How Profitable Is the Soft Furnishings and Complete Home Furniture Business
CategoryNews Briefs
It’s probably the wardrobe space, but today most people are going with whole-home customization. Sophia Furniture’s gross margin has been above 30% (nearly 40%) over the past three years, which means out of every $100,000 you spend, more than $30,000 is gross profit. But customer acquisition costs are also high, taking up about 20%—so while it looks like they’re making $30,000, $20,000 of that goes toward buying traffic and customers.