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Havertys FurnitureHigh Prices


I tried to negotiate a discount on a home office collection sold by Haverty's. The Chateau de Vin collection is manufactured by Aspenhome and is modular in construction ... you can mix and match different components.

Haverty's quoted me $5, 000 for the set of components I was interested in. I asked for a 20% discount because I know the margin in the furniture industry are high. I was immediately told that Haverty's has a "no haggle" policy and they could not adjust the price.

I contacted Aspen Home and requested other retailers in the Dallas area that sold their merchandise. I was referred to Weirs and Charter Furniture. Weirs for similiar components (slight differences) quoted me approx $3, 300. Charter Furniture for the same components (from what I could tell) quoted me $3, 000.

I contacted my sales person at Haverty's and alerted her to the price discrepancy. The "Asset Manager" at Haverty's returned my email, and informed me that the Aspen Home furniture that Haverty's carried had "added features" from Weirs which accounted for the difference in pricing. I am an amateur woodworker, so I was interested in what the added feature were ... I went back to Haverty and thoroughly looked over the furniture at Haverty's and could not note any "added features" other than pull out lighting on the hutches (certainly not worth an incremental $2, 000 in my opinion). From what I could tell, the furniture was identical (other than the pull out lighting) to the furniture at Charter and Weirs.

I asked for a complete list of added features that would account for the increased price ... as of yet, no response from Haverty's.

This just proves ... Caveat Emptor


  • Ma
    Maybeitsyou Apr 17, 2013

    I have received many non-advertised discounts from Havertys on purchases. From the effort you have gone to try and bash them, maybe it's just that you are an unfriendly person that created their own experience through brashness. There can also be more quality differences in furniture than features, but I am sure you know that as an amateur wood worker. Real customer, will put a real email if the comment program asks. Trying to impact a company because of your singular experience and your interpretation is almost as bad as when I was an area manager for a video store and customers wanted me to fire employees with families because they didn't enjoy their 3 dollar rental experience!

    0 Votes
  • Mi
    MitchMiami Aug 22, 2009

    I just visited the Haggertys in Sunrise FL and in the 20 minutes I was there the sales person said to me 14 times, "what do you want to pay? make us an offer, everything can be negociated" Now I see that they have a no haggle policy. Just to let you know they took 15% off the already discounted advertised sale price when I walked out.

    And yes I negociate almost everywhere I shop, When my oldest son was born 19 years ago the hospital my wife wanted to use was not on my HMO so I went into the billing dept, told them the price would be $2500.00 cheaper with my HMO at a nearby competing hospital about 5 miles away. They took $4000.00 off of the bill without blinking. When I just bought a 50" DLP Samsung large screen all it took to get another $200.00 off of Brandsmart USA's advertised price (the cheapest in town here) was to ask. Walmart discounted the PC I bought my daughter for school this year, just by asking. You are very foolish, in my opinion if you do not ask for a discount everywhere you go, yes the manager at the supermarket will price match also. It's too hard to earn the money to just give it away.

    I'm sort of glad I read your post, I liked the furniture at Havertys but now I have to spend my weekend shopping for furniture with my wife because 40% above market price is OUTRAGEOUS.

    By the way, talking about margins, for years I managed a few locations of national tire store/auto repair company that I will not name here and our GP margins on mechanical repairs had to excede 80% if you expect to keep your job as manager, and as far as tire prices go the did, and still do according to some of my friends still working in the field, have 4 different prices in the computer, a low ball price for phone quotes only, a high retail for someone that you find needs tires when they brought the car in for another concern, a mid price when someone walks in price shopping, and a "bottom-line" price only to be quoted if the customer is walking.

    To believe you cannot haggle in almost any business is just not being careful with your money. The only place I do not try to get additional discount is restaurants.

    0 Votes
  • Rd
    RDJ Jan 01, 2009

    D.Yates. wrote, but provided an invalid email address, and stated I was completely out of line with my comment. That a 20% discount was way too high and unreasonable. She stated that Haverty's pricing was completely fair and was evidenced by the fact so many furniture companys are going out of business because they can't make a decent profit. She questioned what type of business I worked in and whether I would ask for a discount at a grocery store, the doctor's office, a retail store such as Walmart, when purchasing a new car, or whether the customer of the business I work for would ask for a discount. Here is my response ...

    Obviously you are connected to Haverty's ... Lets see ... I bought the same Aspen Home Furniture from Charter Furniture for $3, 000 vs $5, 000 at Haverty's ... The only difference was the two hutches I bought did not have a pull out light feature which was a Haverty's exclusive option from Aspen Home. Charter also provided zero interest financing just like Haverty's.

    So $3, 000 at Charter furniture is a 40% discount from Havertys price of $5, 000 ... I have to believe that Charter Furniture is a for profit enterprise also. I know the pull out light feature does not add $2000 to the cost of the furniture.

    Looking at Haverty's financial statements their gross profit is approximately 50% ... incredible! Most companies could only dream of gross profits in the 50% range. I worked 20 years in the IT Services industry and the gross margins were in the 15 - 20% range with a net margin of 6 - 8% and I currently in the airline industry with gross margins of 8% and net margin of 6% The problem is Haverty's has SG&A that exceeds their gross profit. If you read their financial statements, store rents and occupancy costs area constitute a significant portion of SG&A. The financial statements discuss changes in the various items that make up SG&A but fail to give you the beginning or ending amounts of each item in SG&A. I am sure investors would like a little more disclosure in this area in Haverty's financial statements.

    No doubt SG&A is high due to occupancy costs ... the stores are fantastic ... spacious, well laid out, and glitzy ... the problem it consumers don't want to pay for that ... consumers want to pay the bare minimum for goods and allow a company to make a REASONABLE profit and consumers do not want to (and will not) pay for a company's poor management decisions.

    I looked at several furniture stores and all of them except Haverty's had their showrooms packed with goods and were not glitzy like Havety's ... granted these stores were family owned enterprises who need to make a profit because a loss comes out of the owners pocket ... such as Charter Furniture ... who again was 40% less than Haverty's.

    Now for whether I would ask for discounts at:
    - a grocery store ... no ... because competition in intense and you can always go to a low cost provider like Walmart ... not to mention margin in the grocery business are some of the lowest in business.

    - Insurancy Companies - absolutely ... I have negotiated discounts with insurance companys by using competitive pricing

    - Doctors offices - not directly ... my employer does that when selecting a health plan for its employees .. have you ever seen the hugh discounts provided to the health plans by the doctors on your EOB statements? The discounts are much more than 20%. I had minor surgery recently ... The bill before discounts was $10, 000. The health plan negotiated discount took $4, 500 off that ... thats 45%.

    - Walmart ... no ... again, a well known low cost provider ... thats why they are the largest and one of the most profitable retailers in the world. Consumers know they are getting a fair price for the goods they are purchasing. The goods may not be top quality but they are fairly priced ... that is what consumer expect ... fair price for the quality purchased.

    - other retailers ... Sears, JC Penneys for example - absolutely .. I have negotiated discounts on appliances. Oh and guess what they run "sales" all the time to attract consumers. Just purchased a $50 pair of levi jeans from JC Penney for $20 ... lets do the math on that ... 60% discount ... do you think they lost money on the sale ... don't think so ..

    - Do my business customers ask for discounts ... Absolutely ... Large business are expects at leveraging their buying power. When I was in the ITServices industry .. 20% discount off our published prices was low ... customer usually ask for higher discounts and ongoing productivity discounts. When the company off-shored thousands of employees to India to lower compensation costs ... guess who came knocking at the door ... the companies customers ... they said ... you lowered your costs by using low cost labor in India, we should share in that cost reduction ... guess what .. the company shared the cost reductions. I now work in the airline industry for a low cost provider ... guess what, when sales are slumping, the company has to offer discounts to attract customers.

    Perhaps Haverty's is not making money off its 50% gross margin business because its poorly run and wants consumers to pay for a broken retail model .. consumers as a whole are too smart for that ... that is why Haverty's is doing poorly. I guarantee if the losses Haverty's is experiencing came out of the management teams pocket (instead of investors) the SG&A expense would change dramatically.

    0 Votes
  • Rd
    RDJ Nov 20, 2008

    Same warranty? Thats a foolish comment ... who in their right mind would pay $2, 000 for a warranty on $3000 worth of furniture.

    Their prices are consistently high ...

    1 Votes
  • He
    Hector Nov 19, 2008
    This comment was posted by
    a verified customer
    Verified customer

    I bet it didnt have the same warranty, havertys is an exeptional company.

    0 Votes

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