A question I saw posted online (top of google) and the answer is a complete lie : Is a countertop business profitable, Of course it is! Companies fail not because of the industry they pick, they fail because they market the business incorrectly for the target audience and don't listen to customers. When setting a pricing/marketing structure it is important to understand your target audience and your current market conditions. Setting an appropriate pricing structure is critical to your continued success.
Secure access to in demand products.
Control the sales process
Customer service is king.
I wrote this because the other information on google is way off the mark and I don't like to see such mis-information.
How to track profitable countertop business.
You track success by monitoring the bank account.. is it getting bigger.. or getting smaller.. Track the reasons why this is happening. Did you buy new equipment? Did you higher new staff? I would recommend separating accounts sales / Operations. You will have fixed cost such as equipment, staff, mortgage rent and then you will have sales. Sales should track over operations.
Have a calendar and a way to track per sq. per day production. These are indicators of the health of your business.
Installation calendar, Fabrication Calendar, template calendar, bank account value.. Not rocket science.
As of 2023 this is the breakdown many small to medium size countertop businesses operate
10% marketing new sales generation
30% material cost
30% operations (This will be higher in growth mode and until you have established consistency of sales.)
30% net Margin target
(this varies based on if you are in growth mode or if you are not.)
Average kitchen countertop sale is $3500 and the average countertop company can do 1-2 kitchens per day.
|average kitchen is 50 sf = cost per SF to customer||$70.00|
|# kitchens produced per working day||2|
|revenue per day||$7,000.00|
|6 days per week||$42,000.00|
|52 weeks per year||$2,184,000.00|
|target margin 30%||$655,200.00|
This is a small/medium size team -
Customer Service (Wife)
Installation crew 2+ people
Fabrication 2+ people
I see other websites stating $80/sf margin.. They are smoking lunch if they are talking retail model. You might see these numbers if your fees are buried in designer fees, high end kitchen remodels and margins will shrink from kickbacks.
If your targeting $80/ sf margins then your catering to the high end, the trade off is that their are less customers at this level and filling a schedule with high end customer's tends to cost a lot more in marketing and relationship management with high end designers, architects & GC. This is a retail model verse commercial model. Again you need to know who your customer's are and who you are going to be as a company.