Office Furniture Procurement Intelligence

In this Office Furniture procurement intelligence report, we have estimated the pricing of the key cost components such as raw materials, labor, equipment, packaging and labeling, and transportation and logistics. Other costs can include rent and utilities, general and administrative, sales and marketing, quality control, compliance, and taxes.

Office furniture suppliers often use cost-plus pricing as a prominent pricing structure. This model aims to realize better profit margins for suppliers. Key benefits include a steady rate of return, simplicity of calculation, and reliability. However, it does not provide a competitive benefit to suppliers and may not reflect the true value of a product. Another key pricing model used is competition-based pricing, wherein prices levied by rivals are used as a standard to determine the product price. It enables suppliers to gain a competitive advantage and improves speed to market. Disadvantages of this model include potential underpricing or overpricing of products and reduction in profit margins. Other key pricing models used in this category are demand-based pricing and competition-based pricing.

Key factors affecting the prices in this category include raw material price fluctuations, transportation and logistical expenses, compliance and quality control, and product innovation. Common raw materials used in office furniture include wood, metal, plastic, and glass, and their prices vary based on various parameters. For instance, prices of plastic are dependent on feedstock such as crude oil and natural gas, and those of glass are dependent on feedstock such as sand, limestone, and soda ash. According to data published by Federal Reserve Economic Data (FRED), the Producer Price Index (PPI) of office furniture increased from 196 in January 2023 to 200 in January 2024, indicating a 2% rise in the production costs of office furniture items during this period.

Order your copy of the Office Furniture category procurement intelligence report 2024-2030, published by Grand View Research, to get more details regarding day one, quick wins, portfolio analysis, key negotiation strategies of key suppliers, and low-cost/best-cost sourcing analysis

Operational Capabilities - Office Furniture

• Geographical Service Provision - 20%
• Industries Served - 15%
• Years in Service - 15%
• Employee Strength - 15%
• Revenue Generated - 15%
• Key Clientele - 10%
• Regulatory Certifications - 10%

Functional Capabilities - Office Furniture

• Product Range - 25%
• Availability of Smart Products (Yes/No) - 20%
• Eco-Friendly Product Offerings - 15%
• Delivery Mode (Online/Offline) - 15%
• Customer Service - 10%
• Lead Time - 10%
• Others - 5%

Rate Benchmarking

The average rates of office furniture products in the U.S. vary according to the type of item. For instance, in 2023, the average prices of side chairs were in the range of USD 170 - USD 950. The average prices of lounge chairs were in the range of USD 450 - USD 2,300. The average prices of boardroom tables were in the range of USD 2,500 - USD 9,500. Furthermore, the average prices of conference tables fell within USD 900 - USD 4,500. The average prices of administrative workstations were approximately USD 1,200 - USD 3,600. The average prices of executive seating products spanned in the range of USD 450 - USD 1,650.

Furthermore, the rates are also influenced by the type of pricing model and length of the contract. Long-term contracts are favorable to both parties as they ensure enhanced security, added stability, dedicated assistance, and robust partnerships. Moreover, long-term contracts enable clients to consolidate suppliers by maintaining long-term relationships with two or more preferred suppliers and also help them bargain product pricing and payment terms.

Salary Benchmarking

Labor cost is one of the key components of the total incurred costs while offering a product or service. Therefore, an organization must decide on whether the focus category should be retained in-house or outsourced if the organization is providing its products or services at competitive prices. If the organization decides in favor of outsourcing, it must understand the difference in the salary structures of suppliers before selecting a supplier and formulating a negotiation strategy.

According to our research, Project Managers working in Steelcase Inc. and HNI Corporation receive a 10% - 15% higher base salary as compared to the salary received by Project Managers working in Herman Miller, Inc. and Haworth Inc. However, the year-on-year increment rate majorly depends on the Key Result Areas (KRAs).

List of Key Suppliers

• Global Furniture Group
• Haworth Inc.
• Herman Miller, Inc.
• HNI Corporation
• Humanscale Corporation
• Kinnarps AB
• Krueger International, Inc.
• Okamura Corporation
• Steelcase Inc.
• Vitra International AG

Browse through Grand View Research’s collection of procurement intelligence studies: 

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• Helium Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement Operating Model, Competitive Landscape)  

Office Furniture Procurement Intelligence Report Scope 

Our services include (not limited to): 

• Market Intelligence involving – market size and forecast, growth factors, and driving trends
• Price and Cost Intelligence – pricing models adopted for the category, total cost of ownerships
• Supplier Intelligence – rich insight on supplier landscape, and identifies suppliers who are dominating, emerging, lounging, and specializing
• Sourcing / Procurement Intelligence – best practices followed in the industry, identifying standard KPIs and SLAs, peer analysis, negotiation strategies to be utilized with the suppliers, and best suited countries for sourcing to minimize supply chain disruptions

Brief about Pipeline by Grand View Research:

A smart and effective supply chain is essential for growth in any organization. Pipeline division at Grand View Research provides detailed insights on every aspect of supply chain, which helps in efficient procurement decisions.