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mogator88

Another nail in the coffin of NC furniture selling

mogator88
17 years ago

...unless your local dealer gets a bad case of greedy stubborness ;-)

I got notices of MRP policy from two name brand lines last week alone. Finally factories are realizing they have to support the dealers that make the investment in displaying product, advertising, paying rents and real estate taxes.

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Lexington adds minimum price policy

Heath E. Combs -- Furniture Today, 3/13/2007 6:15:00 AM

Goes into effect nationwide June 1

Thomasville, N.C. Â In an effort to stem declines in retail profitability, Lexington Home Brands has announced a new Suggested Minimum Retail Price policy.

The SMRP policy applies to the entire Lexington line of bedroom, dining, home office, home entertainment and occasional furniture, including branded products such as Tommy Bahama. The new SMRP policy goes into effect nationwide on June 1.

"Lexington is taking the initiative to ensure that we empower our dealer partners to achieve better profitability," said Lexington President and CEO Phil Haney in a statement.

"With many manufacturers and retailers fighting their way to the bottom, we at Lexington wanted to take the aggressive and positive move of adding an SMRP policy. It provides retailers with the incentive to make a competitive return on their investment in the display and promotion of Lexington Home Brands Products."

Haney was unavailable to provide details about how the policy will be enforced.

In the past, other companies with set pricing policies have pulled major collections  but not entire product lines -- off the floors of stores that go below the SMRP level.

These types of policies are more common for high-end product lines. LexingtonÂs line ranges from medium to high end.

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