It is no surprise that the wealthier you are, the more you will spend on furniture. But it may surprise you where that money is being spent, especially when it comes to outdoor furniture. A recent study by Furniture Today looked at outdoor furniture sales in relation to the buyers wealth. They paid special attention to the 22% of American households that make over $100,000 a year.
When it comes to outdoor dining sets, these affluent Americans made up 28% of the market share and accounted for 37% of the total dollars spent. On average the wealthy spent twice as much on outdoor dining sets than the less affluent.
While the numbers for outdoor dining sets may not come as a big surprise, the money spent on outdoor conversation groups will certainly surprise you. Wealthy Americans only accounted for 19% of the market share in this category, but accounted for 65% of total dollars spent! While families making less than $100,000 a year spent on average $225 on conversation groups, those making between $100,000 and $150,000 spent $1500 on average, while those making over $150,000 a year spent $2325 on average, over 10 times what less affluent Americans spend.
The reason for these numbers may have to do with outdoor living space. Nearly 75% of all families who make over $150,000 a year have an outdoor room in their house, with another 17% in the process of planning or constructing one. For the families making between $100,000 and $150,000, 63% of them have outdoor rooms, with another 22% in the process of planning or constructing one.
For manufacturers of outdoor furniture this could be some important information to keep in mind. While it would be wise to offer a range of price points for outdoor dining sets, you may want focus more on high end conversation groups.
As the summer heats up and sales start growing, make sure that you aren't left behind. Let DSA Factors handle your receivables so you can focus more on sales and production. Call Howard today at 773-248-9000 to find out how we can help you with our accounts receivable factoring.