Do you want to know how much money cabinet makers make yearly? If YES, here are 7 factors that determine the income & profit margin for cabinet making businesses. In order to have an idea of the amount a cabinet maker is expected to make daily, weekly, monthly or yearly, you should clearly define the service offerings of a cabinet maker.
A cabinet maker is expected to make different types of cabinets. A cabinet is a box-shaped piece of furniture with doors and/ or drawers for storing miscellaneous items. There are three basic types of cabinetry: stock, semi-custom and custom cabinets. Each type provides different advantages depending on your needs and budget. Stock cabinets are at an entry level price point with limited options.
With that in mind, we can estimate what a cabinet maker that offers the products listed above is expected to make but it is important to point out that there is no one-mold-fits- all when it comes to how much a cabinet maker is expected to make. There are some factors that we are going to look into before giving an estimate of how much an average cabinet maker makes yearly and these factors are;
7 Factors That Determine How Much Money Cabinet Makers Make Yearly
Table of Content
- 1. The Size of the Cabinet Maker Business
- 2. The Location the Cabinet Maker Business is Covering
- 4. The Types and Material Used in Producing the Cabinets
- 5. The Business Approach of the Cabinet Maker
- 6. The Advertising and Marketing Strategies Adopted by the Cabinet Maker
- 7. The Number of Years the Cabinet Maker is in Business
- Estimated Profit Margin on a Cabinet Making Project
1. The Size of the Cabinet Maker Business
One cannot conveniently state the amount a cabinet maker is expected to make yearly if you do not know the size of the business. As a matter of fact, you can not equate the amount a cabinet maker that is just starting out with a well – established cabinet maker that makes different types of cabinets and operates from a standard workshop with a large number of workforce.
2. The Location the Cabinet Maker Business is Covering
We must not rule out the fact that the location the cabinet maker is covering is a major factor that will determine the amount he or she is expected to earn monthly.
The truth is that you will struggle to make good money as a cabinet maker if you locate the business in an area filled with low income earners or in a ghetto. If you locate your cabinet making business close to a highbrow area or an area with loads of corporate offices and businesses, you are likely going to make good returns from the business.
- 3. The Management Style of the Cabinet Maker
Another key factor that will determine the amount a cabinet maker is expected to make yearly is the management style of the cabinet maker. Trust me, the results you will get when you are good manager will definitely be far different from a cabinet making business with a poor manager. The idea is that a good manager will not just retain their old customers, they will also keep getting new customers.
4. The Types and Material Used in Producing the Cabinets
Another factor that can influence the amount a cabinet marker is supposed to make is the types of cabinets they are specialized in and of course the materials that they use in making their cabinets. There are three basic types of cabinetry: stock, semi-custom and custom cabinets.
Each type provides different advantages depending on your needs and budget. For example, the most durable material for kitchen cabinets, hardwood is solid wood. Some hardwood types, such as hickory or maple, will resist scratching and denting more than softwood species like walnut and mahogany. However, the former will cost more due to durability and overall quality.
5. The Business Approach of the Cabinet Maker
There are different business approaches that a cabinet maker can choose from and it will greatly influence the amount they are expected to make monthly and yearly. Of course, we know that cabinet maker business may decide that they want to work alone and do their marketing alone and they may decide to partner with other businesses that will recommend clients to them.
It is easier to find cabinet makers partner with construction companies, furniture making companies, and government contractors that deal with cabinets. In essence, a well – organized cabinet maker who works with others will surely make more money than a solo cabinet maker.
6. The Advertising and Marketing Strategies Adopted by the Cabinet Maker
Another key factor that will determine the amount a cabinet maker can make yearly is the advertising and marketing strategies adopted by the management of the business. Trust me, there are several advertising and marketing strategies that can help a business increase their earnings, but you may be expected to spend more. But the results you will make will far outweigh the amount you spent on advertising and marketing.
7. The Number of Years the Cabinet Maker is in Business
In business, the number of years you are in existence will go a long way to determine the amount you will make especially if the business is well – managed and creativity always come to bear. This is because over the years, you would have been able to gain the trust of your customers and it will be easier for you to always have them coming back and also recommending clients to you.
For example, in your first fiscal year (FY1) you might make two hundred and fifty thousand dollars ($250,000), in your second fiscal year (FY2) you might make three hundred thousand dollars ($350,000) and in your third fiscal year (FY3) you might make four hundred and fifty thousand dollars ($450,000).
Estimated Profit Margin on a Cabinet Making Project
When we talk about the profit margin a cabinet maker is expected to make, we must establish the amount a cabinet maker charges per job and the amount spent or expenditure they put in to get the job done.
For example, a professional cabinet refacing for a typical 10-foot-by-12-foot kitchen starts at around $1,000 to $3,000 for laminate. You are expected to pay $2,500 to $6,000 for real wood veneer. Costs can rise to $7,000 to $9,000 or more for a large project with high-quality wood veneer.
A cabinet maker company is expected to make between 15 to 50 percent profit margin from whatever they charge their clients. In some cases, it may be higher especially if the cost of producing the cabinet is pretty lower especially if you are able to get cheaper and quality cabinet making materials.