Since the economic downturn due to Covid-19, we have noticed a sharp rise in the number of customers price comparing cabinetry and asking for discounts. We noticed this same behavior during the 2008 recession.
During the last recession, many contractors and builders went bankrupt and while the customers working with those contractors sometimes lost deposits, most often their jobs just needed to be completed by another construction company. Often the contractors struggling to stay afloat were the companies giving discounts.
2020 has different financial dynamics. Prior to the pandemic many cabinet brands were struggling to stay in business and several like Wood-Mode, 6Square, Clique Studios, and Solid wood Cabinets went bankrupt in the 4 months prior to the pandemic. Many dealers also closed when these lines closed and many other dealers have been struggling to stay solvent almost since 2010. The Corona Virus may prove to be the straw that broke the camels back for more than a few cabinet brands and cabinet dealers.
One sign that a cabinet brand or dealer is in trouble can be suddenly offering discounts or guaranteeing to beat competitors’ pricing. For example just days before Solid Wood closed they were offering customers discounts and even giving extra discounts to pay for cabinetry in full when ordering. One customer I know ordered and paid in full a day before the dealership and cabinet line both locked their doors.
Recently we have seen a large uptick in customers’ price shopping for their designs and looking for “special deals.” Unfortunately these customers looking for a bargain may get one, from a dealer or cabinet brand on the brink of insolvency. And when that cabinet dealer and cabinet brand goes bankrupt the customers will almost certainly lose their 50% or 100% deposit. Far worse than the inconvenience of losing a contractor.
GNC Kitchen Design has a more cost-effective business model than a typical dealer. We display the cabinet brands we sell along with thousands of samples. We also are dealers for many more cabinet brands than typical dealers.
Hoping to help you design a kitchen that will transform your home and make you smile every time you enter the room.
5 Essential Features for Kitchen Cabinetry
