How To Digest The Price Of Home Building Materials?

Affected by freezing in 50 years, this winter is very long.

Entering the March, "the sky is clear blue," and the major home stores have been reorganized and ready for the first decoration season in 2008.

However, the price of furniture and building materials has risen sharply due to the increase of raw materials and the increase of labor costs, but it is somewhat difficult for dealers to "digest".

Faced with this market trend, the major building materials businesses have been relieving the plight of sales easily in various ways.

The price of furniture and building materials has become a foregone conclusion.

In recent years, the price of raw materials has become a headache for furniture and building materials manufacturers.

Unfortunately, with the worldwide shortage of resources, the price of raw materials will continue to rise.

Since last June, the prices of raw materials such as timber, leather and metal alloys have risen by 5% to 20%. With the price of raw materials rising, the prices of furniture and furniture have generally risen. The average price of furniture and decoration materials has reached 10% to 20%.

As a labor-intensive industry, labor cost is one of the main components of the overall price of furniture industry.

The new labor contract law has been formally implemented in January 1st this year. Enterprises must pay five insurance for their employees, such as retirement, unemployment, work-related injury, birth and medical care.

This will undoubtedly increase the labor cost of furniture enterprises. The already very small profit will be forced to shrink because of the increase in labor costs.

The industry believes that in the next 10 years, tight timber supply and rising prices will be the overall trend of the industry. The domestic furniture industry is facing a sustained and huge cost pressure.

The price rises are not just furniture. At the beginning of this year, many famous wood flooring enterprises such as natural flooring, Hongji wood and Huida flooring have raised the market price of some wooden flooring for the first time this year, offering a range of 5%-15%.

Insiders said that flooring enterprises did not rule out the possibility of raising the price again in April.

The price of raw materials also affected the luminaire industry. According to the introduction, steel increased by 1 times compared with the beginning of last year, plastics increased by about 30%, glass increased by 15% and wood increased by 10%.

Before the Spring Festival, the price of lighting has increased by 10%. According to the forecast of the industry, the price rise of lighting is expected to be reflected in the market in 4 and May this year, and the price increase is 10%-20%.

Zhu Changling, vice-chairman of the China Furniture Association, said: "the current situation of the shortage of resources and the rise in prices of raw materials, including furniture, is a major trend in the future."

Big dealers respond to price hikes

The major building materials manufacturers have already felt the pressure brought by the price rise of raw materials, and have taken various measures to deal with the rising price.

Since May 1, 2006, B&Q, a building material supermarket giant, and China Merchants Bank jointly launched the "home decoration and easy" installment business to realize the dream of rapid decoration for consumers who just bought new houses.

As long as merchants have credit cards, they can enjoy the "unique" treatment when they buy B&Q building materials or decorate their houses. First, they do not have to pay for their bags immediately. They can be postponed for half a year before paying the bill. Two, they can enjoy the longest 24 month installment repayment.

Following the introduction of the installment business of B&Q building materials supermarket, many building materials supermarkets such as Dongfang home and Huamei supermarket have launched installment business.

For consumers in the face of the financial pressure of decoration, phased interest free payment is undoubtedly a way for businesses to "relieve" the consumers, at least it can alleviate the urgent need and extend the time to raise funds.

Although it is difficult to popularize in a short time, but the price rises and prices rise today, the installment payment of home decoration materials will become a trend, leading the new trend of consumption in home industry.

Moreover, with the advent of the first round of decoration peak after the festival, various promotional schemes have been implemented in major home building materials stores.

In addition, the major building materials manufacturers also adopt various promotional methods such as combined sales, stabilize commodity prices and strive to digest the cost of rising prices.

Considering that there are still some stocks in the early stage to digest the cost of rising prices, the author suggests that the owners who are about to decorate will pay more attention to the sales promotion information and furniture building materials developments in March, so that they can be smart buyers and buy more good quality products.