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julieste

What is the standard profit margin on kitchen cabinets?

julieste
3 years ago

I was just once again re-reading this thread https://www.houzz.com/discussions/5647040/white-shaker-battle-ikea-vs-the-rest-of-the-cabinet-world


The Cook's Kitchen who was the originator of the thread states, "If you are a KD, I'd ask you to keep your margins at a standard good deal rate that you would sell this to a customer and still make money." Another places in the thread, this is the comment from The Cook's Kitchen: "I ask that you keep the margins to industry standard 30-40%, and neither lowball or highball them." Then, The Kitchen Place states, "Price based on 35% profit margin in southwest ohio."


Here is what I am trying to figure out. If I go to a kitchen designer who sells cabinetry, I can expect that about 30% to 40% of the price is a profit for the KD. Cabinets that price out to 10K, in reality are cabinets that themselves cost 6K to 7K. If I go to Lowe's or another big box store, am I also looking at a profit margin in this range, or is the profit margin lower so, for example, for my 10K I might be able to get cabinets that are really maybe 8K worth of cabinets with 2K going to margin. And, if I go to IKEA is the profit margin even less (I know that need to assemble is another factor here)?


I completely understand that different materials, construction techniques, features etc. are what drive the price of cabinetry. I am just trying to figure out, assuming relatively equivalent quality cabinets, how much extra I will be spending if I go the standard KD route with profit margins of 30% to 40% vs some place else.


Thanks.

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