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I’m not generally the fan of startups that are “the this, for that,” but I anticipate I could get into article like Accord Décor: it’s the Groupon for furniture. This San Francisco-based startup is application the group-buying archetypal fabricated accepted by Groupon to affix barter with factory-direct deals from across appliance manufacturers.
The aggregation is ablution on Monday in San Francisco, which will serve as the pilot affairs for the account for 6 months. Afterwards, the plan is to barrage in one new burghal every month, ascent up to ability the 20 bigger busline areas in the U.S.
Although consumers ability not apprehend it, Accord Décor isn’t absolutely a absolute rip of the Groupon model. Breadth Groupon uses group-buying to advance coupons, Accord Décor uses group-buying to get bigger prices on appliance orders from manufacturers. Savings ambit anywhere from 30% to 70%, the aggregation says.
A afterpiece adversary would be article like home goods-focused beam sales armpit One Kings Lane, or others in the amplitude like Gilt Groupe or Ideeli. But those sites are alms abrupt discounts on aerial allowance retail items, they’re not accepting factory-direct deals.
The aboriginal accord actuality offered to San Francisco shoppers is a 3-piece exclusive daybed that comes from Vietnam. Actuality it is on EverythingFurniture.com for $949. Amazon has it actuality for $706. Walmart lists it at $829. Accord Décor’s price? $399. Items are called through the founders’ relationships with factories – they acquisition out the top-selling items, and tack on their added aggregate to the end of the assembly run, which keeps costs down.
Further discounts are possible, too, because archetypal gross margins for appliance retailers tend to run 50% (sometimes alike 100%) over broad pricing. But because Accord Décor is purchasing anon from the manufacturers, not the importer or wholesaler, its gross margins can be lower. As is its overhead. However, its net margins are afterpiece to what appliance retailers make.
In accession to Vietnam, the company’s founders, Craig Sakuma and Gregory Lok, have congenital up a network of over 100 factories in Asia, including China, Malaysia and Indonesia. The arrangement was developed over the accomplished decade or so through their acquaintance at appliance retailers and companies like Home Depot, Target, Home Decorators Collection, William Sonoma and Hamilton Spill Appliance Group, breadth they formed in management, consulting and hands-on roles throughout the accumulation chain.
Of course, with Accord Décor, you ability not accept the deluge of options that a appliance retail abundance would action in agreement of customizations to the appliance itself, value-added casework like covering or artifact protection, in-store warranties, costs options and more.
But like some brick-and-mortars, Accord Décor operates locally, acceptance the aggregation to able to handle chump deliveries and allotment locally, too. In San Francisco, the aggregation partnered with a third-party acumen close (also a FedEx partner), to handle warehousing, commitment and chump notifications. On top of the sofa’s acquirement price, barter pay $6 to aces it up at the barn or $33 for home delivery. Accord Décor says it’s not authoritative commitment a accumulation centermost for the business, though.
For those absent to see the daybed in absolute activity first, it will be on affectation in bounded venues like the Treasure Island Flea Market, for example. The aforementioned archetypal involving third-party acumen and bounded venues for showcasing the items will be acclimated as Accord Décor moves into added regions. (To see if Accord Décor is advancing to your breadth in the future, analysis out the assurance up anatomy at the basal of the company homepage.)
Eventually, the aggregation hopes to action added than one account at a time on its website per region, so there’s consistently a bedroom, dining and active allowance account accessible at all times.
Deal Décor is adjourned by Sakuma and Lok at present, but is in talks with several Bay breadth VCs and angels.
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