Have you ever wondered why a piece of furniture is offered at multiple prices at different stores? It is not just about competition, but about the location of the store selling the item. If you are in the market to buy a new mattress set, you may find that that exact mattress set is overpriced at one mattress store while deeply discounted at another furniture store. Location does play a part in what you are charged for your furniture prices, and here are three examples that show how a store's location influences the price of goods.
Most stores in a full-sized mall rent their space at a hefty premium because they hope to get the kind of customer draw that malls afford. Unfortunately, that means that they also have to increase the prices on their products drastically in order to help cover the cost of monthly rent. Even the major chain stores that "anchor" the ends of the mall pay something to the mall's owners to occupy the anchoring space. It is very rare for any store in a mall to actually own the space the store occupies, and because of that, everyone pays the price, including the customers.
Strip malls vary in size from a few storefronts to storefronts that stretch out a block or two. These stores also rent their spaces, but for less than the cost of renting space in a full-sized mall. The location of the strip mall may also dictate the prices of the goods and furniture they sell, especially if the strip mall is close to a major shopping center or full-sized mall. Still, you may be able to save a little bit of money if decide to purchase your mattress or other furniture from a strip mall store.
Usually, stand-alone stores own the spaces they occupy. The only overhead costs they have are their utilities, payroll, shipping/receiving, and cleaning services. They rarely have to worry about high rent, which means they can afford to cut down the costs of the furniture they sell. They can also afford to make deals and offer deep discounts on items similar to the ones you see in the other stores and store locations. You may not be able to haggle prices with strip mall and full-sized mall sales associates, but in a stand-alone store you may be able to. (The only exceptions to this rule would be a discount, second-hand or thrift store that specializes in the sale of furniture.)Share