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List the Advantages - Disadvantages of COM

Started by baileyuph, January 23, 2014, 07:00:25 am

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baileyuph

January 23, 2014, 07:00:25 am Last Edit: January 23, 2014, 06:14:00 pm by DB
From my perspective - the advantages are becoming more significant
 Less selling time
 Most of the liability of a project shifts to the customer
 

Disadvantages -
 Often work with fabrics not suited for the job (takes the upholster more time)
 Can be less profit, but can be offset by your labor charge
 Things like short on materials, defective materials, in appropriate materials can
  develop, most if not all the liability is shifted to the consumer

As a comment, during discussion with customer regarding potential upcoming COM
project, let it be clear about warranty or project liability does shift to customer.  I will not provide yardage estimate to a potential COM customer, merely explain that should be left to the one selling and buying the materials because we can't see the materials, width of roll good, direction and pattern repeats.

I redid all the living room furniture, several chairs and couch for a COM customer, materials were curtain materials, need I say more.  The customer had to eat the goof but still seemed pleased of the alledged savings on fabrics.  Paid me for the job that probably will require a redo soon.

Some just can't pay, for example $40 or so a yard for materials.  I live better by staying out of the issue.

Doyle


 

sofadoc

I'd say that you have summed up most of the advantages and disadvantages.

Unfortunately, the advantages of COM are starting to outweigh the disadvantages. You don't have to spend any time holding the customer's hand, and your liability for the long-term satisfaction is limited.

I just got in a new set of books from Greenhouse. Most of the retail prices range from the 60's to the high 90's. This is a "Blue collar" town. I can't sell fabrics that are priced in that stratosphere. If I put those books out in my sample room, customers inevitably gravitate right to them. Then they get their heart set on one of those fabrics, and can't get enthused about anything cheaper. They get discouraged, and abort the whole idea.

I have to keep my retail prices below $50 yd. Sure, I have a few "high-end" customers. But most of them go through a decorator, so I don't see any of that money anyway.

Many small shops ARE tired of trying to sell fabrics at a retail profit. I think that shops that don't have a public storefront are better off just working with COM. It's too much trouble hauling sample books to the customer's home.

I reported last year at this time, that 2012 was a bit of an off-year for selling fabrics for me. Well, I rebounded in  2013, and had one of my best fabric-selling years ever. 
"Perfection is the greatest enemy of profitability" - Mark Cuban

baileyuph

I can't sell 90 dollar fabric, the character of the business would have to carry the "high end" furniture image. 

I make more money doing what I am good at and a lot of it, more than trying to spend the time to do the upscale furniture work from decorators and designers.

It isn't that I don't enjoy that type of work, but like I said, at this point, the focus is on the money, not prestige. 

Dennis, I didn't realize that Greenhouse was pushing fabrics that expensive.  Some few years ago, I used a lot of their fabrics and thought others had better at the time, like Burch.

Things continue to change.

Doyle

bobbin

Those points pretty much sum it right up from my standpoint, too.  In a way, I find it easier to work in marine because customers do understand the need for "performance" fabrics that are well suited to the humid marine environment and are easy to clean.  They cringe at the prices but usually see the relative merit of selecting something key to their unique needs.  It's not that way in the domestic realm (at least from my perspective).

baileyuph

Merits of the marine market - consumers focus more on quality material.  At least compared to the furniture customers I have.  Cutting through the chase, money availability is what drives these factors.

Equally important it is important to understand where the good marine market is, definitely on coastal areas.  Around here, those who are truely marine lovers and have the funds or set marine canvas as their priority are in the same numbers as in Florida and other coastal markets.

While talking, the furnitue market is largely driven by available money.  Everyone would like to go pretty but not everyone can do all the others things in live and afford to be pretty.

Related to these comments are some local numbers that were pubished this week; 40% of the people in this state earn less then $31,000 a year and an associated point is, out of that money more than 10% goes for taxes.  The money just isn't there to sell a lot of $60 a yard furniture fabric.  We need go no further to grasp the idea of how hard it is to sell high labor furniture jobs.

Most of my furniture customers have taken a turn from picking expensive fabrics from samples to have something recovered.  They show up at the door with their chairs and announce they need them covered and they have their own material.  They picked it up on sale from JoAnn's or similar outlet.

The standards for everything has changed - I believe it!

Back to boats - there are boat customers who shouldn't even have a boat - they can't afford to have canvas and upholstery maintained and recovered.

I think some of that leads to this discussion.

Doyle

bobbin

With the possible exception of my "tire kicker" I generally find that owners of yachts are far less constrained by finances than many.  And, yes, the "wannabes" in the marine world are culled in pretty short order; it takes deep pockets to keep and maintain a nice boat.  For me, I particularly like the technical challenges yacht interiors provide.

As for the residential market... I'm routinely "shot down" as too expensive and while it can be depressing it has required me to be more inventive, efficient, and a better salesman!  I've learned to quickly assess/estimate work and when something comes along that is going to look fabulous when finished to lobby hard for it.  It's competitive, for sure! but every so often I do something that is just so right  that the customer is thrilled and amazed, and I know I've earned a customer and word of mouth recommendation.  It's hard work, though. 

I don't shy away from giving yardage requirements.  I give one that's high, and tell the customer that.  I tell them that the yardage estimate is for unpatterned fabric.  If they select a pattern they should ask for assistance with extra yardage. I explain why and say only that I'll do my best to hide any flaws/use the pattern nicely.  After that? it's not my problem.