Changing Trends in Rug Retail

There is no rocket science to know that buying direct from distributors will save you money.

Apart from just the money part, you have various reasons to buy directly from 

us. This blog is intended to highlight some benefits to deal with distributors.



Benefit #1: Save Money

Overhead cost is a killer for any business. Retailers have huge overheads which 

force them to raise their product costs.


[4 images – flash showroom, sales person, advertisements, systems, profit]

I will create an hypothetic example of a product [ a rug ] which cost $100 to 

manufacture.



Manufacturers sell it for $150

Cost to Wholesalers: $150

Wholesaler sells it for: $170

Makes $20, as they have low overhead costs and volume is big.


Retailers overheads:

  • Logistically viable warehouse.

Cost to Retailers: $170

Retailer sells it for: $230

Makes $50, as overheads are high and volume is low.


Retailers overheads to name a few:

  • Rental Space – [NZ mall’s rent is beyond imagination]

  • Flash Display

  • Sales People

  • Marketing Campaigns / Systems

Buyers pay $230 [A Premium Price] for a product which is worth $100.

which can be minimized if bought directly from wholesalers. Some wholesalers 

are keen to sell single pieces with FREE Delivery, like Cloud 9 Rugs.


Benefit #2: Repeat Product

In 10 years of business, we received so many requests for similar rugs. 

Customer demands same rugs after years or may be seen at their friend’s house.

Retailers generally have 1 offs, while wholesalers buy in bulk, gives a better 

chance to get the same rug even after years.


Benefit #3: Easy on Warranties

Cloud 9 Rugs is the only rug wholesaler who offers 5 years warranty with 14 

days return policy. Retail stores generally would not be able to accept rugs once

passed the minimum term described in NZ law. We go above and beyond to get 

our buyers confidence.

Generally, retailers offer 1 year or 2 years of warranty on their product as they 

switch between suppliers quite often. Cloud 9 Rugs sources their rugs from 

manufacturers directly and is in a position to offer 5 years on their entire 

collection.


Benefit #4: We Buy Directly from Manufacturers:

It gives us a better understanding of the products we source, as they are able to 

inform us of every detail and feature because they see them through every stage

of design and production, giving us a prime position to provide the best advice 

to our customer wanting to make a purchase, as well as advice which is more 

specialized.


Meaning, we understand our product and are able to pick and choose the best 

possible items available to us to provide for you

We are also able to stock a larger range of rugs nz than retailers, who tend to 

pick just a few out of a larger range to sell themselves.


Wrap up:

Buying from wholesalers like Cloud 9 Rugs is a good idea, rather than mere 

haggling around in 5 different rug stores and pay a premium price.