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rslmt

Cabinets - discount off of list price??

rslmt
13 years ago

Hi -

We're ready to commit to this kitchen that I've been thinking about for years. We are not making our kitchen any larger, only replacing 30 year old cabinets that came with the house and adding additional cabinetry for storage and display. We've selected Brookhaven cabinets to match the island cabinetry we installed a few years back.

The issue that I'm having is about pricing. When we received the estimate from the cabinet shop, it showed list price and the selling price which was about 70% of list price. When I asked about this, the salesperson said, no one sells at list price, this is "our pricing." After several revisions, the the 70% of list price has been consistent. But I keep wondering -- is 30% a reasonable discount? Or do other shops discount 40% or 50%?

I really like this store and am not going to run to another store to save a few hundred dollars. On the other hand, an additional 10% would be $3000!

I'm not a negotiator, so I will have a hard time bargaining for a bigger discount (if appropriate) without more information, but I don't know where to get additional information. Has anyone's invoicing provided similar information or do you have any suggestions on how to get comfortable with this?

Thanks!

Comments (3)

  • Pevo
    13 years ago

    rslmt,

    We've been looking at Dynasty/Omega cabinets and a Kitchen Remodeling firm has been advertising 40% off MSRP for the last few months. Around Chrismas of last year they had a promo for 50% off. I am in the process of shopping my design around to see who offers the best price and service. I agree with you price is not everything but 10% off is a considerable amount when pricing cabinets.

    HTH, Pevo

  • stuktu
    13 years ago

    The list price of cabinets is important to a cabinet dealer but to the consumer it is pretty meaningless.. As you can imagine a cabinet company's catalog can be huge, especially lines like Brookhaven or Omega, their catalogs have literally thousands of individual cabinets. They do not want to reprint their catalog every time they change the price (not as big a problem now that everything is on line, but the principle is the same). They set the list price way higher than they expect the cabinets to ever sell for and then give the individual dealer a multiplier to use to establish their wholesale cost for the cabinets. So when they need to change the price of their cabinets they just give the dealer a new multiplier.

    As an example. Lets say that the list price of a cabinet from company X is $100.00 and my multiplier is .46 so my cost for the cabinet would be $46.00. I know what I need to make on the cabinet in order to meet my obligations. Lets assume that in order to meet my overhead, and earn a little profit I need to mark up the cabinet 52% so I would sell the cabinet for about $70.00. If I was so inclined, I could then advertise that I was selling the cabinet at 70% of the list price.

    It is important to understand that list price comparison from one cabinet line to another is an apples to oranges tyupe of comparison. In my example I used Company X and a multiplier of .46, Company Y which manufactures lower cost and lower quality cabinets may have set their list price for the cabinet in our example at $130.00 so by comparing list prices you might conclude that Company Y's product was superior. What you don't know, however is what the dealer modifier is, ie what is the dealer's cost for the cabinets. In the case of Company Y their modifier is .25 so that cabinet cost the dealer $32.50, with the same 52% markup that cabinet would sell for about $50.00 or 50% of list.

    To add a little more confusion to the issue the modifier is not necessarily the same for every dealer in the manufacturer's dealer network. The modifier may vary depending on the dealer's volume and distance from the manufacturing plant.

    I hope that helped somewhat.

  • rslmt
    Original Author
    13 years ago

    Thanks for the info. I did end up calling a different Brookhaven dealer who said all stores in this area have the same rep and sell at the same % off list. It does make sense though that a larger dealer would get a larger wholesaler's discount off list. Perhaps the larger dealer sells at the same % off list price but is able to include more accessories or extras??