How To Start A Kitchen Cabinets Business(Part 3)

How Much Profit is in The Kitchen Cabinets Business?

How profitable your cabinet dealership business can become depends on your target market and the type of cabinets you sell.

Who is the target market?

Defining your target market or your ideal client is crucial to your business plan. Whom would you want to buy your kitchen cabinets? Are you targeting the high-end market or low-end market?

Look into their income level, job, age, gender, location, buying habits, etc. The information you gather will help determine your pricing scheme and help you in your marketing efforts.

The target market for kitchen cabinets is mainly contractors, home builders, interior designers, and architects. Property owners ultimately pay for the cabinets, but these professionals are the gatekeepers to property owners. Property owners often ask for recommendations. Many will buy the cabinets that their contractor, builder, interior designer, or architect recommends.

Pricing the kitchen cabinets (cost)

How much can you charge customers?

Kitchen cabinets may be sold individually, or a set fee may be charged per project.

Home Advisor, a US-based digital home services marketplace that matches homeowners and service professionals, presents the following table showing Kitchen Cabinet options and prices:

HomeGuide estimates that the average homeowner will spend $3,200 to $8,500 to replace kitchen cabinets of average quality in a standard-sized kitchen.

How much profit can a cabinet sales business make?

When you buy directly from the manufacturer, you cut out the middleman so that you can offer your customers a lower price for your cabinets. Usually, the profit margin on kitchen cabinets for dealers ranges from 25-50%. Often, the less expensive the cabinet, the higher the margins.

Choose Your Distribution Channel: Online or Offline?

Online business

Demand for online shopping is increasing and manufacturers can now sell their products on a much larger platform than before. These factors are fueling the growth of the kitchen cabinets market.

With an online business model, you can sell your cabinets to customers anywhere in the world. There’s no limit to the online tools and features that you can instantly access to help you succeed in a fast-growing, fast-moving, and very competitive market.

Offline business

Having an actual showroom where your customers can see and touch all the kitchen cabinets you carry is your big advantage. Make sure to design a showroom that appeals to customers, and is easy to navigate.

Here are some showroom design tips to consider:

• Excellent lighting and comfortable seating
• Knowledgeable and friendly staff
• Need-based kitchen displays
• Kitchen design software
• Different price points
• Virtual reality goggles for 360 renderings
• Interactive visual boards

What Kind of Cabinets Will Bring You Business?

Every kitchen needs cabinet storage for tableware, cooking utensils, etc. The style of cabinetry should match the existing design throughout the rest of the house.

• Villa Custom Kitchen Cabinets
• Apartment Kitchen Cabinets
• Whole House Cabinets

For more articles:

How To Start A Kitchen Cabinets Business(Part 1)

How To Start A Kitchen Cabinets Business(Part 2)

7 Tips to buy kitchen cabinets from China(part 1)

7 Tips to buy kitchen cabinets from China (Part 2)

How to layout kitchen cabinets

How to make your cooking in kitchen more efficient?

9 advice to help you make a satisfactory kitchen cabinet

What's the process of a kitchen renovation?

How to Order Kitchen Cabinets from Rebon?

How to Clean Lacquered Kitchen Cabinets

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