How do manufacturers with cost overload resist pressure?
In the past two years, raw material prices, labor prices, land prices, logistics costs, promotional expenses, store rents and other costs have continued to increase, and sales prices have faced tremendous resistance, furniture dealers and companies are generally in trouble.
According to a survey, many dealers operating losses in Shanghai's hypermarkets accounted for more than 70%, while the remaining non-loss dealers were barely supporting the meager profits. Similar to the situation of dealers, many small and medium-sized furniture companies are on the verge of bankruptcy and face the embarrassment of "the higher the output, the greater the loss". Relatively speaking, the situation of the store is better, especially in some hypermarkets, with their strength in controlling the channel, they can often overcome the cost problem by raising rents. Therefore, the cost pressure of today's furniture industry is borne by dealers and stores.
So, as the main load-bearers of cost pressure, how should furniture dealers and furniture enterprises overcome the cost dilemma and usher in a turning point of survival and development? I believe that the following aspects should be tried by dealers and enterprises.
Dealer: Rent reduction is the first priority
In the cost of dealers, store rents account for a large part. Therefore, the most direct way to reduce costs is to start with store rent. Generally speaking, dealers can relieve rent pressure in two ways.
One is to join forces with the factory and negotiate with the store to demand a rent reduction. Due to the relatively weak power of dealers and a small voice, the store generally ignores the dealer's rent reduction requirements. At this time, the dealer should join other forces to enhance the right to speak. Wang Xingang, chairman of Yuanmei Home, a well-known home furnishing distributor in Shanghai, said: "Dealers can join forces with factories to negotiate with stores. Generally speaking, stores will give factories some face and make some concessions on rent. At least some stores do after negotiations You can also understand the difficulties of factories and dealers. Although rents may not be reduced, at least you can not increase rents. "In fact, in addition to joint factories, dealers can also join other dealers in the store, or seek dealer alliance organizations Help, bargain with the store on rent issues.
Second, escape from high rents and transfer to small and medium-sized stores. Since the beginning of this year, the author has discovered a strange phenomenon in many furniture stores in Shanghai: some hypermarkets, and even signature home furnishing stores such as Red Star Macalline, have many exiting dealers, and the business in the stores is almost without exception. On the contrary, some small and medium-sized stores in the city or suburbs are in normal business, with few companies exiting the market, and newly joined some merchants who have exited the hypermarket. Obviously, some dealers have already endured the love, abandoned the brand influence of high rent hypermarkets, and chose low rent small and medium-sized stores. This is a choice about relative cost, which seems feasible from the present. Regarding this approach of stubbornness and shifting positions,
President Yuanmei Home Furnishing also gave affirmation. Mr. Wang said: "During the market slump, Yuanmei also slowed down the expansion of the store, reduced the number and frequency of opening stores, and was more cautious when opening new stores. Around May 1, Yuanmei opened two new stores. The storefronts are all in small and medium-sized stores and suburban stores. In the past, we did not look at such stores, but now we start to pay attention, because at present only these stores are fully rented, which shows that the stores meet the needs of dealers to reduce costs , Business is healthier and business is more normal than hypermarkets. "
Enterprise: Making "articles" in production and management
For furniture companies, due to the considerable increase in the cost of raw materials, cost control is very difficult, mainly from the production and management aspects.
First, transfer the pre-production to the mainland. How to reduce production costs is a problem that Shanghai's domestic enterprises cannot avoid. The cost of human resources and raw materials in Shanghai is almost the highest in the country. Therefore, it is not feasible to solve the problem of production cost in Shanghai. At this time, Shanghai enterprises may wish to turn their attention to other regions in the Mainland, and shift pre-production to the Mainland to reduce production costs. The author understands that some Shanghai household enterprises such as Shanghai Qiangle Furniture have already tried to transfer the pre-production of products to Jiangxi, and then shipped back to Shanghai for packaging and OEM. In this way, you can reduce your production costs and gain a price advantage. This method of transfer is a kind of active exploration for Shanghai domestic enterprises to control costs and change production models.
Second, rectify management, the word "province" comes first. For furniture companies, although production costs are the bulk of costs, management costs also occupy a very important part. In the case of rising prices of various resources, the control of production costs cannot be fundamentally improved. On the contrary, control of management costs is easier. Adhering to the idea of ​​"saving one child is one child", it is worth a try for furniture companies to save management costs. Therefore, furniture companies may wish to increase the rectification of internal management of enterprises, strengthen training in production and operation management of enterprises, practice internal skills, save money to ensure that they can support the downturn of the industry, and make adequate preparations for the recovery period of the industry.
Common materials of screws: Generally, the screws made of carbon steel, stainless steel or copper are different, and they are also divided into many models, specifications, application scope and performance. It mainly uses the slope of the object to rotate and friction, and then achieve a fixed effect.
Screws,Fasteners Screw,Socket Set Screw,Hex Socket Flat Head Screw,Special Cold Forged Trapezoid Head Screws
Suzhou Gubao Screws Co.,Ltd. , https://www.gbscrewes.com