Latest / Pricing Power Podcast with Fexingo: How Businesses Set Prices, Raise Margins, and Win Customers
How IKEA Priced Its Billy Bookcase for 40 Years
In this episode, we look at how IKEA kept the Billy bookcase price nearly flat for decades while still maintaining healthy margins. Lucas and Luna break down the engineering and supply chain tricks that allowed IKEA to absorb cost inflation and even lower the price over time. They discuss how the flat-pack design saved shipping, how changes to particleboard thickness and shelf depth cut material costs, and why IKEA doubled down on a single SKU instead of introducing multiple sizes. The hosts also touch on what other businesses can learn from IKEA's approach to price anchoring and cost…
The skinny
The skinny isn't ready yet — notes appear once the transcript is processed.