[kalleboo]

> their profit margins would likely suffer as a consequence

They would certainly have to raise prices if they raised the quality, and then they lose their customers to competitors who are cheaper (and even worse quality - have you ever tried the cheap furniture from a hardware store?)

Furniture is a competitive market, and IKEA are very aggressive at undercutting their competition (they have directives to never let their competitors be cheaper) and they manage to sustain profits though their scale of operations (and some good engineering - IKEA have hollow tables filled with cardboard that's more durable than some competitors solid MDF stuff).

Basically people aren't willing to pay for quality. IKEAs trick is to be both cheap and have an acceptable level of design and quality.