Monday, August 17, 2015

Learn Just How Easy Factoring Your Receivables With Accounts Receivable Financing Can Be!

Factoring your receivables has many benefits:

  • Improved Cash Flow
  • Offer Your Customers Net 30 Day Terms
  • Eliminate The Need For Credit Checking
  • Outsource Your Collection Work
  • Insure Your Receivables With Our Non-Recourse Factoring
  • Show Your Customers You Are Credit Worthy
  • Get Larger Orders and Larger Accounts
With DSA Factors you can start factoring your receivables today.  Why wait months for a bank to turn down your loan request, DSA Factors will get you money that you need today.  Our process is easy and we have no long term contracts and no minimum volumes.  We have been factoring commercial accounts since 1987 and our large database of retailers throughout the US and Canada allows us to approve most of your accounts instantly.  Give us a call today at 773-248-9000 and learn how we can help your company grow.

Wednesday, August 12, 2015

Where do you buy your bedding?

There are a large variety of types of stores selling furniture these days, but when it comes to bedding, how old you are probably determines where you shop.  A recent study in Furniture Today revealed which generations purchase bedding at different types of stores.  Overall, Millennials and Generation X each have a 35% share of the market, while Baby Boomers have a 26% share, and Seniors a 4% share.

Bedding specialty stores get a large variety of customers, but they also tend to have the highest prices with the price of their average queen set costing $699.  As a result Generation X makes up their largest share of customers at 37%, followed by Baby Boomers at 34%, Millennials at 23%, and Seniors at 6%.

Traditional furniture stores also seem to receive a fairly evenly distributed clientele.  While not as expensive as bedding specialists, their prices are still up there with the average queen set costing $599.  Millennials make up their largest share at 36%, followed by Baby Boomers at 33%, Generation X at 30%, and Seniors at 1%.

Beyond these two types of stores, things get a little more lopsided.  There are the manufacturer branded furniture stores whose average queen set costs $599, department stores where the average queen set costs $499, warehouse membership clubs have the average queen set at $479, online retailers where the average queen set is $325, discount department stores where the average queen set is $275, and finally lifestyle furniture stores where the average queen set will only set you back $155.

It should come as no surprise that Millennials prefer to shop at the cheaper places.  They hold a 58% share of sales at lifestyle furniture stores such as IKEA, a 43% share at discount department stores such as Walmart, and a 59% share at online retailers such as Amazon.  But what may surprise you is that they also hold a 53% share at the pricier manufacturer branded furniture stores such as Ashley Home Stores.

Generation X prefers to shop at department stores such as Macy's where they hold a 55% share of the business.  They also hold a 43% share at warehouse membership clubs such as Costco, a 40% share at discount department stores, and a 31% share at manufacturer branded furniture stores.

Baby Boomers do most of their shopping at the bedding specialty store and traditional furniture stores.  Warehouse membership clubs are next, but only 21% of their business comes from Baby Boomers.

For Seniors who only hold a 4% share of the overall market, they take a large 14% share of business at warehouse membership clubs.  They also hold a 7% share of the business at department stores.

If you are targeting your mattresses towards a certain demographic, make sure you are selling to the stores they shop at.  If you need help give DSA Factors a call today at 773-248-9000 and get paid today for your net 30 day invoices.

Monday, August 10, 2015

Online Furniture Sales are Booming

Online furniture sales for 2014 reached $9.7 billion, an over 14% increase from 2013's $8.5 billion according to Furniture Today.  Leading the pack were Amazon who experienced 19.5% growth, Overstock with 14.8%, Wayfair with an amazing 44% sales growth, and Zulily with a whopping 72.% sales growth over 2013.  All four of the companies had sales volumes in the billions.  However, overall furniture sales only increased by 3% over this last year.  This online sales growth can be accredited to the fact that 8 out of 10 consumers in the US have bought furniture or bedding online in the past year.

Now it may not surprise you that most of the people buying online were young, but you might be surprised by how affluent online shoppers are.  Well over half of the households that bought bedding online this past year were under the age of 35 and make over $75,000 a year.  22% of households were under the age of 25, with 34% of them between the ages of 25 and 34.  When it comes to household income, 32% of households that bought bedding online make between $75,000 and $100,000, with 12% making between $100,000 and $150,000, and another 12% making over $150,000.  This might explain why only 59% of consumers agree that online retailers carry affordable furniture.

To further explain these numbers, 61% of online furniture consumers own their house, and 59% have a full time job.  When it comes to education, 33% of consumers hold a bachelor's degree with another 20% holding a master's degree or higher.

The average consumer will visit five different web sites when shopping for furniture online.  However, only 56% of shoppers will start their search online, the rest still start their furniture search in more traditional brick and mortar stores.  The main reasons why consumers are ultimately buying online is because of the large product selection available through online retailers, and online retailers provide them with design ideas.  Many of these retailers will help out consumers with design ideas by maintaining active blogs.

If you aren't selling your merchandise to online retailers you are missing out on a lot of business.  Let DSA Factors help you by factoring your online retailer accounts.  We have lots of experience working with Amazon, Overstock, Wayfair, and Zulily, as well as with One Kings Lane, Hayneedle, Gilt, Hautelook, and many more.  Give us a call today at 773-248-9000, don't let these sales opportunities slip away.

Monday, August 3, 2015

Factoring Your Receivables at a High Advance Rate

When you are looking for a factor, one of the most important things to consider is how much you get advanced.  Many factoring companies will advertise 70% or even 80% advance on your receivables.  At DSA Factors we offer you 90%-100% advance on your receivables.

Of course, if you are new factoring, you might ask why not advance at 100%?  It's simple, all factoring companies take reserve, this protects them against credits your accounts may take for damaged merchandise or any other problems they may have.  It is very common for factoring companies to take 20% or more in reserves.  In fact, there are some factoring companies that won't even pay you until they get paid from your accounts.

At DSA Factors we know that it is important for you to get all of your money as soon as possible.  For that reason we only take 10% in reserves when you first start factoring with us.  So lets say your first batch of invoices is worth $5000, we advance you $4500 and hold onto $500.  We then receive payments of $3000 and you submit your next batch of invoices for $5000.  At this point your overall balance is $7000, so we will need to keep $700 in reserve.  That means that we will advance you $4800 and only hold back $200, that's a 96% advance on your invoices!  If you continue with a similar pattern, soon we will be advancing you 100% on your invoices.  See the table below for a clearer picture of how this works:

Date Invoices Submitted Payments Received Overall Balance Advance Hold Back Reserve Advance Rate
June 1 $5,000.00 $0.00 $5,000.00 $4,500.00 $500.00 $500.00 90%
June 15 $5,000.00 $3,000.00 $7,000.00 $4,800.00 $200.00 $700.00 96%
June 25 $3,000.00 $4,000.00 $6,000.00 $3,000.00 $0.00 $700.00 100%
July 5 $6,000.00 $5,000.00 $7,000.00 $6,000.00 $0.00 $700.00 100%

As you can see, it doesn't take very long to build up your reserves to a level where you can get advanced 100% on your receivables.  Furthermore, those reserves belong to you, so should business ever slow down you could request we send your reserves back to you, and then build them back up once business starts to pick up again.

It is important when selecting a factoring company you pay close attention to how much money they will advance you.  After all, one of the benefits of factoring is improving your cash flow, and if your factoring company is holding back more than they should be, then they aren't doing their jobs.

If your factoring company is advancing you at anything less than 90-100%, give DSA Factors a call today at 773-248-9000.  Its time start getting PAID for your receivables!

Thursday, July 30, 2015

What's in a Mattress?

Walk into any mattress or furniture store and one of the first things you'll see is a cutaway corner of a mattress showing you the innersprings or foam that make up the mattress.  Stay a little longer and the salesman will start explaining to you about memory foam and innersprings and gel.  They love to talk about gel and how it will keep you cooler at night.  But is this really what you want to hear about?  Do you even know what gel is?

According to a recent poll by Furniture Today, only 31% of consumers say that the construction materials of their mattress are important to them.  While most people do want to know what their mattress is made of, its really more out of curiosity than out of actual interest.  Yet construction materials is something that these stores always stress and show in their advertising.

For the most part consumers don't really know a whole lot about construction materials, and why should they, all they really want is a good night's sleep.  Consumers are much more concerned with more practical aspects like sleep, comfort, durability, and support.  These are the things that really matter to them, after all, it doesn't really matter how many springs or how much gel is in your mattress if you can't get a good night's sleep on it.

However, according to research, 31% of bedding specialists always feature construction material in the advertising while 69% of them always talk about it on the sales room floor.  For those that don't always tout the materials, they all say that they sometimes tout the materials.  These numbers go down a bit when you move to furniture stores.  Only 9% of furniture stores always feature materials in the advertising, while 35% of them never feature materials.  When you get to the sales floor only 54% say they always tout the materials, with the rest saying that they only sometimes tout the materials.

According to Bob Muenkel, director of sales education and development at Serta, "[consumers don't] need to know every nitty-gritty detail", the key is to "keep it simple, less is more".

If you need to focus more on reaching out to your customers, give DSA Factors a call today.  Let us manage your receivables and improve your cash flow so that you can focus on what really matters.

Tuesday, July 14, 2015

The Ignored Generation

Today most marketing is targeted at Millennials, those aged 18-34, after all they are America's largest consumer group having surpassed the Baby Boomers, ages 51-69.  However, as marketers are starting to shift away from the Boomers and towards the Millennials, they have completely forgotten about Generation X, ages 35-50.  While Generation X may be the smallest of the three groups, there are still 66 million of them out there, and more importantly they are spending a lot of money!

According to a recent report by Furniture Today, Generation X accounts for 33% of all money spent on furniture, which came out to almost $32 billion in 2014.  Their furniture buying increased by a whopping 43% from 2012 to 2014.  And when it comes to outdoor conversation groups, area rugs, motion sofas, mattresses, and stationary chairs, they are spending more money than any other generation.  A lot of this may be due to some of their desires they have in their house.  According to a survey done by Apartment Therapy the number one must have for a Generation Xer in their home is hardwood floors, this could easily explain why they account for 40% of all money spent on area rugs.  After hardwood floors, they also want lots of light, outdoor spaces, open floor plans with large rooms, and closet space.  That need for outdoor space could easily explain why Generation X spends 42% of all the money that is spent on outdoor conversation groups.

The survey also looked at how Generation Xers redecorate their homes.  In the last two years, 71% of all Gen Xers have painted walls in their home, this is followed by 66% who bought decorative accessories, 65% who bought wall decor, 64% who bought lamps, 63% who bought window treatments, and 59% who bought light fixtures.  Those last three make sense when you consider lots of light being one of the must-haves in a home.  When it comes to rugs, 55% of Gen X has bought a new one in the last two years, easily explaining how they spend 40% of all the money on rugs.  With mattresses, 36% of Generation X has bought a new mattress in the last two years which is why they account for 37% of all the money spent on bedding.

Certainly these are numbers that are hard to overlook, but just in case you've overlooked Generation X to focus on Millennials, you probably are still in pretty decent shape.  Gen Xers are about just as tech savvy as Millennials, and the money you spend on online marketing won't be lost on them.  On average, Gen Xers will visit five different web sites when buying furniture, and six different web sites when buying accessories.  These are shoppers that are well informed and know exactly what they want before they even walk into a store.  In other words, you better have a pretty good web presence if you want to sell to these younger generations.

If you need spend some more time rethinking your marketing, why not let DSA Factors help out.  We will do all of your credit checking, handle your collections, and speed up your cash flow so that you can pay those marketing guys to sell your products.  We've been specializing in the furniture, accessories, and giftware industries for over 25 years, so leave it to us to manage your receivables so you can focus on the more important stuff.

Friday, July 10, 2015

From Red to Blue - Color is Popping Up All Around

More and more people these days are looking for color in their homes, and this is affecting everything from paint to upholstery.  While red has always been a very popular color in the home, blue is starting to pick up steam and quickly becoming the most popular color for upholstery, especially in the US.

It has become more and more important recently for manufacturers to not just get your attention, but to get your attention in a split second.  With so many choices, and better informed shoppers, consumer's attention spans are getting shorter and shorter.  One of the best ways that a furniture manufacturer can grab someone's attention these days is with a strong, vibrant color.  Traditionally the color of choice has always been red, and red is still a very good choice of color even today.  But blue, a color that didn't use to be very popular, has been picking up a lot of steam recently and has become America's most popular color in the home.  Especially blues that have bit of green in them and teals.

A recent survey in Furniture Today shows that blue has become America's favorite color for upholstery.  33% of Millennials (age 18-34) call blue their favorite color in the home, as do 26% of Generation X (age 35-50) and 28% of Baby Boomers (age 51-69).  That is nearly one third of the market that prefers blue today, and many color experts believe that blues popularity is only going to continue to grow.  However, it isn't all blues that are doing great, lighter blues still aren't all that popular in the home.  It is the darker blues, such as navy, that are really becoming popular.

Of course blue's gains are coming at the expensive of other popular colors, particularly red, which had long been America's most popular color.  While 30% of Baby Boomers prefer red, that percentage drops to only 23% of Generation X and 12% of Millennials that call red their favorite color.  Despite losing some ground to blue, red is still America's second most popular color

What is a bit more surprising than blues recent popularity, are the other colors that are starting to become more popular than red.  Yellows and Greens which were never very popular with Generation X or Baby Boomers, have surpassed red when it comes to Millennials.  15% of Millennials call yellow their favorite, while 14% call green their favorite.

The other big color, orange, however is losing some steam.  Orange is most popular among Generation X with 20% of them considering it their favorite color, but it drops to 13% with Baby Boomers and only 10% with Millennials.

If you are having trouble keeping up with the latest color trends, give DSA Factors a call today at 773-248-9000.  While we can't help you pick out colors, we can help you with credit checks and collections so that you have more time to focus on your product line, and can make sure you choose the right colors.