Increase Store Traffic & Sales With Oriental Rug Shows Or Cosnsignment Departments

Furniture World Magazine

Furniture retailers are increasingly adding designer rug departments, but often avoid the hand-knotted oriental rug category. High inventory costs, lack of supplier access, specialized training requirements, and keeping up with frequent latest designs and color schemes often deter retailers — despite profit potential. While consumers will select designer rugs from sample racks — with the actual item rolled and stocked — this does not happen with oriental rugs. Even relatively consistent programmed oriental rugs have unique characteristics and personalities. As a result, consumers want a variety of similar items from which to select their specific rug. This requires depth in every style, size and color. "Professionally managed rug shows and consignment departments offer viable alternatives to the cost and complexity of establishing and maintaining an in-house retail oriental rug department," explains Mike Sokolowski whose Newton Oriental Rugs, Inc. has been organizing retail shows throughout the East Coast since l986. The company, with 6,000 rugs in stock, is unequaled by even the largest rug retailers in the US. Sokolowski, who began his professional career in the furniture business, has the expertise needed to successfully select and integrate oriental rugs with furniture, "Oriental rugs enhance the quality perception of all the merchandise on the showroom floor and give the sales staff another option to help customers accessorize their furniture purchase." The Needham, Massachusetts-based Newton Oriental Rugs runs numerous shows each week and coordinates selection, price points and style with the retailer’s customer base, market and regional tastes. Notes Sokolowski, "We stay ahead of the fashion curve with a consistent supply of oriental rugs by maintaining long-term relationships with our weavers in India, China and elsewhere. They produce the designs we create to our quality specifications and they can rapidly change course when home fashion dictates new color palettes and patterns. Shows benefit furniture retailers in other ways too. They generate excitement, build store traffic, bring in new customers and increase sales in every category. The shows also give the retailer a chance to evaluate profitability of a consignment department — without risk or long-term commitment. Several promotional options are available to the store owner — advertising and direct mail may be done entirely by the show organizer, the retailer or both through cooperative advertising. Sales revenue is derived from either renting space to the show organizer for a fixed fee or operating on a percentage of sales basis, depending on the retailer’s preference. Sokolowski offers this advice to furniture retailers who wish to consider an oriental rug show or consignment department: -Work with an organizer who will match price points, quality and selection to your customer base and furniture inventory. -Be wary of organizers who impose their taste on your customers. Tibetan rugs may be hot, but not to every customer. "The show has to reinforce your store brand and its identity and enhance sales for all your products," says Sokolowski. -Insist on an extensive inventory which includes contemporary and traditional styles and colors. -The show must be adequately staffed with knowledgeable sales people — customers expect credible information on origin, knot count and pattern. -Use the rug show to enhance relationships with existing customers. For example, invite preferred customers to a preview on Friday with the public sale to be held Saturday and Sunday. -Make sure the show organizer has a hassle-free return and exchange policy—it’s your company’s reputation that you have protect. -Insure the show organizer is reputable, maintains ongoing relationships and will be accessible in the future. Newton Oriental Rugs, Inc. is at 73 Chestnut Street, Needham, MA 02492, telephone: 800-409-7847 Note to editors: To interview Mike Sokolowski contact Dick Pirozzolo, 781-235-9911