Custom kitchens versus IKEA kitchens, some considerations

What type of kitchen procurement do you use? If you’re like most contractors I’ve spoken to, you pass off kitchens to a local designer who, after developing drawings for the client, then turns to a semi-custom cabinet manufacturer for construction and on-site assembly. You make a small mark-up and leave the complexities of cabinet and countertop installs to a specialist. Alternately, your clients might ask for an IKEA kitchen in an attempt to save money. The customer, in conjunction with IKEA store staff, develops the design, leaving you the job of putting it together on-site.

Vertically-integrated companies like Vancouver’s award-winning designer Jamie Banfield wants to challenge these status quo methodologies. His company, Jamie Banfield Design, offers a complete bespoke design, fabrication and installation service that meets budget, exceeds quality expectations, and reduces contractor scheduling worries while improving their bottom lines.

Can a vertically-integrated design company deliver the Trifecta?
It seems like a bit of magic, so Canadian Contractor offered Banfield’s team the opportunity to prove his point by giving them a scenario and detailed drawings supplied by architect Roderick Young:

Empty-nesters Theresa and Bob are building a new house; a very modern, linear design with a single level layout, open spaces, wide corridors and doorways, and lots floor-to-ceiling windows.

Based on their lifestyle, the couple have decided that their entertainment, living and food preparation spaces will be in one single large room, a Great Room.  Theresa loves to cook, and wants a galley-style kitchen along one wall with a large island, both with Caesarstone countertops.

In keeping with their tastes the cabinets must have a sleek modern appearance to complement the dining and entertainment areas, with casual seating incorporated into the kitchen island.

One kitchen, three methodologies
We decided to look at the project three ways. Every attempt was made to affect an apples-to-apples comparison of each proposal in terms of style, features and overall service.

A Banfield kitchen island.
A bespoke design can surprise and delight your clients with interesting material choices and features

First, we asked Jamie Banfield Design for a 100 per cent in-house kitchen, with custom cabinets from their own Banfield Collection, assembled on site in a totally ‘white-glove’ manner.

Second, we asked Banfield to submit their drawings to a third party semi-custom cabinet manufacturer, who in turn would price, build and install the kitchen.

Finally, we took Banfield’s design and went the IKEA route, pricing it out as best as we could using IKEA’s website and in-store staff, and then factored in associated costs including estimated contractor labour for the install.

Here’s’ what we found out
It was expected that the bespoke route would be far and away the most expensive. In fact, it was not. The Banfield kitchen came in approximately 15% LESS than the third-party, semi-custom version of the same design. The other surprise was that Banfield offered a substantially GREATER discount to the contractor than would the third party designer/cabinet manufacturer duo, ie. more profit.

Bespoke drawers are usually solid wood, semi-custom are often not. IKEA drawers have metal frames and fibreboard bottoms.

Not surprisingly, IKEA pricing came in even lower, approximately 30 per cent less than the Banfield kitchen. However, there were so many variables to be considered, it was hard to put an exact number on the savings. For example, there would be numerous compromises in terms of cabinet sizes, resulting in considerable on-site trim and millwork. Who would pick up the order at the store? How would the inevitable mis-shipped or missing items be handled?

The contractor profitability of an installed IKEA kitchen was questionable. IKEA offers no discounts for contractors, therefore the only profit potential is through labour charges. However, even with a decent mark up on labour, a contractor’s most skilled workers might be taken off other project work for many days in order to build the kitchen.

Bespoke seems to win. Why is this result possible?
There were other differences too. Using a vertically integrated company like Banfield Design from design through to installation, results in a continuity that might not always be the case with other suppliers.  As Banfield explains, “A full service design, measure, fabrication, delivery and installation will cut out any middle or added hands. Site and design issues can be resolved in a faster time frame, since communication can be direct from site to fabrication and approval from the design team.” A middleman commission is also eliminated.

Are you maximising your kitchen reno profit potential?
We acknowledge that each contractor has their own methodology that has proven comfortable and (hopefully) profitable over time. Yet with kitchens being the most expensive part of a renovation or new-build project, the key point here is that there may be other ways to deliver a top-quality job with fewer worries and higher profits. Exploring these possibilities through full-service custom designers in your area might be worth a look.

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