Cost and profit analysis of furniture store

An industry expert believes that at present, because there are no store rentals and other reasons, the e-commerce operating costs are low, resulting in low prices, which is difficult to match in many physical stores. Therefore, if you want to talk about price reduction promotions, it is very difficult for physical stores to compete with e-commerce. In addition to doing a good job in on-site service and after-sales service, one of the solutions is that the physical store itself also opened an online store, online and offline two-line operations.

Since late October, a number of physical furniture stores, including Red Star Macalline, have launched various forms of promotion, blocking the e-commerce "double eleven" low-cost online shopping boom in advance. According to a large furniture store customer service staff, in order to overdraw the public's furniture consumption in advance, they have launched a large-scale promotion from late October. In addition, in addition to discounts, customers can also get a Hong Kong and Macau tour coupon; customers who purchase furniture in the store can also get a fuel card with a face value ranging from 200 yuan to 500 yuan. It is worth noting that this store promotion is no longer a single-player. Most market-influenced furniture manufacturers have joined forces to jointly carry out price reduction promotions, in order to jointly divert the “double eleven” low-cost shopping frenzy passenger flow, especially It is to compete for the middle-aged and old customers.

A person in charge of a physical store said that in recent years, because e-commerce has adopted low-cost, ultra-low-cost sales of furniture, it has already brought a big impact on physical furniture stores. The purpose of some customers visiting the furniture city is not to buy money, but to look at the samples, take photos, and then go online to buy at a low price. In order to reduce the impact of low-cost e-commerce sales on physical stores, some small and medium-sized furniture stores have to cooperate with some e-commerce companies to carry out offline distribution business for them to gain small profits. Despite this, the sales business is still declining. To this end, some furniture stores have to insist on discount promotions throughout the year. The reporter saw in a furniture city yesterday that although the uniform price reduction promotion activities of the entire store have ended, in order to win customers, many furniture sellers are still carrying out discount promotions. Among them, a bedding manufacturer has already reduced the price of some products by half, and the sample is simply sold at 40%.

Although the furniture store has a life promotion, it still can't resist the promotion of e-commerce. Yesterday, the reporters logged into a number of online stores and found that some e-commerce companies could not wait to start the promotion and buy out in advance. The promotion efforts are staggering. For example, a pre-sale European bed introduced by an online store, the original price is 7673 yuan, and now the price reduction price is only 1799 yuan, a reduction of 5874 yuan, has now set more than 400. The customer service staff said that the cost of the bed they sold was 2,670 yuan, and now they will lose 871 yuan for each bed sold. However, because of the strength of the producers, in order to improve brand credibility and visibility, they dare to promote such low prices. The reporter saw an explanation from the manufacturer on his homepage that the reason why they sold so cheaply came from the low-cost advantage of online shopping. Among them, centralized bulk procurement, cost reduced by 10%; centralized trunk logistics, cost reduced by 5%; integrated marketing in advance, cost reduction of 10%; reduced storage cost of 7%; reduced inventory risk cost of 7%; accelerated capital turnover, cost reduction 4 %; add up to reduce production costs by 43%. In fact, this is not just the reason for the low-cost sales of this company, I am afraid it is also the common secret of the entire e-commerce low-cost sales.

An industry expert believes that at present, because there are no store rentals and other reasons, the e-commerce operating costs are low, resulting in low prices, which is difficult to match in many physical stores. Therefore, if you want to talk about price reduction promotions, it is very difficult for physical stores to compete with e-commerce. In addition to doing a good job in on-site service and after-sales service, one of the solutions is that the physical store itself also opened an online store, like Suning and Gome, simultaneously carrying out online and offline sales; offline goods prices and online gaps are not big, To get consumers of different ages and different shopping habits.

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