Best Pricing, Better Margins, Better Bottom Lines
First and foremost, Furniture First negotiates the best pricing possible for our Members even if we have to give up rebate points to do so. Rebates are the cornerstone of Furniture First. Merchandising staff, with volunteer Member committees, negotiate rebates in good faith with our Supplier Partners for a percentage of Member purchases made with that specific supplier. We collect these rebates for our Members on a quarterly basis, improving their margins and their bottom lines.
Members receive a rebate check every quarter, deducting their quarterly dues as well a small allocation to fund the operations of Furniture First. The more our Members use Furniture First Supplier Partners for their merchandise, the more money they get back each quarter. Based on the most recent data available, almost 50% of Members’ purchases are with Furniture First Supplier Partners. This is easy for them to do with the wide variety of quality suppliers in our arsenal of programs.
Where can your business net a 261% return?
We did the math and in 2018, every dollar our members invested in membership produced a net return of $2.61. One of our charter members added up his 25 years of membership and discovered that he has received more than $3,000,000 in rebates since Furniture First was founded.
An average Member may pay $3.8 million for their merchandise. If 50% of the merchandise is with Furniture First Supplier Partners, then $1.6 million of their merchandise costs would qualify for a rebate, typically 2%. This means they receive a yearly rebate of $38,000. After dues ($3,000 annually / $750 per quarter) and the 20% allocation, Furniture First will return $28,000 back to their bottom line.
Average Member Example
$3.8 M – Cost of Goods
x 50% – Furniture First Supplier
$1.9 M – Eligible for Rebate
x 2% – Rebate
$38,000 – One-Year Rebate (gross)