Before buying your first container load of RTA cabinets, there’s things you should know. In this article we’ll look at the basics so you don’t make a beginner’s mistakes that could cost you.
This article assumes you are buying for inventory vs. buying for a project. Although, we will provide some information that applies regardless of where the cabinet inventory is going.
Here is the information for you to consider as you buy your first container of RTA cabinets.
1. How Many Containers Should You Order to Start?
If you have never bought a container before, your temptation will be to “give it a try with only one container”. The issue here could be warehouse space.
However, if finances are the underlying motivation behind this statement, I’d suggest that you wait until you can purchase two containers, with the objective of purchasing a third within a month or two after receiving the initial two.
Here is part of my thinking. If you are going for a broad inventory of SKUs, then with one container you will have limited stock for each SKU. As part of a broad inventory, you’d probably need either 30″ and 36″ wall cabinets or 36″ and 42″, depending on your market. Or maybe 30″ and 42″. Once you factor in pantry cabinets and the corresponding complementary heights of wall cabinets like 12″-27″ high and some 24″ deep for over refrigerators, you can be spread pretty slim with a single container.
Now if you know that you can serve your market with limited heights of wall cabinets — go for it. Also, take a look at 3 drawer bases. Within the standard sizes of 12″-36″ wide drawer bases you can consume a lot of cabinet count in that range.
One container isn’t enough unless you have a backup supply somewhere and you are okay dollar cost averaging your lower cost container with your higher cost stock from an existing US supplier.
And even with a backup supply, when color matching or matching specs that are NOT the factory standards, you are likely to see two container minimums.
2. What is the Cost of Importing RTA Cabinets by Container?
A container can hold 600 – 700 cabinets. Thus, the typical cost of a container is $65,000 – $70,000, plus foreign manufacturer-to-domestic warehouse shipping.
Of course, your mix of cabinets, vanities, tall cabinets, moldings, panels etc. will impact the cost of the cabinets in your container.
Factory-to-warehouse shipping costs fluctuate seasonally as the result of global events and things like container shortages, to name a few cost drivers.
Shipping for a container under normal circumstances can spike from $8,000 in January to $12,000 in months where Christmas inventory is building in the US market.
3. When is Payment Due?
A down payment of at least 30% is due with the order. Then the balance comes due as cabinets get close to port.
4. Should You Use a Broker or Import on Your Own?
A broker is a company that
- adds a percentage to the cost from the factory as their fee
- provides payment to the factory
- can provide other help as they deal with the factory often and know how they operate
- makes things easier with the customs process
- has the bond and works with customs and your freight company to clear your shipment
However, your normal due diligence process for evaluating individuals and the associated pitfalls needs to be in play. This is a bigger question than I’m going to cover here. One part of this is getting a customs bond. See this link for more information.
As you read through the information from the link, it will help give you a scope of what you’ll need to do if NOT using a broker.
5. How To Assemble Your Inventory List?
This is not an easy thing do, but your purchase history is the best place to start.
Consider:
- Do you need 33” and 36” Susan cabinets
- How about 3- and 4-drawer bases
- What height walls and talls are needed
- How many widths of pantry cabinets do you need
You’ll get your best answers from your existing customer base and purchase history. Or use your current suppliers’ list of SKUs to start thinking through what you’ll need.
Here’s a sample pick list, just to give you an idea. Plus, we can supply you with other lists to help get you started.
6. When to Buy Your Refill Container
When considering finances and warehouse space, keep in mind that you have 3 to 4 months to wait for your next container. Plan accordingly to have enough money and space for your next container(s).
7. What Else Do You Need to Know About Buying RTA Kitchen Cabinets in Bulk?
Best advice for a successful first time buying a container load of RTA kitchen cabinets is to plan ahead.
- How many containers should you buy?
- Have your finances in place
- Decide whether to hire a broker or do it yourself
- Assemble your inventory list
- Figure out your racking layout
- Schedule your container delivery appointment
- Have equipment in place
- Hire workers for two – three hours. Tell them to wear proper safety footwear
