Are you considering starting a kitchen cabinet reseller business? this is a good idea!
Driving the demand for kitchen cabinets is the continued growth in residential construction across the globe. Some homeowners look for space-saving storage that can optimize the use of a small space. Other homeowners want more and larger cabinets for food and cookware storage, looking for conveniences like pull-out drawers, shelves, and wine racks.
But apart from residential users, commercial and institutional demand for new kitchen cabinets is also increasing.
The global kitchen cabinet market is estimated at $15.6 billion in 2020. The industry is expected to reach $22.5 billion by 2027. The US market alone is estimated at $4.2 billion in 2020.
Do you want a piece of the billion-dollar kitchen cabinet cake?
Many cabinets are sold through kitchen cabinet dealers who have partnerships with larger cabinet manufacturers.
Nicemoco is a leading sanitary ware manufacturer in China, which has specialized in manufacturing and designing sanitary wares for more than 17 years. Our products range from high-grade bathroom cabinets, bathtubs, and other various bathroom accessories. NICEMOCO furniture, ceramic, and accessories are hot sales in Europe and North America. All parts are with 24 monthly warranty
In this article, you will learn how to start your own kitchen cabinet reseller business.
Best Kitchen Cabinet Reseller Company Business Plans
Take the time to create a business plan for any business you want to start
Having a solid business plan should be your first step toward success. Your business plan is the guide that keeps your business on track.
If you really want to start a business, you need to research the market you want to enter. Also, check your competitors’ books to see their inventory levels, whether they have stock or custom cabinetry, and their sales and distribution plans.
A business plan will keep you focused on your goals and keep you going when challenges arise.
Make sure your goals, strategies, and solutions to possible problems are realistic.
A well-crafted business plan will help you allocate resources rationally, deal with problems and unexpected challenges, and help you make the right decisions.
1. Do Market Research
1) Initial Research
For primary market research, conduct a comprehensive competitor analysis. Research sales data and analyze the performance of current sales practices to understand where your competitors stand. You should also consider the plans of your competitors.
You also need a deep understanding of your customer’s needs and preferences. Conduct market research and prepare the following questions for your target customers:
- When choosing kitchen cabinets, what factors should be taken into account?
- What is the most important factor you consider when buying kitchen cabinets?
- What feature are you most looking forward to in your kitchen cabinet?
- What is a reasonable price for different kinds of kitchen cabinets?
2) Online Research
For online research, visit the B2C and C2C platforms and find the following:
- What brands and styles of kitchen cabinets sell best
- Keywords that pop up in the search bar when you search for “kitchen cabinets”
- Reviews on Pop Kitchen Cabinets
3) Learn More About the Kitchen Industry from Competitors
When you start a new business, if you don’t take the time to understand your competition, you’re in big trouble.
Try to discover what you can do to have an advantage over them. Is there a product or service that they don’t offer that customers are looking for? Do they primarily sell stock or ready-to-assemble (RTA) and semi-custom cabinetry? Then maybe you can specialize in custom cabinets and offer kitchen design services.
Also, look at your competitors’ marketing efforts and sales strategies. Learn from other people’s successes as well as their mistakes.
2. Starting a Business in a Kitchen Cabinet: What Are the Pros and Cons?
One of the easiest ways to start a business for the first time is to open a dealership. But that doesn’t guarantee success. Good management principles still apply.
1) Advantage
- Reduce risk
A dealership is considered a relatively safer investment than starting a new business from scratch. That’s because you’re backed by a much larger, established company that acts as your primary distributor. The dealership has a solid reputation and image, proven management and work practices, access to national advertising, and ongoing support.
The dealership business model has been tested and proven effective. Getting a dealership business loan is easier than getting a loan for an independent start-up since established companies have proven successful.
- No manufacturing cost
As a reseller, you are reselling another business’ product. You don’t incur manufacturing costs or bear the burden of managing your manufacturing operations.
- Brand awareness and a loyal customer base
When you buy a franchise, you don’t have to do a lot of the work of branding and marketing an unknown start-up. As a reseller, you also gain access to an established and loyal customer base that is already familiar with the brand.
- Solid dealer support
Merchants will fully support dealers. It is after all their business name that is at stake.
Support for dealerships includes assistance with pre-opening operations such as site selection, design, construction, financing, workforce training and grand opening planning. Some master dealers even offer loans and other forms of financial assistance to their new dealers.
- Exclusive territory
Typically, a reseller deals with a specific territory and has the exclusive right to sell a brand in that territory.
2) Shortcoming
- High initial investment
The initial investment for a dealership is often high, especially for established businesses. For kitchen cabinet dealers with physical locations, you have to invest in finding a good location. You also have to spend money designing and building your showroom, initial inventory and hiring your staff.
- Limited creativity
Since you do business with a well-known brand, a reseller agreement determines how you will run your business. There are limitations for distributors looking to explore, change or add to their company’s business model or brand. Due to the business model, there are often restrictions on the regions you can operate in, the products you sell, and the suppliers you use.
- Profit sharing
Buying a dealer means continuing to share profits with the main dealer.
3. How Profitable is the Kitchen Cabinet Business?
The profitability of your cabinet resale business depends on your target market and the type of cabinets you sell.
1) Who is the Target Market?
Defining your target market or ideal customer is critical to your business plan. Who do you want to buy your kitchen cabinets? Are you targeting the high-end market or the low-end market?
See their income level, job, age, gender, location, buying habits, and more. The information you gather will help determine your pricing plan and aid in your marketing efforts.
The target market for kitchen cabinets is primarily contractors, home builders, interior designers and architects. The homeowner ultimately pays for the cabinets, but these professionals are the homeowner’s janitors. Owners often ask for advice. Many people will buy cabinets recommended by their contractor, builder, interior designer or architect.
2) How Much Money Can a Cabinet-Selling Business Make?
When you buy directly from the manufacturer, you cut out the middleman so you can offer your customers lower prices on your cabinets. Usually, the dealer’s kitchen cabinet profit margin is between 25-50%. Generally, the cheaper the cabinets, the higher the profit.
4. Choose Your Distribution Channel: Online or offline?
1) Online Business
The demand for online shopping is increasing and manufacturers can now sell their products on larger platforms than before. These factors are driving the growth of the kitchen cabinets market.
With an online business model, you can sell cabinets to customers anywhere in the world. You have immediate access to unlimited online tools and features to help you succeed in a fast-moving, fast-moving and highly competitive marketplace.
2) Offline Business
Having an actual showroom where your customers can see and touch all the kitchen cabinets you carry is a big plus for you. Make sure to design a showroom that attracts customers and is easy to navigate.
Consider these showroom design tips:
- Great lighting and comfortable seats
- knowledgeable and friendly staff
- Needs-Based Kitchen Showcase
- kitchen design software
- different price
- Virtual reality goggles for 360-degree rendering
- Interactive Vision Board
5. What Kind of Cabinets Will Bring You Business?
Every kitchen needs cabinets to store dishes, cookware, and more. The style of the cabinets should match the existing design of the rest of the house.
- Villa custom kitchen cabinet
- apartment kitchen cabinets
- whole house cabinet
6. Where Can I Find Competitively Priced Kitchen Cabinet Manufacturers?
1) Google
Use Google to find “competitively priced kitchen cabinet manufacturers”. You’ll get a lot of results, but you’ll get better results if you filter your search by certain criteria. If you would like to narrow your search to a specific location, please add this to your main search term “kitchen cabinet manufacturers”. You can search for “Chinese kitchen cabinet manufacturers” or “Zhejiang kitchen cabinet manufacturers” for example”.
2) Alibaba
Alibaba is a Chinese company that operates a massive online marketplace that connects wholesalers, primarily in China, with global businesses. In this market you will find every product you can imagine.
From the home page, go to the search bar and click on “suppliers” and type in “kitchen cabinets”. The key to getting reputable suppliers on Alibaba is to look for suppliers with a “verified” label.
7. How to become a kitchen cabinet dealer?
1) Reseller Prerequisites
These are the usual requirements for dealer applicants from manufacturers:
- A showroom of at least 300 square meters.
- Initial investment capital of at least $200,000.
- At least two years of relevant experience in the construction or furniture industry.
- Excellent sales, design, and installation team.
2) Dealer Support
These are what a reseller can typically expect when entering into a reseller agreement with a manufacturer:
- Showroom decoration design and display sample discount
- Training and software support for sales, design, quoting, and installation
- Promotional support, including event planning and brochure printing, etc.
- Online marketing support including website development, social media, advertising, etc.
3) 4 Steps to Starting a Kitchen Cabinet Franchise or Dealership
Step 1: Apply
The first step covers the dealership application process through to contract signing. Dealer applicants asking for information about acquiring a dealership business. Kitchen cabinet manufacturers or wholesalers and applicants assess each other’s qualifications. If they both think they are the right people to do business together, they sign a contract and the new dealer pays a deposit for the dealership.
Step 2: Build
The second step involves finding a suitable location for your physical showroom. Once you’ve decided on a site, you can plan, design and build your kitchen showroom. When your showroom building is nearing completion, you order kitchen cabinets from major dealers to be displayed in your showroom. At the same time, you also start to build your start-up operation team.
Step 3: Organize and Plan
Step three, while you wait for your kitchen cabinets to ship, the primary distributor trains your newly hired operations team on how to run the business. You then work with your marketing staff to create a promotional plan to market your soon-to-open showroom.
Step Four: The Grand Opening
Make a stunning display of kitchen cabinets in your showroom. Make sure your grand opening will be a big event with great attendance. Invite your local big names to the grand opening and help with promotion. Continue your online and offline marketing efforts to increase the visibility of your showroom and kitchen cabinets.
8. How to Import Kitchen Cabinets from China?
Importing kitchen cabinets from China that you want to sell at your dealership can be complicated and time-consuming. Especially when you’re doing it for the first time. It will help a lot if you seek help from the manufacturer of your choice during the import process. They should be familiar with China’s import regulations. Alternatively, you can hire a professional sourcing agent in China to simplify the process.
9. Open Up Your Kitchen Cabinet Showroom
1) Kitchen Cabinet Samples
Make sure you have enough kitchen cabinet door samples in stock for your customers to order so they can easily see the cabinets in their own kitchen. This is also their chance to judge the quality of your cabinets. That way, they can choose the perfect color scheme and style for their dream kitchen.
2) Table of Contents
Create a showroom catalog showcasing all your products. Here customers can discover all the latest styles and colors of your kitchen cabinets. This catalog should inspire them and help them with kitchen project planning. You can download a print or digital version.
3) Kitchen Designer
A talented kitchen designer on your team will make your client’s dream kitchen a reality.
Your client will work with your designer to create, remodel or update the client’s kitchen. Discuss kitchen layouts, themes, colors, building materials, flooring, cabinets, counters, appliances and accessories, create sketches and drawings according to client preferences.
Designers find out the client’s project goals, prepare plans and create a timeline for the project.
In addition to design ability, creativity, technical knowledge and product knowledge, a good kitchen designer should also have the ability to understand customer needs and translate these needs into kitchen design.
4) Kitchen Design Software
When clients start planning their new kitchen, they are faced with many options and decisions to make. Use your kitchen design software to simplify the planning process and help your clients avoid overwhelm.
Kitchen design software makes designing, planning, and building kitchens easier. Your kitchen design software lets your designers put together ideas and visualize kitchen designs. See how different combinations work in various types of kitchens.
The software also shows the challenges homeowners face in the kitchen. Seeing this, a kitchen designer can improve the efficiency of the kitchen.
10. Marketing Your Kitchen Cabinets Online Store
You can have the best quality kitchen cabinets in the world, but if no one knows about your company or your brand, you have no sales. That’s why it’s important to have an effective marketing strategy in place to drive sales.
Here are some common online marketing strategies:
1) Sell On eCommerce Platforms
Using a major e-commerce platform like Amazon gives you another avenue to reach potential customers. People are already familiar with these e-commerce sites, so there is a trust factor. You need to make sure your listings stand out so your products attract buyers.
2) Product Listings and Search Engine Optimization (SEO)
How do you promote your kitchen cabinet business online?
When you start your kitchen cabinets online store on your own website or on e-commerce sites like Amazon, eBay, etc., make sure to create an attractive product listing that includes product photos, videos, and product descriptions.
The right way to promote your online presence is to invest in smart rankings that match your customers’ needs or intent. SEO, or search engine optimization, comes into play here. SEO is an important part of online marketing. It involves both on-page (content on your website or your company page in an e-commerce site) as well as off-page strategies (such as link building and influencer outreach) to improve your site’s ranking in search engines (primarily ranking on Google).
What are the relevant keywords your customers are using when searching for your business or products? You want to appear in search engines when customers search for keywords or phrases related to your product or service. For example, when someone types “best kitchen cabinet” into the search bar, you want the kitchen cabinets you’re selling to appear at the top of the results page.
To make on-page SEO effective, use the right and relevant keywords in your product listings.
3) Online Advertising and Google Ads
Online advertising allows your business to show your ad to people who may be interested in your products and services. It also gives you the opportunity to reach potential customers as they click on Google’s search results using different devices such as desktops, laptops, tablets, and smartphones.
Paid online advertising with Google Ads is one of the most effective methods. It allows businesses to reach people who use Google to search for information on products and services. When used correctly, Google Ads can bring you tons of people who want what you have to offer.
4) Social Media Marketing
Turn likes and likes on your social media channels into actual product sales.
Social media allows you to interact and connect with customers and prospects.
Create and share relevant, interesting content so people visit your social media pages more often. Show them what makes your brand unique with pictures and videos. Ask them directly what they are interested in. Demonstrate your expertise in your industry (kitchen cabinets, kitchens, home improvement). People interested in your content will have a reason to visit your website and see what you have for them.
According to a Stackla survey, 79% of people say that user-generated content on social media influences their purchasing decisions. Find out what’s wrong with your customers and let them know how your product can solve their problems. Are they looking for more storage space in the kitchen? Show them how your spacious kitchen cabinets store all of their kitchen items by displaying great visuals.
5) Offer free design/coupon
Research shows that two-thirds of people who visit online stores are just comparing prices, and half of them are looking for discounts and coupons. Offer discounts or freebies to attract buyers, especially first-time online visitors. A good freebie is a free design for a custom kitchen cabinet or kitchen layout. For lockers, you can offer discounts to customers based on the value of their purchases.
11. Summary
Global demand for kitchen cabinets remains strong. If you’re considering entering the kitchen cabinet industry, research distribution arrangements with well-known large manufacturers. The business model includes a strong support system. This way, you can reduce (if not minimize) your business risk. To meet the needs of the modern consumer, you should make customization an important part of your kitchen cabinet business.