Why is there a strange phenomenon in the wooden door market?

It is reported that since the second half of 2010, the overall sales situation of wooden doors enterprises is not optimistic. Many companies have fallen by as much as 60%. In some mainstream stores, even the top ten companies may not be profitable. In this case, companies have hit the price tag, which is a helpless move.

Ms. Chen, a wooden door agent, recently worried about the price increase. Go up, consumers think the price is high; if it doesn't rise, the manufacturer becomes a real loss-making sales. "After our internal research and discussion, we decided that in order to ensure basic profit and sustainable development, the price of wooden door products that I represent will soon increase by 20%, and the price of solid wood products will increase by 10% compared with the past." Miss Chen said this. His face is a bit heavy.

Wooden door prices generally rose more than 10%

Since the second half of 2010, the impact of the “new real estate policy” has finally emerged in the home furnishing industry. Corporate sales have generally declined, with the most declines of 40% to 60%. In the bitterness of "selling badly", a strange phenomenon followed: the price of the product not only did not fall, but continued to rise. The most representative of these is the wooden door industry, which has risen by more than 10%. It seems that it is not fashionable to raise prices. However, this kind of price hike has no obvious feeling for consumers, because the rising cost is the cost, people see the virtual high market price, and the price marked on the price tag is based on the manufacturer’s mouth. I have the final say.

Cost increase sales decline

According to the basic laws of the market, the price increase is often due to the shortage of products. The balance between supply and demand has been broken, and things are rare and expensive. However, this round of wooden door price increase is a kind of "weird": wooden door manufacturers are shouting "business is not good", not only does not cut prices but instead raise prices.

Wooden door professionals said that the “new property policy” was finally reflected in the wooden door industry in the second half of this year, and the market demand was not strong. Compared with the same period of last year, the sales of wooden doors enterprises in Beijing fell by 40%. At the same time, various costs are increasing, and the labor costs increased year by year cannot be ignored. In recent years, with the comprehensive improvement of residents' income and prices, workers' demands for wages have become higher and higher. For those skilled craftsmen, the wages are generally around 4,000 yuan, and sometimes the wages of some special types of workers are higher. "We can't grieve the workers, but we can't let the company fully digest the labor costs. We have no choice but to increase our products." Miss Chen said.

As raw materials rise too much, logistics costs increase, and sales prices are too low to offset the increase in costs, which can only be compensated by raising the ex-factory price. As the raw materials rise, the industry generally confirms that it is true. Ms. Chen described the timber trade as hot: “Now a group of people are stationed near the border between China and Russia every day, but if a truck carrying timber comes in, it will immediately stop it, regardless of the price, buy all the wood, the shortage of raw materials. The degree can be imagined.” Miss Chen said that the raw materials are few, and the price has naturally soared. For example, ash willow wood has now soared from a few hundred yuan per cubic meter to more than 1,500 yuan. The wooden door made of ash wood has a natural price. It is rising water.

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