In-house financing available for premier furniture brand
By Andy Kriege, YSN
BrandSource Financial (BSF), AVB’s member-owned finance company, has added Classic Home, one of the premier brands in the furniture industry, to its growing list of over 60 approved suppliers.
Effective immediately, inventory financing for Classic Home’s entire product line will be available to all participating BrandSource members through BSF.
See: BSF’s List of Approved Suppliers
The partnership was announced by BSF General Manager Chris Moore late last month. “I am always happy to announce new suppliers, and this one is huge for those members in the furniture space,” she said. “It shows our expanding commitment to the category.”
Moore continued, “I am really excited, as this offers a great opportunity for our furniture dealers to finance Classic Home through BSF, rather than paying direct or without the same benefits they would have using BSF.”
The partnership allows approved BrandSource Financial dealers to finance Classic Home products on interest-free, 60 days scheduled payment terms, with an Annual Cash Distribution of half a point. “That ACD payment is a really nice addition to the bottom line for our members who take advantage,” added Moore.
Classic Home is a mid- to upper-tier brand that began in the home furnishings industry as a rug company. It has since evolved into a whole-home designer brand featuring stationary and custom upholstery, case goods for the bedroom, dining room and office, décor, art, lighting, bedding and of course, rugs.
Matt Sorensen, Classic Home’s senior VP of sales, shed some light on the company’s business model. “We stock everything we sell on both the East and West coasts, and we have a guaranteed freight rate for everywhere in between,” he said. “Also, being based in the Apparel District in L.A. has allowed us to tap into the best designers in the industry. We are trendsetters in both color and design. There is tremendous profit opportunity as well, with margins from 45 to 60-plus points, and even more on our opportunity buys.”
“Our furniture members are excited about this addition,” Moore continued. “We are currently working with our Furniture Technology Source (FTS) team on an exciting joint initiative which will be launched in 2024 to support the continual growth of our furniture initiatives.”
One of those BrandSource members is BlvdHome, a regional powerhouse with five stores across Utah and Nevada, which has successfully carried the Classic Home line for five years. Rashell Hagler, a member of BlvdHome’s merchandising team, has been very impressed with the brand. “We carry several of their lines including dining tables, accents, patio furniture, beds, upholstery and artwork. Very rarely do we have any defects or issues with their products and when we do, they are good at working with our service and repair team,” she said.
Hagler also noted that there is good opportunity on the buying side. “If a dealer buys in large quantities the discounts are substantial, and they have fantastic deals on discontinued furniture items.”
Related: BlvdHome Opens in Las Vegas
AVB’s Vice President of Merchandising Chad Evans likes where the brand is positioned. “Classic Home has been a company that BrandSource has worked with over the years and is one of the leading furniture brands in the industry,” he said. “They make high-style, high-quality products that fit into any space. We are excited to take this step and continue growing our business with them.”
Michael Posa, AVB’s general manager of home furnishings and FTS lead, summed it all up. “This partnership with Classic Home positions BrandSource members to access higher tickets, better margins and one of the premier lines of furnishings sought by higher-income shoppers and designers alike. Now they can do so and benefit from both enhanced cash flow and the ACD payments on the back end with BSF. It’s truly a win-win for everybody.”
For more information on BSF, contact Moore at (714) 422-0727 or Chris.Moore@brandsourcefinancial.com.
YSN publisher AVB BrandSource is the nation’s largest merchandising and marketing co-op for independent appliance, mattress, furniture and CE dealers.
