Why the comparison? The car industry and the furniture industry are both large industries that generate a lot of revenue. And they are both industries that are essential to our everyday lives.
Furniture is something that we use every day, and cars are something that we use to get around. Also, I had a friend who used to sell cars and a friend who sold furniture. So I figured, why not? If you’ve been thinking about either, here’s a comparison of the two industries.
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Furniture vs. Car Industry Compared
The car industry is much bigger than the furniture industry. In 2017, the global car market was worth $1.7 trillion, while the global furniture market was worth $558 billion.
The car industry is also growing at a faster rate than the furniture industry. Between 2010 and 2017, the car industry grew by 21%, while the furniture industry only grew by 9%.
One reason for the difference in size is that the car industry has more players. There are over 1,000 car brands in the world, while there are only about 400 furniture brands.
The car industry is also more globalized than the furniture industry. In 2017, 70% of car sales were outside of the United States, while only 30% of furniture sales were outside of the United States.
The furniture industry is more fragmented than the car industry. The top 10 furniture companies control only 27% of the market, while the top 10 car companies control 60% of the market.
This means that there are more opportunities for small and medium-sized companies in the furniture industry, which sometimes means higher commissions.
The car industry is capital intensive, while the furniture industry is labor-intensive. This means that the car industry requires more money to produce each unit of output, while the furniture industry requires more labor.
The car industry is also more research and development intensive than the furniture industry. In 2015, the car industry spent $141 billion on research and development, while the furniture industry only spent $8 billion.
This is because the car industry is constantly changing and evolving, with new technologies and features being constantly introduced, such as EVs and autonomous driving.
The furniture industry is more seasonal than the car industry. Furniture sales are highest in the spring and summer, while car sales are highest in the fall and winter.
Enough about the industries; let’s get into the meat of this article.
What Is a Furniture Salesperson?
Your job as a furniture salesperson is, well, to sell furniture. Furniture salespeople sell all types of furniture, from sofas to beds to dressers.
Your job is to help customers find the right piece of furniture for their home. This means that you need to be knowledgeable about all different types of furniture and styles.
You also need to be able to negotiate prices and convince people that the blue sectional with the recliners is worth the $2,000 price tag.
What is the typical commission on furniture sales?
The commission plans vary from furniture store to furniture store. Most furniture stores offer a draw versus commission plan.
With a draw versus commission plan, you are given a set amount of money each week, regardless of how much or how little furniture you sell. This amount is called a draw.
If you do not sell any furniture during the week, you do not earn a commission. However, if you sell furniture above and beyond your draw, you earn a commission on those sales.
The average commission for furniture sales is 4-8%, and a high of 10%. So, if you sell a $1,000 piece of furniture, you would earn a $100 commission on the high end.
What Is a Car Salesperson?
A car salesperson’s job is to sell cars. Car salespeople sell all types of cars, from sedans to SUVs to trucks.
Your job is to help customers find the right car for their needs. This means that you need to be knowledgeable about all the different types of cars and their features, why these features are must-haves and offer test drives.
Just like with furniture salespeople, you will negotiate prices, but ultimately, your job is to get the customer to sign on the dotted line.
What is the typical commission on car sales?
There have been more and more dealerships paying out a fixed salary plus commission. However, the vast majority of dealerships continue to use some type of commission-based pay plan.
The typical commission on a car is 25% of the gross profit on the car. It’s structured quite a bit differently than furniture sales.
The way it works is that the dealership gives you a target gross profit number on each car. For example, they may say that the target gross profit number on a sedan is $2,000.
If you sell the sedan for $20,000 and the cost of the car to the dealership was $18,000, then your commission would be 25% of the $2,000 gross profit, or $500.
And on average, commissions on car sales are usually around $500 per car.
Which job is more stressful – Furniture Sales vs. Car Sales?
When it comes to stress, car sales take the cake.
Cars are a higher-ticket item than furniture, so the stakes are higher. And a lot of dealerships pay commission only – so If you don’t sell any cars in a week, you’re not going to make any money.
For the most part, when you’re selling furniture, you won’t have to worry about financing, or whether the customer can actually afford the piece of furniture they’re interested in. But with cars, financing is a huge part of the equation.
You have to ensure that the customer can get approved for a loan, which sometimes is out of your control.
That means you can spend hours going over all of the details, the features, options, and test drives, and then the customer may not even get approved for financing.
Better Work/Life Balance – Furniture Sales vs. Car Sales?
In general, furniture sales offer a better work/life balance than car sales.
Furniture stores are typically open during regular business hours – 9 am to 5 pm – so you’re not working late nights or weekends.
And while you may have the occasional customer who wants to come in after hours, for the most part, you can clock out at the end of the day and not have to worry about it.
With car sales, however, you may find yourself working a lot of nights and weekends. Car dealerships are typically open later than furniture stores, and customers often want to come in after work or on the weekends.
So if you’re looking for a job where you can have a more regular schedule, furniture sales may be the better option.
Conclusion
Sales jobs can be very rewarding, but they also come with their fair share of challenges. If you’re considering becoming a salesperson, it’s important to weigh the pros and cons before deciding.
Both furniture sales and car sales can be stressful but can also be exceptionally rewarding.
It’s also important to keep in mind that while car sales typically pay more commission, the stakes are also higher. So if you’re not comfortable with risk, furniture sales may be the better option.
Ultimately, the decision of whether to pursue a career in furniture sales or car sales comes down to personal preferences and goals. Consider your strengths, weaknesses, and what you’re looking for in a job before making a decision.
