Kitchen Cabinet Prices: How Do They Figure

 

Kitchen cabinet prices vary from one dealer ot another.  But the formula dealers use to figure out kitchen cabinet prices is generally the same regardless of which showroom you visit.

 

 

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Kitchen Cabinet Price formulas are generally the same from one retailer to another.  Cabinet manufacturers have "List Price," and this price is usually in the "Just Under Astronomical" category. List prices ARE handy for manufacturers though, since they only have to print one price book. What happens next is that each retailer is given a multiplier.

For an example, I'll use .5. This means that the retailer multiplies the list price by the multiplier, and that is what the cabinet will cost him or her.  THEN, they mark the cost up, and arrive at retail. I'll show a brief example of this…

Let's say a wall cabinet lists for $1000, a retailer's multiplier is .5, and their markup is 40%. Retail would be: 

1000 x .5 = 500 (cost)

500 x 1.4 = 700 (retail)

Now, multipliers vary. Some manufacturers charge more when a retailer is farther away from the factory. Also remember that markups vary; retailers can charge whatever they want.  Some retailers even charge list!

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Written by:
Craig


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