# IKEA's Secrets for Successful Marketing



## 33706 (Mar 5, 2008)

Like most Lumberjocks, I'm not a fan of IKEA. Yet they are a force to be reckoned with if you produce furniture for the homeowner market, that is for sure! I saw a fascinating article in the business section of the paper, which shed light on why IKEA is what works for most people. According to the article, researchers from Harvard, Duke, and Tulane Universities discovered that by increasing the amount of labor required for a product by the consumer actually increased the owner's appreciation for it! "*In some cases, people value their handmade creations five times more than when the same items are given to others pre-assembled. They refer to this as 'The IKEA Effect', referring to the Swedish retailer."* The article went on to use examples also, such as 'Build-A-Bear" and instant cake mixes, both of which give the consumer a feeling of extra satisfaction, having contributed their own labor to the final product. The positive value of the consumer feeling a great sense of accomplishment through participating in the creation of a product should not be ignored. "*The researchers' message is that labor isn't simply meaningful…it's marketable*" according to the article. 
NOW… my bubble is burst! I now have a way to explain my penchant for buying a distressed antique piece of furniture, refabricating, restoring, refinishing, and then getting too attached to it to sell it! AHA! But, the principle point I wish to make is this: *For all the highly motivated woodworkers that hit the brick wall when it comes to marketing big woodenwares only to find it impossible to ship their products economically, why not consider designing your creations to be 'knock-down' construction? Then you can ship in flat boxes, and your customers would love it!* p.s. please don't use this thread for venting your spleen about IKEA. I posted this in a forum offering a constructive suggestion for craft marketers! Quotes are from 'Postmedia News'


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## 33706 (Mar 5, 2008)

Here's a link that woodenware retailers might find helpful: http://hbr.org/web/2009/hbr-list/ikea-effect-when-labor-leads-to-love
Hope you find it interesting!
I now have a better understanding of those unfinished furniture stores, and I've seen the proud faces of people who stained and poly'd their purchases, and I dared not comment on the quality of the finish because they were so PROUD of what they did! I never made the connection, the consumer adding value and ultimately enhancing his/her self-image by being part of the creative process. I also recall, back in the late 60's, the so-called Nomadic furniture designs, furniture meant to be easily knocked down and transported from place to place, (mostly in VW buses but that's another story another time). The concept works!


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## Brit (Aug 14, 2010)

I for one would buy furniture flat-packed that had half-blind and through dovetails and that came with a little pot of glue and I had to assemble it myself. What I mean is self-assembly furniture for the thinking man/woman who has a mallet and an ounce of intelligence. The furniture would cost less and so would the delivery, but I'd still end up with a solidly built piece that would last for years.


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## 33706 (Mar 5, 2008)

Thanks,* Andy!* Well-said. For sure there is an untapped market of apartment dwellers, condo residents and others who want the feel of hand-crafted furniture with their own hand in the creation of it. To have furniture in your home without the expense of a fully equipped shop and oodles of time, what's not to like? Who is out there, making high-end, pre-machined components that a crafty homeowner can glue up and tap together, and finish with their chosen stain?


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## andy6601 (Aug 23, 2011)

That is really intertesting I always love to hear about these sorts of things, as it is something that you would not think of. However it hits you like a ton of bricks, because people are people no matter how "advanced" we think we have become. By finding new ways to market goods we are still playing off of the old dusty human nauture! Times change but people do not. Great find!


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## Roger Clark aka Rex (Dec 30, 2008)

I understand and appreciate the concept and agree that there are some who would take delight in assembling and finishing a piece of "furniture". However, I think that as a one man LJ shop you would have to be very careful at what you do and offer. Most LJs are very creative and spend a lot of time making different items and regard themselves as craftsmen, not manufacturers. The difference is stark, you either create a variety of items that come out of your head for pleasure or you make the same thing over and over again ad infinitum.

To offer "kits" for an LJ would involve tooling up and "dry" assembly of each project to make sure all goes together well. Then you would have to disassemble and pack the pieces and ship, this is a HUGE labor and time consumption. On the other had, tooled up manufacturing plants with CNC equipment would not have the need to test fits, and their "parts line" pieces would go directly to packaging and shipment areas.

I agree there is a good market for assemble and finish your own furniture, but as an independent LJ you have to be prepared to become a "factory worker" and come up with some items that are not critical of fits.


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## Sawkerf (Dec 31, 2009)

Rex & Kat -

Yes, there are "some" who enjoy assembling and finishing furniture, but from a business perspective, are there enough of them to justify that business model. Several years ago, there were several unfinished furniture stores around here, but now I can't think of more than one or two. I don't think that the market was untapped - it was never really that big from the start.

I do quite a bit of custom furniture for apartment/condo dwellers and few of them have any interest in a DIY piece. Most of them enjoy the design phase where they get to determine many of the parameters of the finished piece, but they're quite happy to have me make it happen. At best, they like getting pictures of their stuff as I build it.

As far as Ikea goes, they used to have some pretty decent products, and their pricing was unbeatable. Their model is mass production of well designed pieces that are easily assembled by anyone smart enough to use an Allen wrench and screwdriver. I've sent several prospective customers to an Ikea store to see if they could sell them what they needed. If Ikea couldn't, I had a paying customer. - lol


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## Cosmicsniper (Oct 2, 2009)

There might be some psychology at play there, but make no mistake about it, people buy knock-down, particleboard furniture (Ikea, Walmart, or otherwise) because it is cheap. I doubt very seriously that "some-assembly required" appeals to a whole lot of people.

Ikea is popular because it's cheap and it looks good, despite its cheapness. In other words, if you do charge 60% for a version that needs end-user assembly, you will selling them because they cost less, not because you get the satisfaction of finishing it yourself.

In the U.S. in particular, we poison our bodies by eating fast food because we are lazy…I doubt very seriously that people enjoy assembling all their kids' Christmas toys.


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## CharlieM1958 (Nov 7, 2006)

I think I just might start selling photos of my boxes packaged along with a few scraps of wood, and call it a *kit*.


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## 33706 (Mar 5, 2008)

Hope everyone took a moment to visit the link posted above. The concept of the value-added benefit of customer labor is a tangible marketing strategy. Though not specifically stated, I was thinking of upscale furniture, not flakeboard goods peddled by mega-retailers. I'm attracted to things like muzzle-loading kits, wooden handplane kits, flyrods and other high-end products which the hobbyist can make at home. The experience of putting together an heirloom artifact from provided materials, while admittedly not everybody's cup of tea, is a tradition which could be extended easily to woodworking. The clientele, of course would be a different element of the market than consumers who simply want to furnish their condo. And yet, if IKEA is only a mail-order option, the stuff arrives disassembled.


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## 33706 (Mar 5, 2008)

*Charlie*: There is merit in what you say, but as Brit mentioned, if the wood was pre-machined so that a customer, perhaps lacking machinery at home, could assemble the parts into a nice dovetailed jewelry box, hey, why not? No, of course the average joe sixpack just wants to snag a gift and give it to his wife… but there are others who are looking for a rewarding pastime, and pre-dimensioned, pre-machined components in a flat parcel package would be of interest to that type of buyer who is willing to put his/her own stamp on it by assembling and finishing it to one's own tastes. From the git-go, my point is how the concept of home assembly might be of benefit to online furniture crafters trying to find a way over the hump of those deal-breaking freight costs, and capitalizing on the glow of buyer-supplied labor. Yee-haw!


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## Roger Clark aka Rex (Dec 30, 2008)

*Poopie:
*
Do I see your "vision" as a veiled marketing ploy to recruit new LJs.* ? *

Call it "Poopie Carrot Marketing" lol


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## 33706 (Mar 5, 2008)

Roger,
I'd be delighted to know what you thought of the linked article, and whether reading this thread was useful, or a waste of time, my friend.


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## Puzzleman (May 4, 2010)

Poopie, I like the premise of the article. I agree that having customers put their labor into it is an idea worth pursuing. By being able to enable shipping and delivery through UPS & FedEX, you have dramatically increased the amount of potential customers.

Several of my products are shipped broken down to facilitate shipping. I have not had any complaints from my customers concerning putting the pieces together as I send explicit directions, all hardware and have how-to videos on my website. The only problems that I have has are the normal ones of very infrequently having shipping damage. However, one must be able to duplicate a part to send the replacement instead of another whole piece.

I think that might be the problem for most people as they do one off's with no way to duplicate the pieces exactly. Perhaps using jigs would help.

As far as manufacturing mentioned above, if we are working for money, we are a factory. Maybe a small one but we are a factory. If you are not, then this is a hobby and that is a different kettle of fish. You are not as dependent on making sales to keep your income up.


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## Roger Clark aka Rex (Dec 30, 2008)

Poopie,
I am not all that a fan of articles, especially those posted by "bliss experts". Mostly they utter opinions and articles from the wrong part of their bodies - their bowels, not the brain.
During my teaching career I was astounded how many "professors" had no concept of how things are done in today's world, they were 50 years behind the times and their teaching of subject matter was not valid anymore, they were out of touch with reality, they were long haul "professional" teachers. I refer to higher education levels, not to junior education where I know the teachers try hard to be current - bravo.
Yet, if you see some item of concern being investigated on your TV news, it is stupid that they (TV news) seek out and interview tenured College and University num-nums who have no experience in today's world ways and have never got their hands dirty actually doing the task the questions are about.
We should not need to select articles that agree or disagree with your own point of view to prove what we as individuals feel. Nobody is completely right, but you as an individual are the closest, trust your own instincts, then you don't have anyone else to praise or blame, only yourself.
Take everything with a pinch of salt.


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## Roger Clark aka Rex (Dec 30, 2008)

Puzzleman:

I think most LJs consider themselves as "Artistes".

They have the same vision of their work as a sculptor, portrait painter or custom jeweler might have, heaven forbid they be classed as a factory worker.

I produce sweat and urine, but don't consider myself a factory worker.
I understand what you are saying, but I don't think skilled or hobby woodworkers would be thrilled to be known as factory worker, unless you called it a love factory where their labor brings them great joy - and money too.


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## Bertha (Jan 10, 2011)

I couldn't get past Andy's comment and had to whiz down here. I would buy the same product! Little bottle of Titebond III and a brush. It's hard to argue with the phenomenon. My sister approached me about a kitchen remodel. I was envisioning weeks of misery. Then she said, "I'm going all Ikea with the cabinetry". Then I imagined me doing a quick tearout, loading up two cordless drills as the only real tools I'd need, then basking in the glow of the finished project. Her kitchen still looks good today.

Would it look better if I'd raised the panels myself? I sure hope so! Would it have taken me 3 months instead of 3 days? For certain! This stuff has its place in the market, whether we like it or not. I just hope that custom cabinetry doesn't get so rare that only the uber-rich can afford it.


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## Cosmicsniper (Oct 2, 2009)

The problem I have with the article is that it doesn't provide the research. It just draws parallels to other things that have no similarity to what Ikea is doing.

For example, of course people are enamored with cake mixes that require you to "add an egg." Can you imagine how bad the cake tastes if you DIDN'T have to add the egg yourself? As somebody who cooks and bakes routinely, I do so because I rather enjoy the process. I even have a "Cake Doctor" book that shows you how to enhance the store-bought mixes, customizing them into very delicious items that couldn't be achieved with ONLY the cake mix itself. Do I like my cake better than one I purchased at Walmart? Almost always, as long as the recipe is good to begin with. But sometimes, it might be not worth the effort for others…and this is why Walmart has a bakery in the first place.

Similarly, of course people would choose their own UNIQUE origami creations above others…that's kinda fun! But I'd contend that getting a 100 pound box full of boards with instructions on it probably isn't fun to a whole lot of people. But people do it anyway because money talks. I doubt very seriously that this will cause them to be heavily sentimental about it (it's not like it's an original piece). The first chance they have at buying LJ quality furniture and they'll put it on the street with a "take me" sign.

My thinking is that anything requiring assembly that needs more than your typical included alien bolts (with included wrench) and I think the product will have little chance of getting moved unless it's at a sizable discount. Plus, as a craftsman, I'd hate to see one of my products glued together all wrong in somebody's home. Then, I'd have to look at 2-star internet reviews of such items, all because the consumers can't slide dovetailed pieces together without breaking it.

So, I think that people would always prefer a finished version of something, if price were no object. However, as Puzzleman said, if it's the ONLY way for some people to get your product, then sure, make a knock-down product that's easily shippable. It might be the only way for craftsmen to drum up a market.


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## Cosmicsniper (Oct 2, 2009)

Al:

And how much did you sister save by choosing the Ikea cabinetry? A month(s) of labor is very expensive. I give your sister more credit for knowing that she had an uber-craftsman already in the bag!!!


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## Bertha (Jan 10, 2011)

^LOL Jay! She knew that as much as I complained about the IKEA crap, I'd install it correctly Let's face it, installing IKEA cabinetry isn't very exciting, but it's still a project. Any project is better than no project, I suppose


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## ChuckC (May 13, 2010)

I think I fall in the other category. I hate putting together Ikea crap. I'd rather spend a week in my shop as opposed to an hour putting together particle board. Every time my wife mentions buying something from Ikea I always end up in the shop.


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## stevenhsieh (Jan 8, 2010)

What Ikea is good at is DESIGN.


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## 33706 (Mar 5, 2008)

Hopefully, there is a woodworker or two that can find some benefit, some marketing angle, to help solve his/her shipping dilemma. It is to them that I took the time to post this article. To the rest, it is just strictly academic. Welll, heh, I suppose eminent researchers from major universities could be wrong about whether a person gets any satisfaction from assembling things. Odd that any of us as woodworkers would dispute whether there is sense of satisfaction in putting something together!
Title of my next thread: *How Many Router Bits Do You Own????*


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## rance (Sep 30, 2009)

I was very intrigued at first when reading this. I think there is enough merit to at least consider it in our woodworking. There is certainly a difference in building finished furniture that you simply knock down for shipping and selling an unfinished hand-cut dovetail box that you ship unassembled for the user to sand, assemble, and finish. As for the end-user satisfaction, this gives me another question to ask potential buyers.

Thanks for starting this thread. As for the 'how many router bits', save your breath.


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## tenontim (Feb 24, 2008)

Interesting. I think my problem would be redesigning my furniture to be made as knock down. Seems to cheapen it to start putting it together with screws and bolts. Stickley had kits, of limited items, that he sold for home assembly. sIt would be a matter of putting all the parts together and driving in some dowels. There's no taking it apart afterwards. You loose control of the quality of the product, by allowing the typical DIYer to assemble the pieces. I think you would also have to gravitate towards a cheaper product. Then there's the instruction sheets that would have to be drawn up, probably in at least 3 different languages.

I pride myself on my finishes, but sometimes I think just selling unfinished furniture would be a plus, but then again, the customer's finished product and the original that they looked at, may differ significantly.

I agree, there's a satisfaction to putting things together yourself, except items from the toy store, on Christmas Eve.


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## chrisstef (Mar 3, 2010)

For someone who is starting out with an interest in woodworking the knock down idea is indeed clever marketing. There is that sense of satisfaction from assembling something, hwile you havent created it, you did some work assembling it. For most of us who are eyeballs deep in woodworking the thought would rarely cross our minds but there is a much larger population than that of a woodworker. Most home owners own a sander and finishing requires little investment therefore the target market is a fair size. Compelling article and topic poopiecat.


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## 33706 (Mar 5, 2008)

Thanks to everyone for the kind words!


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## OttawaP (Mar 13, 2008)

Steven H…

I disagree. What Ikea excels at is marketing. You can sell S#&t in a bag as and people will storm to your door to buy it as long as you market it properly. McDonalds is another great example. Ikea has marketed so wonderfully as to change the mindset of people, where they consider Ikea first before entertaining other options….amazing.


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## 33706 (Mar 5, 2008)

*OttawaP*:
Hence the title of this thread…...


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## Richforever (Mar 19, 2008)

Thanks for posting. It shows how knowing your specific market is really important. I like to make things myself; and Mom taught me that when I was 3 or 4 years old when we would finger paint on butcher paper on the floor of the kitchen.

There seems to be a huge market of younger people who never finger painted with their mothers, and who love to assemble things (exploring how to create). IKEA is doing an excellent job of marketing to them.


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## stevenhsieh (Jan 8, 2010)

They are marketing to first time home buyers, younger families, college students.


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## JGM0658 (Aug 16, 2011)

Well, the question that comes to my mind (not having read the article) is that if they are equating* assembling* a piece of furniture with *building* one. If they do someone should tell them they are quite two different things. IKEA's popularity is IMO due more to their wonderful designs (and cheap) than from the assembly part.


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## 33706 (Mar 5, 2008)

JGM: Did the link stop working? This thread is *ALL ABOUT *the article, published in the Harvard Business Review.


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## 33706 (Mar 5, 2008)

*cr1:* The whole point of this thread is about targeting clients to whom the appeal of participating in the finished result is of value. *If a small e-business retailer/builder can reduce huge freight costs while simultaneously adding the value-added bonus of owner participation, it's a great strategy to consider*.


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## pierce85 (May 21, 2011)

The link from poopiekat was basically a press release of the forthcoming article that details the research, methods and conclusions of the authors. So for those concerned about the "lack of research" here's a link to the article itself - http://www.people.hbs.edu/mnorton/norton%20mochon%20ariely.pdf

Enjoy

And for those who "take everything with a pinch of salt" I couldn't find a Dick and Jane version for ya. Sorry.


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## 33706 (Mar 5, 2008)

*Thank You, pierce85!*
I've resigned myself to accept that a certain element always exists who will come in and dismiss a cogent, highminded thread with a broad stroke of the hand. I can only assume that they are not at all involved in e-commerce. This whole thing was posted for possibly to benefit the new entrepreneurs who are trying to resolve the dilemma of shipping bulky items reasonably. Thanks for posting the link! I had a similar link in pdf, but I could not get it to open so I deleted it from my original post. Your participation,* pierce85*, is most appreciated.


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## pierce85 (May 21, 2011)

My pleasure, poopiekat.


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## Sylvain (Jul 23, 2011)

Well,
I don't know how is your wife.
When my wife dreams of something, she wants it for yesterday.

That is where it is difficult to beat IKEA.

I must also recognise that I am very slooow. I like to take my time to design and then to realise the project.


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## 33706 (Mar 5, 2008)

Sylvain,
This thread is about how an entrepreneur may tap into Ikea's marketing philosophy to resolve excessive freight costs, and capitalize on the psychological benefits of owner participation in the creation of a piece of furniture. Are you using a translation service?


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## Viktor (Jan 15, 2009)

Nice find, pierce85. When I could not find the paper through ISI I began to suspect that they were not able to publish the research.
In addition to the value of owner participation the aforementioned strategy allows for deeper customization. Lots of parts will be interchangeable. For example, you could assemble a dresser of the desired size just by ordering your kit with the side panels height you fancy and a matching number of drawer parts.
The approach works for model airplane kits and such, why not for furniture? I suspect thought that the market segment will be very narrow.


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## Roger Clark aka Rex (Dec 30, 2008)

Poopie,
If you take a look at the Ikea company you will see that it excels in areas that leave any competitors in the dust.
We live in an "instant" world of varied tastes and design, and Ikea realized this and catered for people who wanted design, function, durability, finish and took cost into account.
Like most European manufacturers and customers, crap is not tolerated well, so items conformed to standards desired. Ikea is a Swedish/Dutch company and their greatest number of outlets is situated in Germany, which should enforce the notion that if the Germans buy it, it must be good.
Most furniture design has been repetition designs from years or centuries gone by, the only really new designs were G-Plan design by Scandinavians back in the 60's.
I believe Ikea makes an all out effort to satisfy their customers by offering; Modern stylish and functional designs, that are manufactured under excellent quality control, for content, fit and finish, ease of assembly and making sure all parts and components together with clear and concise instructions are all part of the Ikea experience. 
Additionally, Ikea is not a "dirty word" when one is asked where they bought their furniture because it serves as a sign you have the best of the best, assemble yourself furniture.

For LJs the task to compete with Ikea would not be impossible, but difficult. If you can produce close tolerance parts and follow the other quality controls that Ikea demands, then you can succeed even though your offerings may not be of modern design


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## 33706 (Mar 5, 2008)

Well, I'm simply astounded by anyone who would find it necessary to dismiss or challenge the work of eminent scholars, by those Lumberjocks who never even knew of the studies published in academic journals, until I posted the overview here. From the outset, my goal here was to perhaps give some ideas to those woodworking entrepreneurs who want to ship their products but became daunted by huge freight costs. It was for them that I brought up the concept of break-down shipping with the added bonus of end-user satisfaction through participation in the construction of the item they purchased. Just scan the 'Sweating for Bucks Through woodworking" forum, there are plenty of people trying to overcome the hurdle of huge freight costs.
I wonder…do my nay-sayers have ANY cogent words of advice for those who are stymied by high freight costs? Or is it just more fun to try to skewer my supportive words to those who wish to find their niche in marketing their wares? Or perhaps we should add "mentoring" to the taboo list, right next to religion and politics. Topic of my next thread: * "How Many Drill Bits Do You Own?" *
Thanks to those of you who posted in kindred spirit!


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## Sylvain (Jul 23, 2011)

I am aware that it is about IKEA marketing.
I just pointed out another aspect that might explain their success. 
It is also linked to the packaging because you can put it directly in your car without having to make arrangement for the transport + having to take a leave day + waiting for delivery.
(There are two IKEA shops around Brussels where I live)

My mother language is French.
I do my best to speak English.
I will use the spell checker from now on.
However it does not detect any problem with my previous message, except for "slooow" which was deliberately written so .
Is it the use of UK English? ("s" instead of American "z")
Have a good day.


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## rance (Sep 30, 2009)

One good example for shipping purposes is the Student Desk from good ole Matthias Wandel:

http://woodgears.ca/student-desk/index.html

Of course the assembly is only temporary.


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## CartersWhittling (Jan 29, 2011)

I can see both sides of the arguement saying that many buy IKEA only because its cheap and others because of the labour involved. I know for me each are compelling reasons. Like the Wenzloff & Sons saw kits. I am going to buy 2 kits for a tenon and carcass saw, because for one it is half the price of buying a completed saw, and second I like the put saws together and making the hanldes myself.


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