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Throughout 2006, home building materials companies are
experiencing tremendous pressure on cost increases. Wooden
raw materials which several times the price increase, each range
are more than 10%, plus oil prices, transportation, storage costs
climbing, cost pressures. Wu Xinming, founder of the Asian
Group, told reporters that because of the rain this year, as well
as domestic for cutting wood resources to reduce the reasons for
the domestic timber prices last year, the rate of about 10% price
increases this year has reached 30% to 40 %, Resulting in the
floor of the procurement costs are increasingly high
manufacturers, had prices.
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But from the market price, product prices are not only small,
many businesses still rely on discounts, ultra-low price slogan
promotion, relying on price advantage to seize the market. Which
in addition to the quality of some of the products in question,
many businesses do not dare to put the price up.
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Furniture good deputy general manager of Du Kai that the
product cost, but the actual turnover of the retail price of
consumer changes little. "The reason is that part of the loss is
the circulation of intermediaries that bear the go, and improve the
factory price of the manufacturers did not lose much, the price
competition has become the strength of the competition brokers
to consumers to reduce the price pressure.
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