Product Example: 3-Seater Fabric Sofa
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Style: Modern minimalist fabric sofa
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Material: Solid wood frame + high-density foam + fabric upholstery
| Cost Component | Teambuy Direct Purchase | Traditional Retail |
|---|---|---|
| Product Sourcing | Direct bulk purchase from manufacturers, lower prices | Manufacturer → Wholesaler → Distributor → Retailer, price increases at each stage |
| Warehousing Costs | No local warehousing, products go directly to pickup points | Requires storage in NZ warehouses, adding extra costs |
| Labor Costs | No local staff or store employees | Requires sales staff, warehouse workers, and delivery personnel |
| Retail Space Costs | No physical stores, reducing rent and operational expenses | High rental costs for showrooms and retail spaces |
| Logistics Costs | Bulk shipping to NZ, customer pickup, no last-mile delivery cost | Local distribution and home delivery increase costs |
| Pricing Model | Low margins, profits come from high volume sales | High markup needed to cover operational expenses |
| Final Price | $899 (bulk purchase + low overhead) | $1,799 (multiple markups + high costs) |
Conclusion: How Much Can You Save with Teambuy?
✅ Buying through Teambuy saves around 50% compared to traditional retail
✅ Eliminates middlemen, warehousing, and staff costs, passing savings to customers
✅ Best for price-conscious shoppers willing to wait for group orders
