Aku and Armo’s Chairs is a new Joensuu, Finland based private company that had no idea where to start. They just had a perfect plan for advertising the chair business and that’s what got them into it. They had no idea where to get the products done cheap and effective. They Googled “Plastic Chair Manufacturers in Finland” and dealt with the company that was there on the top. They didn’t do any research or anything, just the company that appeared on the top, they started buying from them.
They weren’t able to sell many units and they always wondered how their competitors are selling better products at a cheaper price. They didn’t have an idea that they are getting their manufacturing done at plastic mold companies in Dongguan, China.
Aku and Armo’s Chairs now started buying from a manufacturing company based in Tallinn, Estonia because they were selling the same quality chairs at much better prices. They still weren’t able to compete with the rest in the market in terms of prices but they were able to sell cheaper and their stunning advertisements made them stay in the business. They weren’t able to sell tons of chairs yet though.
The founders kept wondering all the time how their competitors are selling the chairs so cheap. They didn’t end their research and finally found out the secret of their competitors. They now knew that the competitors are buying from this particular manufacturer in Dongguan, China and that’s why they are able to sell the same quality product at lesser than half the prices. The founders of Aku and Armo’s Chairs straight away flew to Dongguan, China and made a deal with the factory there. After they started buying from Dongguan, China, they started selling their products with tags 60% off and made much more sales than their competitors.