How To Start A Kitchen Cabinets Business

Kitchen Cabinet Sizes and Dimensions

Are you thinking of starting a kitchen cabinets dealership business? That’s a good idea!

What drives the demand for kitchen cabinets is the continuous increase in the construction of residential buildings worldwide. Some homeowners look for space-saving storage that optimizes the use of small spaces. Other homeowners want more and larger cabinets for storing food and cookware, looking for conveniences such as pull-out drawers, shelves, and wine racks.

But aside from residential users, there has also been a constant demand for new kitchen cabinets from commercial and institutional establishments.

Research and Markets indicates that the global market for kitchen cabinets was estimated at US$15.6 billion in 2020. The industry is forecasted to reach US$22.5 billion by 2027. The US market alone was estimated at US$4.2 billion in 2020.

Would you like a piece of the billion-dollar kitchen cabinets pie?

Many cabinets are sold through kitchen cabinet dealers that have tie-ups with large cabinet manufacturers.

In this article, you will learn how to start your own kitchen cabinets dealership business.

Best Kitchen Cabinets Dealers Company Business Plans

Best Kitchen Cabinets Dealers Company Business Plans

Take time to create a business plan for any business that you want to start

Creating a solid business plan should be your first step toward success in your business. Your business plan is your guide to keeping your business on track.

If you’re serious about putting up a business, you need to research the market you’re getting into. Also, look at your competitors’ books, find out their inventory level, if they have stock or custom cabinets, and their sales and distribution plans.

A business plan will keep you focused on your goals and keep you moving forward when faced with challenges.

See to it that your objectives, strategies, and solutions for possible problems are realistic.

A well-made business plan will help you distribute resources properly, handle problems and unexpected challenges, and help you make the right decisions.

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Do the Market Research

Primary Research

For primary market research, do a comprehensive competitor analysis. Research sales data and analyze current sales practices’ performance to know your competitors’ current situation. You should also consider your competitors’ plans.

You also need to have a deep understanding of your customers’ needs and preferences. Conduct a market survey and prepare the following questions for your target customers:

  • What factors do you consider when purchasing kitchen cabinets?
  • What is the most important factor that you consider when buying kitchen cabinets?
  • What function do you expect most for your kitchen cabinets?
  • What is the fair price for different kinds of kitchen cabinets?

Online Research

For online research, visit B2C and C2C platforms and look for the following:

  • what brands and styles are the best-selling kitchen cabinets
  • keywords that pop up in the search bar when you search for “kitchen cabinets”
  • comments on the popular kitchen cabinets

Learning More About The Kitchen Industry From Your Competitors

When you’re starting a new business, you’ll be in big trouble if you won’t take time to know about your competitors.

Try to discover what you can do to have an advantage over them. Are there products or services that they’re not offering but that customers are looking for? Are they mainly selling stock or ready to assemble (RTA) and semi-custom cabinets? Then maybe you can focus on custom cabinets and offer kitchen design services.

Look at your competitors’ marketing efforts and selling tactics as well. Learn from what others have done well, and also learn from their mistakes.

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Start A Business in Kitchen Cabinets: What are the Advantages and Disadvantages?

One of the simplest ways to start a business for the first time is to open a dealership. But this doesn’t guarantee success. Good management principles still apply.

Advantages

  1. Lower risk

A dealership is considered a relatively more secure investment compared to starting a new business from scratch. That’s because you’re supported by a much larger, established company, which is your master dealer. The dealership has an established reputation and image, proven management and work practices, access to national advertising, and ongoing support.

The dealership business model has been tested and has been proven to be effective. Because of the established company’s proven success, getting a dealership business loan would be easier than getting a loan for an independent start-up business.

  1. No manufacturing costs

As a dealer, you’re reselling the products of another business. You don’t incur manufacturing costs, and you don’t suffer the burden of managing a manufacturing operation.

  1. Brand recognition and loyal customer base

When you buy a dealership, you won’t have to do a lot of the work that goes into branding and marketing an unknown start-up business. As a dealership, you also have access to an established, loyal customer base that’s already familiar with the brand.

  1. Solid dealership support

Businesses will go all out to support their dealers. After all, their business name is at stake.

The support offered to dealers includes assisting in pre-opening operations such as site selection, design, construction, financing, workforce training, and grand-opening programs. Some master dealers even give loans and other forms of financial assistance to their new dealers.

  1. Exclusive Territory

Often a dealership handles a specific territory with exclusive rights to sell the brand in that area.

Disadvantages

  1. High Initial Investment

The initial investment for dealerships is usually high, especially for big-name businesses. For kitchen cabinet dealerships with a physical location, you have to invest in finding a good location. You also have to spend on designing and building your showroom, on initial stocks, and hiring your staff.

  1. Limited Creativity

Since you’ll be doing business with an established brand, dealership agreements dictate how you run the business. There are limitations for dealers looking to explore, change or add to their company’s business model or brand. There are usually restrictions on the area that you can operate, the products you sell, and the suppliers you use because of the business model.

  1. Profit sharing

Buying a dealership means ongoing sharing of profit with the master dealer.

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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.

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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

Where to Find Kitchen Cabinets Manufacturers with Competitive Prices?

Google

Use Google to find “kitchen cabinet manufacturers with competitive prices.” You’ll get many hits, but if you filter your search to specific criteria, you’ll get better results. If you want to narrow down your search to a particular location, add that to your main search term, “kitchen cabinet manufacturers.” For example, you can search for “kitchen cabinet manufacturers in China” or “kitchen cabinet manufacturers Zhejiang.”

Alibaba

Alibaba is a Chinese company operating a massive online marketplace that connects wholesalers primarily based in China with businesses worldwide. In this marketplace, you’ll find all products that you can imagine.

From the home page, go to the search bar and click “Suppliers” then type “kitchen cabinets.” The key to getting reputable suppliers on Alibaba is to look for suppliers with the “Verified” tag.

Top 20 Kitchen Cabinets Manufacturers in China

Top 20 Kitchen Cabinets Manufacturers in China

Google

Use Google to find “kitchen cabinet manufacturers with competitive prices.” You’ll get many hits, but if you filter your search to specific criteria, you’ll get better results. If you want to narrow down your search to a particular location, add that to your main search term, “kitchen cabinet manufacturers.” For example, you can search for “kitchen cabinet manufacturers in China” or “kitchen cabinet manufacturers Zhejiang.”

Alibaba

Alibaba is a Chinese company operating a massive online marketplace that connects wholesalers primarily based in China with businesses worldwide. In this marketplace, you’ll find all products that you can imagine.

From the home page, go to the search bar and click “Suppliers” then type “kitchen cabinets.” The key to getting reputable suppliers on Alibaba is to look for suppliers with the “Verified” tag.

How to Become a Kitchen Cabinets Dealer?

Dealer Prerequisite

These are the usual requirements by manufacturers for dealer applicants:

  1. A showroom that’s at least 300 square meters.
  2. Initial investment capital of at least USD 200,000.
  3. Relevant experience in the construction or furniture business for at least two years.
  4. Excellent sales, design, and installation teams.

Dealer Support

These are what dealers can usually expect when they enter into a dealership agreement with manufacturers:

  1. Preferential discount for showroom interior design and display samples
  2. Training and software support on sales, design, quotation, and installation
  3. Promotions support, including event planning and brochure printing, etc
  4. Online marketing support, including website development, social media, ads, etc.

4 Steps to Start A Kitchen Cabinets Franchise or Dealership

Step 1: Apply

The first step covers the dealership application process up to the contract signing. A dealer applicant inquires about acquiring a dealership business. The kitchen cabinet manufacturer or wholesaler and the applicant evaluate each other’s qualifications. If they both decide that they are a good match to do business together, they then sign a contract and the new dealer pays a deposit for the dealership business.

Step 2: Build

The second step involves looking for a suitable location for your physical showroom. Once you’ve secured a site, you then plan, design, and build your kitchen showroom. When your showroom building is near completion, you place an order from the master dealer for the kitchen cabinets that will be displayed in the showroom. At the same time, you also start building your start-up operations team.

Step 3: Organize and Plan

For the third step, the master dealer trains your newly hired operations team on how to run the business while you wait for your shipment of kitchen cabinets. Then, together with your marketing staff, you create a promotions plan to market your soon to open showroom.

Step 4: Grand opening

Create a stunning display of your kitchen cabinets in your showroom. Make sure that your grand opening will be a spectacular, well-attended event. Invite prominent personalities in your locality to grace the grand opening and help with promotions. Continue with your online and offline marketing efforts to create awareness of your showroom and your kitchen cabinets.

How to Import Kitchen Cabinets From China?

Importing kitchen cabinets from China that you would sell in your dealership can be complicated and time-consuming. Especially when it’s your first time to do so. It would be of great help if you ask your chosen manufacturer for assistance in the importation process. They should be familiar with import regulations in China. Alternatively, you can hire a professional sourcing agent in China to make the process easier for you.

Read this article for more detailed information: How to Buy and Import Kitchen Cabinets from China?

Open Your Kitchen Cabinets Showroom

Kitchen Cabinet Samples

Be sure to have plenty of stocks of kitchen cabinet door samples that your customers can order so that they can easily visualize the cabinet in their own kitchen. That would also be their chance to judge the quality of your cabinets. This way, they can decide on the perfect color scheme and style for their dream kitchen.

Catalog

Create your showroom catalog where you feature all your products. It’s where customers discover all the latest styles and colors of your kitchen cabinets. The catalog should inspire them and help them in their kitchen project planning. You can have a printed or a digital edition that can be downloaded.

Kitchen Designer

A talented kitchen designer in your team will make your clients’ dream kitchen achievable.

Your clients will work with your designer to create, remodel, or update the clients’ kitchen. Discussing kitchen layouts, themes, colors, building materials, flooring, cabinets, counters, appliances, and accessories leads to sketches and drawings based on the client’s preferences.

Designers figure out the client’s project goals, prepare plans and create a timeline for the project.

Besides having design ability, creativity, technical knowledge, and product knowledge, a good kitchen designer should have the ability to understand clients’ needs and translate these needs into kitchen design.

Kitchen Design Software

When clients start planning their new kitchen, they face many options and need to make many decisions. Help your clients avoid being overwhelmed by using your kitchen design software to streamline the planning process.

Kitchen design software makes designing, planning, and building kitchens easier. Your kitchen design software lets your designer put ideas together and visualize the kitchen design. Look at how different combinations work in various types of kitchens.

The software also shows the challenges faced by homeowners in their kitchens. In seeing this, the kitchen designer can improve the efficiency of the kitchen.

Marketing for Your Kitchen Cabinets Online Shop

You can have the best quality kitchen cabinets in the world, but if no one knows about your company or your brand, you will have no sales. That’s why it’s important to create an effective marketing strategy to drive sales.

Here are some common online marketing strategies:

Sell on e-commerce platforms

Using big e-commerce platforms like Amazon gives you another avenue to reach potential customers. People are already familiar with these e-commerce sites, so the trust factor is there. You need to make sure that your listings stand out so that your products will attract buyers.

Product listings and search engine optimization (SEO)

How do you promote your kitchen cabinets business online?

When you open your kitchen cabinets online store on your own website or on e-commerce websites like Amazon, eBay, etc., make sure to create an attractive product listing that includes product photos, videos, and product descriptions.

The right way to promote your online business is to invest in smart rankings that match the customer’s desires or intentions. This is where search engine optimization or SEO comes in. SEO is an essential part of online marketing. It involves doing on-page (content on your website or your company page in e-commerce sites, and off-page strategies (like link building and influencer outreach) to boost your site’s rankings on search engines, mainly Google.

What are the relevant keywords that your customers use when searching for your company or your products? You want to come up in search engines when customers search for keywords or phrases relevant to your products or services. For example, when someone types “best kitchen cabinet” in the search bar, you want the kitchen cabinet that you’re selling to come up on top of the results page.

For on-page SEO to be effective, use the right keywords and related keywords in your product listings.

Online advertising and Google Ads

Online advertising allows your business to show your ads to people who are possibly interested in your products and services. It also gives you the chance to reach potential customers as they use different devices like desktops, laptops, tablets, and smartphones to click on Google’s search results.

One of the most effective methods of paid online advertising is Google Ads. It allows businesses to reach people using Google to search for information on products and services. When used correctly, Google Ads can send you a good number of people who want exactly what you have to offer.

Social media marketing

Convert those likes and hearts on your social media channels to actual product sales.

Social media lets you interact with and build a connection with your customers and prospects.

Create and share relevant, interesting content so that people visit your social media pages often. Show them through pictures and video what makes your brand unique. Ask them directly what content they’d be interested in. Show your expertise about your industry (kitchen cabinets, kitchens, home improvement). People interested in your content will have a reason to visit your website and look at what you have to offer them.

A survey by Stackla shows that 79% of people say user-generated content on social media influences their buying decisions. Find out what your customers’ problems are and let them know how your product solves their problems. Are they looking for more storage in their kitchen? By featuring great visuals, show them how your spacious kitchen cabinets can store all their kitchen stuff.

Offer free design/discount coupons

Studies indicate that two-thirds of the people visiting an online store are simply comparing prices, and half of those are looking for discounts and coupons. To attract buyers, especially your first-time online visitors, offer discounts or freebies. A good freebie would be a free design of custom kitchen cabinets or a kitchen layout. For stock cabinets, you can offer discounts depending on your customer’s purchase value.

Conclusion

The demand for kitchen cabinets remains strong worldwide. If you’re thinking of getting into the kitchen cabinets business, look into dealership arrangements with big, established manufacturers. You’ll benefit from the strong support system built into the business model. That way, you lessen, if not minimize, your business risks. And to meet the needs of modern consumers, you should make customization a big part of your kitchen cabinets business.

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    2021-12-15T04:08:12+00:00

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