Retailers in the outdoor space are finding that pricing is still a factor in a consumer’s decision to buy, but many times, it isn’t the main factor. Other views are that consumers are more aware that prices have gone up but that hasn’t stopped them from buying and that, overall, price increases are beginning to level out somewhat.
Those takes on the retail landscape as they relate to current pricing comes from a spot-check of several retailers, who are seeing the twin upheavals of inflationary pressures on the economy and a continued recovery from a worldwide pandemic beginning to abate, at least somewhat.
Garrett Wallace, president of Yard Art Patio & Fireplace in Coppell, Texas, says that inflation really hasn’t hit his store hard as of yet.
“Nothing crazy — high-end product still sells to high-end customers,” says Wallace. “The low-end product is now higher priced, but we have never really been in that business or had much of that product, so it’s not much of a concern for us.”
Like everyone else, Wallace says that price increases were needed to cover the additional costs.
“Price is a factor, but we make sure never to sell it as the main factor,” says Wallace. “We focus on all the other features and benefits that the product has, and our company has to offer and make the price low on the list of things the customer wants to object to. We make the value of the product worth the price tag.”
Bob Blanchard of Saltwater Porch + Patio on St. Simon’s Island, Georgia, says that costs and the allowable minimum advertised price of the items that he sells are both up.
“It may seem like a wash, but we are sure there are hidden costs that aren’t so obvious,” says Blanchard.
Blanchard says that prices have gone up but not by him, as he operates by either MAPs or by manufacturers suggested retail price.
“Most of our prices have gone up due to manufacturers increasing their prices,” Blanchard says.
People are more aware of prices, but that doesn’t seem to affect their buying decisions, he says.
“They balk and still buy,” says Blanchard.
Chris Nordhoff, corporate visual director and senior buyer of Indianapolis, Indiana-based Kittle’s, says that inflation has affected the business somewhat, although with outdoor furniture, the store saw a 5% increase in sales in the second half of 2022.
He adds that price increases have dropped off recently.
“Last year, when a vendor increases costs or introduces a surcharge or tariff, we raise prices accordingly,” says Nordhoff. “Research and sharing best practices have told us that most all retailers follow suit. With that said, price increases are rare the past several months. Surcharges and tariffs are almost nonexistent.”
People are overall somewhat hesitant over pricing, but that depends on what they want to buy.
“The customer wanting custom options is not hesitant and is ordering the furniture they want,” says Nordhoff. “Over 75% of our outdoor sales last year were custom (where they would) choose the finish and the fabric.”
