What is a Market Special?

There is some confusion as two what is a "Market Special", and this confusion is not only on the part of the customers, but dealers and sales reps as well.

For example, I have a market special H & M McNary Sofa in my store right now that is highly optioned and has a price on it of $ 3,299. That's what this ONE particular unit will sell for. If a customer comes in the store, sees that sofa and returns later to find out if its sold and wants one just like it, the order price will be $ 4,470. That's quite a difference, isn't it? Or let's say their room requires a pair of matching sofas. Price to order a matching pair are $ 4,470 each (or they can buy the $ 3,299 unit and order the second one at $ 4,470 and be willing to tolerate a color dye lot variance). Some customers feel 'ripped off' when told this, so let me explain how this works.

Market Specials are simply a way for a manufacturer to 'buy' space on a retailers floor. Nothing more complicated than that. They offer smoking hot deals when a store owner/buyer comes to the High Point Market in order to gain floor position in this highly competitive industry. More floor space for a brand equals more regular sales. But the deals are so aggressive that the maker really is giving up his profit on the piece to gain that space, so they don't allow re-orders on Market Specials and require all pieces at least start life on the dealer's floor. Once they are on the showroom floor, then the retailer can sell them.

The environment has changed as well. Back in the 80's and early 90's, a store would take half a dozen of a market special on just one piece and store them in a warehouse, then sell off them. But in the current economic climate it has turned into a mostly one-of-each model and then take special orders off that model. That's why you will frequently see only one piece at a market special price and when its gone - its gone! These are really incredible buys if you can find one that you like and can result in significant savings.

On a similar topic, big operations will buy out the Market Showrooms and take all the stock on the showroom floor from the Manufacturer. Everything is cleared out of the showrooms are the end of each market and sold as a group of 200 or so pieces. Needless to say, one has to have a pretty big store to take on that kind of quantity (will never happen with my little store!). The price is further slashed to the dealers capable of buying the showroom and these pieces will wind up on the sales floors or their stores soon thereafter at tremendous markdowns. Most these pieces are readily identifiable as they have 'decorator' touches to them with regards to exotic covers and treatments, and most will be lightly shopworn after having been at market and transported to the store un-cartoned. But they represent some incredible buys for the consumer. I have some customers that find these pieces in these stores and then call up and ask me to price match so they can buy it from me. I cannot - because my dealer cost is higher than what they are paying for it off the showroom floor in these instances.

Market Specials are a great way to get a very high end piece at a steep discount for the consumer, and as a dealer it allows me to bring in some high line models I would not otherwise stock because of costs. I wish we could get re-orders on them, but most all are just one-shots (One Time Deals) until the next market in six months.