Marc Barnes — Furniture Today,
Offers variations of a 12-month financing plan
JACKSON, Miss. — Tommy Miskelly, one of the principals in


Miskelly Furniture here, says the store’s credit offers are fairly basic, mostly variations of a 12-month financing plan, either same as cash or deferred, with occasional use of a 24-month plan.

But Miskelly always tries to get a down payment because of the situation in its southern Mississippi marketplace.

In the aftermath of Hurricane Katrina, many area homeowners bought furniture but leave it in the warehouse, Miskelly said, leading to problems as more furniture comes in and the store has no place to put it.

Requiring a down payment means the customer is more likely to accept delivery of the furniture, he said, which helps keep supply lines moving.

“It also lowers your buyout on the financing, if a customer buys $4,000 worth of furniture and puts $1,000 down,” said Miskelly. “Financing $3,000 helps you cut your rates some and you are not paying 7% on the $4,000 but are paying 7% on $3,000.”

He said that two or three times a year, the store will offer a 24-month option, but the customer has to purchase a higher amount and has to make a minimum payment. The financing is through American General.

Store salespeople are trained to mention but not push hard on financing. If the customer opts to finance, the details are explained clearly, both by the salesperson and in writing. The customer is required to read the form and initial it to indicate that he or she understands what it means.

Miskelly said the store won’t offer financing for more than 24 months.

“I just saw one (advertised) with no minimum payments, no interest, no retroactive interest, no payments until 2017,” he said. “I am thinking that I should go buy something. With that kind of offer, you are sacrificing tomorrow’s customer today.”

Miskelly said retailers have to figure out whether they want to be in the financing business or the furniture business. In furniture, he said, you remain competitive on price, you offer a quality product, you give them a clean delivery, and you make certain every customer comes away with a good experience.

“You are not going to get 36 months financing with no interest here, but you are not going to pay for it on the front end either,” said Miskelly. “We are able to stay out of debt this way and we’ve been able to sustain double-digit growth — we’re up 29% on the year.”

Besides, given the marketplace in Mississippi, Miskelly can’t afford to do otherwise.

“This isn’t Atlanta and we don’t have throwaway consumers here,” he said. “I have got to get repeat business, and that is our philosophy. I am not throwing anybody away. That’s insane. Here, we have about 480,000 people, so we have to have them coming back in a year or two.”

Miskelly said he doesn’t want customers seeing his advertising and reminding themselves that they bought furniture from Miskelly Furniture and are still paying for it three years later.

“Every time they see your commercials, what do you think they think?” he asked. “They think, ‘I am sick of them; I have a bill that I have got to pay.’ And every time they hear your name, they think of the debt that they have to pay and they will shop around next time.”