Predicted price hikes haven't shown up here

High Point— The predictions of price hikes made last year haven't shown up on stickers here.

Back at the October market, manufacturers were warning that 2006 could see price increases for case goods. The culprits typically cited were higher raw material, labor and fuel costs. Companies

Chinese factories tend not to increase prices on existing goods, but to compensate by raising prices for new product, noted one executive. This would mean higher pricing for 2006.

However, with resistance to increases expected, Asian factories have adapted to keep prices steady.

Fine Furniture Design & Marketing said it raised prices in 2004 in anticipation of antidumping duties and decided not to go any higher. At the October 2005 market, CEO Geoff Beaston said, "We're concentrating on increasing our efficiency."

Asian factories have taken cues from domestic plants on lean manufacturing, finding ways to save labor and cut expenses without sacrificing quality, said Marc Abrams, Wynwood's vice president of sales. There have been small increases in certain elements, but that balances out with better pricing in other areas, he said.

Importers say the key is getting on the ground in the Far East and visiting the factories. Merchandising managers shop around to find acceptable prices and quality, thereby allowing companies to stay within their normal price range. This is important in order not to price the goods above what retailers need for their consumer base.

Moving forward, importers say the economy will be a factor. If more furniture is sold and sales volumes increase, then overhead is spread out more and the cost per piece goes down.