It’s no secret that we all yearn for stylish furniture in our homes. Things like bookcases, cabinets and dining tables are fashion items. When we wish to furnish our homes, we don’t just select any random furniture.
Instead, we spend time pondering over the theme or design we want to embrace. And we spend even longer looking for products that meet our styling requirements.
As you can imagine, there are a plethora of retailers that sell furniture. It’s one of those niche markets that seems to be recession-proof. That means people still buy furniture; even during hard-hit economic times. After all; if you’re moving to a new home, you don’t want to live in a bare shell!
When it comes to setting up profitable enterprises, there are many ideas available. A few people think that manufacturing high-end furniture isn’t one of them. There is the assumption that everyone only wants cheap and standard furniture. But, what if I told you that demand for high-end bespoke products is high? Let me give you a few reasons why this is so:
Not everyone wants flat-packed furniture
It’s a well-known fact many people buy flat-packed furniture that gets assembled at home. Companies like IKEA sell millions of such products to consumers each year. Of course, there is nothing wrong with buying such items. The flat-packed furniture market is strong and shows no signs of shrinking.
Still, there is also a market for people that want something more unique. Sure, they might find an “off the shelf” item that looks okay. But, thousands of consumers are looking for something that no-one else has. Or, at least, furniture that isn’t found in abundance in people’s homes.
Manufacturers that produce high-end furniture can easily capture such a market. And most offer a service to design and build items at a customer’s request. That means some people really could have a one-off item that isn’t found elsewhere.
People miss well-built furniture made in days gone by
One issue with mass-produced products is their failure rate. Manufacturers have to balance reliability with economics (i.e. profit). As a result, a lot of furniture items have a limited lifespan. It’s not uncommon to replace things like sofas and dining room table sets after just five years.
More consumers are getting fed up of spending vast sums on furniture that only lasts a few years. They yearn for products that can stand the test of time. For example, quality products made during Victorian and Edwardian times.
As such, those people are turning to manufacturers that only produce high-end furniture. That’s because the higher cost of those products is justifiable as they get built “for life”, as it were. They are purchases that can get passed down to future generations. Not ones that get dumped at landfill sites after just a few years of use.
Is high-end furniture marketable to the masses?
In a word, yes. Despite the somewhat turbulent global economy, many people have a lot of disposable income. High-end furniture isn’t just a range of products that only the rich will buy. Because of that fact, it’s rather easy for a manufacturer of such goods to market their products.
When setting up a new business, making a profit is a top priority. Otherwise, what’s the point in setting up an enterprise? Some entrepreneurs worry that setting up such a concern will offer little in the way of profit. But, that’s a fear which is rather unfounded.
Even taking into account the time required to make furniture, there is still considerable profit to get made. So, even if a manufacturer sells just a few hundred products each year, they’ll still make money.
Thanks to the Web, consumers find it easy to research new furniture ideas for their homes. Many people aren’t so concerned with the cost of their new sofas or other items. They are more interested in achieving the right look for their abodes.
As a high-end furniture manufacturer, you can help those customers achieve their design goals. It might shock you to learn many of them aren’t the typical wealthy clients you envisaged would buy from you!
Is it easy to achieve a healthy profit from such a business?
Again, the answer is yes. It stands to reason that you and your team must be experts at crafting high-quality furniture. But, skills alone won’t help you build anything. You also need the right tools and equipment at your disposal. And it’s crucial to keep those costs down as much as possible.
Thankfully, it’s possible for furniture manufacturing startups to save on those costs. Many tool companies lease woodworking equipment to manufacturers. As you can imagine, it’s a welcome strategy that improves one’s cash flow.
Plus, there are plenty of innovations in woodworking. For instance, CAD systems help to create precision-cut parts from wood. And products like Henkel industrial adhesives ensure those items don’t become undone after assembly. Customers can enjoy buying products that really are built to last!
Marketing and selling high-end furniture is also cheaper and easier thanks to the Internet. And let’s not forget word of mouth, arguably the cheapest and best form of marketing!
How to get started
Are you ready to start a high-end furniture manufacturing business? If so, it’s important you spend some time researching and planning it before you launch.
First of all, you will need to create a business plan. It’s a document that will detail your goals and vision. It includes an analysis of startup costs and your projected turnover and profit.
As part of your research for it, you’ll need to discover the costs for the following:
- Leasing or buying tools and equipment;
- Workshop (manufacturing) premises;
- Staff;
- Marketing and advertising.
Next, you must decide what type of business entity you wish to form. An accountant can help you determine what’s best for you. You’ll also need to find out if you need any government permits to manufacture furniture.
Last, but not least, you’ll need some capital investment to get started. Usually, manufacturing startups will borrow the money from a bank or group of investors.
Good luck!
This article was provided by ellie jo