If you have ordered furniture or appliances in the past 2 years, you know that every furniture store has low inventory, long wait times, and a lot of confused customers. In a world where we are used to having things delivered in 2 days, having to wait 9 months for an accent chair can be frustrating. So why is it taking so long for furniture and appliances to be delivered or come in stock? COVID-19 is partially to blame. Everyone was staying indoors and shopping online for new furniture. Furniture sales sky-rocketed and the manufacturers couldn’t keep up. But the 2 main reasons that nothing is in stock: there’s a shortage of materials and expenses are rapidly rising.
Foam Shortage
The main material shortage that is affecting most home furnishing companies is foam. Foam is used in most mattresses, such as Tempur-Pedic, and seating cushions for sofas, loveseats, etc. Foam is heavily produced in Louisiana and Texas. In February 2021, Texas suffered a major power outage due to 3 large storms. Many homes, businesses, and factories were left with no power. Due to this severe freeze, most, if not all, foam production in Texas came to an abrupt halt. This storm has heavily affected the foam industry. This unfortunate natural disaster paired with high demand produced a foam shortage, where the effects can be seen all over the United States. Along with foam, Texas is one of the nation’s largest producers of plastic. So not only did this disaster result in a shortage of foam, but it also affected the production of plastic. Many furniture parts are made of plastic.
Shipping and Handling Cost Increase
Another reason it is becoming increasingly difficult to get out-of-stock products is due to the increase in shipping and handling costs. Large home furnishing companies order product from manufacturers, and it is then sent to the company in containers. According to Bloomberg, it is 25-50% more expensive to ship a container this year than last. This increase in cost can be attributed to many things, but one reason is that there is also an employee shortage. So while this affects the amount of shipping time, it also affects small businesses. Many small businesses cannot afford to pay these increases, resulting in having low to no stock of certain items.
Lumber Price Increase
If you have been following any news at all, you are probably aware of the insane lumber price increases. According to Insider, lumber prices have increased over 250% in the last year! This is due to the increase of homes being built, quarantine DIY projects, and high demand for goods. Furniture manufacturers have had to increase their prices to afford to pay for lumber. In return, furniture stores have to mimic manufacturers’ pricing in order to make money. Similar to the shipping and handling cost increase situation, many small businesses simply cannot afford these increases and therefore, stop ordering goods they cannot afford. This is another reason many products at your local home furnishings store may be experiencing low stock.
How Boulevard Home is Making Manufacturer Price Increases Manageable
As always, Boulevard Home will continue to guarantee the best price on all products we sell. By offering in-house financing, we have many low payment, no interest options to help make everyday purchases more affordable. By taking advantage of financing, we can help you build good credit! You can even use our financing plans at other local participating businesses! To see the full list of businesses you can use our financing at, click here.
Thanks to our large warehouse, we are able to order large quantities of goods, which helps to keep prices low. We also are able to buy and store popular items before their prices increase. Our buyers are constantly searching for high-quality products while also negotiating for lower prices. We have long-lasting relationships with many manufacturers, which helps us find great deals for fair prices.
If you are concerned with long waits, buy in stock items. Avoid buying custom goods, which can take months to customize and ship. Shop at our Distribution Center, where you can buy right off the floor! And finally, don’t stress! Bad situations always have a way of working themselves out.