The Role of The Dealer

What is a furniture dealership in the commercial office furniture industry?

A furniture dealership is a business entity that acts as an intermediary between manufacturers or suppliers and consumers, providing a platform for the sale of goods or services. Dealerships are commonly associated with the automotive industry, where they serve as authorized retailers for specific vehicle brands, except in the commercial office furniture industry, dealerships serve as authorized retailers for commercial furniture products. In the same way that a Ford dealership only sells Ford vehicles and not Chevy vehicles, the same thing works in office furniture….kind of. Some dealers have chosen to align themselves with a primary manufacturer while still offering other brands. When a dealership aligns itself with one of the top 4 “primary” furniture brands in the industry (Steelcase, MillerKnoll, Haworth, or Teknion), they are restricted from selling the other in their markets. There are a few reasons for this and we’ll cover that a little further down on this page.

Why should you buy directly from a commercial office furniture dealership?

Manufacturers that choose to sell through dealerships often do so because it’s a strategy that usually serves to benefit both the manufacturer and the consumer. From the consumer perspective, the following benefits are as follows:

• Consumers benefit from knowledgeable dealership staff who can provide guidance, answer questions, and offer support during the purchasing process. This expertise is especially valuable when dealing with complex, technical products, or exact dimensions.

• Local dealerships offer convenience to consumers by providing a physical showroom location for product viewing, discussing your needs in person, exploring available options, testing, and after-sales services; all without the need for long-distance travel.

• Consumers benefit from a streamlined distribution process, resulting in faster and more reliable access to products. This is important if deadlines are tight and things need to arrive in a coordinated effort.

• The availability of local dealerships ensures that consumers have easy access to service and support, fostering trust and loyalty.

• Consumers feel more secure purchasing through a reputable dealership with established processes for warranties and other post-purchase concerns. A local relationship can also facilitate smoother warranty claims and access to manufacturer promotions.

• Consumers may benefit from personalized options that cater to their unique needs and preferences, enhancing their overall satisfaction with the product they are buying.

Overall, buying through a dealer provides a range of benefits, including expert guidance, hands-on experience, local support, and a connection to your local community. These factors contribute to a more seamless and personalized buying experience which is something most people prefer when making a purchase.

Why can’t a dealer who sells Steelcase sell MillerKnoll, Teknion, or Haworth but still sell brands like Hon, Global, OFS, or any of the smaller brands?

One of the main reasons for this is because of exclusivity agreements, where a manufacturer prevents a dealership from selling a competing brand per the contract between them. The top 4 office furniture brands in the industry stipulate that dealers can’t sell the other, however, they do allow dealers to sell “smaller” brands that they don’t view as a significant competitor in the markets they already sell in. This could always change down the road as business conditions necessitate. One could be led to believe that these exclusivity agreements are bad for competition, however, the consumer actually benefits from this for a few reasons. First, dealerships train and develop learning programs in accordance with their aligned manufacturer to become more knowledgeable in what they are selling which can facilitate a much better buying experience as the consumer. Secondly, the customer benefits from a more streamlined operation between the dealership and manufacturer once a purchase has been made, allowing for a more coordinated effort to get the purchased product to site with minimal issues or delays. Lastly, you are the dealership’s customer, if you need after-product support or have any type of warranty claim, the dealership can leverage its existing relationship with its manufacturers to get the support you need.

• Pro Tip: If you are absolutely in love with a particular product that a dealership is unable to sell and would like to have it included in your project, talk to the furniture rep that you are working with. Most furniture reps are focused on building a relationship with you and don’t want to drive you into the arms or doors of a competing dealership and could likely help get you the product you want. Keep in mind this is less common for small orders than it would be for larger purchases.

What else do dealerships do?

Most dealerships also sell more than just products and can also help you with the following services.

• Space Planning & Design Services

• Decommissions

• Liquidations

• Furniture Moves

• Lighting

• Flooring

• Sound Masking

• Architectural Walls

• Reconfigurations

• Storage & Warehousing

What are the potential downsides of not purchasing through a dealer?

Depending on the product or manufacturer, the following are a few issues one could expect by not going through a commercial furniture dealer:

• Mismatched Aesthetics and Functionality: Non-specialized vendors may not have a curated selection that aligns with the aesthetics and functional requirements of commercial spaces.

• Limited Customization: Non-specialized retailers may offer limited or no customization options, restricting your ability to tailor furniture to the specific needs of your commercial setting.

• Inadequate Durability: Furniture from non-specialized vendors may not be designed for the heavy use and durability required in commercial environments, leading to premature wear and damage.

• Lack of Design Support: You might miss out on expert design assistance and space planning services that commercial furniture dealers typically provide to optimize your workspace.

• Poor After-Sales Service: Non-specialized vendors may lack the expertise to offer comprehensive after-sales support, making it challenging to address issues or receive timely assistance.

• Risk of Non-Compliance: There's a risk that furniture from non-specialized vendors may not comply with industry regulations, potentially leading to legal and safety complications.

Depending on your project or service needs, going through a furniture dealership might be the right choice for you. As stated earlier, many successful projects are the result of relationships built up between the consumer and the dealership, so good communication is of the utmost importance and that goes both ways. Never be afraid to ask questions and don’t forget to include even the most minute details as they could have significant implications for your project. A good sales rep will always listen to your needs and talk/walk you through the process of buying furniture from beginning to the end.