“Opportunity Cost” refers to a benefit that a person or business could have received, but gave up, to take another course of action. “Opportunity Cost” is a factor in most business decisions, including which vendors to use.
We at Whitney Evans Ltd. would argue, based on our 28 years of experience, that unless your design business qualifies for stocking dealer pricing from a vendor, making your furniture purchases through a “trade only” showroom improves your financial bottom line. It also improves your company’s workplace wellness.
In order to receive stocking dealer pricing from a reputable manufacturer, a business must maintain a substantial showroom or storefront, and purchase a significant amount of product to be displayed. These costs run into the hundreds of thousands or even millions of dollars per year. In return for this enormous investment, these businesses, including Whitney Evans Ltd., receive the lowest wholesale discount, stocking dealer pricing.
Some manufacturers have chosen to offer “designer accounts”. The price is not as low as stocking dealer, but little or no investment is required. On the surface, “designer accounts” may seem attractive, because the price may be a little lower than the standard trade showroom discount. Be careful if the initial cost of the order is your only consideration, because there are several important factors being ignored.
First of all, you should be “working on your business”, not “working in your business”. Spend your working hours designing, interacting directly with clients, and generating new business, not following up on orders, or handling customer service issues. Let Whitney Evans Ltd. do what we do best, and take all of that off your plate. We promise to keep you informed about the status of each order, and, of course, we stand behind the products we sell. We become an integral part of your support staff, and we do it at no extra charge. Ask around about us.
Secondly, Whitney Evans Ltd. does not sell to the public. Bring your clients to our showroom, knowing we are there to help you succeed. Browse our inventory, check out samples, and utilize the decades of product knowledge amassed by our sales team. If we do not have what you need, we will direct to another trade showroom that does. Benefit directly from the financial investment we have made in our showroom. You will make more sales, and you will not risk losing your client, and revenue, to a retail salesperson. Do not buy from a vendor that is out to diminish the important role of the independent designer. We promote and protect the professional design trade.
Take the time to do the math. Estimate how many hours you spend each month following up on orders, or handling customer service issues. What terms and freight rates are you offered through your direct “designer accounts”? Is the account a prepay before shipping? Are you being charged a percentage freight rate on a higher cost? Whitney Evans Ltd.’s terms are less rigid, and we receive the lowest freight rate. Do you have all of the selling tools that a stocking dealer has?
We emphatically believe, when all of these factors are taken into account, your net profit will actually increase by choosing a trade showroom like Whitney Evans Ltd. as your preferred vendor.
Whitney Evans Ltd. – Family Owned since 1989