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Company has overheads, salaries, rent, pensions, insurance, depreciation, VAT etc.
Exactly. It's not a scalable business and even though people have been willing to wear high material costs you're still going to be susceptible to any changes.
Also being brutally honest, as a trend it's not going to last forever.
They have a good niche, good brand, you assume a decent order book, so make hay.
hugo7-
My wife's friends run Holte, and even with mates' rates their quote was the best part of £15K. To be fair, this did include several bespoke elements aside from the cabinet fronts (bench seating with drawers, shelving built into island, custom ASHP plant cupboard etc).
They said their order books got decimated by trussonomics.
In the end, we bought £2.5K's worth of fancy ply and are using our builder's chippie to knock up all the above bits for very cheap. We will be sanding and finishing the ply ourselves. It won't be perfect, but it'll look & feel nicer and won't be costing too much more than basic Ikea fronts.
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They have a good niche, good brand, you assume a decent order book, so make hay.
Quite. So they'll charge what the market will bear. At their current prices they'll either have enough custom and stay in business, not have enough business and reduce their prices, or not have enough business and go bust. I doubt many people go into business just to make enough to cover their costs while making minimal returns.
ectoplasmosis
Brommers
I mean it’s all pretty simple isn’t it?
Customer pays a premium for a kitchen, they don’t want it not as neat as it could be, they also don’t want to make it themselves. Company has overheads, salaries, rent, pensions, insurance, depreciation, VAT etc.
It makes more sense to me than, for instance, paying an estate agent £7,500 to be borderline obstructive to a house purchase.