How does Material Depot price its Vanities?

First and foremost, material cost is the giant factor in the decision regarding price. Material Depot sources top-notch materials to build its vanities, such as solid wood, marble, or granite. The company considers how much it costs to buy these materials at wholesale, including any shipping or import costs, to calculate the base cost of each vanity unit.

The next consideration would be manufacturing cost. Manufacturing cost would include labor cost, overhead cost, machinery, and production techniques used. These costs get added to the base cost of materials to present the total cost of manufacturing.

After the assessment of the cost of production, Material Depot considers the strategies of the competitors while quoting prices. The company performs market studies to understand the price ranges that other manufacturers in the region offer for similar vanity products.
Finally, market demand is a determinant factor while setting the vanity price. Material Depot analyzes current and expected demand for different styles, sizes, and features of vanities.

In addition, Material Depot takes into account market position, reputation and target audience. If a company is at the luxury or premium end of the segment, a higher price may be charged to match that image. On the other hand, if the target audience is price conscious or if the product line is aimed at bargain shoppers, Material Depot can offer more affordable options.