It is the goal of National Furniture to be price competitive with any comparable product in almost any market.  It will make a conscious effort to minimize it’s own internal costs and to pass that cost savings on to the consumer.

The company has an advantage in that it will be the only company of it’s kind manufacturing in the tri-state area.  Thus, it anticipates much lower transportation and inventory costs than it’s competitors.  Their products will represent a value given their quality, and this attribute, more than anything else, will keep the company’s sales robust.

National Furniture typically expects to mark up it’s final product by roughly 50% over the cost of it’s raw material input.  Additionally, because consultants will make a commission on the furniture they sell, they will not rely solely on consulting fees for their income.  Therefore the company will be able to substantially undercut the price of competitors who must cover their wages solely with consulting fees.  The company’s sales consultants will have the option to waive fees for design when a customer makes an unusually large furniture purchase (over $50,000.00, for example). 

The following table (Price Comparison) represents the pricing structure National Furniture intends to implement for it’s products and services: