What Is the Profit Margin for Furniture Stores?

Typical Furniture Markups

• Markups for furniture range from 20% to 50% above wholesale costs.
• Selling used furniture on Craigslist can also be lucrative with prices often set at 70-80% of original retail value, the industry standard.
• Requiring only cash payments is an important Craigslist sale precaution.

Furniture Sales Commissions

• Furniture sales commissions vary but usually are 15-20% of the selling price.
• Most salespeople are paid solely on commission, with salary directly tied to sales volume.

Profitability Factors

• Gross profit margins for furniture stores are typically over 40%.
• Despite the popularity, opening a furniture store is one of the least profitable small businesses.
• Ultimately, furniture profitability depends on location, target market, pricing, and more.

Monthly Profits in Furniture Sales

• Most furniture flippers will make anywhere between $50 to $500 per month but some of the best have been reported to make over $15,000 per month with this hobby turned business.

Owner Income and Starting Costs

• As the business owner, your income may range from $150,000 to $300,000 per year.
• The cost to start a furniture store will largely depend on size and inventory expenses.

Profit Margin Improvement

• If your profit margin is lower than average, you can improve profitability by raising revenue and reducing expenses.

Additional Sales Strategies

• Aside from retailing furniture, selling other products like home office goods, mirrors, lamps can boost sales.
• Offering additional services such as furniture upscaling and furniture making can also increase profits.