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Why is furniture so cheaply made yet expensive?

By Jeff Frank

The simple answer to this question is that the manufacturing cost of furniture is a combination of:

  1. Cost of materials
  2. Cost of labor.
  3. Cost of manufacturing overhead (administrative, sales, rent, equipment, machinery, etc.)
  4. Cost of transportation.
  5. Manufacturer’s profit margin.

On top of all that are the retailer’s expenses and profits.

These will usually double whatever price the retailer paid to the furniture’s manufacturer.

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