Shop Products
Houzz Logo Print
anele_gw

Why "to the trade"?

anele_gw
10 years ago

Just curious-- why is it that there is such a thing as items being sold only "to the trade"?

Is it a logistic issue? Is it a way for IDs to distinguish their work? Or maybe both?

I would think that "to the trade" would imply better quality and a higher cost, so that may factor into the logistics as well . . .less of a market.

Comments (8)

  • juliekcmo
    10 years ago

    I work in a completely different field, but at a distributor selling equipment only to contractors, not the general public.

    The general public consumer's level of service required, product knowledge, expertise, ability to make an informed decision, fix mistakes, install and service, and have a good outcome on something they only do once a decade is not an inexpensive or profitable customer to serve for a distributor who sells everything in a product category.

    We can't afford to spend hours and days educating a customer who only buys once or twice in a lifetime.

    That customer can only profitably be serviced by a contractor (or decorator in your case).

    If we wanted to sell direct to the consumer and be profitable, we would need to limit our selection and package our goods in a way that was easily understandable for a layperson to make a decision.

    This is directly opposed to our current business model of having a wide assortment and varied product selling to contractors with years of education and experience in the field.

  • springroz
    10 years ago

    Sales Tax. When you sell for resale, there is no sales tax. When you sell directly to consumer, you must charge it.

  • anele_gw
    Original Author
    10 years ago

    Julie-- I can see that . . .the "maintenance" aspect of such a wide variety of products would make it difficult to keep the profit margin solid!

    I also wonder if designers of the products themselves want their work displayed in the best possible way, and don't trust the general public with their pieces.

    Spring, I hadn't thought of that! Good point.

    Someone just posted a site that sells fabric/wallpaper that is "to the trade" to the general public, which is why I am pondering this. :)

  • Gooster
    10 years ago

    Speculation here... I wonder also if traditionally, makers of high quality decor (furniture and fabrics) restricted products to the trade because these design professionals have access to and influence over the customers who are willing to spend a premium on the highest quality, most exclusive, or most forward thinking items. Restricting the sales channel also serves to preserve the exclusivity for those that will be willing to pay for it. Also, perhaps the thinking is that this sales channel also has the expertise and credibility to "upsell" the quality and features of the product, and helps differentiate the original design from lower quality versions (or knockoffs).

  • tag_singer
    10 years ago

    Forgive me for answering a question with a question, but what makes furnishings and fabrics any different than, say, eyeglass frames and dishwashers?

    Why aren't all retail items available wholesale?

    OK, that was two questions. :-)

  • anele_gw
    Original Author
    10 years ago

    Gooster, you expressed it much better than I-- yes, exclusivity. I think that would play a part in all of this, or rather that it always has, historically.

    Tag, I am just guessing, but I think it comes from the almost infinite possibilities that exist, esp in the area of textiles. Dishwashers/glasses, in comparison, are much more limited in scope.

    As for wholesale, do you mean why can't we get items at wholesale prices? Individuals lack buying power-- no bulk = loss of profit. I have participated in co-ops and sometimes wonder how retail stores that sold them make any money (these were from mostly small-scale companies in Germany, not ones mass produced).

  • chispa
    10 years ago

    Middlemen and money. With the internet the world is slowly changing. Look at what happened with the Real Estate industry. In the past realtors were the only ones with access to the information, now you can use Redfin. Even many of the high end fabric/furniture brands now have websites that are open to the public for browsing.

    For many designers the difference between wholesale and retail prices is how they make their money. Other designers will bring the customer to the design center and let the customer use their discount and pay the wholesale price plus tax with the customers own credit card.

    Here in CA all I would need to get wholesale prices is to establish a business, say Chispa's Home Staging, and apply for a state Sellers Permit. No interior design degree required. It is all about making sure the state gets their cut of the taxes!

    In the past year I have bought several sofas/chairs from To-the-trade vendors (Century & Duralee) and I'm not that impressed with the quality. I also bought some sofas/chairs from a local LA furniture manufacturer (Cisco Brothers)(that sells both wholesale and retail) and think their quality is superior. Similar pricing.

    Information and Technology is the equalizer. You can now shop for the designer fabrics at home and order from an online source that will be happy to make a smaller markup on a larger volume of orders.

  • luckygal
    10 years ago

    IMO the purpose of "to the trade" is to maintain an exclusivity for certain high end products for designers to resell to their wealthier clients who want more original products than those sold in chain retail stores.

    "Why aren't all retail items available wholesale?"

    All retail items *are* available wholesale but only to those with a business license who, in theory, will resell at retail price. However, when I had my store and bought wholesale I did meet people who obtained a business license with the express purpose of purchasing for themselves, friends, and relatives only. Most wholesalers require a minimum order so that somewhat limits who will buy or the products one would choose. The wholesalers I dealt with had minimum order amounts and dollar values anywhere from $200. to $2000. I am not knowledgeable about the furniture wholesale business but I expect the minimum order amounts would be much higher. I don't know what their minimums would be but, for example, do you want to buy 12 sofas and 24 side chairs for your LR? That may be what a minimum wholesale order might be. If everyone could buy wholesale how could stores make a profit?

Sponsored
Maruca Design / Build
Average rating: 4.8 out of 5 stars20 Reviews
Exceptional Residential Design and Remodeling Services in Fairfax