Believe me when I tell you that prices are on their way up, way up!
I looked at an industry report warning retailers that the components of foam are in short supply. We know the result, higher prices for mattresses, upholstery, and other foam related prices. A spring mattress retailing at $350.00 will soon be $400.00 and an all foam mattress retailing for $400.00 will soon be $500.00
What to do? Here are 3 of the many changes we can make in adjusting to a new price structure from our suppliers.
- Urgency- tell the customers that now is the best time to buy. They may pay much more in the new future
- Sell off old stock creating extra liquidity or cash to offset the price increases for new inventory purchases
- Get new price sheets from your reps. Don’t order new inventory with old prices.
We will have to adjust to higher prices, but if we can stay ahead of the curve, we can continue to remain profitable. Remember, every penny counts.