But there's your dad...the salesman...the vendor....the truck driver....the guy actually building them.
The furniture company has less money in materials into the same piece than I do based on their ability to buy in bulk. Someone's pocketing the 500 extra dollars.
And anyone who's convinced there's not margins in furniture is hiding under a rock ( if your dads place is different good for him). I was shopping for a couch a few weeks ago, picked out a great leather reclining sofa....while I was sitting on it deciding, another couple purchased one about 10 feet away, and agreed on paying the signed price of 2700 dollars. They walked away happy, but I knew I wasn't willing to pay the 3800 dollar price tag on the one I had picked out. After negotiating for 20 minutes, I paid 1500. Now the two couches they sold were both
flexsteel, both leather. They didn't sell me mine below cost, so that says they made some money on me, and probably a boatload more on the other couple. Bottom line....there's a lot of profit in furniture for someone.
I know, it seems crazy, and I would never want to pay that much for furniture. The markup seems absurd. But, Maybe the company / owners would get rich if they sold a lot of furniture everyday at those prices. Dad,s company has 4 stores, sometimes they don't sell anything certain days, then, overhead, payroll, etc.. I think the price they pay for a piece from say Ashely or something seems fair, but perhaps the suppliers are getting rich due to the scale of their operation?
I once worked for a ferry boat company, local business, as a captain. My boat would load up 90 passengers at $10 bucks a head. As soon as I got underway, another boat docked at the pier and loaded another boat load, and so on. It seemed like a cash cow, and everyone in town thought it was. Then I became operations manager, and realized why we were just barely getting by... Overhead, payroll, and seasonal tourist flow.
Not to defend the price gouging furniture stores just because of dad. I don't believe it either when I walk into the showroom. I haven't seen their books either, nor the owners secret vault of gold. Kinda like my checking account. I don't believe where all the money went until I look at the statement, and then I still refuse to believe it!
Now Home Depot and their prices of materials!