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DescriptionTo appreciate how much money can be saved through factory-direct sourcing, it helps to analyze exactly what happens to the price of a product as it moves through the conventional retail supply chain. When a consumer walks into a high-end showroom or a local retail center in North America or Europe, the price tag on the shelf reflects a long line of cumulative markups, rather than the raw value of the physical material.
The journey begins at the manufacturing plant, where raw stalks are processed into high-density planks. The factory sells the material to an export broker or an international trading company, adding the first layer of profit margin. This broker then handles the logistics to sell the goods to a national importer or brand distributor in the destination country. The importer adds a significant markup to cover international shipping, customs duties, port fees, and their own corporate overhead, which includes national marketing campaigns, sales staff, and regional distribution warehouses.
DescriptionTo appreciate how much money can be saved through factory-direct sourcing, it helps to analyze exactly what happens to the price of a product as it moves through the conventional retail supply chain. When a consumer walks into a high-end showroom or a local retail center in North America or Europe, the price tag on the shelf reflects a long line of cumulative markups, rather than the raw value of the physical material.
The journey begins at the manufacturing plant, where raw stalks are processed into high-density planks. The factory sells the material to an export broker or an international trading company, adding the first layer of profit margin. This broker then handles the logistics to sell the goods to a national importer or brand distributor in the destination country. The importer adds a significant markup to cover international shipping, customs duties, port fees, and their own corporate overhead, which includes national marketing campaigns, sales staff, and regional distribution warehouses.
