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wamot

Profit Margin of Big Box Store Custom Cabinets?

wamot
9 years ago

Update to clarify:

My kitchen was mismeasured by Lowe's and cabinets delivered now, I want to get some idea on their profit margin, so I can factor it into my negotiations for a solution.

I just don't want to waste another month or two to re-desgin and re-order cabinets with Lowe's, so I thought I would ask for a percentage of the purchase total as credit, so I can find a cabinets maker to modify and custom the cabinets I received.


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I am just wondering what is the profit margin/commission of the custom cabinets from big box stores? Like buying Diamond from Lowe's, or Thomasville from Home Depot?
I know big box stores are working with salesmen of each vendor, so I imagine they also get a fixed cut on each sale?

Thank you.

This post was edited by wamot on Mon, Jun 2, 14 at 19:15

Comments (15)

  • User
    9 years ago

    I agree with Ajc71. Why do you care? Also, the Big Box store has a right to make a profit, just like any business, large or small.

  • jerzeegirl
    9 years ago

    I think Lowe's designers do not make a commission. I believe they are employees of the store. I don't know about HD.

  • live_wire_oak
    9 years ago

    Box stores don't handle custom cabinets.

  • sjhockeyfan325
    9 years ago

    Box stores don't handle custom cabinets

    That was my first thought! Anyway, everyone who sells cabinets is entitled to a profit. If LWO sells you exactly what HD or Lowe's sells you, and the price is the same, does it matter what the profit margin is? If the quoted prices are different, you can decide whether to go for the lower price based on your comfort level with the designer, installer, etc., but still, does how much THEY are making from the deal make a bit of difference?

  • suzanne_sl
    9 years ago

    I agree on the "what difference does it make?" theme, but just for reference, HD salespeople don't make commissions on their sales.

  • annkh_nd
    9 years ago

    I had a local cabinet maker build mine. He gave me a bid with one amount, with drawings and details of what the bid included. It wasn't broken down into materials, labor, profit, nor did I expect it to be. I paid what I felt was a fair price for what I got, and the cabinet maker has been in business long enough to bid in such a way as to stay in business.

    If I ended up buying him a new snowmobile, so be it - he worked hard for me, and deserves it!

  • Gracie
    9 years ago

    I believe the OP is asking for a different reason than what most are assuming here. His kitchen was mismeasured and cabinets delivered, so this may factor into his negotiations for a solution somehow.

  • jakuvall
    9 years ago

    I do know that HD is publicly held so financials are public- they list overall gross margin at 35% last time I looked. Common gross margin in kitchens is 30-35%-boxes will be right in there- the national average before the crash was supposedly 41%.

    Not sure how that factors into the negotiation- correct answer to that issue is make it right.

    If we're talking about "pain and suffering" that is a bunch of gumdrops IMO, (particularly in this case and I was on the OP's side)- either you want it right or you don't.

  • wamot
    Original Author
    9 years ago

    Thanks for clarifying for me, may_flowers, jakuvall.

    I just don't want to waste another month or two to re-desgin and re-order cabinets with Lowe's, so I thought I would ask for a percentage of the purchase total as credit, so I can find a cabinets maker to modify and custom the cabinets I received.

  • jerzeegirl
    9 years ago

    I don't think you will need to wait for an entirely new kitchen. They will use the cabinets they can use and reorder the ones which have the mistaken measurements. If you want a total redesign, I don't think you are going to get it.

  • wamot
    Original Author
    9 years ago

    jerzeegirl,

    I am not going to do a total redesign, it is just to dreadful to deal with them. I know it is faster to get replacement door or extra piece of moulding, but I don't think it will be faster to get an order of four cabinets than twenty cabinets.

    I would imagine it take at least 3-4 weeks to get the several re-ordered cabinets, then another 3-4 weeks for them to schedule the install, then another 3-4 weeks for the granite countertop to be template and install....

  • jakuvall
    9 years ago

    How long depends:....
    -On brand, all have some sort of expedited service. The fastest are around ten working days to ship- they will be paying an upcharge for expedited service/make afters. Usually 35%.
    -On shipping- most won't (and you don't want) a parcel service, needs to be a truck.
    -Install- should be scheduled for the week of delivery-template for a day or two after- all scheduled ahead of time (like now)

    Personally I doubt you can get a decent cabinet maker to beat that schedule (even less likely if cabinets are anything but natural).

    None of us (KDs) are immune to mistakes. For my own if it is a single cabinet and a simple alteration I do the work myself. On framed cabinets that is rare and limited to decreasing the depth of the cabinet. Frameless are easier, safer, to alter. Most times I prefer to eat the expense and lose money. Client gets a better product. Often I. arrange to do the installation or pay someone I know do it to address time issues.

    I know it stinks to have to deal with it. I have systems in place that generally prevent mistakes but they are not called " on purposes".

  • Vertise
    9 years ago

    Wamot, see what Lowes says Tues. Then if you feel it will take too long, ask a cabinetmaker how much and how long to modify. If you like his terms, make an offer to Lowes -- for the cost of the work -- and they can walk away from the problem. Modifying the cabinets is risky though as it might not work -- no fault on the cabinetmaker If it fails, your full loss of the cabinet and his charge -- and voids your warranty.

    I think having Lowes remedy is the safest route. Your cabinetmaker is probably busy too so a wait and risky to boot. You need to hear their solution first and know the cost of the cabinetmaker (not the profit margin for something like this) as well as everyone's timeframe in order to choose a path.

    Good luck tomorrow.

  • User
    9 years ago

    I posted on your other thread, but I'll repeat it quickly here as well: we are getting a few replacement cabinets from Diamond with a turnaround of less than 2 weeks. Ours were ordered through an independent kitchen shop not Lowes, but I imagine if anything Lowes has more leverage to expedite things. Fwiw, the finish on our cabinets is not a super common one (Portobello paint on maple cabinets.)

    I totally get your frustration, and of course it's been easier for me since all the replacements in my case were uppers, and they were able to template & install our counters already (1 week turnaround.) But don't make the solution harder than it needs to be - however long it takes you to negotiate compensation and find a custom cabinetmaker who can reconfigure the cabinets, it's not going to be shorter than 2 weeks. Good luck!