Are you considering starting a kitchen cabinet dealer business? this is a good idea! However, you are a newbie and don’t know how to start this business. Don’t worry, this guide might help you. In this guide, we’ll go over the steps to starting a cabinet business, and answers to frequently asked questions. Everything you want to know will be found in this article, read on to learn more.
1. Steps to start a kitchen cabinet business
Here are the steps on how to start a kitchen cabinet business.
1) Investigate the development prospects of the kitchen cabinet business
Before starting any new business, you need to conduct market research to avoid wrong investments. Of course, the kitchen cabinet business is no exception. According to the survey, as the number of homes around the world increases, the demand for kitchen cabinets is also increasing. This shows that starting a kitchen cabinet business is possible. Kitchen cabinets can help homeowners add more usable storage space and make their homes look larger, cleaner, and tidier.
In addition to domestic homes, the demand for cabinets is also increasing in businesses and institutions. According to data, the global kitchen cabinet market is expected to be US$15.6 billion in 2020. The industry is expected to reach $22.5 billion by 2027. The U.S. market alone is expected to reach $4.2 billion by 2020.
To sum up, starting a kitchen cabinet business is feasible. As long as you seize the opportunity and operate it correctly, it can bring you huge profits. Please continue to review the steps below.
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2) Develop a business plan for the kitchen cabinet business
Now that you’ve decided to start a cabinet business, the first real step is to create a business plan. This includes how to carry out the project, problems encountered during the project how to solve them, etc. A business plan is a basis for a successful business, so it is very important. If you are a newbie, you can hire a professional researcher to develop a business plan for you.
A business plan will keep you focused on your goals and keep you moving forward when challenges arise. Make sure your goals, strategies, and solutions to possible problems are realistic. A well-designed business plan will help you allocate resources appropriately, handle problems and unexpected challenges, and help you make the right decisions.
3) Consider the cost
The next step is to consider the cost of running the business, and for most businesses in this industry, start-up costs average between $2,000 and $10,000. These estimates are now fairly common. So how can you ensure your actual cost is closer to the lowest price?
In fact, the cost is determined by many factors, such as taxes in various regions, rent and decoration costs of the house, etc. In addition, there are material costs such as tools, transport vehicles, and workshops. Since you’ll be starting entirely from scratch, you’ll also have to set aside a lot of cash for advertising. So you need to make a detailed plan so that not a single penny is wasted.
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4) Conduct market research
Market research is essential in the entire process. It can help you understand your competitors’ sales and learn from the experiences and insights of your peers. Help you start your cabinet business faster and better. In addition, market research is not only about surveying peer sellers but also about customer needs and preferences. If you don’t know where to start, I suggest you consider the following questions:
- What price are you willing to accept for kitchen cabinets?
- What feature are you most looking forward to in your kitchen cabinets?
- What do you think is the most reasonable price for cabinets?
- What factors should be considered when purchasing cabinets?
Of course, market research methods include not only on-site inspections but also online surveys. If you want to conduct an online survey, it is recommended that you look for the following questions on B2B or C2C:
- Keywords that appear in the search bar when you search for “kitchen cabinets.”
- Which kitchen cabinets sell best?
- Kitchen cabinet reviews from customers who have already purchased.
All of the above questions can help you start your kitchen cabinet business faster and better.
Another way to conduct research is to study the success of your peers, that is, your competitors. You can try to do some services that they don’t have, such as custom cabinet service. Or think about what you can do to have an advantage over them. It is important to learn from the mistakes and successes of others.
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5) Choose how to conduct business: online or offline?
The next step is to choose whether to conduct business online or offline or a combination of online and offline.
#1. Online Business
With the rise of online shopping, more and more people choose to shop online for convenience. Online shopping saves time commuting to the mall and allows you to buy what you want while lying in bed. This is the current shopping method preferred by most young people. So this can attract a large number of customers for you.
Furthermore, the Internet has no borders. Selling online means you can sell your items all over the world. Anyone who can browse your website may become your customer.
#2. Offline business
Offline business means you need a physical showroom. Various products are displayed in the exhibition hall for customers to visit. The advantage of this is that customers can actually touch the product and experience the quality of the product. It can better impress customers’ desire to buy. However, the disadvantage of offline business is that in the early stage of the business, it can only serve surrounding customers and cannot radiate to a wider range. However, if the business situation is good, you can open branches so that the scope of services will be wider. But funding will increase accordingly.
Here are some tips on how to set up a good exhibition hall:
- Have a bright lighting system
- Representative cabinet display
- Knowledgeable and friendly staff
- Virtual reality goggles for 360-degree rendering
- Clear price tag
- Comfortable seating area
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6) Conduct business
When all preparations have been made, it’s time to start running your business. We mentioned above that you can choose online business or offline business, so next we will discuss how to carry out these two businesses separately.
#1. How to market your online store?
If you want to start an online business, just selling on an e-commerce platform is not enough. You also need to learn to market your product. Here are some marketing tips:
(1) Product Listing and Search Engine Optimization (SEO)
When you start a kitchen cabinet online store on your website or on an e-commerce site like Amazon, eBay, etc., make sure to create an attractive product listing that includes product photos, videos, and product descriptions.
The right way to improve your online presence is to invest in smart rankings that match your customers’ needs or intentions. SEO (Search Engine Optimization) comes into play here. SEO is an important part of online marketing. It involves on-page (content on your website or a company page in an e-commerce website) as well as off-page strategies (such as link building and influencer outreach) to improve your website’s ranking in search engines (mainly Google ). Good Google SEO services can keep you firmly ranked on the first page of Google.
For example, when someone types “best kitchen cabinets” into the search bar, you want the kitchen cabinets you sell to appear at the top of the results page. For on-page SEO to be effective, use correct and relevant keywords in your product listings.
(2) Social media marketing
Using social media to interact with customers is also a way of marketing. You can share topics of interest with your customers on social media so that they visit your account frequently and interact with you. This will increase customers’ favorable impression of the company and increase their desire to purchase. For example, provide customers with professional knowledge in your industry (kitchen cabinets, kitchens, home decoration), how to add more kitchen storage space, how to choose a suitable kitchen cabinet and other topics that interest customers.
(3) Online advertising and Google advertising
Online advertising allows your business to display your ads 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 search results using different devices such as desktops, laptops, tablets, and smartphones.
Paid online advertising using Google Ads is one of the most effective methods. It enables businesses to reach people who use Google to search for information about products and services. If used correctly, Google Ads can bring you a large number of users who want what you have to offer.
(4) Provide free design consulting services
Do you know? Most people are interested in free stuff, and if you offer a free design consultation, you’ll attract a lot of customers who are struggling with their kitchen design. This service of yours solves their troubles, which will increase the likelihood of them getting your product.
(5) Provide discounts or coupons
In fact, customers browse multiple products online to compare prices or find coupons for better deals. You can offer them appropriate discounts and coupons, especially for first-time buyers. As long as your product is good enough, you don’t even need to do much advertising, these customers will help you promote it.
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#2. How to start a physical store business?
We’ve talked about how to market your online business above, so let’s talk about how to start your physical cabinet business.
(1) Apply for a business license
First of all, the first step in running a physical business is to apply for a legal business license. A business license allows you to sell your goods within legal limits.
(2) Reach cooperation with wholesalers
The second step is to find the right kitchen cabinet wholesaler. Kitchen cabinet manufacturers wholesalers and dealers evaluate each other’s qualifications. If they both think they are the right person to do business with, they will sign a contract. The new dealer will pay the wholesaler’s deposit.
(3) Determine store location
In order to open your store, you will need to find a suitable location. Once you have decided on a location, you can start designing and laying out the look you want for your showroom. When the renovation is nearly complete, you can start building your sales team.
(4) Organization and training
Before opening, you need to train your team on the business and assign work tasks.
(5) Official opening
The last step is to officially start your cabinet business. At the opening ceremony, you can invite some local celebrities to promote your store. At the same time, we will take into account online business and expand the popularity of our products.
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2. FAQ
Here are answers to frequently asked questions about starting a kitchen cabinet business.
1) How much profit can you make from the kitchen cabinet business?
You can make handsome profits from your cabinet sales business. When you buy directly from the manufacturer, you cut out the middleman, allowing you to offer your customers lower cabinet prices. Usually, the profit margin of dealers on kitchen cabinets is between 25-50%. Generally speaking, the cheaper the cabinets, the higher the profit.
When it comes to pricing, each kitchen cabinet is priced “per foot.” Here is a brief overview of average cabinet prices in the United States. From this you can get an idea of how much you should charge your clients:
Stock cabinets: $60-$200/foot,
semi-custom cabinets: $100-$650/foot,
custom cabinets: $500-$1200/foot.
2) What kind of cabinets will bring you business?
Every kitchen needs cabinets to store cutlery, cooking utensils, and more. The style of the cabinets should match the existing design of the rest of the house. For example, villa custom kitchen cabinets, apartment kitchen cabinets, and whole house cabinets.
3) How to find the right kitchen cabinet manufacturer?
Another key to the success of your cabinet business is finding a manufacturer or supplier with competitive prices. So how to find it? There are three approaches here.
#1. Alibaba
Alibaba is a Chinese company that operates a massive online marketplace that connects wholesalers mainly 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, click on “Suppliers” and enter “kitchen cabinets”. The key to getting reputable suppliers on Alibaba is to look for suppliers with a “verified” label.
#2. 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 specific criteria. If you want to narrow your search to a specific location, add it to your main search term “kitchen cabinet manufacturers.” For example, you can search for “China kitchen cabinet manufacturers” or “Zhejiang kitchen cabinet manufacturers.”
#3. Kitchen cabinet-related exhibition
Participating in the cabinet exhibition can let you intuitively feel the difference between the various manufacturers, you can choose the right manufacturer by comparison.
4) How to import kitchen cabinets from China?
Importing kitchen cabinets from China and hoping to sell them at a dealer can be complicated and time-consuming. Especially when you’re doing it for the first time. It will be helpful if you seek help from the manufacturer of your choice during the importing process. They should be familiar with China’s import regulations. Alternatively, you can hire a professional sourcing agent in China to streamline the process.
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3. Conclusion
The process of starting a new business is not easy. Whether you want to get into the cabinetry, bathroom, or kitchen remodeling industry, you need to carefully plan your course of action and weigh the pros and cons. If you are looking to start a kitchen cabinet business, then hopefully this article will give you some inspiration. If you have any other questions, please feel free to contact Nicemoco for consultation. Nicemoco is a leading sanitary ware manufacturer in China, specializing in manufacturing and designing sanitary ware for more than 17 years. I believe we will give you some useful suggestions.