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Now We Are in a Recession Where Are All The Bargains?

21st September 2011

On the face of it you might be forgiven in assuming that during a recession retailers and manufacturers would want to give the consumer deals or discounts in order to make them buy their furniture. However in the office furniture world, much like other retail sectors, all the bargains appear to have disappeared. Bundle deals like a desk and pedestal combination seem to have gone, even though you might expect the demand for economy office furniture to be on the rise.

There are a few reasons for this. The first is that consumers simply don’t have the money to buy cheap furniture. This may seem like a stupid statement, but what this actually means is that people are looking more towards value for money rather than buying cheap office furniture that will need to be replaced in a few years. It is a lot easier, when in an economic boom to buy a cheap operator chair or executive chair and then replace it in the short term, however when the market becomes tighter people tend to look towards buying something that they know will last.

Another reason is simply to do with economics. When there is a high demand and a large number of suppliers then prices will decrease. However when the demand falls the manufacturers simply cannot keep prices low. This means that they can either discontinue the product or increase the price to try and sustain the products manufacturing costs. Even if this the manufacturing costs stay the same, the cost of packaging, transport and other fixed overheads will increase due to the loss in sales so the manufacturer will be forced to increase the price even for one budget chair.

The final reason is due to competition among the furniture manufacturers. There will always be competitors in the market who sell cheap, who are usually the first ones to declare themselves bankrupt when a recession kicks in. This is mainly due to the fact that these companies rely on new customers all the time and when the new buyers just aren’t there, the business begins to dry up.

In essence even without the recession, a consumer should always look for value in what their buying. They should also look for a company that has a good reputation in the market and offers a good service.  If you are looking for choice and value within the office furniture market please visit:

Posted by:Online Reality

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