Profitability - an indicator of production efficiency, a value that shows the percentage of the income of the enterprise. It reveals how successful, profitable the activity is. Further in the article we will find out what is the profitability of furniture production in Russia.
Questions
How much is the profitability of furniture production in Russia? According to experts, the profitability of this type of activity is in the range of 10-15%. Is selling furniture really profitable? In Moscow, as you know, there is a pricing policy and conditions for doing business. Will the deposits pay off? Are there any tricks to increase the profitability of the enterprise? These and many other questions are asked by entrepreneurs who decide to open a furniture salon.
Important details
The first thing you should pay attention to in terms of profitability is what equipment and raw materials are used in the manufacture of the product. The furniture industry is considered a large production, in which you need to invest a lot. You can’t save on materials here. High-quality equipment is also important.
If reliable machines are used, then the products will be produced in high-quality, which will increase profitability. Today, people are willing to pay for quality. Profit will increase due to increased productivity, operational efficiency of machine tools. Of course, it is also important to organize the work of employees and use only good raw materials for the manufacture of goods.
Expenses
The enterprise spends the most on materials. These expenses account for just over half of all expenses. The fourth part (20-25%) is paid by employees at the enterprise, the tenth share is overhead costs, and, of course, small expenses. These include transport costs (3-10%), the development of new models (8%), energy (5%), marketing and advertising (5-10%).
Russia is one of the main suppliers of wood around the world, but it does not succeed in reaching the world level in furniture production. Partly it depends on transport costs. In addition, a logical question arises: "To whom to sell furniture?" Here, the entrepreneur needs to carefully study the market, the needs of customers. It is important to know what is the best-selling furniture today.
Actually, market research is not such a difficult task. According to experts, the entrepreneur can receive the greatest income in the production of office furniture. In this case, various manufacturing styles should be considered. So, for example, there is Italian, Chinese furniture. The first is of high quality and quite high price. And what is the production of Chinese furniture?
Competitiveness
A lot of products appear on the market, this also applies to furniture. And it is often difficult to distinguish one product from another in quality, because all manufacturers strive to produce high-quality products. Before the Chinese rivals appeared, the main creators of expensive furniture were Europeans.
More accessible models were represented by Russia and the CIS countries. The production of Chinese furniture developed rapidly. Given this, many entrepreneurs decide to start producing these products in Russia, adopting the technology from the industrialists of the Land of the Rising Sun.
Advantages
Of course, the first thing that sets Chinese furniture apart from the rest is tradition in quality. Industrialists pay close attention to interior details. In addition, there is a whole system - "Feng Shui", according to which you need to arrange all things around the house, including furniture. Together, this gives a picture in which everything is harmoniously combined with each other. The manufacture of Chinese furniture is an art.
Material selection
Furniture is manufactured in stages, and attention is paid to each of the stages, because the whole result depends on this, and in the future, profit. Carefully selected raw materials for the manufacture of products. By the way, his choice is very large.
For the production of inexpensive furniture, pine, alder, birch and other types of wood are chosen. For the manufacture of high-end products, oak, yew, walnut, ash and others are more suitable. Very beautifully wooden furniture is combined with stone, leather and metal. Decorated items look original, unusual.
Desired product
To get acquainted with the technology in accordance with which the production of Chinese furniture is carried out, it is better, of course, to go to the country of the rising sun. For example, some companies go shopping.
Such trips allow not only to understand the manufacturing process itself by visiting the enterprises directly, but also to explore new trends in the market. In addition, it becomes possible to purchase the necessary raw materials and components at affordable prices. Having established contact with Chinese manufacturers, in the future you can carry out orders via the Internet.
Estimated Costs
How to create the perfect factory? How much will the production of Chinese furniture in Russia cost? We carry out a preliminary calculation:
- The required profitability is from 10 to 25 percent.
- Production area - at least 1700 square meters. meters, price - 500 p. / sq.m
- The number of employees is 50 people.
- Equipment for production - high-tech from a foreign supplier. It will allow to produce high-quality products in a short time. Machine tools: format-cutting type - about 160 thousand rubles, facing - about 90 thousand, for finishing the ends - about 30 thousand
- Material: chipboard, particleboard from 200 r / sq.m.
- Accessories: wheels - from 50 p., Sofa springs - from 45 p., Folding beds - from 1600 p., Ties and latches - from 50 p., Sofa locks - from 340 p., Accessories for mirrors and glasses - from 50 p ., elements for wardrobes - from 70 p.
It should be remembered that in the process of commissioning, production will not immediately bring profit. In addition, today there are many enterprises engaged in the manufacture of these products. Therefore, creating a competitive enterprise will not be easy. It is difficult today to produce quality products at minimal cost.
What to consider
Furniture companies work closely together. This allows you to transport goods or buy accessories at the best price. When setting up the production of Chinese furniture in Russia, this should be taken into account. Therefore, the main task of an entrepreneur is to be able to combine the affordable cost of his products with its quality. In this case, you must try to reduce costs.
This is achieved, as mentioned above, by establishing direct contact with Chinese manufacturers. Particular importance is given to raw materials. Fortunately, in Russia quite a lot of enterprises are engaged in logging, processing and manufacturing of components. You need to study this market segment and find low-cost suppliers. In addition, sales must be arranged.
The solution to this problem today involves certain difficulties. First of all, they are connected with the fact that the new enterprise did not manage to establish itself in any way on the market, even if it produces high-quality products.
Therefore, in the initial stages, one should not strive to conquer a vast niche. You can start with small sales. You probably need to spend money on advertising.The consumer should know that the company has appeared and produces high-quality inexpensive furniture.
Fast delivery directly from stock
Another important point is transportation. The furniture manufacturing company offers customers shipping and assembly. In this case, qualified personnel are required to be able to complete these tasks. Many consumers order furniture directly from China. It takes a lot of time.
An enterprise that manufactures Chinese furniture in Russia can transport in a short time. For the convenience of consumers should release catalogs of finished products. In addition, information on the availability of certain models should be on the site of the enterprise. So the buyer saves his time and money. To make a purchase, it is enough to fill out an order on the site, and the furniture itself will be brought and assembled.
Conclusion
In general, the production of Chinese furniture can be very profitable. But the profitability of the enterprise is achieved subject to all of the above conditions. Such production expands the range of products in the furniture market. In addition, consumers with low incomes can afford to buy quality products.
