“Price is not king in the minds of the consumer like it was five years ago,” added Joe Beiter, noting that his store too was once firmly entrenched in the middle price points, but has seen success selling higher-end goods. “It isn’t the overwhelming factor it has been.”
Longer wait times could be a bigger issue as customers building new homes are only willing to wait so long to outfit those properties.
Koehler noted for example that when wait times for custom orders stretch out to six or seven months, the customer may be willing to settle on something else, depending on the wait time for that new order.
But retailers noted that canceling an order to get something else also comes with risks.
“If you cancel with us, you will go to the back of the line and start all over again,” McDaniel said.
The retailers also noted that canceling an order for something else could not only put those customers at the back of the line; the item they want also could end up costing more as prices have continued to rise.
A key in satisfying customers has been to help manage expectations.
“We didn’t have a huge cancelation problem,” Beiter said, adding that it’s important to be as open and transparent as possible with customers up front. “It has led to better business practices. If a customer is informed and they understand, they will hold on to it.”
Retailers also said that online communications also were an important, albeit, new practice to evolve during the pandemic. Flansburg noted that as business reopened in mid-2020, the company had two salespeople on live chat, which required a different skills set than selling on the floor.
Yet they used their communications skills to successfully interact with customers online.
“Behind the chat, they knew how to close the deal,” he said, adding that this online communications capability has led to more interactions with customers, including communications after normal business hours.
The other retailers said they too were able to successfully communicate with customers through the online chat. However a key, they noted, was to answer consumers’ questions quickly, not several hours later. Responding quickly, they noted, also led to further engagement.
“Our tickets went up and we were able to get them into the store,” Koehler said. “It drove our business up.”
Beiter also noted that his store’s sales went up significantly due to its online communications capabilities along with putting the right people on those tasks.
McDaniel said that as its stores are largely in rural areas, it was a little “late to the party” with its online and e-commerce activity. But once it put more effort and resources to the platform, it saw the results.
“As soon as we turned the shopping cart on, we saw the sales come through,” he said, noting that these types of sales have remained consistent over time.
Moving forward, the retailers were fairly optimistic that the demand will continue for some time, although some pushback from consumers on higher prices may already be starting.
“Consumers know there is inflation,” Koehler said, noting that some inflation has been good for an industry that has been selling furniture at prices that have held steady for decades. “I think we needed the lift.”
“If any industry needed inflation, it was ours,” added Flansburg.
Another key moving forward will be maintaining strong vendor relationships, Beiter added, noting that approach has help it remain successful through challenging times.
“Not only have we stayed open, our sales were phenomenal,” he said.
