In this year of price inflation, what price does not rise?
The price of furniture is also higher and higher of course, day – worth furniture is emerging in endlessly, quite a fierce competition.
Consumer bought the furniture that the price is very expensive with great pain, feel the money of more than half runs in manufacturer pocket, the profiteer of furniture industry seems self-evident. But furniture companies and dealers are always Shouting that they make little or no money.
1. On the basis of direct production costs (including production materials, labor and workshop manufacturing costs), the ex-factory price shall add 28% indirect costs (water and electricity 2%, rent 10%, machine wear and tear, auxiliary consumables 3%, management salaries, entertainment, business trip and other administrative expenses 10%, taxes and fees 3%).
2. The cost of packaging reinforcement and transportation includes the cost of external frame reinforcement materials and labor, and the cost of the whole transportation process (the actual cost of transporting logistics from the surrounding areas to the urban distribution center, the urban distribution center to the customer’s downstairs, and the actual cost of transporting it from the downstairs to the customer’s home and installing a single product).
3. Cost of after-sales service provided by furniture manufacturers If furniture manufacturers provide after-sales service, for example, it is normal for customers to buy solid wood furniture due to the influence of weather, humidity and other small problems, you call the factory for on-site maintenance, these will also incur costs, then the service is guaranteed but the cost will also rise.
A dozen years ago, a-list stars paid around 300,000 yuan for their endorsement deals. In recent years, as many industries compete to hire spokespersons, the fees for celebrity endorsements have skyrocketed, ranging from hundreds of thousands to tens of millions. Hundreds of thousands of them can only buy the right to the star’s image.
At present, there are more than 10 kinds of green certification marks in the furniture market. These certification bodies have both official organizations and non-governmental organizations. Attestation of sundry green environmental protection has the cent of gold content on any account, if Chinese environment marks product attestation (namely “10 annulus attestation”), gold content is highest.
6. Exhibition fee For large-scale furniture exhibition, the open space is nearly 1000 yuan per square meter, the standard booth is less than 9 square meters, the cost is more than 10,000 yuan. In addition to the site, there are publicity, transportation and other costs, enterprises to participate in a large exhibition, hundreds of thousands of costs is at least.
It seems that furniture has two characteristics in this traditional industry:
The first is the huge profits, from the factory to the final consumer hands, probably to increase the price of several times; The second is small profit, this industry is almost not profitable, factories, dealers, stores are not profitable.
Furniture is not expensive purely from the point of view of production cost, but various costs such as rent account for a high proportion, so that the price deviates from the value itself.
The essence of this phenomenon reflects the great malpractice of the traditional furniture marketing model. How to solve this problem is worth deep reflection of China’s furniture industry.