What is the markup on furniture?

What is the markup on furniture?


When it comes to purchasing furniture, many consumers wonder about the markup on these items. Understanding the markup on furniture can help buyers make informed decisions and negotiate better deals. In this article, we will dive deeper into the topic of furniture markup, exploring the factors that influence it and shedding light on common industry practices.

Factors Influencing Furniture Markup

Materials and Quality: One of the primary factors that affect the markup on furniture is the quality of materials used. High-quality materials, such as solid wood or genuine leather, often come at a higher cost, leading to a higher markup. On the other hand, furniture made with lower-quality materials may have a lower markup.

Design and Brand: The design and brand of furniture can also impact the markup. Well-known brands often have higher markups due to their reputation and perceived value. Additionally, unique or designer furniture pieces may have higher markups as they cater to a niche market.

Manufacturing and Labor Costs: The cost of manufacturing and labor is another significant factor in furniture markup. Furniture that is handcrafted or made with intricate details requires more time and skilled labor, leading to higher production costs and, consequently, higher markups.

Retailer’s Overhead Expenses: Retailers have various overhead expenses, such as rent, salaries, utilities, and marketing costs. These expenses need to be covered, and the markup on furniture helps retailers generate a profit to sustain their business.

Common Markup Practices

While markup practices can vary across different retailers and regions, there are some common approaches in the furniture industry. It’s important to note that these are general observations and not definitive rules.

Keystone Markup: Keystone markup is a common practice in the furniture industry, where the selling price is set at double the wholesale cost. For example, if a piece of furniture costs $500 wholesale, it will be sold to consumers for $1,000, resulting in a 100% markup.

Manufacturer Suggested Retail Price (MSRP): Some furniture manufacturers provide a suggested retail price to retailers. This price serves as a guideline, and retailers may choose to use it as a basis for their markup. However, retailers are not obligated to follow the MSRP, and they can adjust the markup based on their own pricing strategies and market conditions.

Discounts and Promotions: Furniture retailers often offer discounts and promotions to attract customers. These discounts can vary from a percentage off the original price to package deals or seasonal sales. It’s important to note that discounts and promotions may affect the overall markup on furniture.


Understanding the markup on furniture is essential for consumers who want to make informed purchasing decisions. Factors such as materials, design, manufacturing costs, and retailer overhead expenses all contribute to the markup. By being aware of common markup practices, consumers can negotiate better deals and find furniture that meets their needs and budget.


– Furniture Today: www.furnituretoday.com
– The Spruce: www.thespruce.com
– Investopedia: www.investopedia.com