A chic and comfy chair is a gaming room staple. But today, gaming chairs are more expensive than ever. From Secretlab and Herman Miller to IKEA and Wayfair, seating giants have slapped a 10-20% increase on the purchase cost.
Everyone seems to wonder about the prospects and predictions about these price hikes. But why is that, why have gaming chair prices gone up so much in the last few months?
Gaming Chairs Price Increase in 2022: What are the prospects, should you buy a gaming chair now?
It all picked up the pace in early 2020. The nemesis of COVID-19 disrupted the global supply chain. At the same time, the lockdown sent people into a home improvement frenzy and indoor hobbies. So, the demand for gaming chairs and different pieces of furniture skyrocketed.
In the face of hyped-up demand and an even greater supply shortage, price increase didn’t come as a shock! We’ll analyze the primary causes of the phenomenon to see whether you should buy a new chair now or wait until the dust settles.
Fractured Logistics & Factor Markets
A factor market is the complex setup of raw material and labor supply. Transportation of such items from origin to their final destination as consumer products is called logistics.
In case of a pandemic, both operations were badly affected and mired in stock-outs. Thus, the inflationary pressure on gaming chairs is not only led by a demand pull but also an unprecedented cost push.
Freight Cost
East and Southeast Asia is the manufacturing hub of gaming chairs. Two years earlier, the cost of 40-foot shipment docking in the United States was $5,000, which now stands above $20,000.
Items like fabric, lumber, and upholstery are considered low-value imports. However, they are also paying a massive 20% tariff on sourcing costs to enter your homes! Canada’s government imposed up to 295% levy on certain domestic seating merchandise from China and Vietnam.
Furniture retailers prefer ocean freight over other means of international express. And they couldn’t resist this quadrupled surge in shipping cost without passing it on to the customers.
Truck Drivers
Semi-trailers and truck drivers are the backbones of domestic transport. They dispatch consignments to the relevant warehouses and consumer outlets.
The trucker shortage was already a problem in the US and Europe, delaying wait time by weeks. The outbreak of the novel virus and subsequent shutdown have exacerbated it.
As Vox reported in January: “The US is experiencing a shortage of more than 80,000 truck drivers, according to the American Trucking Associations… About 72% of America’s freight transport moves by trucks. The International Road Transport Union surveyed 800 companies in 20 countries. About 20% of drivers’ positions were unfulfilled in Eurasia.”
Shipping Containers
The economies worldwide are facing a lack of enough containers. Orders cancellation and lockdown had placed them in the wrong places. China first reopened manufacturing and pushed container prices in a continuous upward spiral.
On arrival of the vessels, queuing and berthing time is exploding due to the shrinking port capacity. Small businesses are already unable to catch up with truckers. So, the containers are taking more time to turn around.
All this has led freight companies to add surcharges for holding periods. Shipping ergo chairs is now a prolonged and pricey process reflecting on the price tag.
Labor Shortage
Micro and medium-sized enterprises dominate the labor-intensive furniture industry. A receding workforce welcomed the recent boom in gaming chairs’ demand.
Several companies furloughed employees during the shutdown. Then, governments around the world announced unemployment stimulus packages. It was much harder to draw labor back to the daily grind.
The pandemic has shifted the focus on occupational health and security. For example, Zhejiang Henglin Home Furnishings Company had to raise salaries by 30% to invite skilled applicants.
Spiking prices are also the result of more orders and fewer hands. Equipment manufacturers are losing or revising previous contracts, let alone acquiring new ones!
Raw Materials and Parts
The scarcity of metal added to the woes of hefty production costs. Since construction and automobile sectors were completely halted, experts didn’t expect a high demand for steel and aluminum. Later, the labor shortages in mines and assembly lines ruled out an instant rebound.
China is scrutinizing unsustainable industries to meet climate goals. It has led to cutbacks, further fuelling the prices of essential commodities. The economic sanctions on Russia are also playing a key role given the country’s high production rate of aluminum and pig iron.
The climbing cost of raw materials has infested fiber, kits, boards, springs, and leather too, thus all parts from which a chair is made are also affected by a sharp price increase
Foam Factories
Texas is the powerhouse of foam production, an inalienable component for American-made gaming chairs. In February last year, a severe winter storm hit the southern coast (yes, another natural disaster.)
It forcefully shut down almost all the plants of propylene oxide – the chemical feedstock of foam. The plants are yet to work at full capacity. Although the impact was indirect and temporary, it was readily felt across the country and beyond.
The locally manufactured goods also took a deadly blow after imported ones. It affected foam-reliant pieces for the time being, from mattresses and sofas to cushions and ottomans.
Zero-COVID Policy
A huge chunk of gaming chairs come with a “made in China” tag. The country is following a strict zero-Covid strategy. Cities like Shenzhen, Dongguan, and Changchun are still in a localized lockdown.
Shanghai authorities enacted the biggest citywide lockdown in April to worsen the matter. Public transport and industrial activities are suspended in order to leash the rampant cases.
The port cities are witnessing unending queues. And the restrictions on truckers from Hong Kong have exacerbated the scenario. Meanwhile, manufacturers have a hard time sourcing raw materials and sending off finished products. The global supply chain continues to bear the brunt.
Should you buy a gaming chair now – that’s the question!
The mounting cost of producing and shipping gaming chairs has increased consumer prices. However, the challenges are to stay for a while.
In view of congesting ports and health concerns coupled with the impending energy crisis and high inflation, further price hikes are expected well into 2025. And the current prices will define the new normal. So, browse through a store and get the best gaming chair for you as soon as possible.
