Page 1 of 3 123 LastLast
Results 1 to 10 of 21

Thread: Slowdown on Buyers

  1. #1
    Join Date
    Jul 2008
    Location
    Alexandria VA
    Posts
    15,887

    Default Slowdown on Buyers

    Usually our industry sees a busy period in the stores starting around January 15th and lasting until the end of March. Of course, nothing has been normal since the pandemic and this is no exception. Traffic and calls, and even forum posts are noticeably down. Our store is super-full of inventory, we are packed tighter now with stock than we have ever been.

    We have one of the big juggernaut stores thirty miles south of us, and a sales rep that covers our store and theirs said they are on Order Hold and not buying any new inventory, because they - like us, ordered heavily last summer and fall. Where are we going to put it all? Rent more warehouse space?

    So Sarah and I made the decision to cancel about half our incoming floor inventory and did so. It was painful to do, because we bought it all two prices increases ago, but we felt it was wise to do so.

    My guess is with Covid easing, folks are planning vacations and the like rather than going after furniture for staying home, but it’s just a guess.
    Last edited by drcollie; 02-11-2022 at 08:12 PM.
    Duane Collie
    Straight answers from thirty-six years in the business.
    My Private Messages are Disabled - Please ask questions here in the forum.

  2. #2
    Join Date
    Jan 2018
    Posts
    595

    Default Re: Slowdown on Buyers

    Well if the boone for you might be slowing, maybe factories will start to catch up and price increases will slow down or stop. I hope when things return to "normal" prices will actually come down a bit. Hope I don't regret ordering so recently, but I guess its kind of like trying to time the market.

  3. #3
    Join Date
    Jul 2008
    Location
    Alexandria VA
    Posts
    15,887

    Default Re: Slowdown on Buyers

    I don't think you will ever see prices come down, because of wages now being paid. Pretty hard to announce a pay cut to your employees without them walking out. Wages have nearly doubled at the furniture plants in the past three years. Unless there is a sudden influx of available workers (unlikely) then companies will continue to have to pay significantly for workers and retain them.

    Slowing orders will eventually allow for shorter production times which everyone wants to see, however that will still be two years out before we see a return to 6 to 8 weeks build time from the people I have spoken with. 2022 will be trying to get things out the door without further delays than they are now. 2023 should see an improvement, and 2024 should (hopefully) gets us back to 2 to 3 months. If companies get to the point they want to more orders, they will simply run promotions now and then.
    Duane Collie
    Straight answers from thirty-six years in the business.
    My Private Messages are Disabled - Please ask questions here in the forum.

  4. #4
    Join Date
    Nov 2018
    Posts
    42

    Default Re: Slowdown on Buyers

    When prices are up 50% or so and waits are six months or more that certainly cuts back on potential buyers.

  5. #5
    Join Date
    Nov 2020
    Posts
    20

    Default Re: Slowdown on Buyers

    Picked up at H&M plant Friday last of 4 deliveries since March 21. Got there at 715 and 18 wheels already being loaded, another waited. Still signs for help wanted at H&M, Leathercraft and one other plant. All types of jobs, skilled and unskilled. A lot of people just don't want to work anymore. The labor shortage and lack of work ethic will be with us long after the supply chain recovers - in all industries. Pretty sad.

  6. #6
    Join Date
    Jul 2008
    Location
    Alexandria VA
    Posts
    15,887

    Default Re: Slowdown on Buyers

    Yes, all those manufacturers are competing for the same work force. Many have signs out with $ 3,000 signing bonuses. Of course, that doesn’t sit well with existing employees so they have to raise pay for them. They also have lots of new hires that don’t stay long in many of the factories and trucking companies. Most are running smaller work forces than ideal and they can’t overwork them or they suffer burnout and time and a half past 40 hours. So there are delays in everything and higher prices, too.

    Did your Steele Farm barstools come out well?
    Duane Collie
    Straight answers from thirty-six years in the business.
    My Private Messages are Disabled - Please ask questions here in the forum.

  7. #7
    Join Date
    May 2010
    Location
    Columbus, OH
    Posts
    563

    Default Re: Slowdown on Buyers

    Quote Originally Posted by Savheagle View Post
    A lot of people just don't want to work anymore. The labor shortage and lack of work ethic will be with us long after the supply chain recovers - in all industries. Pretty sad.
    "Don't want to work any more" is a lie, please don't buy into the propaganda. Perhaps they are tired of being underpaid, disrespected, and treated like disposable commodities? If businesses want to find people to hire the solution is very simple; pay more and treat your employees like human beings.


    I am sure the slowdown in demand was foreseeable to the furniture companies, and that is why they didn't invest a lot of capital into massive expansions. The extra demand from the last two years was basically bringing future purchases forward because everyone was spending more time at home and had more money because they weren't doing activities they normally would. Now all of those people have new furniture and don't need to buy for a while, whereas in the past those purchases would have been more spread out. That plus the natural reduction due to the increased prices I would not be surprised if it is pretty soft sales-wise for the next 2-3 quarters.

  8. #8
    Join Date
    Feb 2021
    Location
    New Jersey
    Posts
    31

    Default Re: Slowdown on Buyers

    [QUOTE=drcollie;44899]Yes, all those manufacturers are competing for the same work force. Many have signs out with $ 3,000 signing bonuses. Of course, that doesn’t sit well with existing employees so they have to raise pay for them. They also have lots of new hires that don’t stay long in many of the factories and trucking companies. Most are running smaller work forces than ideal and they can’t overwork them or they suffer burnout and time and a half past 40 hours. So there are delays in everything and higher prices, too.
    QUOTE]

    Healthcare running into many of the same issues-paying sign on bonuses, but I saw same thing happen in late 80's.....this too shall pass.! Meanwhile, seems like I will still be waiting until May for my deliveries!

  9. #9
    Join Date
    Jul 2008
    Location
    Alexandria VA
    Posts
    15,887

    Default Re: Slowdown on Buyers

    Now we regret those cancellations! We are low on stock, having had a wave of buyers who want something quickly. We are scrambling to find inventory, even our inbound stock has been purchased by clients not wanting to wait until Fall. I will have to see if Hancock and Moore can sell us some of their High Point Market stock (Market is first weekend in April), but its probably already been sold.

    I have no explanation for the slow start in 2022, then brisk sales the past three weeks. War in Ukraine, Covid easing, Stock Market on a see-saw - it's hard to time it all out and figure what's what. This I can tell you for sure though - if you even think you want something for Fall, you need to order it now. I'm already projecting October deliveries for orders placed this month. Production times are definitely not improving.
    Duane Collie
    Straight answers from thirty-six years in the business.
    My Private Messages are Disabled - Please ask questions here in the forum.

  10. #10
    Join Date
    Nov 2018
    Posts
    42

    Default Re: Slowdown on Buyers

    I expect there will be some slowdown on buying with energy prices soaring. I am looking at cutting back on all non-essential spending. Even if gasoline goes to $6 per gallon it would only make a minor difference in my standard of living so far as gas for my car goes. The bigger thing is the cost of everything will go up as energy prices increase.

    I am supposed to drive my motorhome 4,000 miles this fall and that will probably get cancelled if diesel prices keep going up.

Similar Threads

  1. Leather Buyers focus on Upper Price Points
    By drcollie in forum High Point Furniture Market Report & Trade News
    Replies: 2
    Last Post: 12-24-2010, 12:51 PM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •