Custom build, custom fabricate, phrases which familiarity throughout our typical meetings and documentation were pretty much straightforward to understand. To perceive the intended meaning of our industry language into the work and economic point of view, there is deeper description.
When you walk into Zara Home, IKEA or virtual furniture platform like Wayfair, the selling price of any item found was based on its raw material cost, labor work hours, machinery cost for fabrication with running hours vs. production volume, shipment and taxes to calculate the return of these investments. A bonus factor is the product design attractiveness that creates desirably to owned. Occasionally launching of limited collection with higher selling price will brought the same or higher return in short run, depending the level of advantageous of the products. 2019 MARKERAD limited edition by IKEA collaborate with Virgil Abloh was a great example where resell values shoot up.
In comparison with custom made furniture, average consumers would compare with ready made, produce and sell in mass volume without considering the exclusiveness in custom design and build. When a limited edition furniture or home decor sell higher than usual, with limited produced and could have higher resell value aftermarket, those who able to afford customization, accentuate own character with original exclusivity, why not customize?
By now, anyone who following this will have a clear picture where custom build or custom made price is higher than mass production goods. Not just because of exclusiveness reason, but also due to hand made. We take high end automobile industry as example; Aston Martin leather seats stitching was almost up to perfection, almost mean you can still find very minor flaws when looking at detail on some of their car seats, depending on luck, but buyers who can afford the car would understand the art of imperfection in hand made, even it required extra money for options. Time required on extra attention in details is different kind of challenge faced by mass volume product manufacturer.
It is understandable that any products that custom designed and fabricated using long hour skill labor will cost higher.
Written by Chris Lau on 06.08.2020