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Inflation snapshot 2012: Ikea ?

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  • Inflation snapshot 2012: Ikea ?

    I've recently moved countries (within Europe), and decided to go to Ikea for some affordable but semi-decent refurnishing.

    Last time I bought furniture it was around 2007, when I bought several solid wood based items (mostly from the Leksvik series, which was an entry level solid pine wood furniture series). I always make sure to avoid anything made from pressed wood fibres.

    Things I noticed:
    - lots of new product made from untreated pine wood (no paint, no veneer, etc.)
    - lots of thin plastic is used in products (e.g. drawer mechanisms)
    - very flimsy mechanisms (sliding drawers that bend and completely jam if you push only one side)
    - items sold without even basic wallmounting scews (with the following excuse: 'screws required depend very depending on the wall type, hence no screws are provided with this product')
    - higher prices for the same product I bought 5 years ago (if they were still available at all)

    on the other hand, I saw a lot less products made from laminated pressed wood fibres.

    I'm mostly comparing with my visit from memory, but I have a strong suspicion that quality has gone down and prices have gone up at Ikea. Does anyone share my suspicions? Am I seeing things?

    P.S. I'm surprised that products are more expensive in France than in the Netherlands (both eurozone). Maybe this is related to shpiping costs, but I'm surprised that Ikea doesn't equal that out between countries. If anything, you'd expect prices to be lower in France because the GDP per capita is higher than in the Netherlands (by about 6%).
    engineer with little (or even no) economic insight

  • #2
    Re: Inflation snapshot 2012: Ikea ?

    I agree with most of what you said, c1ue, but this bit might need a slight tweak.

    Originally posted by c1ue View Post
    Both being EU, I'd presume there should not be import tax differences.
    I don't know the details of this part of the tariff code either, but in general France has been pretty aggressive about hanging on to protectionist import taxes even when the rest of the EU has been forced to swallow them. There may in fact be no import tax differential, but it is dangerous to assume this a priori for a given case.

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    • #3
      Re: Inflation snapshot 2012: Ikea ?

      An anecdote to consider, but the pricing behavior at any given corporation is not necessarily a function of macroeconomic trends.

      Ikea might just be pushing harder to be more profitable.

      As for France vs. Netherlands pricing, the differences could be due to VAT differences. Both being EU, I'd presume there should not be import tax differences. Shipping wise, I doubt there's any significant difference between shipping to France vs. the Netherlands.

      Comment


      • #4
        Re: Inflation snapshot 2012: Ikea ?

        Originally posted by FrankL View Post
        I've recently moved countries (within Europe), and decided to go to Ikea for some affordable but semi-decent refurnishing.

        Last time I bought furniture it was around 2007, when I bought several solid wood based items (mostly from the Leksvik series, which was an entry level solid pine wood furniture series). I always make sure to avoid anything made from pressed wood fibres.

        Things I noticed:
        - lots of new product made from untreated pine wood (no paint, no veneer, etc.)
        - lots of thin plastic is used in products (e.g. drawer mechanisms)
        - very flimsy mechanisms (sliding drawers that bend and completely jam if you push only one side)
        - items sold without even basic wallmounting scews (with the following excuse: 'screws required depend very depending on the wall type, hence no screws are provided with this product')
        - higher prices for the same product I bought 5 years ago (if they were still available at all)

        on the other hand, I saw a lot less products made from laminated pressed wood fibres.

        I'm mostly comparing with my visit from memory, but I have a strong suspicion that quality has gone down and prices have gone up at Ikea. Does anyone share my suspicions? Am I seeing things?

        P.S. I'm surprised that products are more expensive in France than in the Netherlands (both eurozone). Maybe this is related to shpiping costs, but I'm surprised that Ikea doesn't equal that out between countries. If anything, you'd expect prices to be lower in France because the GDP per capita is higher than in the Netherlands (by about 6%).


        Yes, I bought an Ikea bookshelf and I'm regret my buy. It is so filmsy you can't even move it (without dismantling) without the possibility of damaging it.

        Comment


        • #5
          Re: Inflation snapshot 2012: Ikea ?

          Ikea prices in Japan seem to be about 50% higher to double US prices.

          Comment


          • #6
            Re: Inflation snapshot 2012: Ikea ?

            Originally posted by touchring View Post
            Yes, I bought an Ikea bookshelf and I'm regret my buy. It is so filmsy you can't even move it (without dismantling) without the possibility of damaging it.
            You can get something resembling a semi-solid result by bolting Ikea bookshelf cases to the wall and to each other. Never attempt to disassemble. To move shelves to another room: throw them out (burn them) and buy new ones. A cheap and nasty solution but it works until you can afford to put in "proper" bookshelves.

            Comment


            • #7
              Re: Inflation snapshot 2012: Ikea ?

              Originally posted by unlucky View Post
              You can get something resembling a semi-solid result by bolting Ikea bookshelf cases to the wall and to each other. Never attempt to disassemble. To move shelves to another room: throw them out (burn them) and buy new ones. A cheap and nasty solution but it works until you can afford to put in "proper" bookshelves.
              I had big bookcases made for me out of plywood. They look better than ikea models and are much much solider. I like them so much I brought them to France. I payed about $150/each in ~1998. today you might be looking at about ~$200 - $250 each.

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              • #8
                Re: Inflation snapshot 2012: Ikea ?

                Look on craigslist and find someone selling nice bookcases. If you live near a major city, you can nearly always find something.

                This has been our method for years and has worked very well. Lots of times you find people moving cross-country and they are giving away great pieces for next to nothing.

                Comment


                • #9
                  Re: Inflation snapshot 2012: Ikea ?

                  Originally posted by unlucky View Post
                  You can get something resembling a semi-solid result by bolting Ikea bookshelf cases to the wall and to each other. Never attempt to disassemble. To move shelves to another room: throw them out (burn them) and buy new ones. A cheap and nasty solution but it works until you can afford to put in "proper" bookshelves.
                  Yes, this is what Ikea does it in their showroom. They bolt their stuff into the wall.


                  Originally posted by globaleconomicollaps View Post
                  I had big bookcases made for me out of plywood. They look better than ikea models and are much much solider. I like them so much I brought them to France. I payed about $150/each in ~1998. today you might be looking at about ~$200 - $250 each.
                  Yes, for $50-$100 more, you can get 'solid' plywood bookcases instead of fibreboard that Ikea sells.

                  Comment


                  • #10
                    Re: Inflation snapshot 2012: Ikea ?

                    Originally posted by mooncliff View Post
                    Ikea prices in Japan seem to be about 50% higher to double US prices.

                    This may have got something to do with high rents.

                    Comment


                    • #11
                      Re: Inflation snapshot 2012: Ikea ?

                      Originally posted by astonas
                      I don't know the details of this part of the tariff code either, but in general France has been pretty aggressive about hanging on to protectionist import taxes even when the rest of the EU has been forced to swallow them. There may in fact be no import tax differential, but it is dangerous to assume this a priori for a given case.
                      Fair enough, hence my specifically using the word presumption.

                      I'd also note, however, that Ikea and its products come out of Sweden. Sweden is part of the EU, thus theoretically there should be no import taxes between EU nations - or at least there shouldn't be different import taxes between Sweden to the Netherlands vs. France. But I don't really know.

                      Comment


                      • #12
                        Re: Inflation snapshot 2012: Ikea ?

                        IKEA's bookshelves are trash, maybe their other furniture as well, but their kitchen cabinets are top notch. I have them in my kitchen. A few years ago Consumer Reports ranked ranked IKEA's kitchen cabinets third out of the top ten brands. They were 1/3 the price of the second ranked cabinets, 1/5 the price of the #1 ranked cabinets, and ahead of all the big box brands carried at Home Depot, Lowes, etc.

                        Be kinder than necessary because everyone you meet is fighting some kind of battle.

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                        • #13
                          Re: Inflation snapshot 2012: Ikea ?

                          Originally posted by c1ue View Post
                          Fair enough, hence my specifically using the word presumption.

                          I'd also note, however, that Ikea and its products come out of Sweden. Sweden is part of the EU, thus theoretically there should be no import taxes between EU nations - or at least there shouldn't be different import taxes between Sweden to the Netherlands vs. France. But I don't really know.
                          No, Ikea's products are still designed in Sweden, but are produced all over the world, wherever anything can be done most cost effectively, rather like
                          the global clothing manufacturers such as also Swedish Hennes & Mauritz.

                          Recall that Ikea is privately held, controlled through a Netherlands holding company, and run something like a sect.

                          "At IKEA we design the price tag first and then develop the product to suit that price. "

                          "IKEA is the world's third-largest consumer of wood, behind The Home Depot and Lowe's"

                          Their bare pinewood storage shelves are well-known (in Sweden at least) to be cheaper than you can build yourself from boards.
                          Last edited by cobben; September 03, 2012, 03:59 PM.
                          Justice is the cornerstone of the world

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                          • #14
                            Re: Inflation snapshot 2012: Ikea ?

                            Originally posted by shiny! View Post
                            IKEA's bookshelves are trash, maybe their other furniture as well, but their kitchen cabinets are top notch. I have them in my kitchen. A few years ago Consumer Reports ranked ranked IKEA's kitchen cabinets third out of the top ten brands. They were 1/3 the price of the second ranked cabinets, 1/5 the price of the #1 ranked cabinets, and ahead of all the big box brands carried at Home Depot, Lowes, etc.
                            Interesting......I'd have to admit the vast majority of the stuff I've seen from IKEA, in store or in homes has been mostly disposable temporary furniture rubbish.

                            It's good to know they have some good quality stuff as well.

                            When it comes to furniture we're far more likely to buy something of higher quality 2nd hand than of lower quality but new.

                            It does make me wonder about IKEA though.....maybe much like Coca Cola in the 70s before it went on it's global developing world growth curve, maybe the same will happen with IKEA?

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                            • #15
                              Re: Inflation snapshot 2012: Ikea ?

                              Originally posted by lakedaemonian View Post
                              Interesting......I'd have to admit the vast majority of the stuff I've seen from IKEA, in store or in homes has been mostly disposable temporary furniture rubbish.

                              It's good to know they have some good quality stuff as well.

                              When it comes to furniture we're far more likely to buy something of higher quality 2nd hand than of lower quality but new.
                              I like buying used older furniture, too. Forgot to mention... IKEA's kitchen cabinets have a 25 year warranty.

                              Be kinder than necessary because everyone you meet is fighting some kind of battle.

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