How can a kitchen and bath showroom see its margin on every quote?

A kitchen and bath showroom sees its margin on every quote when cost, retail price and gross profit sit on each proposal in KitchenDEV's showroom software.

Eric E. Yildiz4 min read

A kitchen and bath showroom sees its margin on every quote by pricing each quote in software that keeps the cost of every line next to its selling price, so the profit is on screen before the quote goes to the customer. KitchenDEV's Kitchen & Bath Retailer Suite shows cost, retail price and gross profit on each proposal, with an expandable cost and margin analysis on the proposal page.

Quote margin, for a showroom, is the part of a quote's pre-tax selling price that is left after the cost of the products and labor on that quote.

Why do showrooms lose money on quotes without knowing it?#

Showrooms lose money on quotes without knowing it when the quote is built in a spreadsheet. A designer reads a vendor's PDF catalog or Excel price sheet, types the items one at a time and totals the quote by hand. A spreadsheet cannot reliably hold catalog costs, customer tiers, job overrides, discounts and margins together, so the quote can go out before anyone sees what the job will earn.

The risk showroom owners describe is losing money on a quote without knowing it. Pricing every line inside cabinet estimating software for showrooms puts the cost of each line on the same screen as its selling price.

Where does KitchenDEV's Kitchen & Bath Retailer Suite show the margin on a quote?#

  • On the proposal page. Each proposal in KitchenDEV's Kitchen & Bath Retailer Suite has a summary section with the price summary and an expandable cost and margin analysis.
  • As gross profit. KitchenDEV's Kitchen & Bath Retailer Suite calculates gross profit as the pre-tax total minus cost, and the price summary lists only the categories that are on that proposal.
  • In plain labels. Pricing labels on a proposal read "Retail Price" and "Profit".
  • Per version. Each version in a proposal can carry its own multiplier, with its own pricing tab and price summary.

How do pricing layers change the margin before a quote goes out?#

Margin in KitchenDEV's Kitchen & Bath Retailer Suite comes from layered pricing, set once and applied to every quote:

  • Catalog cost and retail multiplier. Each catalog carries a cost and a standard retail multiplier, and both can be overridden at the style level.
  • Customer types. Homeowners, contractors and builders can each have their own pricing, and a single customer can have an override.
  • One job. A proposal can take a custom multiplier for one job without changing the catalog or the customer's standard pricing.
  • Vendor fees. A handling fee or a tariff can be added to a vendor's cost as a percentage, and the retail price and margin are calculated from the new cost.

A discount in KitchenDEV's Kitchen & Bath Retailer Suite can be limited to Cabinets, Hardware, Countertop or Labor & Services, and the price summary shows the breakout. A single line can be discounted with the original price shown crossed out, and a customer's default discount applies to every new proposal for that customer.

How does an owner check margin across all quotes?#

An owner checks margin across all quotes in the Reports menu of KitchenDEV's Kitchen & Bath Retailer Suite. The Cost/Profit Analysis report filters by date, type and sales rep, and the Sales Statistics widgets show win rate, aged proposals and the average time from proposal to sale.

Administrators in KitchenDEV's Kitchen & Bath Retailer Suite decide who sees cost, through user groups that can hide pricing rules, cost and profit from some users. Changes to a catalog multiplier are logged with the employee who made them, so an owner can trace a margin that moved.

What still takes work?#

  • Correct costs and multipliers. The margin on screen is only as right as the costs and multipliers behind it. One showroom on record blamed its margins on the software and found the multipliers had never been set after onboarding.
  • Current price sheets. When a vendor issues a new price sheet, the showroom sends it to KitchenDEV, and KitchenDEV generally applies the update within one week. The vendors covered are on the page about cabinet catalogs KitchenDEV builds.

FAQ#

Margin on a quote is the share of the pre-tax selling price a showroom keeps after the cost of the products and labor on that quote. KitchenDEV's Kitchen & Bath Retailer Suite shows that figure as gross profit on each proposal.

Yes. Administrators in KitchenDEV's Kitchen & Bath Retailer Suite set up user groups that restrict access to cost, profit information and pricing rules.

Yes. The Cost/Profit Analysis report in KitchenDEV's Kitchen & Bath Retailer Suite can be filtered by sales rep, as well as by date and type.

Yes. One proposal in KitchenDEV's Kitchen & Bath Retailer Suite can carry cabinets from more than one manufacturer, countertops, hardware, sinks, labor and services, delivery, installation and tax.

See cost, retail price and profit on a real proposal on the Kitchen & Bath Retailer Suite page, or book a demo with a recent job you want to check.

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