The average furniture store runs about a 40 percent gross margin and a 5 percent net margin. Use the tips below to hit—or beat—those numbers, then head over to our furniture-store blueprint and funding guide for the cash to grow.
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Typical furniture margins
| Metric | Average |
|---|---|
| Gross margin | 35 % – 45 % |
| Net margin (pre-tax) | 3 % – 6 % |
| Keystone markup (double cost) | 100 % markup |
Three keys to higher profit
- Use keystone for staples. Double the wholesale cost on fast sellers.
- Bundle slow movers. Pair a low-turn piece with a hot item to raise the ticket.
- Watch inventory days. Aim to turn stock every 60 days to free cash.
Markup calculator
Cost × 2 = keystone price. Cost ÷ (1 – target margin) = custom price.
Example: $400 table × 2 = $800 retail (50 % margin).
Hidden costs to track
- In-home delivery and assembly
- Credit-card fees (average 2.9 %)
- Free returns or exchanges
- Floor damage or demo wear
Key takeaways
Double low-risk items, bundle slow movers, and keep inventory turning to lock in a 40 percent gross margin.
FAQs
- What is keystone pricing? Selling at twice the wholesale cost.
- Why is my net margin so low? High rent, delivery costs, and discounts eat profit.
- How often should I review prices? Check weekly for market shifts or vendor changes.
- Is 50 percent margin realistic? Yes for décor; large case goods often sit at 35 percent.
- How do I speed inventory turnover? List extra pieces on Asherfield or run flash sales.
Further reading
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