To Keep An Inventory or Not?

Hi Debbie - this has been a dilemma for me this first year in the business.  I have found that for me it is advantageous for me to own my inventory or at least most of it so I am acquiring it as I go alone.  Rental stores do not have the selection that I need nor is what I need always available.  Owning my inventory increases my bottom line along delivery and pickup is a problem.

In our area there aren't many rental companies and a 3 month minimum isn't very attractive when we are promising a quick sale to home sellers!  We carry our own inventory.  Have you thought of collaborating with other stagers and renting from each other?  Works for many stagers in our area as well.

There are pros and cons to both scenarios.  Some of the cons you've mentioned in your post (storage, movers, etc...).  Some of the pros and/or reasons for owning furniture are mentioned by Wanda and Margaret.  

For me personally, I've chosen to use the rental companies.  This worked well in the middle of the year when I had 37 homes staged at the same time as I didn't (and still don't) want to own 37 sofas, 37 love seats, 37 x 6 dining room chairs, etc...

What you might want to do is to list the pros and cons on a piece of paper and then decide.

Kathy

Debbie - This issue is an ongoing problem in my business. I currently own enough inventory for 4-5 homes. I've pretty much decided I don't want to purchase any more big pieces but the rental charges in my area are outrageous. I'm trying to work out some type of happy medium but am finding it difficult to come up with pricing that is competitive when I use the rental company inventory. I'm also finding that most of their furniture lines don't really work well with the homes in my area.

I only buy what I can fit into my Rav-4 and lift myself.  It keeps me from needing to spend a lot of money storing and transporting.  The furniture rental companies I work with only charge $150 to deliver AND pick-up the furniture.  No way I could do it for that. 

It's definetely a personal choice, but a big one to make.  It is a big financial commitment, because of the storage issue, insurance, help to move it, truck, liability, etc.  So put the pen to the paper to see if it makes sense in your market.

Kathy and Cindy have some really good points and with this tough market we've been in, I believe some of the stagers with warehouses may be rethinking how much they have.  The cost can be daunting.  SO, think about it carefully and perhaps something in the middle until you can see that you are staging enough to justify the expense for a year.  Take into consideration all 12 months of the year and the seasonal fluctuations, of course.

Hello, Debbie:
It's a tought call - I currently have 3x tables and 18x chairs in our dining room, and 2x sofas, 2x love seats and a couple of chairs in the garage, and a spare bedroom full of storage tubs and pictures.  So I appreciate all of the reasons why people rent. 

At the same time, I used Cort for a higher-end home that I was short furnishings on.  So every time a rent check comes in, and I smile... I am quickly reminded that a credit card charge is about to hit for the minimum rental:  $300.  So far, I am into them for $1200 - about halfway to purchasing the sofa, chair, tables, etc.  that I rented.

So, I know - not really an answer to your question.  But I prefer to buy outright.  My dad always said renting only makes the owner money.  If that makes any sense to y'all?

Merry Christmas!

We have lucked out and have a furniture rental place that gets staging, and charges us minimal fee's.  And it's not CORT--they are too expensive and I have heard horror stories from other stagers that the actual pieces of furniture they received is sometimes so used and frayed.   So, we are able to make a profit on our monthly rental--which always goes towards paying off all those accessories!!  Our motto has always been, if we can't carry it, we don't carry it in our inventory.  However, we strictly follow a month to month rental policy, and search for that with our vendors as well.  As a back up, there is a local staging company that is offering to rent out their extensive inventory that we and others in our area can use.  So, that is something good for us to have in our back pocket.  I really think that is a business someone could really make a go of----:o)

If you have the access to a vendor that will rent to you less than what you charge your clients, month to month, provides new furniture, provides their own movers/drivers under their insurance coverage---we felt that was the best choice for us.  The only major drawback is, your at their mercy during the selection phase, and when you have something specific in mind, and can't find it, that is frustrating.  But, I have to say, ours has always worked out wonderfully, but it didn't get finished without  a few extra gray hairs added....Best wishes

Very tough but great question. I spent the first 3 years re-investing in furniture... then to find out that I had to move it. Yikes!

You can make a modest income on consults, shopping, redesign, and staging with accessories. I would suggest you do that first. If you acquire several REAs and investors, you may want to invest in larger furniture and work from there. Having your own inventory really does cut the middle man. As long as you have adequate help with the moving... I would say, start to invest in your own inventory.

Hi Debbie--I think the most important factor to consider is not over-extending yourself financially.  It all depends on the regularity of business in your area and whether or not your business can carry the overhead.  I personally rent the larger items.  My area is not so metropolitan and when there are lulls, I couldn't bear to think of all that expensive inventory sitting in a warehouse not earning money.  There are stagers who have been buried by the debt....because the economy turned on them.  I am all for a gradual build-up of furnishings, but within reason.  Take it slow and do what works for you financially.  Regards-Kathleen G