Recently, the trend of rising prices of household building materials has become accustomed to the entire home furnishing industry. With the rise of price hikes, the raw materials and transportation costs of wardrobes will increase. As the cost of materials rises, products will inevitably be adjusted. Does the terminal wardrobe product have to adjust the price, what effect does the price increase have on the wardrobe dealers?
Wardrobe after the Spring Festival or will usher in price surges
Since November, due to seasonal factors, climate and other factors, the northern market has entered the off-season, and the owners of the decoration have gradually decreased. Most of the shop owners are preparing for the next spring decoration, and come to choose to order building materials. At the end of the year, it is an important stage for merchants to rush sales. The price increase at the end of the year is not conducive to sales. Therefore, from the perspective of sales, dealers will not raise prices at this time; in addition, brand distributors or wholesalers have a large inventory to buffer. Now, merchants are trying to digest the stocks as soon as possible, and now the price increase is not likely. "After the Spring Festival, the price increase dealers can accept a little."
It is understood that previously affected by environmental factors and other factors, manufacturers have also issued price increases information to dealers, but most of the brand's product prices have not really rise in the terminal, even the brands that have risen in price in previous years, the price increase Also small.
The merchants said that they have not raised their prices before, but they will sell at a lower price because of the manufacturers' digesting capacity. For example, this year, there will be a price cut for a period of time. The price reduction of large bricks is between 1-2 yuan, and the freight rate, etc. Factor considerations, prices will definitely rise next year. Liu Yongbiao, the dealer, also said, "I have never received any information such as price adjustments by manufacturers. This is the first time this year's large-scale notice of price increases."
For the wardrobe dealers, the transportation cost or the main reason for the price increase
From the information of the price increase notice issued by various manufacturers, the main reason for the price increase of products is that the fuel, raw materials and logistics transportation costs continue to rise. The main factors affecting the increase of dealers' costs are the ex-factory price of the manufacturer's products and the freight rate. The dealers generally combine these two factors into the cost accounting. "In general, the freight is adjusted in real time, the factory ex-factory price is relatively fixed, the manufacturer helps us to contact the car that pulls the goods, how much the freight is directly reported to our dealers. A building materials business said.
On September 21 this year, the “Regulations on the Management of Overrun Transportation Vehicles†was officially implemented to curb the over-limit and overloaded vehicles driving the road without authorization. The new regulations on the tonnage of overloaded vehicles are more clear and stricter: 2-axis trucks total The quality shall not exceed 18 tons, the 3-axle truck shall not exceed 25 tons, the 4-axis truck shall not exceed 31 tons, and the 6-axis and above vehicles shall not exceed 49 tons. Moreover, the punishment is also stricter. Regardless of the model, each time the standard exceeds 1 ton, the penalty is 500 yuan and the 30,000 yuan is capped. Focus on three-axle heavy-duty freight vehicles and mucks carrying sand, cement, coal, steel and other goods, focusing on rectifying the total weight of goods exceeding the prescribed limits, as well as trucks checking cards, refusing inspections, blocking lanes, and damaging facilities And other illegal acts. Under the influence of the new regulations, the road transportation costs of large-scale building materials such as domestic wardrobes have also increased significantly.
Price surges will compress wholesale profits
The reporter visited Xi'an major building materials market and learned that for some dealers who mainly do retail and home improvement channels, the price increase of products will not have much impact on them. The sales staff of the closet store in Xi'an North Third Ring Wardrobe trading market said frankly, Once the price increases, the most unaffected is the retail home improvement channel.
However, for the wholesalers who focus on the volume, the price increase will undoubtedly further compress their profit margins. Liu Yongbiao, the distributor of the main wholesaler, told reporters that after the price increase, the cost of the wholesaler has increased, but based on the pressure of competition, The price of the wholesaler to the second-level distributor is still the original, and the profit of the wholesaler is reduced. At present, most wholesalers mainly rely on low-cost competition to seize market share, and now the second-tier distributors basically cooperate with wholesalers by means of product samples, that is, distributors get goods from different wholesalers, at the same quality. Which product is cheaper to choose which model, and these models are also provided free of charge by wholesalers.
“As soon as the price increases, the distributors will take down all of your samples. The competitive pressure is high. If you want to retain customers, you have to be cheap and stable. In the face of pressure from manufacturers, wholesalers have to bear these extras. Cost, so that distributors are not lost due to price factors.
The rise of the price hike, for the wardrobe enterprises, affected by many factors, the wardrobe products may ushered in price increases in the future, but the rise of the price surge, the profit of the wardrobe industry may be affected, then Enterprises can only actively adjust their policies and respond to the changing market in a comprehensive manner.
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