The state of the economy affects the feasibility and profitability of a furniture business. Furniture is considered a discretionary product rather than a necessity. When the economy is good or in the upswing, consumers tend to invest heavily on furniture because they have the money to buy this optional item. In a recession, consumers will place their money more on basic necessities such as food instead of indulging in a new product they can easily do without.
A furniture business, or any business for that matter needs to benefit from a strong economy and survive a weak economy to remain profitable or at the least, feasible. When the economy is on an upswing, the purchasing power of consumers increase. A weak economy on the other hand is characterized with low purchasing power brought about by high rates of unemployment.
The economy always creates winners and losers. As a business owner, you cannot simply sit back and wait for the economy to improve. Doing this will make your road to bankruptcy faster. You need to take a proactive approach and make innovation, standing out from the competition and marketing your products in a new way, your main business goals.
Regardless of the state of the economy, consumers always look to buy top quality furniture. The usual impulse purchase pricing strategy is no longer working as much as it used to be. Consumers today take their time and think hard before making a purchase, instead of purchasing on impulse. Consumers consult more with family and friends and rely more on the internet to be able to make educated buying decisions. The economy has changed decision making of consumers. Furniture buyers today are more aware, making them wiser consumers who always look for quality. Consumers give more premium on value for money instead of low prices as those offered at: http://www.unfinishedfurnitures.com/
Furniture with Universal Design
During a weak economy, consumers invest on furniture they can use for a long time. Consumers choose furniture whose design will allow them to live with it for the rest of their lives. Furniture is often a big investment and choosing one with a universal design will never go out of fashion. Furniture with universal designs are purchased more to satisfy a need instead of a desire. When the economy is strong, however, some consumers buy trendy furniture, even if they know they will only be of good use for a short period of time. This is often a result of impulse purchases.
Furniture and Global Markets
Most furniture businesses rely on the local economy for survival and profitability. With the widespread use of the internet, furniture retailers and manufacturers can now easily penetrate global markets. Some furniture businesses use this marketing strategy on the onset. Some have started taking this option when the local economy weakens. The furniture business has a lot of distribution options, other than the local market. The global market is a huge market waiting to be tapped. There are a lot of foreign economies that are stronger than its local counterpart.