Costs and prices

Transparency of cost calculation – why is it so important to us?

At Dolux-M, we believe that open communication about what makes up the final price of a product builds greater trust and makes it easier for our customers to make informed decisions.

Quantity affects price – transparent calculation for different production volumes

In the furniture industry, as in many other industries, the key factor influencing the amount of costs is the scale of the order. At Dolux-M, we try to explain in a transparent way why a certain quantity of products is important for the final price and how this is related to the various cost components. Thanks to this, our customers gain a full insight into the calculation process and know what to ask when comparing offers from different manufacturers.

Fixed and variable costs

Many customers do not realize that in addition to the obvious costs of materials or labor, there are also a number of fixed expenses, the amount of which does not directly depend on the number of units ordered. Examples include the costs of designing, prototyping, machine configuration or necessary quality research. With smaller orders, these “dispersed” expenses fall on fewer pieces, which increases the unit cost. In the case of a larger quantity, fixed costs can be spread over a larger number of products, which in turn reduces the price of one product. These are invariable costs that we incur, regardless of the quantity.

Optimization of production processes

By producing larger series, the company can plan work more efficiently – for example, reduce the time of machine changeovers, optimize energy consumption or better use of raw materials, applying the “zero waste” principle on a larger scale. A one-time start-up of the production line avoids many repetitive activities that have to be carried out as many times with a small number of pieces as with large batches. Therefore, it is worth asking the supplier how scaling the order translates into less material loss or additional work.

Raw material purchase and market conditions

Also, the price of wood and other materials is sometimes negotiated depending on the quantities ordered. If a manufacturer can place a larger order with its supplier, it is often able to obtain more favorable rates and pass on some of these savings to the customer. It is always worth asking if it is possible to take advantage of discounts resulting from the wholesale purchase of raw materials. However, it should be remembered that differences in the type of wood, its origin or quality can also significantly affect the final price.

Configurations and customization

Some elements of production are associated with the need to make unique designs or non-standard processing. The higher the repeatability, the faster and cheaper the same operation can be performed in series. For orders involving different product variants (e.g. several sizes or finishes), additional customization costs must be taken into account. So it’s a good idea to ask the vendor how different configurations affect the entire process and determine if making changes to the design will allow you to get a better quote.

Transport and logistics

Distribution costs sometimes account for a significant percentage of the final price, especially for long-distance orders. With larger volumes, cargo space can be used more efficiently, which reduces the unit cost of transport. Therefore, it is worth asking the manufacturer for information on what savings can be achieved thanks to proper shipment planning and whether there is a chance to combine transports.

In order to comply with the EUTR rules and ensure transparency, we try to regularly publish information on fluctuations in raw material and energy prices. We believe that a reliable and clear presentation of costs – from the place where the wood is harvested, through its processing and production, to the final stage of delivery – is a solid basis for cooperation based on mutual respect. This ensures that everyone who uses Dolux-M products can be sure that they are supporting ethical and responsible production that honestly takes into account both the environmental well-being and the real costs incurred by the company.