Furniture Business

The Wall Street Journal has an article today about a company that did not take on exceptional debt during the damaging boom times, so it is now seeing its sales increase as the supply capacity drops faster than demand drops.

At one point in the article the owner says his sales people are listening closely to the customers as to what they want next. He gave an example: retailers want samples of various styles of a couch in one couch... that is 4 different leg styles on one couch, 5 different fabric styles, two different arms. Now, that is weird, but it goes to show you'll never know without being in tight contact with your customers. (And is the point to save room as showrooms downsize... they didn't say...)

The Bush administration shifted our economy into the fascist model last fall, and the Obama team is ratifying the change. Few of us will notice because the cost will be born in the future and on the heaviest on the margins. We no longer have the rule of law in USA, but this just means one must change asset allocations.

For my part I am getting out of real estate and gold, and moving expanding my business, and developing an infrastructure that is diffuse and moveable. The key is still customers.

Anyone starting with nothing is well placed right now. Everything is cheap and retailers are eager for new and better. Too much capacity is weighted down and sinking, which is advantageous for the start-up.

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