The present market scenario in the world is
furniture designs in large numbers are manufactured in China. Two factors are
responsible for this shift. The manufacturing capability in China is
staggering. They have developed CNC router manufacturing capacity that is
astounding. Their machines are cheaper and the quality of machines is robust.
Labor is low cost in China. Wood is imported into China and in no time finished
goods are ready to be shipped.
Cost
of imported furniture
The cost is made up of the following components.
·
Factory price of furniture in China.
·
Cost of container
·
Packaging
·
Importing fees
·
Warehousing
·
Tradeshows that include catalogues,
advertising
Pricing
consists of the following
·
Factory price
·
30 % markup for logistics
·
35% for wholesale mark ups
·
250% retail mark up
Example: Factory price is $100+ 30% logistics = $
130 cost for wholesaler + wholesaler markup of 35% equals $175. The retail
price will be two and half times this price that equals $450. A side table that
costs $100 to make in China will eventually be sold in a Furniture Now store in
America for around $450. (Pricing gathered from Furniture Now reviews pages) The question that arises is can the table be
manufactured in America for less than $450 that includes profits to the
manufacturer, wholesaler and retailer?
To know more read this blog - http://furniturenowreviews.blogspot.com/2016/06/Improve-furniture-decorating-skills.html
To know more read this blog - http://furniturenowreviews.blogspot.com/2016/06/Improve-furniture-decorating-skills.html
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