Invoice Factoring – Improve Your Cash Flow and Grow Your Business

Invoice Factoring - Improve Your Cash Flow and Grow Your BusinessInvoice factoring is the perfect way to improve your cash flow so that you can grow your business. Rather than waiting around 30 days to get paid for a product or service you have already provided, you can get funded the same day you invoice with invoice factoring. Factoring is not a loan, the funds you receive are your to keep. If you have accounts receivable, give DSA Factors a call today at 773-248-9000 and we can be funding you in as little as 24 hours.

Whether you are manufacturing, importing, or providing a service, with invoice factoring you can improve your cash flow. Allowing you to expand your customer base, and give you the confidence to soar your business to new heights. All it takes is one phone call and you can be on your way to growing your business!

What are you waiting for? Give DSA Factors a call today and start watching your business grow!

Another Successful Casual Market Chicago

Casual Market ChicagoLast week’s Casual Market at the Merchandise Mart in Chicago was a successful one. While many of the exhibitors noted that there was lighter foot traffic than there had been in previous years, they mentioned that more of the attendees to the Casual Market knew what they were looking for going into the show and were placing orders. Here at DSA Factors we can already confirm this as several of our clients have already submitted numerous orders for approval this week, most of which are coming from brand new accounts. In fact one of our clients has already received over $100,000 in orders from brand new accounts and it has only been a week since the market came to a close!

The show featured quite a few new exhibitors, many exhibitors who were new to the show last year and were returning for their second show, as well as all of the usual exhibitors who have been making the annual trip to the Mart for a long time now. Once again DSA Factors was present at the show and if you were exhibiting there is a very good chance that you would have spoken with Ben. However, if you somehow missed Ben at the show, or you didn’t attend this year, don’t worry, he is always available and can be reached by phone at 773-248-9000 or via e-mail at ben@dsafactors.com.

For those of you unfamiliar with the Casual Market Chicago, it is the premier trade show for the casual furniture industry and is put on each September at the Merchandise Mart by ICFA (International Casual Furnishings Association). It features a large number of temporary exhibitors on the very busy seventh floor, as well as several floors of permanent showrooms. Exhibitors at the show sell everything including outdoor dining sets, chat groups, fire tables and fire pits, outdoor fabrics, cushions, umbrellas, hammocks, bean bag chairs, grills, outdoor rugs, lighting, wall decor, and everything else you would need to complete an outdoor room.

DSA Factors has been involved in the furniture industry for over 60 years and has been providing accounts receivable factoring for furniture manufacturers and importers for the last 30 years. Our clients sell everything from indoor to outdoor furniture, cushions, rugs, umbrellas, lighting, decorative accessories, and much more. In addition to accounts receivable factoring, DSA Factors also offers our clients purchase order financing so that they have the funds necessary to fulfill large orders. If you are in need of improved cash flow, or just want someone to take care of and insure your accounts receivable, choose DSA Factors, we have the experience you need to grow your business.

Most Redecorating Projects Take 2-3 Months

Shopping for Living Room FurnitureMost consumers take their time shopping for furniture

When it comes to redecorating an entire room, most homeowners take their time to get it right. Nearly two-thirds of homeowners will spend at least 2 months to redecorate a living room or master bedroom. Nearly a quarter of homeowners will spend 6 months or more to redecorate a living room, while a fifth will spend 6 months or more to redecorate a master bedroom. What this means is that consumers are taking their time to research available options when they are purchasing new furniture.

Of course this still leaves a little over a third of all shoppers making a quick decision. A quarter of consumers will spend 3-4 weeks shopping for furniture. Another 10% will spend 1-2 weeks shopping. But only 3% of consumers are impulse shoppers and will purchase furniture in less than one week.

Brick and mortar is still the first place to shop

Despite the growing influence of eCommerce, brick and mortar shops are still the most popular place to look for new furniture. Four in five consumers will do some in-store shopping when picking out new furniture for a living room, and that number improves to five in six when shopping for a new master bedroom set.

However, just because consumers are still going to furniture stores, it doesn’t mean that they still aren’t doing research online as well.  Three quarters of consumers will visit retailer websites, two-thirds will do Goggle searches, while over half will use Pintrest and visit blogs. The other major online source for furniture shopping is reading reviews which is something nearly half of consumers will do.

You may be surprised to find out that nearly 40% of consumers will still do their research by reading magazine or newspaper articles, but only 15% of consumers will pay attention to ads in these sources. This is still better than online ads which only appeal to 10% of consumers. Of course word of mouth is another way that people shop for furniture, over a third of consumers will get recommendations from their family and friends. Instagram is another option that is used by approximately 15% of consumers.

Then there are the less popular forms of media. Only 8% of consumers watch product videos. Less than 5% of consumers will use Facebook while shopping for furniture. Twitter appeals to less than 1% of all consumers. Of course the most shocking numbers come from television commercials, only 2-3% of consumers are influenced by what they see on TV.

How much are consumers willing to spend on new furniture?

When it is all said and done, the average consumer will spend $2200 on new living room furniture and $1375 on a new master bedroom set. Generation Xers tend to spend the most money of any generation, spending $3500 on a living room and $2000 on a master bedroom. Baby Boomers come next, on average they will spend $3000 on a living room and $2000 on a master bedroom. Millennials will only spend $2000 on a living room and $1250 on a master bedroom.

Of course more important than the age of the consumer is their income level. For families making less than $50,000 a year, the average spent on a new living room is $1400 and it is $1000 for a master bedroom. Those making between $50,000 and $100,000 a year will spend $2500 on a living room and $2000 on a master bedroom. For those with income levels above $100,000, on average they will spend $4000 for new living room furniture, but still only $2000 for a new master bedroom.

All of these prices are strictly for furniture only and do not take into account the cost of accessories, rugs, lighting, wall decor or bedding.

What does this mean for the furniture industry?

Clearly purchasing new furniture is not a decision that consumers take lightly, after all, it will cost at least $1000, if not much more, just to furnish a single room. As a result, furniture manufacturers need to make sure that their product is visible and unfortunately advertising is not a very good way of doing it. The most important thing you can do as a furniture manufacturer is make sure that your furniture is on display in a large number of showrooms as well as readily available from a large number of online retailers. Other options include posting images of room ideas featuring your furniture on Pintrest and getting designers, writers, and bloggers to showcase your furniture in articles both in print and online.

Of course doing all of this can take a lot of time, and if you are spending most if your time performing credit checks and making collection cards it can be very hard to get this important work done that can lead to higher sales volumes. Why not give DSA Factors a call today at 773-248-9000 and outsource your accounts receivable to seasoned professionals so that you have more time to make your product visible. As an added benefit, with accounts receivable factoring you also get improved cash flow and insurance on your receivables. With over 60 years in the furniture industry and over 30 years providing accounts receivable factoring, DSA Factors has the experience and knowledge you need to help grow your business.

Made in USA – Supporting American Manufacturing

Made in USA - Supporting American ManufacturingIt used to be that you would purchase a product and on it would be a tag featuring the stars and stripes and would say “Made in USA”. However, as our shopping habits have evolved, with more and more people doing their shopping online, and big box stores becoming pretty much the only option for traditional brick and mortar shopping, that “Made in USA” label is becoming harder and harder to find. Despite these changes and rapidly developing global market, it should come as no surprise that the old “Made in USA” tag is becoming more and more sought after. Many Americans have even joined the “Shop Local” movement and make an effort to do as much shopping as they can at mom and pop stores in their community.

While you probably have seen “Shop Local” stickers in suburban downtowns and throughout the neighborhoods of big cities, there is a lot more to the movement than just shopping at a store whose owner happens to be your neighbor. Many of these stores will strictly source merchandise that is manufactured here in America. So by shopping locally you aren’t just helping out your neighbor, but you are also helping out your fellow Americans by creating manufacturing jobs right here in the states, rather than outsourcing those jobs overseas.

How Important are American Made Products to Consumers?

Just how important is it to consumers to purchase an American made product? According to research done by Consumer Reports, eight in ten Americans would prefer to purchase an American made product over an import, and six in ten would even be willing to be 10% more for a product that was made here at home. Furthermore, two in three consumers prefer to shop in stores that advertise American made products. However, more than half of consumers still believe that American made products are too costly.

There are many reasons why consumers prefer to buy products made in America. One reason is patriotism, a lot of consumers take pride in the fact that the products in their home were made in America. Consumers also like that they are creating jobs and supporting the American economy when they buy an American made product. However, the most important factor may simply be the quality of the product, most consumers believe that when they buy a product that is made in America that it is something that will last for a long time.

The Cost of Manufacturing in America

Despite the fact that consumers prefer American made products, the cost of labor in America is the reason why most manufacturers still prefer to produce their products overseas. It has nothing to do with America having a high minimum wage, in general most factory workers in America are skilled professionals who get paid at a much higher rate than minimum wage. In addition to this they also receive benefits such as health insurance and 401Ks, along with paid vacations and sick leave.

Then there is the question of materials, its one thing for a product to be assembled in America, but it’s another thing for it to be assembled in America from parts or materials that are also American made. If a factory is purchasing metals, plastics, or fabrics that are made in America, their suppliers also have to deal with higher expenses which of course impact the price of the raw materials that manufacturers purchase.

Advantages to Manufacturing in America

Despite these higher costs, there are still many advantages to producing merchandise here in the USA. It isn’t just the quality of the product, but also the quality control. If a product is being made overseas, the importer may have little control over how it is being made, and may not even be aware of any issues until it arrives at an American port a month after it has already been paid for. Of course the most obvious benefit is that the product does not have to be transported from overseas. This not only saves money, but it also saves time. It doesn’t need to spend a month on a ship and then go through customs before you have access to it, and that’s assuming that there aren’t any port slow downs. You also don’t need to fill an entire container in order to receive your product.

Of course the most important benefit to American manufacturing is consistency. American factories can produce goods 365 days a year. Yes, employees request time off for vacation, but those vacations are staggered so that a factory is never short-handed. In China, and other parts of Asia, factories have to shut down for an entire month as employees return to their homes to celebrate Chinese New Year. Even worse, when Chinese employees return from New Year celebrations, they tend to find a new job at a different factory. As a result you not only need to train an entire team of new employees every year, you never have any employees with the experience required to make high quality products.

Furniture Manufacturing in America

When you consider all of these factors, you actually can put together a pretty good argument for American manufacturing. However, in the furniture industry, manufacturing in America becomes even more important. By offering American made products you can also offer custom made furniture, allowing consumers to choose the configuration and sizes they want along with the finishes or fabrics they want. With overseas manufacturing you would be left with lead times of art least 10-12 weeks, but with domestic manufacturing lead times may be cut down to 4-6 weeks, which coincides very nicely with how long it usually takes a home buyer to close on their new home. These reduced lead times are also very important if a replacement part needs to be ordered and your local store doesn’t have any in stock.

As a result of these benefits, American manufacturing definitely plays a very important role in the casual furniture industry. According to Casual Living, three quarters of outdoor specialty shops carry American made lines, and four in ten consumers prefer to purchase American made products. The only features that are more important than where the furniture is made are price, comfort, and style. Again the main reason why consumers prefer to buy American is because they believe it is higher quality, and as a result, most high end merchandise is manufactured in the USA.

The only thing that may surprise you, despite the Shop Local movements strong grass roots efforts and social media presence, only 10% of Millennials believe that it is important to buy American made products. This number is slightly higher among Millennials that are married and have families, as well for those who live in the North and the West. However, there is another figure that does bode well for American manufacturing. 93% of all Millennials are willing to pay more for an American made product, with the vast majority willing to pay 20% more for a product with a “Made in USA” tag on it.

Financing American Manufacturing

If you are an American manufacturer and need help making payroll or paying your suppliers, look no further than DSA Factors. Our accounts receivable factoring program can provide you with the cash flow you need to grow your business. We are family owned and operated business based out of Chicago, Illinois who provides nationwide factoring services. Your customers prefer to Shop Local, so you should to. Partner with DSA Factors and you can outsource your accounts receivable to a family owned business right here in the USA!

How to Find the Lowest Rate for Accounts Receivable Factoring

Finding the Lowest Factoring Rate
If one number is all that mattered, then every business would work with the same factoring company that gives the lowest rate. However, a lot goes into a factoring rate and it’s important that you understand exactly what that rate means.

There are a lot of different accounts receivable factoring companies out there, and for most businesses looking to factor, the biggest concern is how much factoring will cost them. While a low factoring rate is very important, it is also important to make sure that when you get two different rates that you are comparing apples to apples. It isn’t only looking at services such as advance rates, approval rates, or recourse vs non-recourse, but also looking at fees and interest charges. So while you could call five, ten, fifteen, or even twenty factoring companies to find out their rates, it might not be so clear-cut as to which company is the cheapest and provides the best service. This article will show you how to find the best factoring company for your business.

Adjustable Rate Factoring vs Flat Rate Factoring

Adjustable Rate Factoring

There are two different types of rates that a factoring company may charge you. The most popular type of factoring these days is adjustable rate factoring. With adjustable rate factoring the factoring company will offer what seems like an impossibly low rate, they may advertise anything from .5% to 1% as a base rate for factoring your invoices. However, they will then charge you interest from the day they advance you the money until payment is received and then they will add an additional 10 days for payment to clear the bank.  The way that this interest is computed can vary, but it is most common for factoring companies to use blocks.  A block may be a period of 10, 15, or 30 days.  For each block that passes, the factoring company will charge you an additional fee.  For example, if a factoring company offers a .5% base rate and uses 15 day blocks and charges 1% for each block, this how you would be charged for factoring an invoice.  Lets say the invoice is purchased on July 1st, then you will be charged the base rate of .5% for factoring on that day, in addition you will also be charged 1% for the first 15 day block.  On July 15th if payment has not been received yet and cleared the bank, then another 1% will be charged for the 2nd 15 day block. Lets say payment is received August 10th, you will be charged another 1% on July 30th, and on August 14th, since the factoring company is still waiting for the funds to clear the bank, you will be charged a final 1%.  As a result, your overall costs for factoring the invoice will be 4.5%.

Flat Rate Factoring

With a flat rate factoring program your factoring fee is much easier to compute. If you are offered a rate of 4% then that is exactly how much money you will pay for factoring the invoice, regardless of how long it takes your customer to pay your factoring company. While the base rate may appear much higher with flat rate factoring, the actual rate you pay to factor an invoice is typically lower, especially if your customers don’t pay their invoices early.

Service Differences

While the overall rate may be the main reason why you choose to go with an adjustable rate or flat rate for your accounts receivable factoring, it is also important to consider the service that goes along with these two different rate structures. With an adjustable rate, the longer it takes your factoring company to get paid, the more money they make. As a result, an adjustable rate factoring company has little motivation to collect from your accounts until they start to become seriously past due. With a flat rate factoring program, your factoring company is very motivated to collect from your accounts when the invoices become due. This motivation to collect doesn’t just affect how much you pay for factoring, but can also affect if future orders from your customers get approved. If a customer is past due on your invoices, then they won’t get approved until they catch up. As a result a factoring company with an adjustable rate may not be able to get you approvals in a timely fashion causing your customers to become upset.

The Advance – Improved Cash Flow

Perhaps the most important reason why companies want to factor their invoices is because of the advance that provides them with the improved cash flow they need. When choosing a factoring company, the most important question should be if they provide an advance and how long it takes. Most factoring companies should be able to provide you with an advance on your receivables within 24 hours, or even the same day. A factoring company who is offering you rates to good to be true may not be providing you with an advance. After that you need to look at the rate of advance. All factoring companies hold back money in reserve, but some companies hold back more than others. However, rather than advertise how much they hold back, factoring companies prefer to advertise how much they advance. So if a factoring company holds back 10%, then they have an advance rate of 90%. Advance rates can vary anywhere from 75%-90%, so it is important to make sure that you are getting a high advance rate.

Recourse vs Non-Recourse Factoring

Another benefit of factoring is the insurance that it provides on your receivables. A company that offers non-recourse factoring will insure your receivables against non-payment for financial reasons, meaning for example, that you will not be on the hook if a customer of yours goes bankrupt. However, if your factoring company only offers recourse factoring then they are not providing you with any insurance, and you will be have to pay them back if one of your customers files for bankruptcy.

Approval Rate and Credit Limits

Because a factoring company may be insuring your receivables, they are also assuming some risk. How much risk they are willing to take can vary. As a result it is important that you choose a factoring company with a high approval rate. It is also important to learn about how your factoring company assigns credit limits. It is important that your factoring company assigns your customers a credit limit based strictly on your business with them. Some factoring companies assign a single credit limit to a business that applies across all of their clients, as a result, if another client has orders that reach that credit limit, your orders will get turned down until that other client’s invoices are paid off.

Hidden Fees and Commitments

Of course the last thing you want is to get a bill from your factoring company asking you to pay a bunch of hidden fees. Many factoring companies may charge you fees for day-to-day operations such as running a credit report. Other companies may charge you annual fees or fees for not meeting minimum volume requirements. While some companies may lock you into a long-term contract and will charge you fees if you choose to stop factoring or want to change factoring companies. Another thing to consider is whether you are required to factor all of your accounts. Some factoring companies will require you to factor all of your accounts, including ones that pay on credit card, meaning that you will be forced to pay factoring fees even on accounts that you don’t factor. It is important that you look at these fees as they of course affect the overall rate that you are paying to factor your receivables.

Service and Benefits

Finally, the last thing you need to look at it is the service and benefits that your factoring company can provide you with. When it comes to service, many larger factoring companies will treat you simply as a number and assign you to an account manager who may not be able to make difficult decisions. Often times these larger factoring companies are owned by banks or are headquartered overseas, meaning that it may take them a long time to make simple credit decisions. With smaller factoring companies, and especially family owned companies, you will always be able to speak with one the companies principals, and quick turn-around times on credit decisions or anything else are another advantage that they offer. Of course, sometimes you need a little bit more than just factoring, so it is important to look at some of the other benefits factoring companies may offer.

Purchase Order Financing

Sometimes when you get a large order from a major retailer you may need a little extra help fulfilling the order. As an importer you may need to pay the overseas factory to start production, and certainly they will want payment in full before a container is released. As a manufacturer you may need funds to purchase additional materials so that you can start production. Whatever the case may be, some factoring companies offer purchase order financing, which is basically a short term loan based on the purchase order so that you have no problem getting the order fulfilled. Even if you don’t need purchase order financing right now, it is important to choose a factoring company that offers it to their clients as you never know if you one day may need it.

Small Business Loans

Some factoring companies may even offer their clients small business loans in addition to factoring services. If you might need a loan from time to time, whether you need to pay to attend a trade show, or you are developing a new product line, it is nice to know that your factoring company may be able to help you out. Since you will have established a working relationship with your factoring company, they will be much more likely to offer you a loan than a bank, and will also make a decision much quicker.

Choosing the Right Factoring Company

As you can see, there is a lot that goes into choosing the right factoring company for your business. At DSA Factors we offer low, competitive, flat rate factoring fees with the personalized service that you would come to expect from any family owned and operated business. Our clients receive non-recourse factoring with a 90% advance rate. Furthermore, we have an approval rate of over 95% and most companies get approved instantly when submitted on our web page. We have no hidden fees, no minimum volume requirements, and no long term commitments. We also offer purchase order financing to our clients and have offered small business loans to clients who we have developed a working relationship with. DSA Factors is well known throughout the factoring industry as one of the best companies to work with, earlier this year we were named by Factoring Club as the Best Micro Factoring Company for 2016. If you are looking for a factoring company to help grow your business, give DSA Factors a call at 773-248-9000, and find out just how easy factoring can be.

Selling Furniture to the Almost Rich

Luxury FurnitureMost furniture manufacturers and furniture stores like to cater to a specific demographic. Those who sell low to mid range priced furniture are targeting the middle class, while those who offer high end, luxury furniture are targeting the wealthy. While these two demographics are certainly important, there is another demographic that is often overlooked but perhaps even more important, that is those who are not yet rich but will be one day.

20% of all Americans households make between $100,000 and $250,000, but yet they account for 40% of all expenditures. This is pretty comparable to the 80% of American households who make less than $100,000 but only account for 50% of all expenditures. Only 2-3% of American households make more than $250,000, and they account for the other 10% of expenditures.

So who are these not people who are on the verge of becoming rich? Most of them would be between the ages of 35 and 54 as it is between these ages when most employees will earn their highest salaries. This also corresponds to the ages that are most likely to spend the most on furniture. However, those aged between 35 and 44 tend to spend 1.5 to 2 times more on furniture than those aged between 45 and 54.

This means that if you are a furniture manufacturer there is a lot of opportunity if you are marketing towards the younger crowd that is almost rich. This group is primarily composed of Generation Xers, an age group that is typically overlooked in favor of the much larger Baby Boomer and Millennial generations. As many manufacturers are starting to shift there attention to the up and coming Millennials, it would be a good idea for them to also focus on Generation X, who actually share a lot of similarities with the younger Millennials.

While most luxury lines like to portray a sense of exclusiveness and status, this is not something that appeals to the soon be rich, a group that is largely opposed to the excesses of the top 1%. Instead, luxury lines looking to tap into this market need to appeal more to their individuality and lifestyle, while at the same time offering a strong online presence in both the form of eCommerce and social medias.

If you are currently working on expanding your line to cater to those who are becoming rich, now might be a good time consider factoring accounts receivable.  The funds you receive through factoring are not a loan, you can use them however you like, whether it is for new product development, new marketing initiatives, or anything else.  Give DSA Factors at 773-248-9000 and start getting funded tomorrow!

On The Move

On The MoveAmericans are on the move according to a recent survey done by Furniture Today and Apartment Therapy.  Nearly 60% of Millenials and 40% of both Generation X and Baby Boomers plan on moving in the next three years.  In fact, nearly a quarter of all Millennials plan on moving in the next year.  While 27% of the people planning to move would like to move out of state, not everyone is looking for a change of scenery.  83% of city dwellers plan on staying in the city, while 66% of suburbanites plan on staying in the burbs.  The real change comes from people living in rural settings, only 52% of them wish to remain in the countryside, while 28% of them want to move into a city, and the remaining 20% wish to move to the suburbs.

For the most part Americans want to live in houses.  Nine out of ten Millennials say their next home will be a house.  This number drops to eight out of ten for Generation X and six out of ten for Baby Boomers whose next move will put them in a house.  Condos are the next most popular place to live.  While only 3% of Millennials wish to live in a condo, 10% of Generation X and 26% of Baby Boomers say their next home will be a condo.  Apartments are not very popular right now, only 5% of Millennials want to move to an apartment, and this number drops to 4% for Generation X and 2% for Baby Boomers.  In fact four out of ten renters plan to own their next home, and a third of apartment dwellers plan on moving into a house next.

When it comes to the size of a home, about half of all Americans plan on moving into similarly sized home as their current home.  Almost half of all Millennials are looking to upsize, with about a third of Generation X and a fifth of Baby Boomers looking to upsize as well.  For those looking to upsize into a larger home, they are looking for another 550 square feet on average.  Not too many Americans are looking to downsize, but it should come as no surprise that downsizing is most popular with Baby Boomers, just over a third of them would like a smaller home.

With all of these people on the move it means that there will be plenty of opportunity for the furniture and housewares industries to cash in on these movers.  If you are a manufacturer or importer it is important that you are prepared to serve these growing numbers of transient Americans.  Let DSA Factors help you by factoring your accounts receivable and giving you the cash flow you need to grow your business.  Call us today at 773-248-9000 to find out how DSA can help your business grow.

Targeting Millennials, America’s Largest Generation of Consumers

Nursery with CribMillennials, those born between 1981 and 2000, have become the largest living generation in the US with 75.3 million people, surpassing the Baby Boomers who now number 74.9 million according to Kids Today.  There are 53.5 million Millennials in the workforce compared with 52.7 million Gen Xers and 45 million Baby Boomers.

As the Millennial population continues to grow, it is important to understand them so that you can market to them appropriately.  There are two major factors that need to be looked at when dealing with Millennials.  First, Millennials are waiting longer to get married and have babies than previous generations.  In the last ten years birth rates for mothers between the ages of 20-24 have dropped by 20.6% and ages 25-29 have dropped by 9%.  However, birth rates of mothers between 35-39 have increased by 13%.

Since Millennials are waiting longer to have kids, this means that they most likely will have more money to spend once they do have kids.  They also tend to be better educated as they’ve had more time to get their bachelor’s or even master’s degrees.  This is resulting in consumers who are willing to pay more for a product if they can get more out of it.  Very often these consumers might just being willing to pay more for a higher quality product, but they also may be willing to pay a little bit more for a product that can grow with their families.

An excellent example of a product that can grow with a family are convertible cribs.  75% of moms under the age of 30 have either bought or plan to buy a convertible crib, compared to 71% of moms age 30-34 and only 62% of moms age 35-39.  Of those who have bought or plan to buy a convertible crib, 71% of them are willing to pay more for a convertible crib than a standard crib, with 34% willing to spend as much as $100-$200 more for a convertible crib.

The other important factor is the internet.  61% of Millennials will rate products and services on the web, while only 46% of the older generations will do this.  In fact 35% of mothers under the age of 35 purchase their children’s furniture online.  Of the 65% who still purchase their furniture at brick and mortar locations, most of them will do their research online before going into a store, with many of them buying exactly the product that they chose online.

For this reason it is very important for both manufacturers and retailers to provide lots of details about their product line on their web page.  But a static web page with features and specifications isn’t enough.  Companies need to offer dynamic web pages that allow for questions, reviews, and link to social media.  Over two thirds of Millennials that use social media rely on friend’s posts to influence which products they will purchase.  If your company only offers a static web page, it may be difficult to sell to this young generation of educated consumers with large incomes.

As this younger generation is quickly becoming America’s largest group of consumers, it is important that you target your products and marketing towards them.  You need to offer high quality, adaptable products, and take advantage of the internet not only for online sales, but also for marketing via social medias.  This is a big change from traditional sales methods you may have used in the past.  If you find yourself short on time to adjust your products and marketing to your customer’s needs, let DSA Factors help.  We can manage your receivables and collections while eliminating the need for you to run credit checks, allowing you to focus on more important issues such as product line, marketing, and sales, while at the same time improving your cash flow.  Give us a call at 773-248-9000 and ask about our accounts receivable factoring program today!

Bigger is Better – Top Furniture Retailers Seeing Higher Sales

Higher SalesAccording to a recent report in Furniture Today, the top 10 furniture retailers saw an 11% increase in sales in 2014 over 2013, while the top 100 retailers experienced sales increases of 8.3%.  This is the fifth straight year that the top 100 have experienced sales growth.  Overall furniture sales have grown from $50.5 billion in 2013 to $52.8 billion in 2014, a 4.5% increase overall.  This means that the top 100’s gains has come mostly at the expense of smaller furniture retailers.

It isn’t just sales that are growing, but also locations as well.  The top 100 retailers opened a combined 711 stores in 2014, a 7.4% increase in the number of locations, with the top 10 leading way with a 22% increase in new stores.  2013 saw only 321 new stores open for the top 100.  While many of these are actual new stores, many of them also came thru acquisitions.  Mattress Firm alone added over a hundred new stores thanks to acquiring two other chains that were in last years top 100 list.
The top 100 retailers were able to account for 79% of all sales for US furniture stores.  They accounted for 37% of overall furniture sales nationwide.  This takes into consideration not just furniture stores, but any other stores, whether brick and mortar or online, or catalogs that sell furniture such appliance stores, department stores, rental stores, warehouse clubs, and many more.
Leading the way in the top 100 were the specialty stores.  There are 27 specialty stores in the top 100, and they combined for net sales increases of 10.4%, while conventional furniture stores saw net sales increases of 6.5%.  Even more amazing is that these 27 stores accounted for 45% of sales for the top 100.  It was the 10 bedding specialists in the top 100 that were able to account for most of these gains.  Bedding specialists saw a net sales increase of 15.6% while they added 555 new stores, an increase of 14.2%.
The top 10 stores are as follows:
  1. Ashley Furniture HomeStore
  2. IKEA
  3. Williams-Sonoma
  4. Rooms To Go
  5. Mattress Firm
  6. RH
  7. Berkshire Hathaway [furniture division]
  8. Pier 1 Imports
  9. Raymour & Flanigan
  10. Sleep Number
With the big names taking a higher share of sales volume away from the smaller stores, it is more important than ever that you are able to get your products into their stores in order to grow your business.  To get into these stores you need to be able to give them terms on large orders.  Let DSA Factors factor your receivables and improve your cash flow so your business can grow.  With our help you no longer need to worry about cash flow or credit, and can instead focus on sales.  Give us a call today at 773-248-9000.
This data is based on furniture, bedding, and accessories sales.

Furniture Orders Up 7% For First Two Months of 2015

According to a report from Furniture Today at High Point, furniture orders from factories are up 7% in January and February as compared to this same time period last year.  The cold weather this winter did have an impact on orders, however, it wasn’t as bad as it could have been.  According to the survey, 70% of manufacturers reported increases in January sales over the same month the previous year, while only 59% of manufacturers reported increases in February over the same month last year.

This is good news considering that in January and February of 2014 orders were down 2% from 2013.  That means that orders are up 5% in 2015 over 2013.  While that may not seem like a lot, it is still better than what was expected.

If your business is experiencing higher sale volumes and needs help with cash flow, factoring may be a good option for you.  While banks are still very tight with their checkbooks, factoring or accounts receivable financing can give you the money you need to keep on shipping out new orders.  At DSA Factors we have a lot of experience in the furniture industry and are familiar with most furniture stores nationwide.  We can get you approvals quickly and pay you for your invoices the day they ship.

Give DSA Factors a call at 773-248-9000 and let us handle your receivables so that you can focus on your sales.