Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: SUNDAY, April 25, 1993 TAG: 9304230098
SECTION: BUSINESS PAGE: D-2 EDITION: METRO
SOURCE: STUART McKEEL LANDMARK NEWS SERVICE
DATELINE: LENGTH: Medium
After some initial shock at higher prices, wholesale buyers at last week's International Home Furnishings Market in High Point have settled down and bought.
Various manufacturers displaying their products at the nine-day extravaganza said sales have picked up substantially in the final days of the event. Initially buyers seemed to shy away from the higher price tags, preferring to window shop.
"When that happens [price increases] you clearly don't say, `Count me in.' You see what's going on elsewhere," said Jake Froelich, owner of Froelich Furniture and co-owner of the million-square-foot Market Square showroom.
Richard Allen, head of LADD Furniture of High Point, N.C., said many buyers took a look at the higher prices on his products and decided to shop around. But, he said, they returned ready to buy after discovering that price increases were virtually across the board by all manufacturers.
Prices for most wood furniture have increased between 4 and 7 percent, in many cases coming on top of early-year price raises. The increases are in response to runaway lumber prices and the scarcity of various hardwoods such as cherry and oak.
Wet weather, fewer saw mills and tighter federal controls on logging substantially reduced the supply of softwoods and hardwoods over the past year, driving up prices 30 or 40 percent for some wood species.
Fred Turner, vice president of marketing for Broyhill Furniture Industries, said the buyers' reaction was not surprising.
"They never like it, but when you explain the logic and justification for the increases, they understand."
by CNB