Why Are Furniture Prices So High in Stores?

Have you ever wondered why furniture prices are so high? At first glance, it seems like the cost depends only on the materials used. But in reality, the price of materials is just the tip of the iceberg. Behind every finished product lies a complex production process that includes not only raw material costs but also dozens of other factors.

Furniture production is a multifaceted process that covers every stage — from sourcing materials and skilled labor to transportation, product certification, advertising, and retailing. The price of every table, wardrobe, or chair includes:

✔ Keeping the factory running, including wages, facility rent, and utility costs.

✔ Investments in modern equipment, which ensures the production of high-quality items.

✔ Logistics: transporting raw materials to the factory and delivering finished products to stores.

✔ Marketing and advertising expenses that drive demand and introduce customers to the brand.

✔ Costs for certification, compliance with standards, packaging, and even software to manage production and sales.

These factors, while invisible to the customer, are an integral part of every piece of furniture you see in a store. They impact not only the price but also the quality, usability, and the assurance that the furniture will meet your expectations.

In this article, we’ll dive deep into what exactly you’re paying for when you buy furniture.

Direct Costs: The Key Component of Furniture Production Costs

Direct costs are the foundation of any manufacturing process, including furniture production. These are the expenses that are directly "built into" the final product and are easy to account for. In other words, these are the resources that can be clearly and unambiguously linked to the production of a specific item.

This type of cost is crucial because it determines the main part of the furniture's production cost and affects the profitability of the production. Imagine the manufacturing process as a chain of interconnected stages: direct costs form the base of this chain, providing materials, energy, and labor for each production operation.

The special feature of direct costs is their transparency. Unlike indirect costs, they are accurately reflected in financial documents and can be clearly attributed to a specific unit of production. This allows for a more precise assessment of how efficiently resources are used and how production costs change in response to changes in production volumes or raw material prices.

Direct costs are also the part of expenses that are easiest to control and optimize. For example, choosing high-quality but cheaper materials or implementing more efficient labor organization can significantly reduce these costs without compromising product quality.

Raw materials and supplies

Material costs are one of the main components of furniture production costs, as the choice and quality of materials affect not only the appearance of the finished product but also its functionality and durability. All materials can be divided into several main groups, each with its own specific uses and impact on the final cost of furniture.

Housing materials

These are the main materials used to make the frame of furniture, such as cabinets, tables, beds, and chests of drawers. The choice of material determines the strength, durability, and cost of the product.

✔ Laminated Chipboard: One of the most popular materials for cabinetry. The laminated surface provides strength, scratch, and moisture resistance. It's affordable and comes in a wide range of colors and textures, including wood, stone, and other designs.

✔ Medium-Density Fibreboard (MDF): A higher quality and more environmentally friendly solution than chipboard. MDF is made from finely chopped wood, making it stronger and smoother, ideal for veneering, painting, or laminating. It's resistant to moisture but more expensive than chipboard.

✔ Fiberboard (Wood Fiberboard): Made by pressing wood fibers and resins. It has a lower density than MDF and is used for lower-end furniture or as a base for coating with other materials. Suitable for elements not subject to significant loads.

✔ Plywood: Made from layers of wood glued together. Often used for making furniture that needs to be both lightweight and strong. Great for creating furniture with unique shapes and designs.

✔ Solid Wood: A natural material used for high-end furniture. Known for its strength, aesthetic appeal, and durability, but much more expensive than particleboard or MDF.

Facade Panels and Fronts

Facade panels are used to decorate the exterior parts of furniture, such as doors, cabinet fronts, dressers, and other case furniture. They define the aesthetic look of the piece and need to be both beautiful and durable. Let's look at some popular types of facade panels:

✔ Acrylic MDF Rehau: This material combines high quality with a modern look. Rehau acrylic panels have an extremely glossy surface that creates a mirror effect. They are highly resistant to mechanical damage, scratches, and moisture, making them ideal for kitchen furniture. These panels can also be polished to remove minor scratches. Acrylic fronts look modern and elegant, making them popular in minimalist and high-tech styles.

✔ Lacquered Boards Egger: This material is characterized by high wear and water resistance, ensuring a long service life. Lacquered fronts look very aesthetic, have a deep gloss, and can be made in various colors. They are resistant to dirt and easy to clean, making them ideal for high-hygiene areas like kitchens and bathrooms. Egger lacquered boards have high color stability, making them perfect for long-term use.

✔ Film MDF LuxeForm and AGT: These facade panels are made by bending a decorative coating (such as lamination) around a base, usually chipboard or MDF. They have smooth rounded edges, providing an aesthetic look and additional strength. Postforming fronts are easy to clean and are often used in modern kitchens and bathrooms.

✔ Frame Fronts: Made from a wooden or aluminum profile with a panel inserted inside. This can be MDF, glass, or another material. Frame fronts add a classic look to furniture and blend well with traditional and modern styles. They are highly durable and allow for material combinations.

✔ Metal Profile Fronts: Made from aluminum or steel profiles, which can be anodized, painted, or laminated. These fronts have a minimalist look and are used in high-tech, loft, and minimalist styles.

✔ Glass Fronts: These are fronts using tempered glass, which can be clear, frosted, tinted, or decorated. Glass fronts are often used in modern furniture styles, giving them lightness and elegance. For added strength, the glass can be inserted into a metal or wooden frame.

✔ Radius Fronts: These are fronts with curved surfaces that create smooth lines in furniture design. They are made from flexible MDF or other materials processed to create a rounded shape. Radius fronts give furniture a unique and soft visual appeal.

Countertops

Countertops are a crucial part of furniture, especially in kitchens and bathrooms, and their materials significantly impact the look, durability, and functionality of the furniture. Here's a detailed look at different types of countertops used in furniture making:

Laminated Countertops (Laminated Particleboard): These are one of the most affordable options used in furniture production. They consist of a particleboard base covered with a protective laminate layer.

✔ Pros: Lightweight, economical, and available in various colors and textures. Great for budget projects.

✔ Cons: Less resistant to moisture and mechanical damage compared to other materials.

✔ Uses: Commonly used for kitchen countertops, work surfaces, and office furniture.

MDF Countertops: MDF countertops are more durable and resistant to mechanical damage than laminated particleboard. MDF can be covered with various materials such as laminate, paint, veneer, or film.

✔ Pros: Smooth and even surface, easy to work with, allowing for more complex shapes and designs. Resistant to wear and can be finished with different coatings.

✔ Cons: Requires additional protection from water, as it can be sensitive to moisture without proper coating.

✔ Uses: Suitable for kitchen, bathroom, and office countertops.

HPL (High Pressure Laminate) Compact Board: This material consists of several layers of paper impregnated with resins and processed under high pressure. HPL is highly resistant to moisture, temperature fluctuations, and mechanical damage.

✔ Pros: High strength, moisture, and temperature resistance. Easy to clean and available in a wide range of colors and textures.

✔ Cons: Higher cost compared to other materials.

✔ Uses: Ideal for kitchen and bathroom countertops, as well as office furniture and other high-traffic surfaces.

Stone Countertops (Granite, Marble, Quartzite): Stone countertops are expensive but extremely durable. They can be made from natural stone (granite, marble) or artificial quartz agglomerate.

✔ Pros: Very durable, resistant to scratches, heat, and moisture. The natural look of stone adds elegance to the interior.

✔ Cons: High cost, heavy, and complex to transport and install.

✔ Uses: Perfect for kitchens and areas where high durability and aesthetic appeal are needed.

Artificial Stone (Acrylic, Quartz): Artificial stone countertops, such as acrylic or quartz, consist of various resins and minerals, providing high strength and durability. This material is popular due to its versatility and availability.

✔ Pros: High resistance to stains, water, and scratches. Easy to repair. Acrylic stone can be made seamless, creating a clean, continuous surface.

✔ Cons: Can be prone to thermal damage, not resistant to high temperatures.

✔ Uses: Ideal for kitchens, bathrooms, and workspaces where seamlessness and aesthetics are important.

Wooden Countertops (Solid Wood): Wooden countertops are made from solid natural wood, adding a natural and warm feel to the furniture.

✔ Pros: Natural look, warmth, and comfort in use. Wood can be treated in various ways (sanding, varnishing), preserving its natural texture.

✔ Cons: Requires regular maintenance and treatment, especially in high humidity conditions.

✔ Uses: Great for kitchens, creating a warm, natural atmosphere, and for bathrooms in classic or rustic styles.

Metal Countertops (Stainless Steel, Aluminum): Metal countertops are often used in professional kitchens or industrial interiors. They can be made from stainless steel or other metals.

✔ Pros: Extremely resistant to high temperatures, water, and mechanical damage. Easy to clean and durable.

✔ Cons: May look less aesthetic for home use due to a cold and industrial appearance.

✔ Uses: Ideal for professional kitchens, bars, or industrial-style interiors.

Concrete Countertops: Concrete countertops are made from reinforced concrete and can be coated with various materials for additional protection.

✔ Pros: Unique and stylish look, high durability.

✔ Cons: Heavy, requires special care, prone to cracking.

✔ Uses: Suitable for modern and industrial interiors where massive, authentic surfaces are desired.

Choosing a countertop depends on many factors, such as interior style, functionality, budget, and maintenance requirements. Different materials offer different advantages, and the choice should be made considering these parameters.

Furniture Hardware and Components

Furniture hardware is a key part of making modern furniture. It ensures functionality, comfort, and durability. Let's look at the main categories of furniture hardware:

Fastening and Connecting Hardware: Includes brackets, screws, connectors, cams, and other elements for securely joining furniture parts.

Kitchen Hardware and Accessories: Includes dish racks, drawer organizers, cabinet carousels, and other convenient kitchen elements.

Wardrobe and Closet Hardware: Includes pull-out rods, hangers, shoe organizers, and other accessories for wardrobes.

Furniture Handles: Handles add functionality and aesthetics to furniture. They can be made of metal, plastic, wood, or glass and come in various shapes and styles.

Furniture Hooks: Hooks are used for storing clothes, accessories, or other items. They are available in different materials and styles.

Joker Pipe System: A system of pipes and connectors used for making open structures like racks or closet systems.

Aluminum Profile: Aluminum profiles are used to create modern furniture, providing lightness and strength.

GOLA Profile System: This system is used to create minimalist furniture without visible handles. GOLA profiles ensure easy opening.

Ventilation Grilles: Used to ensure air circulation in furniture, such as kitchen cabinets.

Furniture Lighting: Includes LED lights, shelf and cabinet lighting, and touch switches to create comfortable furniture lighting.

Furniture Hinges

✔ Hinges for Particleboard: Used for standard particleboard. They come with various opening angles, allowing them to adapt to any furniture design.

✔ Glass Hinges: Specifically designed for glass doors. They have rubber or plastic inserts to ensure gentle attachment to the glass.

✔ Aluminum Profile Hinges: Suitable for modern furniture with aluminum frames.

✔ Piano Hinges: Narrow and long, used for furniture with decorative details.

✔ Special Hinges: Include mechanisms for complex furniture designs, such as corner cabinets or sliding systems.

✔ Hinge Accessories: Additional elements like caps, dampers, and decorative covers.

Furniture Drawer Slides

Drawer slides ensure smooth opening and closing of drawers. There are different types of slides for various usage conditions:

Roller Slides: An economical option, suitable for lightweight constructions.

Ball-Bearing Slides: Known for their high load capacity, used in large and heavy drawers.

Undermount Slides: Installed underneath the drawer, providing a hidden installation and a modern look.

Metaboxes: Metal sides for drawers that combine the functions of slides and the drawer body.

Drawer Systems

Modern drawer systems ensure not only smooth operation but also ergonomic furniture design:

Nova Pro Scala: A premium system with high load capacity and stylish design.

Vionaro: Slim and minimalist sides for drawers.

DWD XP: A versatile system for various types of furniture.

ERGO BOX: A convenient solution for ergonomic kitchens.

LS BOX Perfect: An aesthetic option with enhanced functionality.

DC Slim: For compact furniture with a modern design.

Furniture Legs and Supports

Furniture legs and supports ensure stability and mobility:

Furniture Glides: Protect the floor from scratches.

Furniture Casters: Allow easy movement of furniture.

Furniture Legs: Available in various materials like metal, plastic, or wood.

Table Supports: Strong structures that can handle heavy loads.

Shelf Brackets and Glass Mounts

Shelf Brackets: Decorative and functional elements for securing shelves.

Shelf Supports: Ensure reliable attachment of shelves in cabinets or racks.

Hidden Shelf Supports: Provide a minimalist look.

Shelf Angles: Allow for rigid fixing of shelves at 90-degree angles.

Mirror Holders: Used for securing mirrors on furniture.

Lift Mechanisms

Gas Struts: Ensure smooth opening of doors.

Mechanical Lifters: Used for heavy furniture elements.

Door Stoppers: Prevent doors from opening too far.

Push-to-Open Systems and Dampers

Push-to-Open Mechanisms: For handleless furniture.

Soft-Close Dampers: Ensure smooth closing.

Shock Absorbers: Reduce noise during closing.

Furniture Caps

Plastic Caps: Decorative and functional elements.

Self-Adhesive Caps: Used to cover holes in furniture.

Furniture Locks and Magnets

Furniture Locks: Ensure secure storage.

Magnets and Latches: Keep doors securely closed.

Employee Maintenance Costs

Salaries for workers directly involved in production processes, as well as administrative staff.

Energy Consumption

Costs for electricity to operate equipment.

2. Indirect Costs: The Backbone of Production Support and Operations

Indirect costs cover all expenses that can't be directly linked to the production of a specific item but are essential for organizing the production process. They form a kind of "foundation" that ensures the smooth operation of the enterprise. Without these costs, it's impossible to create the conditions for furniture production, even if all the main resources are already purchased.

These costs play a supporting role, providing the enterprise with premises, equipment, administrative management, and other resources necessary for smooth operations. For example, renting a workshop or paying office staff salaries doesn't directly affect the production of a specific table or cabinet, but without these, organizing the production process is simply impossible.

The unique feature of indirect costs is their indirect and general nature. They are "distributed" among all units of production, depending on the accounting methods adopted by the enterprise. This makes their assessment and control more complex than direct costs, as their impact is not always obvious and can depend on many factors, such as production scale or technological features.

Managing indirect costs is strategically important for business stability. Optimizing these costs can include reducing unnecessary expenses, increasing energy efficiency, or automating administrative processes. This helps reduce overall production costs while maintaining product quality and market competitiveness.

Renting Premises: Workshops, warehouses, offices.

Utilities: Water, heating, electricity for premises.

Administrative Expenses: Salaries for office staff, communication costs, paper, software.

3. Depreciation: Costs for Maintaining Production Capacity

Depreciation is the gradual process of writing off the value of fixed assets used in furniture production as they wear out or age. It not only reflects the physical wear and tear of equipment or buildings but also indicates the need for their renewal or replacement in the future. Think of it as a "reserve value" that provides the company with resources to maintain its production capacity.

The main role of depreciation is to account for long-term costs of resources that aren't consumed immediately but are used over a long period. For example, a modern woodworking machine might last several years, but the cost of purchasing it can't be included in the product's cost just in the first year of operation. Depreciation allows these costs to be evenly spread over the machine's entire lifespan.

Besides its financial function, depreciation is also an important planning tool. It helps companies assess when and which fixed assets need to be updated and calculate how much resources need to be reserved for these purposes. Without accounting for depreciation costs, the production process could be at risk due to unexpected equipment failures or the inability to modernize it.

Depreciation also affects the cost of production. By including it in expenses, a company gets a real understanding of how much it costs to produce furniture, considering the use of all resources. This allows for adjusting pricing policies to remain competitive and avoid situations where products are sold below their actual production cost.

✔ Machines, saws, sanding machines, vehicles, and more...

✔ Power tools and assembly tools for furniture and other production means.

4. Logistics: The Heart of Organizing the Production Process

In furniture production, logistics isn't just about transportation or storage; it's a comprehensive system for managing the flow of materials, finished products, information, and resources. It's the key link that connects raw material supply, production operations, and the delivery of finished furniture to the end consumer. The efficiency of logistics determines the speed, accuracy, and cost of each production stage, making it critically important for business competitiveness.

Logistics creates the conditions for the smooth operation of all departments within the company. Timely material supply ensures an uninterrupted production process, while the quality of transportation and storage affects the condition of the finished product at the time of delivery to the customer. Any disruptions at these stages can lead to delays, additional costs, or even loss of customers.

Besides the physical movement of goods, modern logistics includes information flows. Inventory management, real-time tracking of deliveries, and demand analysis all help optimize resources, minimize costs, and quickly respond to market changes.

Logistics also plays a crucial role in reducing production costs. Efficiently planned routes, rational use of transport, and reduced storage time allow the company to save money and lower the final cost of furniture for the consumer.

✔ Delivery of materials from suppliers.

✔ Transportation of furniture to customers.

5. Other Costs: Shaping Value and Competitiveness

Other costs that accompany furniture production are an integral part of modern business. They enable the company not only to produce high-quality products but also to successfully sell them, meet market demands, and adapt to rapid changes in the industry. Although these costs are not directly related to the production process itself, their impact on competitiveness, demand, and brand reputation is significant.

Marketing and advertising take center stage among these costs. They ensure the product's presence in the market, help form a positive brand image, and establish a connection with the target audience. Marketing is a strategic tool for understanding customer needs and creating unique offers that make the furniture stand out among competitors. Advertising, in turn, informs potential buyers about the product's advantages, generating interest and stimulating sales. Without a well-thought-out marketing strategy, even a high-quality product can go unnoticed.

Packaging materials, which may seem like a secondary element, actually serve a dual purpose: protecting the product during transportation and creating an aesthetic impression for the customer. Their choice and quality are crucial for forming the first impression, which affects customer satisfaction. In a world where first impressions often matter most, well-designed packaging can become an important competitive advantage.

Certification and compliance with standards — are another significant cost item. In today's world, consumers are increasingly paying attention to the environmental friendliness and safety of products, so compliance with quality standards and regulations becomes not only a requirement but also an advantage in the market. Moreover, certification opens up opportunities for export to international markets.

Software, used for production management, design, or market analysis allows the company to operate more efficiently. Process automation, error reduction, and more accurate market trend assessments improve decision quality and help optimize costs.

Thus, marketing, advertising, certification, packaging, and software are the "powerful engine" that not only supports production but also promotes development, creates additional value for customers, and strengthens the brand's market position. These costs are investments in the company's future and its ability to meet the demands of the modern world.

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