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October 31, 2022

What influences the cost of furniture?

The prices for various types of modern products keep growing. It's connected with inflation and many other aspects. The furniture industry didn't become an exception. That's why consumers are always interested in the question connected with price formation. The costs of various furniture items are diverse. Today, we are going to speak about the key issues, which compose furniture prices.

Global aspects of influence

There're certain things, which affect the furniture industry not just in a definite country but across the entire world. The experts enumerate the following:

  • Pandemic. The situation with COVID-19 had a significant impact on the area of furniture production. Many stores were closed, while people started to be more 'domestic' as a result of a lockdown. As a result, the manufacturers had to convince people to make their living (and working at home) more comfortable. Gradually, the demand for various types of furniture started to grow, which led to a slower production process (due to the shortage of staff).
  • Demand vs supply. With the popularized trend to make a home a perfect place for both relaxation and work, the demand for furniture dramatically grew. It actually turned out to be higher than the supply. Finally, the cost of raw materials started to increase. Thus, the final price for furniture changed as well.
  • Shortage of materials. Sometimes, something that can't be controlled by people happens. Here, we can speak about natural disasters and other situations, which are able to stop certain factories and material production. As a result, we have a shortage. Think about hardwood, which is used by many industries, not just furniture. Due to the pressure on the suppliers, we experience slower production and higher costs.
  • Domestic vs international sourcing. When manufacturers have to order raw materials from overseas, it greatly influences the final price. They are to pay for the material itself (while the price is controlled by international suppliers and for shipping). The situation is different if the materials are available in the domestic market. Thus, the prices can be more easily taken under control, while no additional payments will be required.
  • Quality maintenance. Speaking about sustainable manufacturers, they are to maintain their reputation and always meet the standards and requirements. Many modern companies are to align with eco-friendly values as well. Such things also make the costs higher.

demand supply

Demand / supply is typically one of the key factors influencing end prices

What a furniture price consists of?

When you see a certain furniture item, it's required to understand that its price includes many different things. Any cost consists of the following:

  • The material used for manufacturing. Everything matters here - the type of wood (it might be hardwood, MDF, etc.), the quality of the fabric used (modern ones are diverse and can be resistant to scratches and other types of influence), the quality of accessories, etc. It's simple - the higher the procurement prices for the materials are, the higher the costs of your furniture will be.
  • Build quality. The durability and sturdiness of furniture items greatly matter. When people purchase ready-made items (so-called 'off-the-shelf'), the prices will be lower because they are not the same durable as custom-made products. The manufacturer and company's reputation also matter.
  • Amount of production. There're items, which are created in large volumes. Their costs will be lower compared to those, which are if not single but at least produced in small volumes. The latest should be somehow customized, which requires more investments.
  • Design. Every furniture item is characterized by its own design. Some of them are common, so they don't require much work and creativity. However, there's furniture featured with complicated designing solutions. The latest make it look unique, elegant, trendy, etc. The furniture might be decorated with carvings or other works of art, which also have their prices.
  • Labor costs. Such a category of expenses is also included in the final cost of a product. Every manufacturer has a team of specialists, who are accountable for a certain step of production. Their work should be paid, so the price of furniture presupposes it. As a result, the more expensive the labor costs are, the higher the furniture prices will be. Besides, if you buy furniture in stores, the salary of the staff is usually also included in the retail price.

Now you know what is included in the price. It's possible to save money by purchasing directly from manufacturers, who sell their products via e-commerce platforms. Besides, always take your own needs into account and never follow cliches.

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