Installing new cabinets can transform the look and feel of your kitchen or bathroom. However, cabinet installation and replacement services don’t come cheap. Contractors need to make a profit, which means marking up the cost of materials and labor. So how much do contractors typically mark up cabinets? Here’s a detailed look at what goes into cabinet markups and how much you can expect to pay.
What Factors Impact Cabinet Markups?
Several key factors impact how much contractors will mark up the cost of new cabinets:
Cabinet Quality and Materials
Higher-end, premium cabinets made with solid wood, plywood boxes, and soft-close hinges command more markup. Contractors pay more for quality materials and need to pass that along. Particleboard or laminate cabinets can be marked up less.
Custom vs. Stock Cabinets
Custom cabinets sized specifically for your kitchen and made to order will get marked up more than in-stock cabinets. Custom work requires more labor and expertise to get perfect measurements.
Installation Complexity
Simple cabinet installations or replacements in newer kitchens allow for lower markups. Complex layouts, electrical and plumbing modifications, and installations in older homes warrant bigger markups for contractors.
Contractor’s Overheads
Overhead costs like insurance, licensing, tools, transportation, and labor burden impact markup amounts. High-overhead contractors tend to mark up more.
Market Demand and Location
In areas where demand is high, contractors may mark up more. They can command higher prices for good work in expensive real estate markets.
Profit Margin Goals
Most contractors target a 30-50% profit margin on jobs. For cabinets, a 40% markup is common. Those with higher business costs may mark up more.
Typical Cabinet Markup Amounts
Now that we’ve covered the factors impacting markup pricing, what are some examples of actual cabinet markups by contractors?
Cabinets from Home Improvement Stores
For mid-grade stock cabinets purchased from home improvement stores, contractors typically mark up 2–2.5 times the cost of materials. For example:
- $5,000 worth of stock cabinets purchased may get marked up to $10,000-$12,500
Semi-Custom Cabinets
For better quality semi-custom cabinets, markup percentages are a bit higher. A $10,000 order of semi-custom cabinets would likely get marked up to $16,000-$18,000 (a 60-80% markup).
Custom Cabinets
For premium custom cabinets, some contractors mark up the materials cost by 100% or more. For example:
- $15,000 worth of custom cabinets may get marked up to $30,000 or more.
These markups apply to the cabinet costs only, not including installation labor and other job costs.
Other Cabinet Installation Costs
Along with the cabinet markup, homeowners need to account for additional costs associated with a kitchen or bathroom remodel involving new cabinets:
- Demolition and removal of old cabinets
- Delivery and installation labor
- Countertop fabrication and installation
- Modifications like moving electrical or plumbing
- Permits and site visits
- Contractor’s overhead and profit margin on labor
- Sales tax
When you factor in these additional costs, a kitchen or bathroom remodel with cabinet replacement can cost $30,000 to $60,000 or more.
Get Multiple Bids to Compare
The exact markup percentage can vary significantly by contractor. To get the best deal, be sure to get bids from at least 3 different contractors for comparison. Ask for itemized bids that break down material and labor costs.
Avoid choosing a contractor based on price alone. Make sure they have experience with cabinet installation and check reviews of their past work. Quality of service is also vital.
Is the Markup Worth It?
While a 100% markup may seem high at first glance, keep in mind the expertise and effort required from contractors on cabinet jobs. They must:
- Accurately measure your space
- Advise on optimal cabinet layouts and storage
- Order, purchase, and handle cabinets
- Schedule and manage skilled carpenters for installation
- Oversee the whole process from start to finish
When done right, a cabinet installation takes precision workmanship and project management skills. In the end, the markup is well worth it for the convenience, quality, and transformation you get with brand new cabinets installed by professionals. Just be sure to get multiple bids and choose your contractor carefully.
FAQs About Cabinet Markups
How much should I expect to pay above the cost of the cabinets alone?
Expect to pay at least double the wholesale cost of the cabinets after contractor markup. With higher-end custom cabinets, the markup percentage may exceed 100%.
Do contractors get special discounts on cabinets?
Yes, contractors can get 20-30% discounts off retail prices from suppliers they have accounts with. Their markup is applied to the wholesale net cost.
Can I buy the cabinets myself to avoid the markup?
You potentially could, but keep in mind contractors get special wholesale pricing you won’t get as a homeowner. Plus, you’ll still pay full price for their labor.
Should I get more bids to get the best deal on a cabinet install?
Absolutely. Get at least 3 bids to compare markup amounts and see who offers the best value. Make sure to compare the full scope of work in each bid.
How can I save money on a kitchen or bathroom remodel with new cabinets?
Choose mid-grade stock or semi-custom cabinets over premium custom options. Have cabinets spray painted on site rather than opt for expensive finishes. Finish trims and knobs yourself.
Does the contractor’s markup include labor costs too?
No, the markup is applied to the cost of materials only. Labor costs for installation, plumbing, electrical, etc. will be itemized separately in the contractor’s bid.
Key Takeaways on Cabinet Markups
- Contractors typically mark up the cost of stock cabinets 2-2.5X, semi-custom cabinets 60-80%, and custom cabinets 100% or more.
- Markup amounts depend on cabinet quality, customization, complexity, and the contractor’s business costs.
- Get 3+ itemized bids and compare both markup and labor costs.
- While markups may seem high, professional installation is complex and warrants paying a premium for expertise.
- Focus on choosing an experienced, quality contractor rather than just negotiating the lowest bid.
Conclusion
Installing new kitchen or bathroom cabinets requires skilled contractors and careful project management. While the markup on cabinets may be 100% or more, that markup is well justified by the effort needed to do the job right. Focus less on negotiating the markup percentage and more on finding an experienced contractor you trust. With careful bidding and contractor selection, you can get a beautiful, functional kitchen or bathroom with cabinets that will last for years of use.