Furniture industry profits by whom 'earn'?

according to earlier national authoritative department, the hotel furniture industry average profit margin is only 3%. Due to various reasons known to all, the furniture industry tax is not standard, making the data there may be a certain range of moisture. But given the weak overall economic situation in recent years, a lot of the present situation of the hotel furniture business failures, hotel furniture industry profits have been lower, but also who is undeniable.

the hotel furniture industry by the 'profits' transition to a 'small profit' industry threshold is low, the investment demand is not high, enterprises blossom everywhere. Excessive inflation triggered the disorderly competition between brands. In order to seize market share, interacting with each other between enterprises, meager profit but high turnover has become the only means. The personage inside course of study says, vicious competition in enterprise sales profit space have been compressed, hotel furniture enterprises and dealers in fact already entered the small profit era.

modern hotel furniture manufacturing and production, than in the past has a lot of standards and specifications, so that consumers can buy on the market of furniture products, are already pass strict review process to hit the market. In particular, we are now seeing more are solid wood and wood veneered furniture, so, today we take a look at today's what are the standard of solid wood furniture production technology, see how can make our customers satisfied.

first of all, is a manufacturer production cost, the cost of custom furniture is not just the money of raw materials. When furniture products factory, the factory in the direct production costs, Including production materials, production of artificial, workshop manufacturing expenses) Add 28% on the basis of indirect costs ( For utilities, rent 2% and 10% 3%, auxiliary materials, machine depletion, management personnel salary and entertain, travel management expenses 10%, 3% tax) , plus 12% of the profits. In addition, the reinforcement and the cost of transportation, environmental protection packing fee also makes furniture industry gross margin is becoming more and more small. Of course those cheap products, or did the article on material, or to save the cost of the production process.

second, brand building has a lot of money. Consumption upgrade environment, consumers to the brand strength is more and more attention, will need to spend a lot of marketing costs, but also to the pursuit of the design of the household itself. In addition to provide perfect after-sales service, this is also need to support the brand and the value. In addition, it is household repeated consumption frequency is low, less repeat business. This also leads to household enterprises couldn't get through economies of scale to digest the cost.

big-box formats affect household industry profits

these are the internal cause, there is also a important factor also deeply affect the profits of household, the mall sales model. All stores are 'ye', the dealer is 'grandson'; 'Grandson' often complained that 'yes' do not put yourself in for the sake of themselves, the bundled with their national stores everywhere. Really sells high cost of rent is the indisputable fact that, in recent years because of the influence of other channels has weakened the stores, retail profit growth generally is not big enough, at the same time, building materials furniture store excess and greatly increase the cost of the furniture industry.

more in-depth thinking, sells exactly what are the potential disadvantages for the consumer? First is the industry concentration degree is low, small and medium-sized enterprises, short-term behavior, competition rules easily disorder, consumers often have no choice, interests protected; Second, low industry concentration also means low market efficiency, it is hard to earn excess profit through monopoly enterprises, it is hard to through economies of scale and scope economy to absorb the cost, the same household products, consumer often may have to pay more money to buy; Finally the distributors may be taken advantage of the 'the kitchen' generation of blister, no longer content with the role of circulation, even dressed as brands themselves, on household products factory price, again to add a pair of price, let consumers more pocket money worth.

and we can reverse thinking, as barriers to a threshold of zero, zero, zero monopoly, completely marketization of traditional industries, there will be a windfall exist? The answer is obvious. Household enterprises and dealers old screaming they almost don't make money, don't. It's not complaining, sympathy. These days, not everyone is willing to kneel to earn money, would have stood standing, and kneeling also does not have to earn money.