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Wooden door industry is a mixed bag, and some non-brand wooden door companies may raise prices with the help of “price increasesâ€. However, it will certainly not happen to branded wooden door companies, especially the Beijing Wooden Door brand.
Wooden door agent Chen ** recently worried about price increases. If it rises, consumers feel that the price is high; if it does not rise, the manufacturer will become a real loss-making sales. “After our internal investigation and discussion, we decided that in order to ensure basic profits and sustainable development, the wooden door products that I represent will soon be increased by 20%, and the solid wood products will be increased by 10% over the past.†Chen ** said this. When face is heavy.
Phenomenon: Wooden door products generally rose by more than 10% Since the second half of 2010, the impact of the “Real Estate New Deal†has finally emerged in the household industry, and corporate sales have generally declined, with the most falling 40%-60%. In the clamor of “buying and selling is not goodâ€, a strange phenomenon followed: the price of products not only did not fall, but continued to rise. The most representative of these is the wooden door industry, which has risen more than 10%. It seems that it is not fashionable to increase prices. However, this “price increase†trend does not have a clear feeling for consumers, because the rise is the cost, people see the imaginary market price, and the price tag on the price tag depends on the manufacturer. A mouth has the final say. Regarding price hikes, the same tough decision has recently taken place in other wooden door brands, with an increase of about 10%.
Reasons: The increase in the cost of sales decline in accordance with the basic laws of the market, price increases are often due to product supply in short supply. The supply and demand balance has been broken down, the material is rare and valuable, and the price rise is within reasonable conditions. However, this round of price increases in wooden doors is a kind of “strange phenomenonâ€: Wooden door manufacturers are shouting that “business is not goodâ€, and not only lower prices but also increase prices!
Wooden door professionals said that the "Real Estate Deal" has finally been reflected in the wooden door industry in the second half of this year. The market demand is not strong. Compared with the same period of last year, the wooden door company's sales in Beijing fell by 40%. At the same time, various costs are increasing, and labor costs raised year by year cannot be ignored. In recent years, as residents' incomes and prices have risen in an all-round manner, workers' demands for wages have become higher and higher. All skilled workers have a salary of around 4,000 yuan, and sometimes workers of certain special types earn higher wages. "We cannot aggravate the workers, but we must not let the winds absorb all the labor costs. We are forced to make up only our share of the products."
As raw materials rose too much, logistics costs increased, and sales prices were too low to offset the increase in costs, which could only be compensated by raising the ex-factory price. With regard to the rise in raw materials, the industry generally confirmed that it was true. Chen ** described the enthusiasm of timber transactions: "Now there are a group of people stationed near the border between China and Russia every day. But if there is a truck carrying timber coming in, it will be stopped immediately, regardless of the high price of land to buy all the timber without any explanation. , raw material shortage degree can be imagined.†Chen ** said that less raw materials, natural prices soaring, such as ash willow, has now risen from the past a few hundred yuan per cubic meter to more than 1500 yuan, made of ash wood Wooden doors, the price is naturally rising.
The raw materials that are rising are not only wood, but also paints and hardware accessories that must be used to make wooden doors. In addition, the increase in factory procurement and transportation costs is also a direct cause of price increases. "Everybody knows that gasoline prices have risen. Then, it is definitely because of the increase in freight rates, which will lead to higher costs and more reasonable prices."
It is reported that since the second half of this year, the overall sales situation of wooden doors companies is not optimistic. Many companies have fallen by as much as 60%. In some mainstream stores, even the top ten companies may not be able to make profits. In this case, companies have played up the price tag, which is really upset.
Response: Consumers are insensitive to “price increase†Although the price of wooden door products is reasonable, there are also people in the industry who have questioned: Wooden doors are not classified as fast moving consumer goods or daily necessities. Many times people only visit home for several years. In stores, whether the price rises or not is actually not sensitive to consumers.
In fact, the price of wooden doors is very knowledgeable. In the high-end stores such as Homes, Red Stars, and Macalon, there are a number of branded wooden doors companies. Their prices are relatively strong. It is not easy to make a 10% discount or 8.5% discount. Only significant Only 30% discount will be given for promotional activities. However, in some less well-known stores, 30%, 20%, or even 10% discount signs can be seen everywhere. Many consumers develop habits. They do not buy them without discounts. This directly leads to the high price of wooden doors. Generally speaking, the retail price of wooden doors is twice as high as the ex-factory price, and only the discounted capital is available. If the actual selling price of wooden doors is no more than 30% of gross profit compared with the ex-factory price, there is simply no way to maintain high field rents, commissions for salespersons, and logistics and service costs.
It is precisely because the price of wooden doors that people see in the market is imaginary, and how much the transaction price is worth considering depends on the customer's own feeling. How much price the wooden door label, and finally how much to play, but also by the manufacturers a mouth, consumers simply can not understand the inside story. This leads to the so-called price increase and price reduction is just the settlement price between manufacturers and dealers, consumers hardly feel.
Faced with the rising price of wind, the brand wooden door is the preferred product; the wooden door company’s recommendation is to dig deeper into the value of goods and avoid the first-tier and second-tier cities that have higher shop costs such as Beijing, Shanghai and Tianjin. The goal is to expand in the second and third tier cities. “With a store of the same size, gross margins may be only 10% after the cost of rents are eliminated in the first-tier cities, but they will definitely be much higher in the second and third-tier cities.â€
Wooden door industry is a mixed bag, and some non-brand wooden door companies may raise prices with the help of “price increasesâ€. However, it will certainly not happen to branded wooden door companies, especially the Beijing Wooden Door brand. "Once it becomes a brand, the company's focus is on how to make consumers get more benefits, rather than how to extract huge profits from consumers."
Wooden door agent Chen ** recently worried about price increases. If it rises, consumers feel that the price is high; if it does not rise, the manufacturer will become a real loss-making sales. “After our internal investigation and discussion, we decided that in order to ensure basic profits and sustainable development, the wooden door products that I represent will soon be increased by 20%, and the solid wood products will be increased by 10% over the past.†Chen ** said this. When face is heavy.
Phenomenon: Wooden door products generally rose by more than 10% Since the second half of 2010, the impact of the “Real Estate New Deal†has finally emerged in the household industry, and corporate sales have generally declined, with the most falling 40%-60%. In the clamor of “buying and selling is not goodâ€, a strange phenomenon followed: the price of products not only did not fall, but continued to rise. The most representative of these is the wooden door industry, which has risen more than 10%. It seems that it is not fashionable to increase prices. However, this “price increase†trend does not have a clear feeling for consumers, because the rise is the cost, people see the imaginary market price, and the price tag on the price tag depends on the manufacturer. A mouth has the final say. Regarding price hikes, the same tough decision has recently taken place in other wooden door brands, with an increase of about 10%.
Reasons: The increase in the cost of sales decline in accordance with the basic laws of the market, price increases are often due to product supply in short supply. The supply and demand balance has been broken down, the material is rare and valuable, and the price rise is within reasonable conditions. However, this round of price increases in wooden doors is a kind of “strange phenomenonâ€: Wooden door manufacturers are shouting that “business is not goodâ€, and not only lower prices but also increase prices!
Wooden door professionals said that the "Real Estate Deal" has finally been reflected in the wooden door industry in the second half of this year. The market demand is not strong. Compared with the same period of last year, the wooden door company's sales in Beijing fell by 40%. At the same time, various costs are increasing, and labor costs raised year by year cannot be ignored. In recent years, as residents' incomes and prices have risen in an all-round manner, workers' demands for wages have become higher and higher. All skilled workers have a salary of around 4,000 yuan, and sometimes workers of certain special types earn higher wages. "We cannot aggravate the workers, but we must not let the winds absorb all the labor costs. We are forced to make up only our share of the products."
As raw materials rose too much, logistics costs increased, and sales prices were too low to offset the increase in costs, which could only be compensated by raising the ex-factory price. With regard to the rise in raw materials, the industry generally confirmed that it was true. Chen ** described the enthusiasm of timber transactions: "Now there are a group of people stationed near the border between China and Russia every day. But if there is a truck carrying timber coming in, it will be stopped immediately, regardless of the high price of land to buy all the timber without any explanation. , raw material shortage degree can be imagined.†Chen ** said that less raw materials, natural prices soaring, such as ash willow, has now risen from the past a few hundred yuan per cubic meter to more than 1500 yuan, made of ash wood Wooden doors, the price is naturally rising.
The raw materials that are rising are not only wood, but also paints and hardware accessories that must be used to make wooden doors. In addition, the increase in factory procurement and transportation costs is also a direct cause of price increases. "Everybody knows that gasoline prices have risen. Then, it is definitely because of the increase in freight rates, which will lead to higher costs and more reasonable prices."
It is reported that since the second half of this year, the overall sales situation of wooden doors companies is not optimistic. Many companies have fallen by as much as 60%. In some mainstream stores, even the top ten companies may not be able to make profits. In this case, companies have played up the price tag, which is really upset.
Response: Consumers are insensitive to “price increase†Although the price of wooden door products is reasonable, there are also people in the industry who have questioned: Wooden doors are not classified as fast moving consumer goods or daily necessities. Many times people only visit home for several years. In stores, whether the price rises or not is actually not sensitive to consumers.
In fact, the price of wooden doors is very knowledgeable. In the high-end stores such as Homes, Red Stars, and Macalon, there are a number of branded wooden doors companies. Their prices are relatively strong. It is not easy to make a 10% discount or 8.5% discount. Only significant Only 30% discount will be given for promotional activities. However, in some less well-known stores, 30%, 20%, or even 10% discount signs can be seen everywhere. Many consumers develop habits. They do not buy them without discounts. This directly leads to the high price of wooden doors. Generally speaking, the retail price of wooden doors is twice as high as the ex-factory price, and only the discounted capital is available. If the actual selling price of wooden doors is no more than 30% of gross profit compared with the ex-factory price, there is simply no way to maintain high field rents, commissions for salespersons, and logistics and service costs.
It is precisely because the price of wooden doors that people see in the market is imaginary, and how much the transaction price is worth considering depends on the customer's own feeling. How much price the wooden door label, and finally how much to play, but also by the manufacturers a mouth, consumers simply can not understand the inside story. This leads to the so-called price increase and price reduction is just the settlement price between manufacturers and dealers, consumers hardly feel.
Faced with the rising price of wind, the brand wooden door is the preferred product; the wooden door company’s recommendation is to dig deeper into the value of goods and avoid the first-tier and second-tier cities that have higher shop costs such as Beijing, Shanghai and Tianjin. The goal is to expand in the second and third tier cities. “With a store of the same size, gross margins may be only 10% after the cost of rents are eliminated in the first-tier cities, but they will definitely be much higher in the second and third-tier cities.â€
Wooden door industry is a mixed bag, and some non-brand wooden door companies may raise prices with the help of “price increasesâ€. However, it will certainly not happen to branded wooden door companies, especially the Beijing Wooden Door brand. "Once it becomes a brand, the company's focus is on how to make consumers get more benefits, rather than how to extract huge profits from consumers."