Monday, July 18, 2005

Upholstery prices may climb!

FURNITUREToday, has an article Upholstery prices may climb, in which it is revealed that retailers may see rising wholesale upholstery prices of $15 to $20 per sofa due to rising prices to manufacturers. Most have absorbed higher costs in the past, but are now being forced into price increases.
Passing on extra costs is, for most factory execs, like cutting off their own legs. They say increases are likely to bring static from customers and, in some cases, force vendors off retail floors where stores don't want to carry higher price points.
In the past six months, costs have increased 18% for foam, 12% for steel, 10% for chalk used in marking fabrics.
Greg Hefner, president of Friendship Upholstery, a midpriced upholstery maker in North Carolina, said the hikes are the worst he's seen in 35 years, with steel taking an especially big chunk of his margins.
Bev & Mike
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