Average Markup on Couches: What Retailers Really Charge

May, 13 2025

If you've ever walked into a furniture store, stared at a price tag, and wondered how much of that cost is just markup—you're not alone. Most people are surprised to find out that the markup on couches is usually higher than almost any other big purchase for your living room. Want a number? On average, furniture stores mark up sofas by 100% to 200%. That means if a couch cost the store $800 to buy from the manufacturer, you might see it on the sales floor for $1,600 to $2,400.

Now, that doesn't mean every couch is overpriced or that retailers are just raking it in. Stores have costs like rent, shipping, warehousing, and sales commissions. But knowing the typical markup gives you a real advantage—you'll spot fake 'deep discounts' a mile away, and you'll know when a store actually has some room to negotiate. Plus, not all brands mark up their products the same way. Smaller retailers or online direct-to-consumer brands might take a smaller margin to compete with the big chains.

• How Much Are Couches Marked Up?
• What Goes Into a Sofa's Price?
• Negotiating for the Best Price
• Tips for Smarter Sofa Shopping

How Much Are Couches Marked Up?

Believe it or not, the average markup on couches in the U.S. usually lands somewhere between 100% and 200%. In plain English, that means the price you see in a furniture showroom is at least double—sometimes triple—what the retailer paid. Why such a big jump? Well, furniture stores have to cover a load of costs, and they need to make a profit, but even after all that, the markup is still pretty eye-opening.

Here’s a quick breakdown of typical markups for different types of retailers:

Retailer Type	Average Markup
Big-Box Furniture Stores	150% to 200%
Smaller Local Stores	100% to 150%
Online Stores (Direct-to-Consumer)	60% to 120%

Let’s put it into perspective. If a sofa costs $700 to make, it may show up on the sales floor priced at $1,400 in a big chain, or even higher if it’s a premium brand. For smaller stores, the markup might not be quite as steep, but you’re still paying at least double the wholesale price in most cases.

Some retailers are open about their margins, especially newer online brands. These companies cut out the middleman and can offer lower prices because their markup is usually lower. But walk into a high-end store, and it’s not unusual to see markups even above 200%, especially for “designer” couches. The markups don’t always mean better quality—it’s often about branding and overhead.

Here are a few things that affect markup on couches:

• Store Location: Stores in cities with high rent often add extra padding to their markup.
• Brand Name: Popular brands charge more, even for similar quality.
• Sales Tactics: That ‘60% Off’ sticker? Sometimes it’s just a way to make the standard markup look like a big deal.
• Special Materials and Features: Fabrics, custom options, and add-ons can bump up the margin.

If you’re trying to figure out if you’re getting a fair deal, do a quick online search for the same couch or a similar model at other retailers. The price can swing by several hundred dollars for the exact same piece depending on where you shop.

What Goes Into a Sofa's Price?

So what actually makes up the price tag you see on a couch? It's not just the materials or labor—the cost has a bunch of layers built in. If you think the retailer is just making easy money, it’s not quite that simple. Here’s how the numbers break down:

• Materials: The actual fabric, foam, wood, and hardware. High-end sofas can use premium hardwood frames and top-grain leather, which drives up cost. Even cheap couches use a surprising amount of raw material.
• Labor: Skilled workers upholster, sew, and build each sofa. In the U.S., labor costs for sofas are higher than overseas factories, so domestic-made couches usually cost more.
• Freight & Shipping: Getting a full-sized couch from factory to warehouse to your living room isn’t cheap. Expect freight and delivery fees to add anywhere from 10% to 20% more to a retailer’s costs.
• Retail Costs: Stores pay rent, utilities, sales staff, insurance, and advertising. Furniture stores also need a huge showroom just to fit all the couches on display.
• Markup/Margin: This is where the retailer adds their slice. For sofas, the average markup on couches sits between 100% and 200%, but it can swing higher or lower depending on the brand or store.

Here’s what all those costs can look like in real-life numbers:

Component	Estimated Cost (Midrange Sofa)
Materials & Labor	$400
Freight & Shipping	$80
Retailer Overhead	$120
Retail Markup	$500 - $1000
Final Retail Price	$1,100 - $1,600

That range shows how the price can balloon once everyone takes their share. If you’re buying a designer label or a popular brand, expect an even bigger gap because you’re paying extra for the label and the marketing. On the flip side, big box stores and direct-to-consumer online brands often trim out middleman markups, so you may get more for your money if you shop around.

Negotiating for the Best Price

Walking into a furniture store can feel a bit like stepping onto a used car lot—only the couches look a lot comfier. But here's the thing: big markups mean there’s usually room to ask for a better deal. In fact, a 2023 National Retail Furniture Survey found that nearly 70% of sofa buyers who tried negotiating got some type of discount, whether it was a price drop, free delivery, or a bonus like a stain-protection kit.

First tip—don’t be shy about asking. The most successful buyers get straight to the point. Try something like, "Is this the best you can do on price?" or "Do you have room to come down on this one?" The worst you’ll get is a polite no. Many salespeople actually expect you to barter, especially in larger showrooms or during slow shopping seasons.

Here’s what helps your case:

• Shop at the end of the month. Sales staff often need to hit targets, so they’re more willing to negotiate.
• Point out minor flaws. A tiny snag or scratch? That can be your ticket to a quick discount.
• Bundle it up. Buying a sofa and a chair, or adding a coffee table, can score you a package deal.
• Get quotes from other stores. Show them a lower price elsewhere, and you’ve got real leverage.
• Ask about floor models. These are usually marked down already, but there’s almost always extra wiggle room if you’re paying cash or taking it home yourself.

To get a sense of how much negotiating room might be on the table, check out these average savings (2023 data):

Negotiation Strategy	Average Discount (%)
End of Month Purchase	12%
Minor Flaw Noted	15%
Bundling Furniture	10%
Floor Model Deal	18%

When it comes to average markup on couches, remember that online retailers usually have less room to haggle. Still, it doesn’t hurt to email or use online chat and just ask—they might throw in free delivery or an accessory. The bottom line: if you don’t ask, you almost always miss out.

Tips for Smarter Sofa Shopping

When it comes to buying a couch, price tags can be tricky. The good news is, if you know what to look for, you can avoid overpaying and walk away with a better deal. Here’s how to play it smart.

• Shop at the right time. Furniture stores often offer the deepest discounts on big holiday weekends—think Presidents’ Day, Memorial Day, and Black Friday. Manufacturers also release new models in February and August, so stores are more likely to clear out old inventory right before those times.
• Don’t be afraid to negotiate. There’s often wiggle room, especially on the sales floor. If you find the same model cheaper online or at another retailer, show them. Many stores will match or even beat a competitor’s price.
• Always check what’s actually included in the price. Does the price cover delivery? Are there setup or return fees hidden in the fine print?
• Understand what affects the markup. Luxury brands and imported goods tend to have higher markups. Big box stores sometimes run lower markups just to move volume, but you’ll want to compare quality, not just price.
• Keep an eye out for quality. Ask about frame materials (hardwood lasts longer than particleboard), cushion filling, and warranty details. Cheap isn’t always a good deal if you’ll need to replace your sofa in two years.
• Consider direct-to-consumer or online brands. These brands usually skip the middleman and sell at lower margins, so you might find similar styles for several hundred dollars less.

Here’s a quick cheat sheet with average price ranges by retailer type to give you a ballpark idea of what’s normal:

Retailer Type	Average Sofa Price	Typical Markup
Big Box Store	$500–$1,200	~100%
Furniture Chain	$800–$2,500	100–200%
Boutique/Designer	$2,000–$6,000	200+%
Online DTC Brand	$800–$1,800	50–100%

See a sofa pricing deal that looks too good to be true? Sometimes it is—outlet and clearance sofas can be steals, but they might have flaws or lack warranty coverage. Always inspect clearance pieces in person if you can.

And here’s a tip that’s easy to forget—measure your space before you shop. Nothing’s worse than landing a great deal and finding out the couch won’t fit through your door.