Furniture Crisis!! Average Markup on Price

Anyone know what the average profit margin is for furniture?

For various reasons (which are the fault of the furniture retailer and readily acknowledged by them) the leather chair and ottaman we ordered back in September can not be delivered. We purchased them to match a sofa which was on the showfloor and which we got in September.

Options are 1) cut our losses and return the sofa for a refund. Not our preferred option (as we like the sofa) but the retailer would be willing to do that. Not his preferred option either.

  1. Move sofa to another room and start from scratch with a new style sofa, chair and ottaman…but if we did this I would not want the retailer to profit from the sale of the sofa. Doesn’t seem fair for them to make a profit on fixing a problem that they are responsible for. I’m happy for them to get a profit on the chair and ottaman as we had been originally intending to by it.

So anyone know what the profit margin are on furniture. It is big furniture store with a good rep.

I know there is a manufacturer’s suggested retail price (always high so it looks like you are getting a deal), the price that is listed on the floor, and the amount the store pays for the piece.


I’m not clear on why all three pieces must be of the same design. Is getting another chair and ottoman that complements – if not perfectly matches – the sofa not an option?

Perhaps the furniture store will cut you a deal on a chair and ottoman of another design.

The markup on furniture is usually at least 100% (i.e., the selling price is double the cost). Interior decorators routinely get 40% off the retail price, though some big furniture stores will offer a similar discount to regular shoppers. (BTW, that’s how interior decorators can make money without appearing to charge their customers anything at all - they get the big discounts, but bill their customers for the full retail price.)

Early Out is right, the gross profit on furniture is high, between 50% to 70%, depending on the item and any mark downs.

Early Out and cards, Thanks for the feedback. I’ll give it a spin.

Bordelond, it is just that this is the first major furniture purchase we’ve done and were willing to spend some bucks for stuff that matched…


Many of the most attractive rooms I’ve ever seen are those that aren’t perfectly matched. Some of the finer furniture stores have decorators that will help you for free if you buy from them. Look in magazines and such and see how their rooms are put together.