RTA vs Pre-Assembled Cabinets for Dealers

Key Takeaways

RTA cabinets save shipping and storage costs due to their flat-packed design. On the other hand, pre-assembled cabinets have higher shipping charges but deliver convenience for the user.
Both RTA and pre-assembled cabinets offer different profit margins. RTA cabinets are cheaper to purchase and provide additional installation revenue opportunities.

Pre-assembled cabinets have a higher resale potential.

Offering a hybrid model allows dealers to target a wider customer base and hence maximize their profitability ratio..

For any cabinet dealer, the very first question that pops up in their mind is whether to focus on RTA or pre-assembled cabinets. There is good news for every wholesale cabinet supplier in the USA, as both cabinet formats are popular there.

Whatever cabinet dealers choose will consequently affect their shipping costs, labour requirements, customer satisfaction, and, most importantly, their profit margins. However, it is not a dilemma to choose only one option out of these two. Cabinet dealers can offer both types of cabinets to cater to a wider customer base and hence maximize their profits.

According to IBISWorld, the U.S. cabinet and countertop industry is worth $23 billion in 2024 and is growing steadily. So there are plenty of opportunities for the dealers to grab in this industry.

This comprehensive guide delves into a detailed comparison of RTA vs pre-assembled cabinets to give a complete insight to the dealers, from shipping and delivery to warehousing, set up, and resale opportunities.

RTA vs Pre-Assembled Cabinets: An Overview

Before moving to the specifics, it is important to get cognisance of the basic differences between RTA and pre-assembled cabinets.

RTA cabinets are shipped in parts in boxes, and they need assembly before installation. They are easy and simple to transport and are economical to use. However, pre-assembled cabinets are delivered fully built. They are ready to install and require no assembly. Their shipping and storage costs are higher than RTA.

To analyse which option delivers maximum cabinet dealer profit margins, it is important to look into the business model of the cabinet dealers and the customers they have to serve.

Major Differences Between RTA and Pre-Assembled Cabinets

Now let’s look into the main areas where these two cabinet formats differ.

Set-up and Labor Costs: Assembly and Installation

The major difference between these two cabinet formats is their respective setup process and ensuing labor costs.

RTA cabinets require assembly. This can make it attractive for dealers who want to diversify their revenue streams, as they can offer their assembly in addition to selling them. Therefore, they can earn extra money while still providing economical cabinet options to the customers.

Whereas pre-assembled cabinets arrive fully assembled, so the step of assembly is eliminated right away. This makes it faster and easier to install. Therefore, contractors juggling multiple projects can get maximum benefit from this and can handle various projects with ease.

Nevertheless, the choice between RTA and pre-assembled depends upon your customer base. DIY-minded people prefer RTA cabinets, while contractors who work on tight deadlines go for pre-assembled cabinets.

Shipping and Delivery: Speed vs Flexibility

Secondly, shipping is very important when it comes to RTA vs pre-assembled cabinets.

RTA cabinets come packed flat, making them efficient to transport. They take up less space in trucks and warehouses, which reduces their freight costs significantly. Thus, the dealers can replenish their inventory to a maximum without spending and tying much money on logistics.

On the other hand, pre-assembled cabinets arrive fully assembled, which means that they come with a huge volume, occupying a lot of space. This makes them bulkier and, hence, they are expensive to transport.

Warehousing and Storage: Space Equals Money

Warehousing and storage costs are also taken into consideration by cabinet dealers. According to the US Census Bureau, 2023, logistics and warehousing costs account for nearly 25% of total retail expenses in the USA. Therefore, the RTA vs pre-assembled cabinets debate has a direct impact on the profitability of the dealers.

RTA cabinets have a flat-packed design. So a large number of RTAs can be stored in comparatively less space. This makes it a budget-friendly option for smaller dealers who have less storage capacity in their warehouses.

However, pre-assembled cabinets come fully assembled. This means that they need more space to be accommodated. This makes it a costly option for cabinet dealers. Because if they don’t have enough storage capacity of their own, then they will have to rent the godowns for storing these cabinets.

Profit Margins and Resale Opportunities

Both RTA and pre-assembled cabinets offer profit-making opportunities for the cabinet dealers, but in different ways.

RTAs are inexpensive to purchase, and their shipping costs are also low. This results in better opportunities for enhancing the cabinet dealer’s profit margin. Moreover, dealers who provide assembly services can also earn extra income from these. They can also target a huge budget-conscious customer base by offering RTA cabinets.

Pre-assembled cabinets, though expensive to purchase and ship, have a higher resale value. They are preferred by customers who want their remodeling to be done quickly. Also, they are a pertinent option for luxury and high-end remodeling projects. So they bring with them an opportunity for dealers to target the upscale market and make premium profits.

RTA vs Pre-assembled Cabinets: Which are the Best Cabinets to Sell as a Contractor?

People often ponder which cabinets are best for a contractor to sell. Let’s find an answer to this question.

For projects that run on tight budgets, it is prudent to use RTA cabinets. They allow contractors to compete in the markets and still earn healthy profit margins. Therefore, cabinet dealers who are faced with budget restrictions must opt for RTA cabinets.

However, pre-assembled cabinets should be preferred to be use in a premium project. Because the clients in this bracket are willing to pay more for an expedited and convenient process. So, as a contractor, you should go for pre-assembled cabinets when catering to the needs of the elite class.

To surmise, the contractor who offers both RTA and pre-assembled cabinets is the wiser one. By offering a hybrid model, they can address a wider customer base and will hardly miss an opportunity to make money.

Why is it Important for Dealers to Work with a Wholesale Cabinet supplier in the USA?

For a contractor, it is important to partner with a wholesale cabinet supplier in the USA to thrive in the competitive market and ensure their successful operations. Here is where Cabinet Corp steps in.

It offers both RTA and pre-assembled cabinet options to the dealers, which lend them the flexibility to meet diverse customer demands without changing the supplier for every new project.

There are numerous benefits of working with a reliable wholesale cabinet supplier in the USA. These are:

Uniform product quality every time.
Nationwide shipping options
Reasonable prices to boost cabinet dealers’ profit margins.

Such a synergy ensures that whether your customers prefer economical RTA cabinets or are looking for time-saving pre-assembled ones, you can deliver both on time with confidence and ease.

Final Thoughts: Maximizing Cabinet Dealer Profit Margins

When it comes to RTA vs pre-assembled cabinets, it is hard to choose one. The most successful dealers are those who offer both formats of cabinets to cater to the needs of a larger customer base.

However, it is important to note that RTAs are more affordable and require less storage space, in addition to their DIY appeal. Whereas pre-assembled cabinets expedite a project and are convenient to use. Furthermore, it has a better resale value.

In order to maximise their cabinet dealer profit margins, dealers have to partner with a reliable wholesale cabinet supplier in the USA, which could help them grow in the competitive and fast-paced market by timely delivery of their orders.

So if you are looking to expand your business and include both RTA and pre-assembled cabinets in your offerings, Cabinet Corp is your go-to wholesale cabinet supplier in the USA that equips you with the best cabinets to sell as a contractor through its flexible product lines, competitive prices, and nationwide delivery.