Batesmanor Furniture Case Study Analysis Essay

1650 Words Jun 12th, 2012 7 Pages
BatesManor Furniture

History/Analysis

BatesManor Furniture Inc is a furniture manufacturer that was founded in the early 1900’s that offers medium to high priced wood bedroom, living room, and dining room furniture. The company’s president is Charlton Bates and the company was found by his great grandfather. BatesManor sells their furniture through high quality department stores nationwide and does not sell them through retail chain stores such as Rooms To Go, or discount outlets. The company is broken up into 10 sales people and 2 regional mangers where the sales people get a base salary as well as a small commission on their individual sales. BatesManor cares about creating brand awareness through promotion expenditures and it’s
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Many US furniture manufacturers also outsource jobs to those countries which then caused prices to drop and then the US furniture manufacturers had to downsize and more than 100 manufacturer plants closed down between 2000 and 2007. Consumer spending is also linked to starting new homes, consumer confidence, and disposable income. Because many of the furniture types come in sets consumers feel the need to postpone their furniture purchase decisions. Also it depends on consumer’s disposable income, which is dependent on their age where the ages between 35 and 44 had the highest average annual furniture expenditures. There is also a confidence factor involved with furniture purchases because consumers find it more difficult than buying other products like a car due to lack of knowledge. Due to a wide variety of furniture choices they become more overwhelmed and are worried that in a couple years they will not like their selection and will not be able to return it for a full refund. So many consumers rely on the advice of sales people as well as price as a basis for their furniture decisions. For distribution furniture is sold in over 100,000 department stores, home furnishing stores, and mass-merchandise stores all over the United States, where the specialty and home furnishing stores account for 68 percent of retail sales in the industry. But industry trends show a decrease in individual

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