Adam Hankinson, Managing Director at Furniture Sales Solutions, talks about how to avoid discounting at the point of sale in furniture retail.
In the world of furniture retail, discounting at the point of sale can feel unavoidable. With customers making large, infrequent purchases — a sofa every 7 to 10 years, for example — it’s no surprise they often push for a better deal. Common questions like “What’s your best price?”, “How much for cash?”, or “I’m spending a lot; what can you do for me?” are all too familiar to sales teams. Unfortunately, the usual fallback — “Let me ask my manager…” — undermines the salesperson and your pricing policy, compromises the manager and weakens your negotiating stance with the customer- you’re almost always going to have to knock something off once your salesperson’s said this.
In this article, we’ll explore how to handle price challenges while protecting your margins and making your customers feel valued. But first, let’s look at the hidden impact of discounting and the real profitability of a furniture sale.
Understanding Margins, Volume, and Profitability
Imagine you sell a sofa for £2,500 with a markup of 2.5 times the cost:
• Cost price (excl. VAT): £1,000
• Retail price: £2,500
At first glance, it seems like a healthy £1,500 gross profit — but that’s far from reality. The net profit margin for furniture retailers in the UK typically ranges between 3% and 6%. After covering expenses like rent, rates, wages, taxes, insurance, and logistics, your net profit per sale shrinks significantly.
Let’s break down the numbers on a £2,500 sale:
Item Amount
Selling Price £2,500
Minus VAT (at 20%) £416.67
Net of VAT £2,083.33
Cost of Goods Sold £833.33
Gross Profit £1,250
Business Operating Costs (approx) £1,100
Net Profit (6%) £150
If a salesperson offers a £250 discount, they don’t just give away 10% of the sale — they sacrifice the entire £150 profit and effectively lose the profit from another £2,000 sale.
How to Protect Your Margins
Now that we understand the true cost of discounting, let’s look at strategies to avoid giving away profit while still closing sales and building customer satisfaction.
Tip 1: Believe in and Sell the Current Offer
Most retail furniture businesses are promotion-driven, with well-known independents and national groups constantly advertising discounts. Unfortunately, many salespeople become desensitised to the “full price” and treat the sale price as the norm. This mindset must change.
Train your sales team to genuinely believe in the value of the promotional price. Teach them to highlight savings early in the conversation to tap into the customer’s emotional response to getting a good deal.
Example:
As you greet or introduce a product, say:
“Just to let you know, we’re running a fantastic promotion today — this sofa is reduced by £500, offering exceptional value!”
This primes the customer to appreciate the savings before they even think about negotiating further.
Tip 2: Handle Further Discount Requests Positively
When a customer asks for a further reduction, welcome the request with a smile — but reinforce the value they’re already getting.
Example Response:
“Of course, I don’t mind you asking! But don’t forget — this sofa is already reduced by £500, which makes it an incredible buy. I’m sure you’ll agree!” (Smile and nod confidently.)
This approach acknowledges the question while reinforcing the existing deal, helping steer the conversation back to the product’s value.
Tip 3: Deflect “Best Price” Questions with Confidence
When asked, “What’s your best price?”, it’s tempting to offer a reduction. Instead, acknowledge the question and redirect the conversation to focus on quality and selection.
Example Response:
“Great question! I certainly don’t mind you asking. Here at [Store Name], we focus on quality over price — everything is built up to a quality, not down to a price. Which pieces are you considering?”
By shifting the focus to the product rather than the price, you maintain control of the conversation and keep the customer engaged in finding the right item.
Tip 4: Responding to “Cash Discount” Requests
Customers often assume paying cash warrants a discount, but in modern retail, the payment method has little impact on the cost structure. Handle these queries with positivity while reiterating the consistent value you offer.
Example Response:
“That’s a great question, and I appreciate you asking! Here at [Store Name], we always offer our best price upfront, regardless of how you choose to pay. In fact, with today’s promotion, you’re already saving £500, making this sofa just £2,000!”
Reaffirming the saving while addressing the payment method helps the customer feel heard without sacrificing your margin.
Final Thoughts
Avoiding unnecessary discounting at the point of sale requires a shift in mindset, strong product knowledge, and confident communication. By focusing on value, highlighting existing promotions, and handling price challenges with poise, your team can close more sales while protecting profitability. Remember: Every discount comes directly off the bottom line, and maintaining margin is the key to a sustainable, successful business. Train your team to sell smarter — not cheaper.
