You are visiting a website, reading about store fixtures, getting to know a producer’s capabilities and starting to wonder how much their store fixtures will actually cost you. For very basic industry standards, you will find catalogue prices for store furniture pieces. But, if you are looking for bespoke store fixtures pricing, the answer is not so quick to get. So, you are contacting the furniture producer with your inquiry. And here starts a potentially long process of calculating the price for your store fixtures. Getting impatient? We sympathise. But a fixture price is like a chest of drawers, which include various price determinants. Let’s open them up and have a closer look!
STORE FIXTURES MAKE OR LOSE MONEY
PRICE YOU PAY FOR THE CUSTOMER EXPERIENCE
Whether these are grocery stores, fashion and apparel stores or perfumeries, they sell much more than just their products. The right (or wrong) store fixtures are an integral part of the overall first impression, shopping comfort and brand image. Placing the right associations of your store in customers’ mind is key. All this forms a part of the customer experience and directly affects your sales and reputation.
In other words, the right store fixture selection and look determines the way your products are displayed on the shelves, presentation tables, gondolas, hot spots and at the checkout counter. So, ask yourself a question: how much should you pay for the right fixtures for your portfolio? Is it worth squeezing the costs down?
The answer is not simple. One obviously needs to take into account the price of store fixtures for your business. However, it is worth choosing the best solution for your brand within a given budget. And to capitalise on your investment by choosing the best value option, not just the cheapest. Let’s have a look at the major components that affect the store fixtures price.
STORE FURNITURE PRICE VS INPUT MATERIALS
DO CHEAPER STORE FIXTURES REALLY MEAN SAVINGS?
Store fixtures prices depend on the type of materials the furniture is made from. One of the most popular store fixture material combinations in the retail industry is steel and MDF board. And there are many alternative solutions available, depending on the quality and look you want to achieve. One can certainly apply cheaper substitutes compromising quality, functionality and visual effects. However, the industry standards are based on experience and best practices. It doesn’t pay to lower the material standards. Why?
Cheap store fixtures produced from low quality products:
Are prone to quick damage due to everyday wear and tear
Look cheap and uninviting
Negatively affect the brand image or lower a brand prestige
Have negative impact on customer experience in stores
If you decide to go with an economy option, at least remember to use more durable materials in those parts which are especially exposed to mechanical or other damage. It will not cost a fortune, but will definitely let your countertops, for example, last longer.
How is it possible? Value engineering is what you are looking for. Cost optimisation of store fixtures makes sense if done by an experienced producer with solid engineering and material knowledge. How does it work?
When reviewing store fixtures design documentation, an experienced technologist can suggest concrete spots where the cost can be lowered while not affecting quality or aesthetics. For example, we can replace the material with a cheaper substitute in some parts of a fixture. Or the number of elements can be reduced and the whole fixture or even a fixture set can be simplified. This means less materials used. And better efficiency when producing a big batch of fixtures.
This is, of course, a simplified picture of the whole fixtures “slimming” exercise and again, requires a good understanding of materials, technology and production processes. As a result, we can get a better price for store fixtures– while maintaining quality and functionality.
STORE FURNITURE PRICE VS VOLUME ORDERED
MORE PIECES, LOWER PRICE
Store fixtures pricing is usually strictly connected with their ordered volume. In the retail industry, as in many others, the rule “the more you order, the better price you get” is also valid. Because, whether you order a few pieces of store furniture or hundreds of them, the design and pre-production path is exactly the same. A design needs to be prepared and a prototype manufactured. So, the bigger the scale of your project, the lower unit price for your fixtures. Or, even if you only need a certain amount per month, if you order for all your needs for a year at once, you may still get the benefits of volume buying.
STORE FIXTURES PRICE VS MANUFACTURER PERFORMANCE
A BIG ONE (OFTEN) CAN DO MORE
A reputable store fixtures manufacturer has an established network of suppliers and partners. And this gives him a competitive negotiation advantage. So, he gets better raw material prices than a smaller, local furniture producer.
Volume fixture manufacturer usually:
gets lower price of furniture production materials
owns more efficient fixture manufacturing machinery
runs a more optimised production program
works based on modern, efficient technology
gets the job done quicker with fewer labour hours
All the elements above are in favour of choosing a bigger fixture producer. Benefit from the combination of better prices and technological know-how. This is especially important in more complex and big volume orders.
STORE FIXTURES PRICING VS MATERIAL COST FLUCTUATIONS
COVID-19 AND GLOBAL MARKETS TURMOIL
… in August you are googling „store fixtures pricing”, reviewing potential suppliers and planning a shortlist of producers to send your inquiry. The whole process starts rolling and you receive a few cost estimates from store fixture producers. You start internal processes to get the approval for your rollout. And, 2 months later it turns out that the estimate is no longer valid. Because due to raw materials problems, the prices go up by even a dozen or so percent. The raw materials market in 2021 has seen a lot of dramatic price increases.
The recent events resulting from the COVID-19 global pandemic have seriously affected prices in many industry sectors worldwide. This all has been beyond the control of manufacturers who have had no choice except to increase prices. And then they are thankful just to even be able to purchase the necessary materials needed for their production. In 2021, this also happened with steel and board used in store fixtures manufacturing. The downtime in steel production in spring 2020 caused a decrease in global supply that is still being felt.
The restrictions implemented due to the pandemic have made it impossible for the metallurgical industry to function as used to. Nobody knew how long the production downtime was going to last. And then, in Summer 2020 the demand began increasing. Steel mills couldn’t catch up with growing orders pilling up. And, as a result, the steel prices have significantly gone up.
And then, we also need to add higher transportation costs as the fuel market was not immune to the virus impact either. Taken all together, it suddenly turned out more expensive for retailers to roll out fixtures programmes and new stores.
WHY ARE CUSTOMERS TURNING THEIR ATTENTION TO EUROPEAN FIXTURE PRODUCTION?
The COVID-19 pandemic which resulted in production and logistics bottlenecks in Asia have shaken up most industries. Many businesses are looking at European producers as a more reliable sourcing option to the current risks with Asian suppliers. And retailers are no exception here. Growing retail chains across Europe:
are seriously considering sourcing their store fixtures in Europe
can get better predictability of getting their fixtures on time due to ‘local’ production and no surprises from overseas shipment problems
will pay a very similar price for European fixtures when taking into consideration exorbitant transportation prices from China
STORE FIXTURES ROLLOUTS ACROSS EMEA WITH A RELIABLE PARTNER
Are you looking for an experienced store fixture manufacturer? Need help in rolling out your store fixtures across Europe and beyond? We will be happy to advise you on the best value solution for your needs. Let us help you design and produce store fixtures that really sell!
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