Furniture manufacturers offer us the exact same furniture you see in other stores at a fantastic savings (sometimes as low as 15¢ on the dollar) for several reasons.
Most of the furniture sold today is made overseas (primarily in China, Vietnam, Malasia and Indonesia). As you can imagine, the process of building the furniture and then shipping the furniture 1/2 way around the world is time consuming. This can take anywhere from 60-120 days from the time an order is placed until it is received here in America. Because of the long time-frame, large furniture chains have orders placed several months in advance to coincide with what they GUESS demand will be at the time. If there is a sudden drop in demand, these companies cannot just stop the orders that are already in production or transit. So they fill their warehouse, then they fill their parking lot with tractor-trailers full of new merchandise.
At some point, the big-box retailers physically can't take any more. So they tell the manufacturers they will not accept any more shipments. Now, what are the manufacturers to do? They cannot send the furniture back to Asia and the costs are too high to put the furniture in storage in America. The ocean freight companies won't just hold the merchandise indefinitely; they won't even hold it for more than a few days without charging huge storage fees. THAT'S where we come in.
We can help the manufacturer by buying the stranded furniture at a discount and paying them right away. The manufacturer takes a loss, but a MUCH smaller loss than any of their other scenarios provide. The large furniture retailer doesn't have to be overwhelmed by more goods than they can handle. And you, the customer, gets a phenomenal discount on brand new, perfectly good, fashionable furniture. It's a win - win - win.
Doesn't the manufacturer get mad at the furniture retailer for "sticking them" with these money-losing deals?
Yes, but when a national furniture chain is buying 100 truckloads a month from a manufacturer, and they only "stick" the manufacturer for 1 or 2 truckloads every couple of months, the manufacturer gets over it pretty quick.