
How can one cabinetmaker bid three times as much for the same kitchen?
The 2016 FDMC Pricing Survey revealed a significant disparity in bids for custom kitchen projects, with some cabinetmakers quoting prices three times higher than others for the identical job. This phenomenon was observed in two specific projects: a contemporary frameless kitchen and a beaded inset face-frame design. The frameless kitchen saw bids ranging from under $12,000 to nearly $40,000, while the face-frame project had bids from almost $25,000 to nearly $70,000. This wide range occurred despite the presence of competitive bidding from multiple shops.
The frameless kitchen, sponsored by CNC Factory, and the beaded inset face-frame design, sponsored by Drawer Box Specialties, were the most popular projects in the survey, attracting numerous bids. The face-frame kitchen, for instance, received 19 bids. This particular project was a paint-grade kitchen made of soft maple and MDF panels, featuring beaded face frames with flush inset doors and drawers. The cabinet interiors were constructed from ¾-inch pre-finished maple plywood with ¼-inch prefinished maple plywood backs, with a custom painted interior in the glass door section of the hutch cabinet. The design included numerous details and a glazed finish, all contributing to its overall cost.
Remarkably, the highest bidder for the face-frame kitchen quoted $67,438, which was almost three times the lowest bid of $24,850. Further analysis of the bids showed considerable variations not only in price but also in the estimated construction hours. The original, highest bidder reported one of the lowest hour estimates, while other bidders projected hours as much as four times greater than the original estimate. This discrepancy in estimated labor time is a key factor contributing to the wide price variations.
These findings were presented by William Sampson at the Cabinets & Closets 2017 event on April 11th. Sampson, editorial director of Woodworking Network and FDMC magazine, has been studying pricing in the custom woodworking industry for over two decades. The FDMC Pricing Survey, active for 15 years, aims to provide insights into the dynamic factors influencing pricing for custom woodworking projects by comparing bids on numerous projects. The presentation at the Cabinets & Closets Conference & Expo 2017 focused on explaining the significant price differences even among established and experienced shops, highlighting how poor estimating practices can lead to lost profits or underpricing.
The Cabinets & Closets Conference & Expo 2017, held from April 11-13 at the Schaumburg Renaissance Hotel & Conference Center, included three educational tracks: the Cabinet Conference, the Closets Conference, and a new Lean Management Conference. The full-day conference program on April 11th commenced with a keynote address by Chris Stevens and concluded with a plant tour of Inter Ocean Cabinet Company, sponsored by Stiles Machinery. The conference was followed by a two-day expo featuring nearly 100 exhibitors, including major CNC manufacturers demonstrating panel processing machinery.
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