What You Are Paying For at the Premium End
The premium in a ₹2–5 lakh sofa over a ₹40,000 sofa is not primarily margin. It represents: a kiln-dried hardwood frame that requires skilled joinery (4–6 hours of frame construction vs 1 hour with staple-joined particleboard), HR foam at 40 kg/m³ which costs 3–4× more per kg than bonded foam, full-grain leather from certified Italian tanneries which costs 8–12× more per square metre than PU leather, hand-cut and hand-sewn upholstery which requires 8–12 hours of skilled labour per piece, and quality control that includes foam compression testing and frame joint load testing. None of these inputs are visible in the finished product — which is why buyers routinely undervalue them until the budget alternative fails.