Furniture Industry Glossary
Whether you're new to the industry or just need a refresher, here's your guide to common furniture industry terms.
Buying Group
A cooperative of independent furniture retailers who pool their purchasing power to negotiate better terms, pricing, and marketing support from manufacturers and vendors.
Case Goods
Furniture pieces made primarily of wood or wood-like materials, typically for storage or display. Examples include dressers, nightstands, dining tables, desks, and entertainment centers. Distinguished from upholstery (soft goods).
COM (Customer's Own Material)
When a customer supplies their own fabric for upholstered furniture instead of selecting from the manufacturer's standard offerings. Often involves additional charges for cutting and handling.
Drop Ship
A fulfillment method where the manufacturer or distributor ships products directly to the end customer on behalf of the retailer, eliminating the need for the retailer to stock inventory.
ERP (Enterprise Resource Planning)
Comprehensive software systems that manage core business processes including inventory, purchasing, sales, accounting, and operations. Common furniture ERP systems include STORIS, FusionRetail, and others.
Floor Sample
A furniture piece displayed on the showroom floor for customers to see and test. Floor samples are often sold at discounted prices when being discontinued or replaced.
FOB (Free on Board)
A shipping term indicating where the title of goods transfers from seller to buyer. 'FOB Origin' means the buyer assumes responsibility when goods leave the manufacturer; 'FOB Destination' means the seller is responsible until delivery.
High Point Market
The world's largest home furnishings trade show, held twice yearly (April and October) in High Point, North Carolina. Over 2,000 exhibitors showcase new products to retailers, designers, and buyers from around the world.
Lead Time
The time between placing an order and receiving the product. Lead times vary significantly in furniture, from in-stock items (days) to custom orders (weeks or months).
Line
A manufacturer's collection or brand of products. Sales reps often 'carry multiple lines' meaning they represent several manufacturers. Retailers may say they're 'picking up a new line' when adding a manufacturer's products.
MAP Pricing (Minimum Advertised Price)
A manufacturer-set minimum price that retailers agree not to advertise below. MAP policies help protect brand value and prevent destructive price wars, though actual selling prices may vary.
MOQ (Minimum Order Quantity)
The smallest order a manufacturer will accept. MOQs help manufacturers ensure orders are economically viable to produce and ship. Critical consideration for retailers evaluating new lines.
MSRP (Manufacturer's Suggested Retail Price)
The price a manufacturer recommends retailers charge consumers. Often used as a reference point for discounting, though actual retail prices vary by market and retailer.
Net Terms
Payment arrangements specifying when payment is due. 'Net 30' means payment due within 30 days of invoice; 'Net 60' within 60 days. Often accompanied by early payment discounts like '2/10 Net 30' (2% discount if paid within 10 days).
POS (Point of Sale)
The system retailers use to process transactions, manage inventory, and track sales. Furniture-specific POS systems often include features for special orders, financing, and delivery scheduling.
Rep (Sales Representative)
An independent sales professional who represents manufacturers to retailers within a designated territory. Reps earn commission on sales and often carry multiple non-competing lines.
SKU (Stock Keeping Unit)
A unique identifier for each distinct product and variant. A sofa might have different SKUs for each fabric/color combination. Used for inventory management and tracking.
Special Order
A product ordered specifically for a customer, typically in a custom configuration (fabric, finish, size) not kept in stock. Usually requires a deposit and has longer lead times.
Stock vs. Custom
Stock items are kept in warehouse inventory for quick delivery. Custom items are made to order with specific customer selections. Custom typically means longer wait times but more options.
Territory
The geographic area assigned to a sales representative. Territories may be defined by state, region, zip codes, or other boundaries. Reps typically have exclusive rights to sell their lines within their territory.
Upholstery
Furniture with padding and fabric/leather covering, typically seating pieces. Includes sofas, chairs, recliners, and sectionals. Distinguished from case goods (hard furniture).
Have a term we should add?
This glossary is always growing. If there's a term you'd like us to include, let us know.