Most home businesses say "no price increase" years ago

[Office Partner Information Center] Recently, the news that the furniture and building materials industry is about to increase its overall price has spread all over the circle of friends. The news said that “the price of timber is rising, the price of sponges is rising, and even the freight rate is going to rise. Under the trend of rising raw materials, The overall price increase in the industry is inevitable." Is this really the case? In this regard, the reporter visited the Nanjing market and learned that the price of most furniture and building materials will not be raised, and the transportation and installation fees will not be adjusted. Yangzi Evening News reporter Zhou Haiyan

Raw materials are bullish, short-term stable price of finished furniture

The news of rising furniture raw material prices has just arrived, and many corporate people have begun to calculate the cost budget for recent production. A furniture manufacturer in the province told reporters that the current maximum pressure on finished furniture comes from the cost pressure of raw materials, and the first to rise is wood, followed by sponge. “The increase in environmental protection costs, coupled with the surge in foreign demand, after September 1 this year, the price of sponges has risen three times in a row, and the price increase has reached 30%-50%, and it is still in short supply. The price increase trend is still obvious. !"

Affected by rising raw material prices, it is reported that the price of some brand furniture in Guangzhou, Nanjing, Beijing and other places is likely to rise across the board after the 2017 Spring Festival. "At the end of the year, the prices of most brands are relatively stable, and they will not be adjusted for the time being." Nanjing local brand stores told reporters that the end of the year is a key period for many whole furniture brands to rush sales, discounts, buy gifts, group purchases and many other offers. The way, will provide consumers with a "gold rush period" before the price increase. "Mainly because of the inventory, it can be used as a buffer." A person who runs solid wood brand furniture in Shenzhen said that the inventory is too much capital and space. If it is not digested as soon as possible, it is impossible to raise prices.

"Overrun Order" or the overall rise of the plate industry 20141108102058_wjyna

On September 21 this year, the “Regulations on the Management of Overrun Transportation Vehicles in the History” was officially implemented. The transportation department implemented a new round of “strike hard” for overloaded vehicles. Many industries rely on “overload” compression costs. The hidden rules were all broken.

A furniture brand dealer told reporters that in October, the manufacturer has received a notice of price increase. The reason is that the logistics fee has increased, and almost all the merchants in the store have received similar notices. "This price increase is about 6%-8%. Only the big distributors with strong strength may guarantee that they will not raise the price. It is really helpless to meet this at the time of the end of the year," the dealer said.

At the manufacturer level, the impact of rising logistics and transportation costs may be greater and far-reaching. A furniture manufacturer in Jiangning said that the introduction of over-limitation has improved road traffic safety, but it has brought about relatively large cost pressures. The industrial chain cost of the entire sheet industry has risen structurally, and enterprises cannot bear the pressure of rising costs alone. At the beginning of the price adjustment of the plate, the pressure of rising furniture prices in the future is still very large.

Most building materials or "price adjustment" before and after the Spring Festival

Due to the peak season of the home market, especially the building materials and furniture procurement market, the reporter learned in the interview that the home improvement is a process of long consumption cycle. This time, the price increase of raw materials has a certain social background and the price increase period of the material itself, but if Rapid price adjustment, for those who have already "storage" (accumulation of customers), it is easy to break a lot of business, plus some material manufacturers have implemented price bundling agreements with home improvement companies, price increases are not easy to implement immediately. “Because of the price increase of raw materials, the profit of the factory will be reduced. Generally, during the New Year's Day or the Spring Festival, the factory will release the price increase notice.”

Relevant persons of the Nanjing Interior Decoration Industry Association pointed out that at present, the biggest impact of the rise in timber prices should be some low-end brands, which have relatively little impact on the building materials of some big brands. After all, there are certain customer groups to support them. It is difficult for small brand owners to form concentrated production and scale effects. "If a small brand has to increase its price, consumers will shop around. If the price is similar, choose a big brand with good reputation. This industry will be inevitable next year."

The home improvement company said:

If it is not "catch-up period", the labor cost of decoration will not rise.

During the period from the end of the year to the Spring Festival after the New Year, the labor costs of the decorators such as masons, carpentry and painters will rise to varying degrees. However, this year, the wave of rising labor costs has not yet arrived. Yesterday, the reporter asked some brands of home improvement business people, the vast majority said that "temporary does not rise", in the previous years involved in the work, the increase in woodworking labor costs is the most obvious, the daily salary of 230-300 yuan / day, but this year did not continue The trend of rising, some home improvement people revealed that many modern families will choose the whole home-made custom-made finished products. The items that need to play cabinets and woodwork on the home are greatly reduced, and the labor is relatively abundant. “As long as there are no large-scale projects, it is necessary to catch up before the holidays. Generally, labor costs will not increase before the year."

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