Q:

What is the markup on furniture?

A:

Quick Answer

The markup on furniture can be 80 percent or greater, according to MarketWatch. This practice can vary from store to store, and some pieces can be marked up by as much as 400 percent.

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Full Answer

When stores run a sale, the price is marked back down to give customers the impression that they are saving a lot of money, according to MarketWatch. Retailers typically make a gross profit margin of 38 percent to 46 percent after their operational expenses are paid.

Salespeople usually receive a 15 to 20 percent commission if they sell an item at the higher manufacturer's suggested retail price. The manufacturer's advertised price is the minimum price most retailers are allowed to sell a piece of furniture. Salespeople receive about a 7 percent commission on these types of sales and are less likely to comply with a customer's request for the lower price.

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