Wednesday, January 6, 2016

SEKTION up for review - prices WILL go UP in 2016.

People, this is your last chance to take advantage of the remnants of the 'higher Canadian dollar'...

Take advantage of the IKEA Surprise Winter Kitchen event, because prices are only going up from here. 

Watch the video! - prices rising in 2016

Chapter 1  -  SEKTION up for review - IKEA will have to revise the price

Yes, no one saw the global oil price plunge - not even China, which invested huge sums of money in the Canadian Oil Sands. The Canadian dollar - once on par with the American dollar - has now plunged to barely above the 70 cents mark. That means anything that we ship into this country has become more expensive, and that means for everyone including IKEA Canada. The world has gotten a lot less stable ever since than - regardless how nicely IKEA wants to paint it. Want it or not - geopolitics will start entering into the sourcing equation. 

Look, I went to replace some broken cups at IKEA - different colour marks 'different generation' in our household - the sticker hasn't come off in the wash yet - and IKEA already switched suppliers!

It has been exactly a year since IKEA launched their new kitchen system -SEKTION - with great fanfare at the Interior Design Show 2015. IKEA typically publishes an annual catalogue for their products which marks 'highest price' for that year. Than twice [typically] a year they will have a sale on a specific line - so a PAX wardrobe sale, Kitchen event - people wait for those sales!

People will plan their renovation around those sales. Here is a little insight for those not in the design/build profession - the general state of the renovation industry is clearly correlated to activity on my blog. That means there are times when people 'plan their renos'- I will see a spike in readership of specific blog entries. Then there is the amount of emails that I receive - questions, inquiries, requests for quotes, etc.  - right now, during the IKEA Kitchen Event, the blog is peaking! That's why I try to stay current, that's why I blog - relevant fresh IKEA news! I know how IKEA

But back to SEKTION - yes there is a group of components that are made in the USA - that includes their SEKTION boxes, that includes some of their plastics - those items are all priced in US dollars. So what's IKEA going to do? Lower their profits and pass the savings on to us - their customers OR will IKEA maintain their enormous profits and raise their prices

I chuckle when my wife - who reads my blog - tells me 'but you are hurting IKEA with your blogging' - no I don't. Here is another insight, dear reader - IKEA does not have friends, they only have customers.** Yea, let your soft hearts fall to the floor with a fleshy thud - it's true. IKEA is a corporation that has 'making money' as their main objective - they might be doing it in a more ethical way, BUT lowest cost is still king. I have a cousin, in Europe, who works a global sourcing position for a large corporation - you know the lifestyle, travels all over the globe, eats at fancy restaurants and stays in hotels that have 'infinity pools' - and he is familiar with IKEA sourcing situation. He uses the Polish word 'zylowac'* - which roughly translates to 'stretching their muscles' with a slightly negative connotation. 

And that is what IKEA will have to do.

Chapter 2 - Matching grain on doors and cabinets ....what's that? 

oh...forgot....someone was asking, 'what do you mean by matching the grain on cabinetry?' This is an example of ABET Laminati work I've done, notice how the grain matches all around.... -> It's a PAX hack.......'But where is the PAX?' someone asked. 'Exactly,' I said. You don't see it. It's custom cabinetry.

This is a very nice PAX Hack. Only nice designs coming from Studio Kosnik!

*IKEA's entire LACK series is produced in Poland, along with  tons of upholstery. 

** IKEA does have a brilliant Social Media strategy though! Good job IKEA!