B2B 0 Report post Posted January 22, 2009 Our government has just announced the worst recession ever for Singapore in 2009... we have seen property prices and car prices coming down very fast - but furniture prices still very high! Being in the finance industry, I know that raw materials like steel, leather and petrochemical have seen their prices dropping very fast, but leather sofas seemed as high priced as ever... To be honest, I'm quite a 'cheapo'- always looking out for big bargains, and I refurbish my place once every two years.. but my budget is relatively conservative - I won't spend more than $2K on a set of sofa or more than $1K on a pc of mattress.. I was looking for cars at Leng Kee road and was told that while cars are cheap now, we can expect some 'dumping' in the months ahead - Toyota which has seen their sales dropped drastically, would definitely be priced very competively to 'fight' their lower end competitors like Hyundai and Kia. I believe they would be cost efficient enough to lower their price to a Hyundai right? I'm sure Toyota has alot of margin room to play with.. Most SMEs today has over stock and cashflow problems - look at Royal Diamonds... In order to get cash fast, I'm sure these guys will dump prices to pay off creditors and prevent bankruptcy.. So we would probably see quite good buys around. Same for furniture, I expect prices to come crashing down soon... Already there were a few casualties, furniture retailers are already suffering a slowdown in November 08, as reported in ST, shop space rentals are coming down, there are also casualties - owners of TT international (which own brands like Castilla, Novena, White Collection and Natural Living) have already filed for bankruptcy protection, as you would have read it in ST. Some lesser know brands are also affected. With most SMEs companies struggling for survival - I can expect the post Chinese New Year period would open a whole new portal for bargain hunters. Why buy now, when you can get it at dirt cheap prices later on? Share this post Link to post Share on other sites
artois 1 Report post Posted January 22, 2009 good that you can wait to buy them. I am still thinking very hard about doing up balcony with chennai wood, plants & chair & table. so thought these things can wait. Share this post Link to post Share on other sites
rolexboy 0 Report post Posted January 22, 2009 Hope quality and service will not be compromise.. I’m waiting for good sales too…. Share this post Link to post Share on other sites
Pinklady 0 Report post Posted January 22, 2009 I no need to wait liao becoz i have bought all my stuff last mth oredi. Sigh! Share this post Link to post Share on other sites
junetan7 0 Report post Posted January 22, 2009 i think, the scary thing is - wait pay deposit already, then company closed down. worse... Share this post Link to post Share on other sites
zirhk3355 1 Report post Posted January 22, 2009 I was looking for cars at Leng Kee road and was told that while cars are cheap now, we can expect some 'dumping' in the months ahead - Toyota which has seen their sales dropped drastically, would definitely be priced very competively to 'fight' their lower end competitors like Hyundai and Kia. I believe they would be cost efficient enough to lower their price to a Hyundai right? I'm sure Toyota has alot of margin room to play with.. Speaking about cars, I am also 'window-shopping' at the moment. So here's my two cents' for the current situation... I had been observing this very useful feature in sgcarmart.com; they actually calculated the premium of the car. Its in the 'Pricing' tab of the new cars' pages. To compare apple to apple in terms of price, a Toyota Altis 1.8A with an OMV of $18,600 is selling for $60,488, and Honda Civic 1.8A with an OMV of $21,600 is selling for $74,000. These figures don't tell alot by themselves, but if you look at the premium, its a whopping 41% profit for both cars! This means that every $100 you spend on a new car, only $59 is the basic cost of the car! According to sgcarmart, the 41% translates to "insurance premium, number plates, road tax, IU, radio license, dealer’s commission, and all other overheads"; no prize for guessing which one of these overheads constitutes the most! Sorry for all these confusing figures (its a guy thing lah!), but it seems to me that while the sales volume had dropped and the dealers are desperate, the prices are not *really* dropping at all. After the latest COE results, the dealers are just adjusting their price according to the difference, which means they are still earning the same profit as when the COE is higher! So what does it show? The dealers are not desperate ENOUGH yet to 'dump'; suggest we play the waiting game lor, see who can tahan longer...hehe! Share this post Link to post Share on other sites
clockwork 0 Report post Posted January 22, 2009 I really really hope the renovation and furnishings company will lower their prices. My 2nd appt is in early Mar and I have yet to decide on a reno company / contractor to engage as the prices are cut throat !! Really cutting back on reno but these reno pple seem to shift cost here & there... Share this post Link to post Share on other sites
B2B 0 Report post Posted January 23, 2009 I really really hope the renovation and furnishings company will lower their prices. My 2nd appt is in early Mar and I have yet to decide on a reno company / contractor to engage as the prices are cut throat !! Really cutting back on reno but these reno pple seem to shift cost here & there... I got a friend who's constructing a detached house on his plot of land. Half way through the construction company folded (becos one of his major project, developer couldn't pay him). You know the good news is my friend was amazed with the new quote from the new contractor - all the prices has gone down.. only if he had waited a couple of months... I think during this time there is always risk of companies folding - so when buying furniture, better deal with more established companies. the number of 'fly-by-night' deals has been on the rise - especially those who set up exhibitions and don't really have fixed retail outlets.. Speaking about cars, I am also 'window-shopping' at the moment. So here's my two cents' for the current situation... I had been observing this very useful feature in sgcarmart.com; they actually calculated the premium of the car. Its in the 'Pricing' tab of the new cars' pages. To compare apple to apple in terms of price, a Toyota Altis 1.8A with an OMV of $18,600 is selling for $60,488, and Honda Civic 1.8A with an OMV of $21,600 is selling for $74,000. These figures don't tell alot by themselves, but if you look at the premium, its a whopping 41% profit for both cars! This means that every $100 you spend on a new car, only $59 is the basic cost of the car! According to sgcarmart, the 41% translates to "insurance premium, number plates, road tax, IU, radio license, dealer’s commission, and all other overheads"; no prize for guessing which one of these overheads constitutes the most! Sorry for all these confusing figures (its a guy thing lah!), but it seems to me that while the sales volume had dropped and the dealers are desperate, the prices are not *really* dropping at all. After the latest COE results, the dealers are just adjusting their price according to the difference, which means they are still earning the same profit as when the COE is higher! So what does it show? The dealers are not desperate ENOUGH yet to 'dump'; suggest we play the waiting game lor, see who can tahan longer...hehe! You know the funny thing is Toyota and Honda are manufactured in Thailand and Indonesia - and their prices are still higher than some of those 'made in Korea' cars... doesn't make sense right? Toyota can't go on retrenching... they are so cost-efficient already - the next phase I presume would be to work their margins in order to get their volumes sustainable. Share this post Link to post Share on other sites
