Marketing

Someone pointed out that there can only be one lowest cost producer. In recent years, furniture has almost become a commodity item with the focus on price. Future opportunity lies in shifting consumer focus from price to value (at a competitive price).

What are some product concepts that might be used to create value for consumers? Here are a few ideas (there are many more):

• Quality
• Customized
• Locally Grown and Manufactured
• Solid wood with No Formaldehyde
• Availability with Quick Delivery
• Sustainability
• Service

Small companies having a small market share can establish their "value" product with the goal of having time for the company to grow and develop while maintaining flexibility. Being able to communciate face-to-face with the customer and being responsive to their needs will be an attribute of the new industry.

For example, a company could offer a standard product line with rapid order completion, yet also offer a limited number of options (configuration), sizes, and finishes beyond the standard product that are available for a slightly higher price. This product strategy contrasts sharply with the old industry in which mass production of large batches were run with no customization available.

Wood products manufacturing typically generates residuals that can often be recycled or reused. Often the problem is connecting the generator with the user (ie a marketing problem). We have created a web based inventory database to help market wood residues. To register your wood residual, go to the North Carolina Wood Based Residue Inventory.