Custom cabinets post-festival price increase 1 to 20%

China board trading network news:

Recently learned that due to the rising cost of the upstream supply chain, since September last year, the major cabinet brand manufacturers raised the ex-factory price, leading to a 1-20% increase in consumer terminal prices for custom cabinets. The distributors who insisted on not increasing their prices some years ago have also adjusted their sales prices after the New Year's Eve opened.

Wuxi Yang, general manager of the gold medal cabinet in Meizhou, said that manufacturers’ notices on the increase in sales prices flew into the major channels and distributors before and after the Spring Festival. "Many cabinet dealers who did not increase prices before the Spring Festival said that they can only try to ensure that they do not raise prices before the end of the Spring Festival. The overall increase in cabinet prices after the Spring Festival is now a foregone conclusion." Wu Xiyang said that the price of its products under its brand is It has been adjusted upwards by 10%, but it has been informed to consumers in advance through various means at the end of last year.

In Wu Xiyang’s view, the increase in labor costs and freight costs of manufacturers is the biggest reason for this round of cabinet price increases. The reporter learned from relevant departments that the “Regulations on the Administration of Traffic on Over-limit Transport Vehicles” has been implemented since September 21, 2016. Compared with the original standards, the new standards have been tightened in terms of over-limitation, and the total number of six-axle trucks Reducing the original 55 tons to 49 tons, a decline of more than 11%. This means that the unit price of freight transportation for highway trucks will be adjusted upwards. The freight cost for long-distance transportation will increase by about 20% per ton after the stipulated date.

“In addition to rising operating logistics costs, upstream materials such as sheet metal, paint, hardware, stainless steel, and even cartons have all increased in price, leading to higher cabinet costs.” Wu Xiyang believes that the sharpest rise is the increase in labor costs. It is reported that as young people choose fewer and fewer cabinets for woodworking and installation workers, the shortage of technicians in the industry is becoming more serious. In 2015, the salary of an ordinary cabinet-installer was between 50 and 60 yuan per meter, but this year it has generally risen to 60-80 yuan per meter. Some of the well-known technical masters even surpassed 100 yuan per meter. Huang Qiaohua, who heads the Meizhou market at Shang Pinzhai, predicts that a skilled master can earn a monthly income of at least RMB 8,000 according to 25 days of a month’s activity. She also believes that custom cabinet prices are inevitable.

On the other hand, export-oriented cabinet furniture manufacturers in Meizhou also said that the rising cost has brought great pressure. The staff of Pingyuan County's Youbang Wood told reporters that since July 1st last year, the global timber container transportation costs have been raised. The cost of container transportation in Europe, North America, and other six continents has increased dramatically. It is the increase in the cost of pounds, an average of 30 yuan per cubic meter of timber. "This part of the increased cost costs we do as much as possible, but there are also requirements to share some of the downstream pressure." The staff member said.

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