Furniture stores have entered the era of small profits

September is nearing the end. Under the stimulation of successive promotions, many furniture stores have seen a slight increase in passenger traffic compared to normal days, but actual sales are still slightly disappointing.

Furniture stores have entered the era of small profits

"Business is difficult to do, profits are meager, rent, manpower, money, logistics costs can not be less, especially the rent is bullish every year, it is not easy to maintain no loss." A brand furniture business Mr. Xiao told reporters.

"Furniture is so expensive, it is sure to deceive people without profit." It is completely different from the loss of the dealers. Many consumers think that the price of furniture is getting higher and higher, and a better brand is tens of thousands. It is really unbearable.

To this end, some businesses have calculated an account, the price of a piece of furniture consists of raw materials, labor costs, logistics costs, brand promotion costs, store rent and other factors, in addition to the payment, rent is the biggest cost. Taking Changsha as an example, the early store rent was only 40 yuan/about, nearly four times in the past two years. “According to a store of 200 square meters, the monthly rent is more than 30,000, plus artificial, hydropower, and the situation. Not good, rent can't make it back."? ?

According to the data disclosed by the media, the ex-factory price of a piece of furniture differs from the price tag by a factor of four, and the profit of the dealer is only 10%. In the face of the economic downturn, the dealers have to arbitrarily raise the price to increase profits. According to the industry broke the news, a bed with an ex-factory price of only 12,800 yuan in the store price of 128,000 yuan is not a minority.

The industry believes that the home industry has entered the era of low profit, in this case, the innovation of product marketing model is particularly important.

On October 18th, Mu Ming Home is about to land in Star City. The store chooses self-sustaining property and factory self-operated mode, which not only helps the store to manage itself in a unified manner, but also cuts down all intermediate links, minimizes costs, guarantees “buy expensive money”, and does not allow consumers to pay high rents. Pay the bill. This unique furniture "Outlet" factory self-operated store innovative business model, has been recognized in the industry. Professional analysis, admiring the business model and concept of home innovation, or will become a sample of the transformation of the store in the meager profit era.

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