Why Do Wholesalers Not Sell Furniture in the Retail Market?

The price difference between a product in the wholesale market and the retail market is very vast. Therefore, it is quite logical that one might look for whether one can buy furnishings at a wholesale price. However, even if one gets into contact with a wholesale furniture seller, it is quite uncommon that they would sell a single piece of furnishing or furniture to the person. In fact, many wholesale furniture manufacturers and sellers offer their products only to agencies and other licensed individuals. Here are three simple reasons why a wholesaler would not sell single pieces of furniture and furnishings to individuals:

 Breaking the Market:

The furniture market is one of the few markets that have not broken, and the commissions are still quite princely. If the wholesalers start selling their products in the retail market directly, the retailer would wonder whether it is feasible doing business, as everyone would then flock to them for the furniture. This may be a good idea in the short term for the wholesale furniture manufacturer, but would have some serious consequences in the later stages, like having a lot of products but nobody to sell to.

Octroi Charges:

The Octroi charges for transporting any type of heavy goods are too high. In the furniture market, traditionally, these prices are borne by the buyer. Of course, the octroi and other taxes for the wholesaler are completely different, because they are in the wholesale market. Because the wholesaler would not be able to handle the single product octroi charges, they would not sell directly in the retail market.

Concentrating on One Market:

It is very difficult for a wholesaler to concentrate on the retail market as well as the wholesale market, which would finally end up with them losing money in either one of the said markets. Therefore, to keep themselves away from these risks, they tend not to sell directly in the retail market.

Comments are closed.