By Alan Wolf, YSN
Furniture manufacturers are passing along a second round of price hikes after imposing average cost increases of 4 percent last fall.
According to a report by the industry news site Home News Now, the latest bout of price increases, whether promised or already imposed, appear to range between 2 percent and 11 percent, retailers said.
As merchants brace for higher wholesales — and grapple with soaring freight rates and concern over a consumer pullback — they also understand the predicament of manufacturers, who face rising costs for foam, cardboard and transportation, the website said.
Among dealers cited in the report is BrandSource member Miskelley Furniture, based in Jackson, Miss. Case goods buyer Gentry Prestwood said the company adjusted its retail prices after the increases last fall and has been absorbing what it can, but will be compelled to revisit its retails due to the dramatic increase in container costs. “We just didn’t see it coming,” he told industry scribe and Home News Now founder Clint Engel.
Freight aside, cost increases on upholstery are averaging about 5 percent, said Miskelley buyer Anna Lucovich, which is taking the form of formal price hikes and invoice surcharges by vendors.
Compounding the problem are unfavorable currency exchange rates for offshore goods; COVID-19 flareups that are still intermittently closing Asian factories; and, at least for the time being, continued strong consumer demand.
Seth Weisblatt, director of merchandising for home furnishings at BrandSource, believes marketplace forces will buffet the industry throughout the year, and that dealers can expect a bumpy ride. “Wholesale pricing will continue to see an unprecedented level of volatility over 2021,” he told YSN. “We’re seeing manufactures making swift price hikes, and hearing of every part of the supply chain facing delays, challenges and drastically increased freight costs.”
Read Engel’s full report here in Home News Now.
