Tile market price confusion is difficult to guarantee quality

With the arrival of the home renovation season, many tile merchants are rolling out a variety of promotional offers to attract customers. However, the ceramics industry has grown increasingly competitive, with high raw material costs persisting. This has led some companies to cut corners by using substandard materials and reducing product quality. Recently, a netizen named "Monster Monsters" posted an article titled "Tiles Priced This Way!" on a local forum in Huizhou City, Guangdong Province. The post claimed that the ex-factory price of tiles is significantly lower than the selling price, leaving plenty of room for substantial profits. According to several informed sources, the cost of ceramic tiles typically amounts to only 10% to 30% of the market price. This post sparked significant discussion among netizens. One user commented that a store's selling price could be up to eight times the cost price. Is the tile market really this profitable? What factors influence tile prices? To find out, a reporter visited several decoration material stores in Huizhou, Guangdong, and consulted industry insiders. The reporter learned that the market is a mix of good and bad players. Some companies prioritize sales over quality, focusing solely on promotions without investing in research and development. Additionally, designers, home renovation companies, and tile distributors often agree on receiving rebates, which also drives up tile prices. The chaotic pricing in the tile market calls for standardized management. Netizen "Monster Monsters" pointed out that reputable brands that invest in research and development and design tend to have higher costs. On the other hand, some so-called "big brands" achieve quick success through heavy advertising rather than innovation. For instance, take a ceramic tile with a factory cost of 120 yuan. Its ex-factory price might be 200 yuan, while the distributor’s cost would be approximately 100 yuan, bringing the total cost to 300 yuan. Ultimately, the tile is sold in stores for as much as 1,000 yuan. According to "Monster Monsters," the raw materials used in making ceramic tiles—such as common clay, quartz sand, and glaze—are similar across brands. The key differences lie in design, process, and technological research. Amidst such significant profits, who reaps the benefits? The netizen's analysis drew attention from many users. A netizen named Zhu Junjie 1983, who works as an engineer at a ceramics factory, mentioned that the cost of a 60 cm x 60 cm polished tile is only about 12 yuan, while an antique brick costs roughly 30 to 50 yuan. In response, some netizens expressed frustration, stating that as laymen in renovation matters, they struggle to differentiate between good and bad tiles. For instance, one user recounted purchasing a polished tile for 180 yuan during renovations, thinking the price wasn't too high, only to later discover it was far above the market rate. During a recent visit to Huizhou's Three-Ring Decoration City and Jiangbei Tile Store, the reporter observed that despite similar qualities among different brands, price differences were quite significant. At one tile shop, the reporter inquired about an 80 cm x 80 cm tile priced at 168 yuan. The salesperson mentioned that this tile could be discounted by 50%, though supplies were limited. Alternatively, they recommended another brand of the same quality at a cheaper price, saving 30 yuan per tile. The salesperson emphasized that both brands came from the same manufacturer, implying similar quality despite the price difference. Furthermore, many tile manufacturers produce multiple brands simultaneously. While the quality may remain consistent across brands, prices vary. The reporter noticed that similar tiles could differ in price by 20 to 400 yuan. Additionally, ceramic tile merchants often offer enticing discounts to lure customers, such as "Buy 1,000 yuan worth of tiles and get 5% off." Such promotions make deals seem appealing, but even with discounts, businesses still maintain a profit margin of over 30%. An expert explained that the price of a square meter of tiles depends heavily on materials and production processes. Some manufacturers charge 300 yuan per square meter, while others sell at only 10 yuan per square meter. Factors such as brand reputation, technology, labor costs, and transportation expenses contribute to the wide range. It was noted that the profit margins for tiles can reach up to four times the production cost. Why then, do tile prices increase? The reporter discovered that in smaller tile outlets in the Shuikou area of Huizhou, prices were much lower compared to those in the Three-Ring Decoration City and specialty stores. Mr. Zhang, who has worked in tile outlets for five years, explained that lower rental fees and utility costs in suburban areas result in reduced prices. In contrast, hypermarkets incur higher operational costs, pushing prices upward. Moreover, industry insider Mr. Zeng revealed that in the home renovation sector, the price disparity in decoration materials arises partly because businesses offer designers rebates for guiding purchases. This practice contributes to inflated prices. The reporter also received complaints from some homeowners who admitted they lacked knowledge about building materials. When renovating, they relied on home improvement designers’ recommendations, only to later learn that the materials purchased were overpriced due to kickbacks paid to the designers. An anonymous building materials dealer shared that due to the nature of the construction industry, most homeowners are novices in the building materials field. Consequently, they trust the advice of designers, creating a hidden industry norm: whenever a designer accompanies a homeowner to buy materials, the store owner pays the designer a commission. Naturally, these costs are passed on to the homeowner. The reporter learned that these commissions have been rising, usually amounting to 20% to 30% of the turnover, with some cases reaching 40% to 50%. Under these unspoken rules, homeowners end up footing the bill for these rebates, sparking widespread dissatisfaction among consumers. A lawyer advised signing contracts to protect consumer rights. Many designers maintain close ties with building materials manufacturers. If a designer accompanies a customer to purchase materials, they receive a commission. To foster better cooperation, some major brands and home improvement companies sign agreements where the designer is responsible for promoting each other’s products. Upon purchase, the material supplier returns a "commission" to the home improvement company and the designer. Consumer Mr. Lin emphasized the importance of purchasing tiles independently. "When buying materials, avoid sharing personal details like your name, phone number, or property information with sales staff. Clearly state that you’re the homeowner and request the lowest possible price." Industry experts and lawyers recommend including specific product models, prices, and equivalent branded products in contracts. Contracts should also specify no additional costs beyond the budgeted amount. Always compare prices and verify the enthusiasm of designers before making purchases. Ideally, buy materials after completing renovations, and if possible, hire a professional to assist. Industry insiders stress the urgent need for standardized regulation of these markets. Although many major ceramic brands have transitioned to brand-focused competition, the ceramics industry as a whole remains immature and unregulated. High market demand provides space for small businesses to operate. Increased competition and persistent raw material costs have driven some companies to cut corners by using inferior materials, lowering prices and compromising quality.