October Blog
"A lot of IKEA products are not so cheap," said a parking attendant to me when he figured out that I was Swedish. (Was it the car I was driving or could it possibly be my accent that gave me away?)
I thought of his remark when I was at IKEA recently. Having just had a huge plate of meatballs for $5.99 and having picked up a LACK side table for two dollars more, I had to wonder what he was talking about. On the contrary you have to wonder how it is possible to buy the material, make the table, paint it, transport it from the country where it is manufactured to a central warehouse and from there to a store, make a profit at all stages of the process, and then charge only $7.99 for a piece of brand new furniture. I wonder what IKEA founder Ingvar Kamprad, who reportedly could work out the cost of manufacturing a table by just looking at it, would have to say about this?
Another thing I can’t get my head around is the inconsistency in some IKEA prices. For instance the HELMER drawer unit on casters costs only $49.99 in Canada. With six drawers, this is a lot of beautifully powder-coated steel. Compare this with the IKEA 365+ BRASA pendant lamp, at $59.99, that is also made out of powder-coated steel, but probably only requiring a single punch to get it into shape. The “really radical” lamp has been given remarkable prominence in the IKEA catalogue with its “function and quality of material” emphasized and with statements like “sometimes you need to stay basic to stand out”, but I cannot see why it should cost more than a substantial piece of furniture.
I talked with some IKEA people about this and they explained that the main reason for the difference in price is that “the lamp has to go through CSA approvals, testing, and the cost of parts of the lamp are greater than the drawer unit."
My guess would be that both HELMER and BRASA are made at a really inexpensive factory in China but that it is a higher margin and the commission to the Swedish designers A Nilsson, H Preutz and T Eliasson that makes BRASA that much more expensive. And there is nothing wrong with that.
Have a nice October
Anders


