Is There Money In Cabinet Making?

Melissa

We have a sub, who has been asking us for a long time if we would like to open a cabinet making business, and make all his cabinets for him. He knows of a good worker, who could make them for us, and he already has some really BIG cabinet jobs lined up that he will give us. All he'll be getting out of it, is his cabinets done priority. This person already has a lot going on, and doesn't want to do it himself. Plus we can use it for our own jobs too.

All we need to do is get a cabinet saw and some other tools- approx $8k, and we're going to ask a friend if he wants to invest in it, and be a silent partner in the deal. We already have a shop....

So, is there money to be made in cabinets? Does this deal sound too good to be true?

john elliott

Well worth a good looking in to, I should think.
John

mickeyco

I think there's definitely a market for custom higher-end cabinets, I doubt anyone could compete with the big box stores on the cheap ones. The trend out here (DuPage County, Illinois) in new houses is high-end custom kitchens. You'll need prospects, but it sounds like you already have a good one.

I don't know what you have for equipment and how your shop is equipped but for big jobs a 110V Delta planer won't cut it, you need industrial tools (usually 3 phase), dust collection, finishing room and equipment and a whole lot of electrical power. You'll also need a stock of hinges, drawer slides, specialty items (lazy susans etc.), packaging for shipping and insurance for loss of extremities, etc..... Another important factor is finding a good lumber supplier. I think your $8k estimate is quite low unless you have a lot of the equipment already.

Many times for me the determining factor in choosing a cabinet-maker was turn around time and not always who was the best or best priced. If you can make enough off the work the sub has to pay for everything or a good portion it's hard to see how you could lose. If you're pretty close on your $8K estimate, it's a small amount to invest for what could be a great venture.

Your profile says you do Kitchen and Bath Remodeling, so you could also install your own product.

Good Luck.

Tom R

There's a pretty lot involved in making cabinets 'efficiently'.

No way you can compete with the mass producers, - - so therefore you have to offer high-end custom.

And even with that you need to be able to 'produce'.

To me, - - $8,000 sounds like about enough to get a wood-pile.

Do you have an edge-bander?? Boring machine?? Planer?? Shaper?? Dowel-shooter?? Drum-sander?? Vaccuum press?? Pneumatic shop set-up?? Dust collection system?? Fireproof storage cabs?? Local approval??

Just the very tip of the iceburg here.

Not tryin' to sound too negative, - - but if it was easy, - - everyone would be doing it.

Does sound like a dynamite deal for the sub, though . . .

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rino1494

My landlord makes custom cabinets. He has been doing it his whole life and has his own shop. He makes a good living and has several rental properties.

One thing that you will run into is competing with home depot. They use cheaper materials and it often cost less for them to make them.

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jmic

Speaking of the "Tip of the iceburg" , Like the Titanic it sounds like a doomed venture. I won't get into the details, some have already been mentioned but IMO it just won't fly. Why doesn't the sub if it's a good money making deal, start the business up??

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Teetorbilt

$8K might get you a decent used sliding cabinet saw or, as Tom said, a middlin' sized woodpile.

There is excellent money to be made in custom cabintry BUT you truly need to be custom. What IS custom? It could just be boxes built to fit in a given space, not very custom. Or it could be this.

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Eric K

Teetor,

Is that Sokee line of cabinets or is that a full out custom. Looks very similar to what is install around here.

6stringmason

I like the cupboards. I dont see any hardware on them. Very sleek looking.

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Teetorbilt

It's custom, not mine (although it could be). I was just trying to emphasize high end custom. I actually prefer organic design (compound curves, oval or free form doors) and exotic woods. I'm still waiting for the person that says "I have $.5M for this kitchen".

6string, there are many types of hidden latches, push to open, push to close.

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Melissa

Thanks for all the negativity guys.... geez!! Just kiddin! No really, it's good to hear.

So, you really think we'll need more than $8 grand? The guy who currently makes our cabinets is a good friend, does fantastic work, and I don't think he spent more then that. Also Michael's uncle does too... We'll have to double check with them. We want a Powermatic 10" cabinet saw, which I believe is around $3k, and all the other tools to go with it, and he'll have to build some type of stand or something. I'm pretty sure all the material, doors (we'll just order), and all the drawer guides etc, can be ordered at the time the customer or contractor places their order....

This is definitely the first thing I asked. The sub, is actually our tile sub, and he does full kitchens and baths also, I guess. The jobs that he has right now, are, and you're going to think I'm lying, because I didn't believe it at first either, but $400,000.00 in cabinetry! And they're not in Beverly Hills, not even close. The cabinets for our kitchens are $12k-$14k tops, so we cannot even imagine this.

sheeter

Melissa,

In North Carolina, the cabinet businesses are booming for high end custom design. There are 4 design centers in the greater Raleigh-Durham area that specialize in cabinetry for kitchens and bath. However, this area has a tremendous customer base to support it, both in new construction and major remodels. I laugh about it saying that there are so many "Yankees" moving down here who can actually afford that kind of stuff. As part of researching a prospective venture, look into the potential customer base, market trends, and new home sales. The local news recently reported that 2,000 building permits are applied for each month in my area; and I can't afford the homes they are building.

go dart

melissa take a good look at refacing. you can order doors fronts, trim and surface matls complete including finish. start and complete jobs in the same week. even if new counters are included. quick return on jobs. install in house or sub

Melissa

Oops!

Melissa

Well I figure just with our own kitchens and baths that we do monthy will take care of it, and the cabinets won't be our sole income, and we won't really have to worry if there is a market for it, because we're already doing custom kitchens and baths (somewhat high-end- $30k+)but I guess we can't hire this guy to make them for us, if it's not going to be 100% full time for him... You know, that could be why the "sub" doesn't want to do cabinets full time. So, maybe it's not too good to be true.

Also, the sub I'm refering to does the design work for the cabinets, so that won't be an issue...

troubleseeker

For starters that doesn't sound like much investment for equipment/tools/specialty tools for a shop that could be efficient enough to compete on more than a small shop level. No way in my opinion to compete against the big national manufacturers, I think the only way is to go high end custom. But that quality of work demands a high level of skill in both the work shop and design area. When you claim to be custom high end work, customers expect a lot.It seems most of the shops that survive do more one of a kind designs tha production cabinets. I would also be shy about the situation where the partner expects his work to always be priority. Besides palying havoc with your shop production schedule on your own jobs, I suspect he will want his work at rock bottom prices.

Teetorbilt

I was starting to think the same thing, the guy is 'creating' his own job at your expense.

If he's really good, it might be worth the gamble. If he's just cranking out the standard stuff that you can buy anywhere, forget it.

I always tell new hires, "If you are used to building boxes, forget everything that you have ever known."

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mdshunk

I dunno, there's a good dozen cabinet shops in my area, and the men all seem to be making a decent living. These are not high-end cabinets by any means (although they could make those too). They are just custom cabinet makers. People assign more value to locally crafted boxes rather than the one's you buy from the lumber yard. I have yet to see one mass produced set of kitchen cabinets that even come close to locally crafted cabinets, even if they are just ordinary oak raised panel cabinets. I don't think a cabinet maker needs to be high end at all to be successful... people want locally made cabinets that were especially built for their kitchen.

Melissa

Do these numbers sound way off-

$12,000 for custom maple cabinets- a 20' galley kitchen, basic stain, installation, and hardware

$4,000 for all material
$4,000 for labor
$4,000 for our profit

If this is the case, then 1 kitchen a month, plus our other jobs would be a great living, or just 2 kitchen cabinet jobs per month. But then again, I could be smokin crack again!

Teetorbilt

Sounds cheap to me. Are you talking solid maple? Around here, that would be particleboard or, possibly, cabinet ply with maple trim and doors. Gag!

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