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Here are IKEA's secrets to keeping its prices so low
IKEA designers work around the price of a product.
In other words, IKEA chooses what it wants to sell a product for, and then designers work with suppliers to make that possible.
IKEA explains on its website that it constructs its furniture by layering sheets of wood over a honeycomb core.
This type of construction saves IKEA money, so it can price furniture lower.
IKEA makes everything in bulk.
By making so many of everything, IKEA is able to get discounts on production and keep the prices lower.
Everything is packed completely flat, so it costs less to store and transport it.
IKEA doesn't have a ton of store associates at each store. By hiring fewer people, IKEA is able to save money and keep prices lower.
In lieu of hiring more people, important information about products is usually on the price tag.
You have to take furniture home yourself. It may not be the most convenient option, but it means you won't be paying a delivery fee.
It also means you won't pay higher prices that make up for free delivery.
Assembling IKEA furniture can be daunting, but it means IKEA isn't paying anyone else to do it for you. IKEA acquired TaskRabbit in 2017, giving shoppers the option of hiring someone to assemble their furniture.
Source: Business Insider
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