22 



HARDWOOD RECORD 



July 10. 1921 



Buyers Mean Business in Grand Rapids 



Sales During First Week of July Market Promise Better Times for Furniture 



Industry; Neamess of Stabilization of Prices Is Evident; 



Prices Are on Bed Rock 



By Staff Correspondent 



If the first week of the Grand Rapids furniture market which 

 closed July 2, is any indication of w^hat the balance will be, the 

 furniture industry seems headed for somewhat better times during 

 the balance of this year. They are not going to be hilarious times 

 by any manner of means, no "sold up" signs have been hung out 

 nor ^vill be hung out, but a good, steady, conservative business 

 may be looked foi through the balance of the summer and during 

 the holidays. 



The record for attendance in the first w^eek was 503 buyers and 

 they represented practically every section of the country — some 

 thirty-five states being represented. This mark is slightly higher 

 than that of a year ago for the corresponding w^eek and the atmos- 

 phere w^hich the buyers brought w^ith them was vastly different 

 from that of a year ago. 



Last year the buyers came with a grouch and a grudge. They 

 were strongly objecting to the "price prevailing" basis of doing 

 business. Because the manufacturer, to protect himself, refused 

 to guarantee a price, the buyers met in Chicago during the market 

 and organized the Retail Furniture Dealers* Association of the 

 United Stales and resolved that they w^ould buy no merchandise 

 on a price prevailing basis. Some of the more hot headed buyers 

 even went to the extreme of cancelling some of the orders they had 

 previously placed on that basis and the market fell pretty flat. The 

 price prevailing grouch was, however, merely a camouflage, an 

 excuse for not buying. They had come w^ith the determination of 

 buying but little because most of them thought they could see the 

 drop coming, and it did come only a month later, and many previous 

 orders were quickly cancelled. 



Again in January the buyers had a grudge. They insisted the 

 manufacturer had not cut his prices to the lowest possible mark 

 nor had he made any attempt to do what they called the "right 

 thing." Again this was camouflage, for most of them had plenty 

 of merchandise in their warehouses and with business dull and 

 none knowing just w^hat stood before they w^ere not eager to buy 

 at all and they didn't. They desired to test out the public and to 

 unload the stocks they had on hand. 



Buyers Mean Business. 



This July season everything is vastly different. Most of the 

 buyers so far have come with serious, businesslike countenances 

 and yet with confidence in the future and an air of optimism. Most 

 of them have been fairly successful with their spring sales and 

 most of them have not only unloaded their heavy high priced 

 stocks but are practically cleaned out of all furniture. During 

 the last several months, since the demoralization in prices came, 

 they have been living from hand-to-mouth, ordering only enough 

 furniture to keep themselves afloat until the market arrived and 

 they found out what was to be expected in the w^ay of new designs 

 and new prices. 



Success in their spring sales has given them confidence in success 

 for the August sales and for the holiday trade. They have found 

 that by marking their own prices down low, taking a short profit 

 and turning it over fast they can make money and sell furniture. 

 The next thing they wanted to know was whether the manufac- 

 turers had seen the light and done likewise and whether they 

 might expect to see a stabilization of prices for the balance of the 

 year. 



Upon their arrival in the market they found the prices had been 

 marked down to as near rock bottom as could be hoped or expected. 

 They found there had been no attempt on the part of the manufac- 

 turers to get together either upon a price fixing basis or upon a 

 uniform reduction basis. Each manufacturer had figured his own 

 costs carefully and then had added a very reasonable margin of 

 profit and so msiked the price of his goods. The result is that 

 the July market is chock full of real bargains in furniture. 



Manufacturers in several instances have tried the experiment of 

 asking buyers to fix a price upon certain suites, the manufac- 

 turer's price being concealed while this was being done. In every 

 instance so far as it has yet come to my notice the buyer has fixed 

 a price considerably higher than the manufacturer had. This news 

 quickly spreads through the market and the result is a feeling 

 that the manufacturer has actually made a real cut in the price 

 of his furniture and everybody seems to feel satisfied that it has 

 been enough. 



No Bluffing Evident. 



Just before the opening of the market there came reports that 

 buyers were again going to try to break the market, that they 

 would hold off buying at least one week in the hope that they bring 

 about a condition such as prevailed in January. Indeed this w^ord 

 was quite generally handed around on the night of June 26, the 

 night before the opening of the market and after the great throng 

 of eastern buyers had arrived. 



But Monday morning almost every buyer w^ent immediately 

 to the show^ rooms and the placing of orders began forthw^ith. 

 Let it not be misunderstood. They did not rush in as they did 

 two years ago and demand furniture regardless of price. They 

 placed no startling orders, but about everybody did place orders 



of more or less volume which effectually shut off any attempt 



if one was intended — to break the market. A considerable number 

 of chain stores were represented among the early arrivals and 

 many of these did not buy. A scout, so to speak, was sent on in 

 advance to find out what had happened in the market. What they 

 intend doing w^as w^ell expressed by one owner of a big Ohio 

 chain, who said: "I came this week to see what was doing. I am 

 satisfied. I'll be back next week and bring my gang." Several 

 such expressions w^ere heard with the result that it may be expected 

 the second week of the market will be vastly better than the first 

 one w^as. This also may be said as being absolutely true. The 

 manufacturer who has put his prices right down to rock bottom and 

 who is offering something new in design got business in the first 

 week and will continue to get business the balance of the market. 

 The manufacturer w^ho failed in one or both of these respects 

 has also failed to get orders and will continue to so fail. The 

 buyer is looking for bargains most certainly because he has found 

 that the only way he can sell. goods to the public Is by the bargain 

 route. In this market, the buyer has been able to find bargains 

 the rule, high prices the exception. 



Buying in the first wras w^eak without doubt seriously affected, 

 too, by the calendar. With Independence Day following Sunday 

 and with the Big Fight on in the East Saturday, a great many 

 buyers did not come in the first week and a great many more came, 

 took a look, perhaps placed a few^ orders, and rushed back home 

 to their $50 seats in the big pine bowl. But these have all said 

 they were coming back to finish up business and the second week 



