Hi,
This is our first time buying a lounge set so I'm wondering how much of a markup the big retailers like Nick Scali have on their sofas?
The one we're keen on is about $3150 which is a 4 seater with a chaise and $150 extra for Delivery.
I'm wondering how much I can try to haggle them down to given it's EOFY? Please share your experience or suggestions.
thanks!
very useful advice.
Nick scali is a publicly listed company. The financial report would give you an idea of their margins.
Check out Costco:
https://www.costco.com.au/Home-Furniture/Living-Room/All-Sof… if you are a Member.
The markup is probably in the area of 100%, but that’s just the difference between what they pay for it and what they sell it for. There’s a huge cost in their showrooms that the markup pays for. They pay staff to hang around and serve a few customers per day, then they’re is the massive advertising costs as well.
IMO 10% off is a reasonable discount, but will depend on lots of factors like stock levels, quotas, potential commission etc.
Realistically, best bet is to go second hand and just wait it out until something good shows up.
The one we're keen on is about $3150
Nick Scali
I can almost guarantee you that their cost price is a fraction of this.
Do you really want a $3000 sofa though? Usually the ones that are on heavy discount are floor models or older versions if you want that. You can try and haggle but this is probably the worst time to do it given the shortage of materials etc.
I bought a sofa from Amart 4 years ago that was $399 and the exact same one is now $799…
I used to work for Freedom, it varies from store to store and brand to brand. There is no good way of telling which is the best couch for you vs the price. Material is the most expensive part of the sofa.
You can't really compare a Freedom sofa vs a Dare sofa vs an Ikea Sofa since they all have their different materials.
But in Freedom the markup from Sofa's varies too, one could be marked up by 50%, another one 100% another one 200%. With freedom haggling varies from store to store, rep to rep and manager to manager and customer to customer.
The best advice I can give you is to test the Sofa in-store, get a good feel, sit on it for 10 minutes and wriggle around. If it feels right to you and it's comfortable, then look at the price and try haggle. If haggling fails, then try get the material information and look for a cheaper alternative but all sofa's are made different, even if they use the same material, the shape of the couch, the thickness of the cushions, the depth, the length, leg room etc…. all plays a part. So if sofa A is 4k but sofa B is 3K with the exact same materials but it feels a bit off when you sit on it, if you're the type of person that sits on the sofa alot, you're better off getting Sofa A