Cost and profit of solid wood furniture
A senior furniture industry insider pointed out that the phenomenon of “fake solid wood†in the furniture industry is very serious. For example, in the case of solid wood composite doors, more than 90% are not solid wood, and the industry’s false publicity problems are serious. Solid wood materials and merchants commonly used in posing as solid wood materials. The price between MDFs is four to five times different.
Is the furniture industry violent, how much profit does the solid wood furniture have in the end, and how is the cost profit calculated?
When solid wood furniture is shipped from the factory, the factory adds 28% overhead to the direct production cost (including production materials, production labor, workshop manufacturing costs) (for hydropower costs 2%, rent 10%, machine wear, auxiliary supplies) 3%, management staff salary and hospitality, business trips and other administrative expenses 10%, taxes and fees 3%), plus 12% of profits.
As a practical example, if you buy a solid wood bed, the factory direct production cost is 3200 yuan, that is, the actual ex-factory price of this bed is 5333 yuan (3200/(1-0.28-0.12)=5333) (excluding freight And packaging reinforcement costs), this is normal measurement. The long-term management of the factory is stable in all aspects, and the proportion of the overhead of full-load operation will be reduced, but the drop of 5 points is already very good. The above is the factory price of the factory.
Cost of furniture in the outer packaging reinforcement and transportation: We assume that the factory is located in Shanghai or Shanghai suburbs, the external frame reinforcement material plus labor 120 yuan, logistics from the surrounding areas of Shanghai to the Shanghai area distribution center 120 yuan, urban distribution center to the downstairs 40 Yuan, from the downstairs to the customer's home and responsible for the installation of a single product in the 100 yuan, such as the large wardrobe and other products in the 200 yuan. Therefore, the entire transportation link totals (380-480) yuan.
If the furniture manufacturer provides after-sales service, for example, the solid wood furniture purchased by the customer has some minor problems after using it for a period of time. Because the solid wood furniture is affected by the weather, humidity and other minor problems, it is normal to call the factory to repair the door. The cost, then the service is guaranteed but the cost will increase, and an average product costs 30 yuan after sale.
We can calculate the total price of this bed if it is directly from the factory to your home should be 5333 + 380 (480) + 30 = 5743 (5843). This is the price of factory direct sales, but in reality many furniture is sold through furniture cities such as Red Star, Jisheng, Yuexing, etc., then the cost has increased. How much to increase, carefully broken down as follows:
Under normal circumstances, after the factory is shipped, not all furniture can be sold to consumers, and it needs to go through the dealers. Look at the cost process of the store: the normal store needs 20% of the cost of sales, including the venue rent and sales expenses, the dealer must guarantee at least 20% of the theoretical profit, that is to say, 40% of the sales link costs are generated. Then the price of this bed has become: 8888 yuan (5333 / (1-0.4) = 8888) (excluding transportation and packaging reinforcement costs), plus the previously calculated transportation, installation, after-sales home repair The fee is 8888+380 (480) + 30 = 9298 (9398).
This is the complete calculation of the furniture industry. In fact, when you see the solid wood furniture in the store outside, you should not take a few discounts on his sales price. You only need to follow the formula according to the actual price to calculate from the back. I know how the cost of this solid wood furniture is.
Further reading: Six golden rules for selecting solid wood furniture
Production of solid wood furniture
Now the basic solid wood furniture is made of splice board. Let me say the reason: First of all, the scarcity of raw materials, think about a 150X90 table. If it is a whole board, you need to use thick trees. Wood, it is difficult to do the appropriate drying treatment, the stability of the wood is very poor, cracking deformation is very normal, so the general solid wood furniture is spliced ​​and finger jointed. However, regardless of splicing and finger jointing, the processing technology requirements are very high, which also affects the aesthetics and use of furniture.
Order production mode:
1. Arrange production for your order. For example, if you book a set of 5 sets of bedrooms, a set of manufacturers will do these 5 for you, so it will be faster, but the price will be much more expensive, and there is no quality guarantee for this kind of production, generally there is a large scale. The factory will not do this, which increases costs and wastes working hours. Small-scale plants may take orders for a single deal, but the risks are high, mainly in terms of quality and delivery dates. In case of deviation, the unlucky ones can only be customers.
2, assembly line production. This production method is done by many large-scale furniture factories. In the case of mass production lines producing the same type of furniture, the order is taken in conjunction with the production plan. (For example, the factory produces a style of bed, one production is 50-100 one assembly line, there are special quality inspection personnel, one batch of 100 inspections is completed.) If this is produced, the quality of furniture has been greatly improved, the price above There will also be a big reduction.
Spot sales model:
In general, buying furniture can complete the transaction within a few days. That is, the merchant has a large amount of stocking, inventory backlog. This ordering method is very testable to consumers. Because all the solid wood now has a higher price, the general factory will not have a large inventory. These stocks are likely to be a large backlog of goods in previous years. They are roughly the styles that have been eliminated, or the goods that have problems. The merchants are extremely eager to take things. At this time, consumers must have eye-catching eyes, and it is best to see the real thing. After the payment, don't lie to the business salesperson's rhetoric. Be sure to see the spot after the decision. The price can be cut. Because at this time the merchant is eager to take the merchandise, it is easy to cut the price.
Therefore, if you want to buy solid wood furniture with good quality and style, you must do your homework in advance. Would rather come to buy furniture earlier, leave plenty of time to give yourself more choices and give your business plenty of production time, and don’t hang on to the feet. Waiting to stay and choose furniture, it is easy to be fooled.
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