BrandSource member Fawad Zavary (left) and Jeff Gonzalez, director of sales for Surya
Add to the bottom line with rugs and other decorative accessories
By Stacie Fowler, YSN
Home furnishings accessories are an untapped well of potential profit.
Jeff Gonzalez, director of sales for Surya, the Georgia-based resource for rugs, pillows, textiles, furniture, wall decor and lighting, offered a master class at BrandSource Convention 2024 on how to capitalize on that potential.
The session, “Complete the Look — How to Add Incremental Sales Using Accessories,” gave attendees actionable steps they can take to add accessories to their product mix and boost their bottom line.
Rugs 101
First, take rugs. Surya looked at what successful national retailers are doing and reverse engineered the system to make it easy and profitable for independent dealers, Gonzalez said.
In short, it’s about accessibility, ease of purchase and palatable price points, he said. Surya provides the rug display rack to the retailer, complete with training on setting it up and maintaining it correctly.
A rack holds 52 rugs: half of them are 5×7 and the rest are 8×11, all priced for cash-and-carry purchases.
“It’s instant gratification and the customer sees it, wants it and buys it,” Gonzalez said. “Customers want to be able to take it with them and build that ticket.”
Start Low, Aim High
Typically, Gonzalez said the recommendation is for independent dealers to start with rugs in the $299-$399 range, and then begin throwing in the higher-ticket products.
When shoppers are furnishing a room, they often want to buy a rug too, but have to go elsewhere because so many retailers don’t carry them. Gonzalez said offering rugs can add 3% to 4% to the bottom line.
There’s a lot to know about carrying rugs, but when it’s done right it’s a winner, he said.
“Special-order business for rugs is the kiss of death,” he said. “Don’t do that. You can’t just dip your toe into this. Make sure you do this correctly if you are going to do it. Don’t think you can get a $100 rug and sell it for $799. The way it works to compete with the big stores is by having an extreme value.”
And also, by paying attention to the logistics.
Don’t Dabble
“If you are buying one or two at a time, you are going to get killed in freight,” Gonzalez said. “Logistics are a huge part of this that cannot be overlooked. Don’t buy right and ship wrong.”
As a supplier, Surya helps its retail customers navigate the details and do it right.
“We help you along the way and make sure that the assortment is right for your market,” Gonzalez said.
It doesn’t end with rugs, however. Pillows, throws and lighting are other segments of the category that offer huge potential for retailers.
“This category can be a moneymaker,” Gonzalez said. “Independent retailers are the key to the growth of this industry. We can help you get to the margin you need and give you a wide assortment.”
YSN publisher AVB BrandSource is the nation’s largest merchandising and marketing co-op for independent appliance, mattress, furniture and CE dealers.
