Business Plan Document

Furntec Pricing Engine

Customer-facing dynamic configurator — board + laminate + hardware → instant locked price with declared BOM.

1. Executive Summary

The Furntec Pricing Engine is the customer-facing and B2B trade-facing product configurator that transforms Furntec.in from a catalogue website into India's first made-to-order interior platform with real-time, brand-level configuration pricing.

Customer selects board brand + laminate brand + hardware brand + dimensions + material tier → system calculates from live BOM and CM cost data → price locked instantly at checkout. This is Furntec's primary competitive differentiation — no competitor in India offers declared, customer-chosen input brands with instant locked pricing across furniture, doors, and frames.

Built in four phases across Year 1–2 per the master business plan: Phase 1 Assisted (WhatsApp) → Phase 2 Online Configurator → Phase 3 Full Dynamic Engine → Phase 4 B2B Portal with slabbed trade pricing.

Revenue attribution: Pricing Engine directly drives D2C conversion (target 3.5% website conversion by Month 12) and B2B self-service (250+ active trade accounts by Year 2). Estimated direct revenue influence: 60%+ of Rs. 34 Cr Year 1 and 70%+ of Rs. 90 Cr Year 2.

2. Product Definition & Customer Experience

Phase 2 (Month 4–9): Online configurator — size + material tier + laminate brand → instant price displayed; add-to-cart or share-quote PDF; B2B login with trade pricing visible (8% default slab discount for architects/dealers).

Phase 3 (Month 10–18): Full dynamic engine — customer selects board brand + laminate brand + hardware brand independently; system calculates from live BOM database linked to CM cost inputs; saved configurations; re-order from saved config; price locked at payment.

Phase 4 (Month 19–30): B2B portal — architects and dealers see territory/slabbed pricing; save project configurations (full home packages); generate quote PDFs with Furntec branding; track order status; bulk project quotation for institutional BOQs.

Declared BOM display: Every price quote includes line-item breakdown — board/core, laminate/finish, hardware, labour/CM, logistics — with brand names visible. This is the "material transparency" promise made tangible in the UI.

3. Pricing Architecture & Tier System

Material tiers drive margin bands: Essential (28–35%), Premium (35–44%), Signature (45–55%), Bespoke (55–65%). Pricing Engine applies tier margin to total cost from Costing Tool — never hardcoded sell prices except catalogue anchor SKUs.

Input brand multipliers: Board (Commercial BWP 1.0× → Century 710 1.28× → Customer-specified 1.55×); Laminate (Economy HPL 1.0× → Natural Veneer 1.45×); Hardware (Ebco 1.0× → Blum Aventos 1.35×). Multipliers maintained in input_brands MSSQL table.

Size scaling: Furniture and doors priced on area factor (W×H / standard 900×2100). Custom dimensions supported with linear interpolation — no "call for quote" for standard custom sizes.

B2B pricing: Default 8% discount on sell price for trade accounts; tiered slabs for dealers (10–15% based on annual volume); institutional BOQ pricing via manual override with CEO approval — logged in system.

Bundle pricing: Door + frame bundle default on every door quotation — target 70% attach rate; bundle discount 3–5% on combined line vs separate purchase.

4. Revenue Model & Unit Economics

Direct revenue: Every order flowing through Pricing Engine. Year 1 target Rs. 20 Cr furniture + Rs. 10 Cr doors + Rs. 3 Cr frames attributed to configured/quoted products.

Conversion uplift: Industry furniture e-commerce conversion 1.2–1.8%. Furntec target 3.5% with instant pricing (eliminates "wait for quote" abandonment). Incremental revenue from conversion uplift: estimated Rs. 4–6 Cr Year 1.

AOV uplift: Configurator cross-sell (furniture + doors + frames in one session) increases average project value 25–40% vs single-category purchase. Target AOV D2C: Rs. 85,000; B2B project: Rs. 2.5–8 Lakhs.

Development investment: Rs. 35–45 Lakhs over 18 months. Includes configurator UI, BOM engine, B2B portal v1, quote PDF generation, MSSQL integration.

Payback: If Pricing Engine drives Rs. 4 Cr incremental revenue at 36% gross margin in Year 1 = Rs. 1.44 Cr gross profit vs Rs. 45 Lakhs investment — payback under 4 months from Phase 3 go-live.

5. Technology Stack & MSSQL Integration

Frontend: PHP-rendered configurator page with AJAX pricing logic — dark premium aesthetic matching Furntec brand positioning.

Pricing logic: PHP pricing module (includes/pricing.php) with JS instant calc for UX — can migrate to SQL stored procedures for complex institutional BOQs at scale.

API: POST /api/pricing/calculate — accepts configuration JSON, returns PriceResult with BOM array, sell price, B2B price, margin %. Every quote logged to pricing_quotes table.

Database tables: pricing_quotes, bom_templates, material_tiers, input_brands, products, b2b_accounts. Quote-to-order conversion tracked via converted_to_order flag.

Hosting: Hostinger Shared Hosting PHP plan — no build step required; static assets via CDN; MSSQL on Azure SQL (external connection from shared hosting).

6. Go-to-Market & Channel Strategy

D2C: Google and Meta ads drive to configurator landing — "Configure your wardrobe in 2 minutes, see exact price". Visual, specific, high-intent buyer.

B2B: Sample kits (Rs. 12–18 Lakhs Year 1 budget) drive architects to configurator with pre-loaded trade login. Target 25 architect kits Month 1–2, 200 by Month 12.

Dealers: Territory pricing visible on dealer login — display support SKUs (Essential/Premium doors) with instant reorder from saved config.

Institutional: BOQ upload interface (Year 2) — architect uploads Excel BOQ, system maps to Furntec SKUs and returns priced quotation in under 30 minutes.

WhatsApp bridge: Phase 1–2 share-quote generates WhatsApp-friendly link with locked price — bridges assisted sales to self-service.

7. Competitive Moat & IP

First-mover: No Indian interior brand offers customer-selectable input brands with instant locked pricing. Pepperfry/Urban Ladder = fixed SKUs. Carpenters = opaque quotes. Modular brands = fixed designs.

Proprietary IP: BOM library (200+ SKUs × 4 tiers), brand multiplier tables, CM cost linkage, quote history — collectively defensible data asset.

Switching cost: B2B accounts with saved project configurations, trade pricing slabs, and specification history — high friction to switch to competitor.

Patent/trademark: "Furntec" brand, declared BOM methodology, LVL engineering documentation — trademark registration in progress.

8. Roadmap & KPIs

Month 4–9: Phase 2 configurator live — furniture + doors. KPI: 500+ self-service quotes/month, 15% quote-to-payment conversion.

Month 10–18: Phase 3 full engine — all three product lines, saved configs. KPI: 2,000+ quotes/month, 25% conversion, Rs. 15 Lakhs/day booking.

Month 19–30: Phase 4 B2B portal. KPI: 250+ active B2B accounts, 40% of quotes self-generated by trade.

Year 3–5: Personalised recommendations, repeat-order automation, architect specification rate dashboard. Revenue supported: Rs. 200 Cr → Rs. 550 Cr.