Cost and profit calculation method of furniture industry

 

Whether the furniture industry is extremely profitable, and how much profit does the solid wood furniture business have? Xiaobian tells everyone about the cost and profit calculation method in this industry. I also hope that you can have a deeper understanding of how to buy and what the cost is, so that consumers are buying When it comes to furniture, you can do it well.

 

 

When solid wood furniture leaves the factory, the factory will add 28% indirect costs (for water and electricity costs 2%, rent 10%, machine losses, auxiliary consumables) on the basis of direct production costs (including production materials, production labor, workshop manufacturing costs) 3%, management staff salaries and hospitality, business trips and other management costs 10%, taxes and fees 3%), plus 12% of profits.

 

As a practical example, if you buy a solid wood bed , the factory direct production cost is 3200 yuan, that is, the actual ex-factory price of this bed is 5333 yuan (3200 / (1-0.28-0.12) = 5333) (excluding freight And packaging reinforcement costs), this is a normal estimate. The operation of the factory for a long time is stable in all aspects, and the proportion of the overhead cost of full-load operation will be reduced a little, but it has been reduced by 5 points. The above is the factory price of the factory.

 

The cost of furniture in the outer packaging reinforcement and transportation: we assume that the factory is in Shanghai or Shanghai suburbs, the outer frame reinforcement materials plus labor 120 yuan, logistics from the surrounding areas of Shanghai to the Shanghai urban distribution center 120 yuan, the urban distribution center downstairs 40 Yuan, from the downstairs to the customer's home and responsible for the installation of a single product at 100 yuan, such as products such as large wardrobes at around 200 yuan. Therefore, the entire transportation link totals (380-480) yuan.

 

If the furniture manufacturer provides after-sales service, for example, the solid wood furniture purchased by the customer will have some minor problems after a period of time. Because the solid wood furniture is affected by weather, humidity, etc., it is normal for small problems to occur. If you call the factory to repair, these will also occur. The cost, then the service is guaranteed but the cost will also rise, the average after-sales cost of a product is 30 yuan.

 

We can calculate that if the bed is directly from the factory to your home, the total price should be 5333 + 380 (480) + 30 = 5743 (5843). This is the price of factory direct sales, but in reality a lot of furniture is sold through furniture cities such as Red Star, Jisheng, Yuexing, etc., then the cost will increase again. How much increase, the editor carefully decomposed as follows:

 

Under normal circumstances, after the factory leaves the factory, not all furniture can be sold to consumers, and it needs to go through the dealer link of the store. Look at the cost process of the store: the normal store requires 20% of the cost of sales, including site rent and sales expenses, and the dealer must guarantee at least 20% of the theoretical profit, that is, 40% of the cost of the sales link. Then the price of this bed has become: 8888 yuan (5333 / (1-0.4) = 8888) (excluding transportation and packaging reinforcement costs), plus the previously calculated transportation, installation, after-sales door-to-door maintenance. The cost is 8888 + 380 (480) + 30 = 9298 (9398).

 

This is a complete calculation of the furniture industry. In fact, when you see solid wood furniture with its physical store outside, you do n’t need to discount his sales price. You only need to calculate from the actual price according to my formula. Just know what the cost of this solid wood furniture is.

 

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