In 1849, French journalist Jean-Baptiste Alphonse Karr wrote, “Plus ça change, plus c’est la même chose” (The more things change, the more they remain the same).
I would like to ask everyone in the furniture business reading this article if they can picture these two possible scenarios:
- In the year 2000, a family pulls up to a furniture store driving their $18,000 pick-up truck to pick up a $499 sofa.
- In 2024, a family pulls up to a furniture store driving their $48,000 pick-up truck to pick up a $499 sofa.
The furniture industry may be the most underrated manufacturing and retail industry in the world. Despite all challenges — war, economic crashes, tariffs, constant freight instability, a global pandemic, foam shortages and even pirates — we continue to innovate, reinvent ourselves and remain on the forefront of fashion while consistently improving safety standards. Yet, the thing our industry gets the least credit for is our ability to beat inflation. Over the past 25 years, the furniture industry has beaten the odds.
- In 2000, the average Big Mac was $2.24 and today is $5.29.
- Cereal prices are 62.99% higher in 2024 than in 2000.
- Tuition and fees at private national universities have increased about 41% since 2000.
- Shoe prices have risen 82.4% since 2000.
According to the U.S. Bureau of Labor Statistics, prices for furniture and bedding are 2.34% lower (yes, lower) in 2024 vs. 2000. The furniture industry has had an average inflation rate of -0.10% per year. In other words, furniture and bedding costing $1,000 in the year 2000 would cost $976.55 in 2024.
Every industry talks about inflation, but the furniture industry has managed to beat it. Everything we use to manufacture, sell, and deliver furniture has increased, yet furniture prices have remained the same. To paraphrase the quote I mentioned earlier, ‘the more every price around us raises, the more furniture prices remain the same.’
As members of such an underrated industry, we should all pat ourselves on the back, take a bow and give each other a round of applause. Actually, let’s hold the applause until the end.
I was in a retail store recently sitting at a marble table and four chairs that were selling for $799 and tried to imagine the thousands of people that had something to do with manufacturing, selling and shipping this product to a home.
A team of designers and engineers created the look and style. The marble was mined from a mountain in Asia, cut into slabs then delivered to a subcontractor who will cut it, polish it, clean it, QC it, then deliver it to a factory. Think of the labor that went into sourcing and cutting, sanding and shaping the wood and MDF parts. How many people, computers, and machines created and formulated the finish? There are screws, nuts bolts, braces, stretchers, springs, and plastic feet. The chairs need foam, glue and fabric from mills. The table and chairs need to be packaged in cardboard, Styrofoam, straps, tape, glue, rubber, wood all must be manufactured then assembled. These are loaded on trucks, then container ships, soon to be unloaded on to trucks and trains and more trucks, then unloaded into warehouses. Now sales reps, managers, logistics teams, retail sales associates, customer service, truckers, delivery, more trucks, more unloading. Delivery, assembly, oops, someone along the way chipped a leg. Now phone calls, replacement parts …
OK, I’m sure you get it. Consumers complain about the $799 retail cost, but then buy an $800 pair of shoes.
Through it all, the furniture industry survives and thrives. It does this through creativity, drive, hard work and an undeniable ability to adapt. It is not easy to deliver furniture. It is certainly not easy to hold the same prices for 24 years. OK, now give yourselves a round of applause!
Ian Geltner is the vice president of sales for Steve Silver Furniture.