The foundation of IKEA’s success has been to offer consumers good value of money. IKEA’s approach starts with a global network of suppliers, which now numbers 2,700 firms in 67 countries. An IKEA supplier gains long-term contracts, technical advice, and leased equipment from the company. In return IKEA demands an exclusive contract and low prices. IKEA’s designers work closely with suppliers to build savings into the products from the outset by designing products that can be produced at low cost. IKEA displays its enormous range of more than 10,000 products in cheap out-of-town stores. It sells most of its furniture as kits for customers to take home and assemble themselves. The firm reaps huge economies of scale from the size of each store and the big production runs made possible by selling the same products all over the world. This strategy allows IKEA to match its rivals on quality, while undercutting them by up to 3.0% on price and still maintaining a healthy after-tax return on sales of around 7%.