The "Four Curses" that bound the profitability of imported wardrobes

"Imported wardrobes with a price of 100,000 yuan may not have made domestic wardrobes with a price of about 10,000 yuan." In the face of the "great profits" of imported wardrobes, Mr. Chen, who has been a European wardrobe brand for many years, hopes to use an example Out of the answer. Mr. Chen bluntly said that the additional cost of making imported wardrobes is very high.

 

 

Take a wardrobe with a price of 60,000 yuan as an example, removing about 15% of the cost of taking goods, tax, transportation, rent and labor costs account for almost 60%. What was supposed to be 25% of the profit will also be consumed in the process of "waiting for sales". If this wardrobe was sold for half a year, it would hardly make any money.

 

Indeed, for the current business of importing wardrobes, the four major levels of "taxation, transportation, rent and labor costs" have almost become a "magic spell", and it is a decisive factor that affects the final price of the wardrobe.

 

The general manager of an international brand wardrobe calculated an account for us. Every time they purchase, they have to pay at least 20% of the value-added tax (17% furniture value-added tax and about 3% freight value-added tax); domestic rents have increased in recent years Quickly, it can account for 30% of the selling price; and domestic and foreign freight and labor costs should also account for about 15%. Therefore, import wardrobes now want to enter China for sale, the cost is basically not low.

 

Price increases due to uncertainties

 

It is not difficult for attentive consumers to find that most imported wardrobes carry out price adjustments 1-2 times a year, and such "price adjustments" are caused by certain unstable factors.

 

For example, the loss during long-distance transportation and the price adjustment of foreign manufacturers. An international brand wardrobe agent said that the problem of wardrobe wear and tear caused by various reasons is normal. Most manufacturers will use this as a reason to increase the selling price by a few percent to buy an "insurance" to avoid future hassles.

 

In addition, the frequency and frequency of price adjustments made by foreign factories each year are related to their brand awareness, raw material prices and product update rate, which are normal price adjustments. However, whether the price for the agent is adjusted according to the above fluctuations, sometimes depends on the "actual situation" and "mood" of the manufacturer.

 

In general, some “little” domestic agents will increase the price of their products by about 10% in order to avoid the inconvenience caused by factory price increases every year, but there are few experienced agents. Incorporate this part of the cost into the terminal price of the product. Because, one of their most important jobs each year is to engage in a game of "price increase or not" with foreign factories. If the game is successful, there will be no price increase of about 8% that year. If the current sales of 40,000 yuan in the country's products are calculated, consumers will be able to pay 3200 yuan less.

 

"Benefit fee" may account for more than 30% of the price of high-end imported wardrobes

 

For a wardrobe priced at 100,000 yuan, 30,000 yuan may belong to the designer. A designer, who asked not to be named, once told the author that if they help some high-end imported wardrobe brands succeed, they can get more than 30% of the “hard work”. In this regard, most people in the industry said that the "commission" for designers is equivalent to the "promotion fee", which is universal in the world. Because some tens of thousands or even hundreds of thousands of wardrobes, just put in the store can not be sold. And after a good designer targeted "recommendation" to high-end consumers, the success rate of sales doubled.

 

So, should this "hidden cost" also be borne by consumers? An international brand agent said that it is not necessarily the case, and different businesses have different practices. They usually do not return cash directly to the designer, nor do they make consumers bear this part of the cost. Rather, it takes a 40% discount when the designer buys the product, so as to "promote" it in disguise. Of course, only designers who have been approved by them have this "treatment", and each designer has only two opportunities to buy 40% off products.

 

Citric Acid

Citric Acid Food Additive,Citric Acid,Citric Acid In Food,Food Grade Citric Acid

Shaanxi United Xingchuang International Co., Ltd. , https://www.lxcgj.com