The "Da Vinci" incident is still heating up step by step, and the discussion of its "profiteering" has caused the furniture industry to encounter an unprecedented crisis of trust. Sichuan is one of the four major furniture production bases in China except Zhejiang, Guangdong and Beijing. Does the Sichuan furniture industry also have similar “profiteering†marketing or other “hidden rules� Yesterday, Wu Bing, who has been engaged in the furniture industry for more than 20 years in Chengdu (required by the interviewer, using a pseudonym), decrypted the furniture with an ex-factory price of 50,000 yuan, and generally sold it to consumers for 100,000 yuan or even higher. . Manufacturers and distributors are all "small profits."
We are actually operating in a small profit, and the profit will be a few ideas. "You can see the local famous brand furniture in many towns, but they can't enter the high-end furniture stores."
A article · The road to price increases "profiteering" and then secret: from 50,000 yuan to 100,000 yuan [Most of the furniture produced in Sichuan, from manufacturers to consumers, will always experience "factory - dealer - store - consumer" The basic process. In this process, the price of furniture continues to grow, 50,000 yuan to leave the factory, sold at 100,000 yuan or even higher, sparsely ordinary. However, regardless of the manufacturer or dealer, after counting the account, there will always be a sigh: no loss is a good thing. 】
Manufacturer: 50,000 pieces of furniture earn less than 5,000 yuan Wu Bing has been operating furniture factory in Xindu for more than 20 years, the factory workers have grown to four or five hundred people, with an annual output value of over 10 million. In the eyes of the people around him, he is a veritable rich man. However, Wu Bing insists against this view: "We are actually operating at a low profit, and profits are just a few ideas."
Wu Bing does not deny that about 10 years ago, the furniture industry in Chengdu had a glorious period of relatively high profits, but now, "the furniture industry is declining."
In recent years, solid wood furniture has become the mainstream of consumption, which leads to two phenomena: the use of wood is not enough, and a large number of imports from Southeast Asian countries such as Myanmar and Vietnam; the increase in processing labor and the decline in material utilization rate have led to a significant increase in costs.
For example, Wu Bing said that a set of medium and high-grade solid wood furniture, the cost of raw materials is close to 30,000 yuan, plus labor, machine consumption and other 10,000 yuan, the light cost is as high as 40,000 yuan. And such a set of combined furniture, the ex-factory price can not be higher than 50,000 yuan, "price competition is too fierce, high can not sell."
In this way, a set of 50,000 yuan of furniture, earned no more than 5,000 yuan.
Distribution: store costs are passed on to consumers
50,000 yuan factory, but the price that the consumer bought at the end is too high. "This is a strange circle." Wu Bing said that the price of the goods to the dealer, the price will start "flying trip", generally double To 100,000 yuan or even higher.
Why does the price rise so badly? Wu Bing and the dealer have calculated an account and rented a 200 square meter exhibition hall in the furniture store. It takes 30-400,000 yuan to decorate one. The exhibition hall is usually updated once every three years, and is flattened every month. The renovation cost is about 10,000 yuan. Coupled with rent, property management fees, employee salaries, taxes, etc., marketing costs average 40,000 yuan per month.
50,000 yuan of goods, under normal circumstances, the dealer can get rid of one month. This month, he has to bear more than 40,000 yuan in marketing costs plus 50,000 yuan in purchase costs. To make money, dealers only have to pass the cost on to consumers.
This is only a cost analysis in the theoretical state. Wu Bing said that if some dealers do not do well, the store will adopt various methods to let the dealers leave. "The contracts are signed every year. For example, there is a way to increase the renewal rent and the property to make the dealers aware. And retreat, the most outrageous has a price increase of 10 times."
B articles · The trap of survival "self-protection" unspoken rules: try to use other people's money [local furniture dealers do not recognize the furniture industry "profiteering" argument. On the one hand, they can only buy furniture for consumers at a high price. On the other hand, they are also under the pressure of survival. They are insensitive to this and form a set of “hidden rules†for manufacturers to protect themselves: rather, I am responsible for the world. Don't teach the world to bear me. 】
The chaos: the things that the manufacturers have smashed often have two prominent features in the Sichuan furniture industry: the scale is generally large, and the low-end products are the mainstay.
Wu Bing roughly calculated that among the Sichuan furniture manufacturers, there are at least six or seven manufacturers with an annual output value of hundreds of millions, and there are also furniture predators with an annual output value of several billion yuan. "But the majority of Sichuan furniture factories have lower profits, all relying on Make money."
Some things made Wu Bing impressed: a foreign furniture factory sold a set of mattresses in Chengdu, worth nearly 10,000 yuan, and profits of several thousand yuan; and a local mattress factory he knew well, a truck with several sets of mattresses. I sold more than a thousand yuan, and finally made a net profit of 100 yuan. "This is the result of the product being too low-end." Wu Bing said, "You can see the local brand-name furniture in many towns, but they can't enter the high-end furniture stores."
A large number of low-end products entered the market, leading to fierce competition. Wu Bing called it "a chaos." The main feature of the "chaotic warfare" is the price war, and the furniture factory can't afford to lose money and it is almost daily.
In some cases, the processing capacity of some good furniture factories can't keep up, and they will find other furniture factories. But this kind of OEM is also a source of supplement between low-end products. "It is not a brand. The cards are all small names and the quality is the same."
Hidden danger: I am afraid that manufacturers will lose money and "play disappear"
I would rather bear the world, not teach the world to bear me. The "famous words" of Cao Cao Cao Cao were used by Wu Bing to summarize the survival philosophy of furniture factories in Sichuan, which is also called "hidden rules."
Many furniture manufacturers are amazed at the soaring prices of furniture, but as companies, the first thing they need to consider is whether they are profitable and able to survive. The so-called "I would rather have the world, do not teach the world to bear me", there is a very mature form of expression: furniture factory to gather funds.
This kind of gathering seems to be even "rogue": the goods of the raw materials are always in arrears, and the wages of the workers are always delayed. The dealers must always pay the full amount of the goods. As a result, as long as there are no major problems in the sales channels, the investment risk of the producers is reduced to a minimum. "Looking at him (the owner of the furniture factory) is always a BMW, there is money, but he is using his own money? It is all others."
Wu Bing analyzed that such "hidden rules" have major hidden dangers. If the capital chain is broken one day, then if the boss rolls out the money and "plays disappear," the consequences will be serious.
For such "hidden rules", there may be a need for better regulatory mechanisms to check and balance, including government and industry internal regulation.
We are actually operating in a small profit, and the profit will be a few ideas. "You can see the local famous brand furniture in many towns, but they can't enter the high-end furniture stores."
A article · The road to price increases "profiteering" and then secret: from 50,000 yuan to 100,000 yuan [Most of the furniture produced in Sichuan, from manufacturers to consumers, will always experience "factory - dealer - store - consumer" The basic process. In this process, the price of furniture continues to grow, 50,000 yuan to leave the factory, sold at 100,000 yuan or even higher, sparsely ordinary. However, regardless of the manufacturer or dealer, after counting the account, there will always be a sigh: no loss is a good thing. 】
Manufacturer: 50,000 pieces of furniture earn less than 5,000 yuan Wu Bing has been operating furniture factory in Xindu for more than 20 years, the factory workers have grown to four or five hundred people, with an annual output value of over 10 million. In the eyes of the people around him, he is a veritable rich man. However, Wu Bing insists against this view: "We are actually operating at a low profit, and profits are just a few ideas."
Wu Bing does not deny that about 10 years ago, the furniture industry in Chengdu had a glorious period of relatively high profits, but now, "the furniture industry is declining."
In recent years, solid wood furniture has become the mainstream of consumption, which leads to two phenomena: the use of wood is not enough, and a large number of imports from Southeast Asian countries such as Myanmar and Vietnam; the increase in processing labor and the decline in material utilization rate have led to a significant increase in costs.
For example, Wu Bing said that a set of medium and high-grade solid wood furniture, the cost of raw materials is close to 30,000 yuan, plus labor, machine consumption and other 10,000 yuan, the light cost is as high as 40,000 yuan. And such a set of combined furniture, the ex-factory price can not be higher than 50,000 yuan, "price competition is too fierce, high can not sell."
In this way, a set of 50,000 yuan of furniture, earned no more than 5,000 yuan.
Distribution: store costs are passed on to consumers
50,000 yuan factory, but the price that the consumer bought at the end is too high. "This is a strange circle." Wu Bing said that the price of the goods to the dealer, the price will start "flying trip", generally double To 100,000 yuan or even higher.
Why does the price rise so badly? Wu Bing and the dealer have calculated an account and rented a 200 square meter exhibition hall in the furniture store. It takes 30-400,000 yuan to decorate one. The exhibition hall is usually updated once every three years, and is flattened every month. The renovation cost is about 10,000 yuan. Coupled with rent, property management fees, employee salaries, taxes, etc., marketing costs average 40,000 yuan per month.
50,000 yuan of goods, under normal circumstances, the dealer can get rid of one month. This month, he has to bear more than 40,000 yuan in marketing costs plus 50,000 yuan in purchase costs. To make money, dealers only have to pass the cost on to consumers.
This is only a cost analysis in the theoretical state. Wu Bing said that if some dealers do not do well, the store will adopt various methods to let the dealers leave. "The contracts are signed every year. For example, there is a way to increase the renewal rent and the property to make the dealers aware. And retreat, the most outrageous has a price increase of 10 times."
B articles · The trap of survival "self-protection" unspoken rules: try to use other people's money [local furniture dealers do not recognize the furniture industry "profiteering" argument. On the one hand, they can only buy furniture for consumers at a high price. On the other hand, they are also under the pressure of survival. They are insensitive to this and form a set of “hidden rules†for manufacturers to protect themselves: rather, I am responsible for the world. Don't teach the world to bear me. 】
The chaos: the things that the manufacturers have smashed often have two prominent features in the Sichuan furniture industry: the scale is generally large, and the low-end products are the mainstay.
Wu Bing roughly calculated that among the Sichuan furniture manufacturers, there are at least six or seven manufacturers with an annual output value of hundreds of millions, and there are also furniture predators with an annual output value of several billion yuan. "But the majority of Sichuan furniture factories have lower profits, all relying on Make money."
Some things made Wu Bing impressed: a foreign furniture factory sold a set of mattresses in Chengdu, worth nearly 10,000 yuan, and profits of several thousand yuan; and a local mattress factory he knew well, a truck with several sets of mattresses. I sold more than a thousand yuan, and finally made a net profit of 100 yuan. "This is the result of the product being too low-end." Wu Bing said, "You can see the local brand-name furniture in many towns, but they can't enter the high-end furniture stores."
A large number of low-end products entered the market, leading to fierce competition. Wu Bing called it "a chaos." The main feature of the "chaotic warfare" is the price war, and the furniture factory can't afford to lose money and it is almost daily.
In some cases, the processing capacity of some good furniture factories can't keep up, and they will find other furniture factories. But this kind of OEM is also a source of supplement between low-end products. "It is not a brand. The cards are all small names and the quality is the same."
Hidden danger: I am afraid that manufacturers will lose money and "play disappear"
I would rather bear the world, not teach the world to bear me. The "famous words" of Cao Cao Cao Cao were used by Wu Bing to summarize the survival philosophy of furniture factories in Sichuan, which is also called "hidden rules."
Many furniture manufacturers are amazed at the soaring prices of furniture, but as companies, the first thing they need to consider is whether they are profitable and able to survive. The so-called "I would rather have the world, do not teach the world to bear me", there is a very mature form of expression: furniture factory to gather funds.
This kind of gathering seems to be even "rogue": the goods of the raw materials are always in arrears, and the wages of the workers are always delayed. The dealers must always pay the full amount of the goods. As a result, as long as there are no major problems in the sales channels, the investment risk of the producers is reduced to a minimum. "Looking at him (the owner of the furniture factory) is always a BMW, there is money, but he is using his own money? It is all others."
Wu Bing analyzed that such "hidden rules" have major hidden dangers. If the capital chain is broken one day, then if the boss rolls out the money and "plays disappear," the consequences will be serious.
For such "hidden rules", there may be a need for better regulatory mechanisms to check and balance, including government and industry internal regulation.
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