Does anyone sell on Houzz?
Discussion
AyBee said:
TWENTY??!!!
That's what I said...!That's 20% of the price incl. VAT as well... I haven't checked yet but I wouldn't mind betting the fees go through the USA company with no VAT to reclaim.
It rules out 80% of our consumer led products.
They are very keen for me to list "lots" of things as well, their words were "everything"... I have a range of things that we make enough margin on but I'm really not sure I want to sell at what would become low margins and then wait up to 60 days to get paid for the pleasure.
For those who say "ridiculous" is there any downside to listing on the platform? If work comes through then work comes through! Or am I missing something?
From a reputation management perspective, it might be wise to set up a separate Ltd company for those jobs (if the rules allow it) so there's no direct like-for-like comparison price shopping by customers (who might then leave lots of unfortunate comments online in various places).
From a reputation management perspective, it might be wise to set up a separate Ltd company for those jobs (if the rules allow it) so there's no direct like-for-like comparison price shopping by customers (who might then leave lots of unfortunate comments online in various places).
Burwood said:
At a 240% markup on bigger ticket items it’s too high. They also said. The sweet spot is in the ‘economy’ range’. So that £700 garden set comes in at 291 incl the importers margin which is £100. It will be garbage. This is how inexperienced small businesses go bust.
Or perhaps Houzz aren't quite so naive, and that they want to build up to importing goods themselves (or at least buying from wholesalers) with a network of installers? But they have to start somewhere.Burwood said:
It will never happen. Why tie up 100m quid and get the same margin by offering the same returns to importers. It’s the way the market is moving but it’s unsustainable. Like amazon. Soon, they will have to make a profit or have issues.
Oh I agree with you entirely. But it is amazing what people can find investors for sometimes...skwdenyer said:
Burwood said:
It will never happen. Why tie up 100m quid and get the same margin by offering the same returns to importers. It’s the way the market is moving but it’s unsustainable. Like amazon. Soon, they will have to make a profit or have issues.
Oh I agree with you entirely. But it is amazing what people can find investors for sometimes...Burwood said:
This is how inexperienced small businesses go bust.
This is pretty much why I declined today.She was really nice and not pushy by any means but did say that "this is the norm for big multi-national retailers and this is the margins that Houzz work too" which sums it up. We're too small for Houzz!
With regard to the argument for listing anyway, the issue is the 90 day payment terms, say it works and we sell £100k of product, we're too small to cash flow that for up to 60 days at a time so sometimes more sales isn't necessarily a good thing.
I'll be perfectly honest though, I don't think Houzz will be taking any of my customers any time soon.. so I'm not too bothered.
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