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Business
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| Number of pages / Number of words: |
10 / 2522 |
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In addition, the industry is under increasing pressure to decrease profit margins in order to meet retailer pricing demands. They have also experienced a decline in sales in markets outside of the U.S.
In the 1980s, the largest carpet and rug manufacturers began to move to direct distribution to maintain profit margins...
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Smaller manufacturers retained indirect distribution through wholesalers because they lacked the capital resources to invest in their own distribution centers. The majority of carpet and rug manufacturers continued to rely on indirect distribution. The company is now evaluating the possibility of cutting out the wholesalers (who get a cut of about 6% of sales) and setting up their own distribution channels in the form of 5-7 warehouses with sales teams working out of each site...
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