DISTANCE DOTH INSULATE NO MORE

“The RRP should equal SEVEN times the cost ex works. You’ll make good money. Trust me! 100%. Don’t worry about the internet – our clients aren’t peasants that shop for bargains . Anyhow, furniture isn’t affected by online trade.”

This was the instruction from an established furniture business we purchased goods though for a couple of years.  At a gross margin of 85% ...  when local manufacturers would be delighted, no, astonished with a 25% gross margin. This explained the McMansion living. Prestigious schools for the kids. The First Class travel & 6 star hotels. For furniture salesmen without tertiary credentials, wow, they’ve found the sweet spot. Look at their client lists - they're not dummies nor small fish! Is this the way for us to make real in-roads of sustainable sales volumes? As an old Irish friend used to say : "more power to them!"

Such inflated prices were only accepted by clients that didn’t shop around, a consumer category diminishing each year at a grand rate. This was the era my old boss John Moran excelled in, traveling overseas several times each year to pick up ideas from trade only fairs & launch them for respective retail partners 12-18mths later. These shows are now not only open to the public, but heavily reported within the hour on across social media, a 12week wait is barely tolerable. Everything evolves though doesn’t it?

Nowadays, you’ll see customers doing price comparisons on their smart phones in store, often pointing them out. If the difference is too much, they’ll simply laugh and walk out the door never to be seen again. But they’ll tell everyone they know; no matter how you change in the future, that label won't wash off.

Maybe you attended a local launch evening, nibbles by a renowned Chef and bubbles from France? A special VIP offer of 15% off that evening. A tote bag with a promotional postcard and virus laden USB key? How generous!

Even after discount, the price on that gorgeous 2.5m sofa is ...  whoa  .. $19,990. We love it but wow, OK, let me just price check online when I get home. After a bit of Google work, you are officially being ‘phished’ by algorithms written for European retailers , targeted directly at you; advising you’d be foolish to buy that sofa from a local retailer (yes, they know you’re looking for that sofa from an IP address in Aust/NZ). You can have it delivered, fully insured, to your nearest Port for only $15,000.

What they, the continental retailers, don’t necessarily mention are the taxes, duties and fees to get it from the nearest Port to your home, which can be costly and stressful. Why buy a headache with customs and the ‘hi-vis’ brigade? Or why be ripped off by the local retailer whom doesn’t add any value other than buying and delivering on your behalf? Not to mention pulling out ‘sales conditions’ when things go off kilter.

But that is where we’ve been able to help our circle of design partners, only upon request, since 2007. We don’t hold stock, nor do we have samples to refer to. Most of our clients travel internationally with frequency, as do their architects and designers. Think of us as the 'airbnb' or 'uber' of furniture : it's all about facilitating a quality service, not flashy assets or cash guzzling overheads.

They’ve already fallen in love with the piece; now it’s time to buy. You name it (the brand) and we’ve probably procured and shipped from them safely with full warranty and insurance. Once goods were lost due to ‘pirates’ during trans-shipment via Malacca; no fear  ..  insurance activated and goods delivered 10wks later. A story to be shared with friends .. “… you wouldn’t believe what it took to get this table... pirates I tell you ... arrr ...”

We’ve assisted design practices, architects, builders, project managers, end user companies and individual families. No matter the scare tactics used by the existing ‘rip-off retailers’, we provide the following to reinforce the legality of this activity (https://www.consumer.vic.gov.au/shopping/buying-parallel-imports). Given we’ve assisted County Court Judges, Members of Parliament and Barristers  ..  you can have faith that everything is above board.

Whilst cars continue to be sold in Australia at exaggerated prices, thanks to the stringent legislation, right hand drive, ADR standards red tape and profiteering by the sellers – the same should not apply to furniture. Especially when ‘Neo’ category clients generally engage design/specifier professionals, meaning the re-seller need only procure and supply.

If you save a few thousand here and there on those super critical pieces from Italy or Germany, maybe, just maybe, you'll find reason to commission a piece from a passionate, highly skilled Australian artisan? One that is the key feature of your home, one that every visitor will reflect upon fondly.

No design advice thank you : we’ve already got that. No, hold the Bolly darling – just process the order and that will do it.

Our new showroom opens in August 2016 in Richmond, by appt only. In the meantime: www.destination3000.com.au

Andrew Watkins    [email protected]  mobile 0447 337 448