Wood Manufacturing (Cabinets, Bookcases, Mantels)

Business Overview:

This business is a wood manufacturing company specializing in custom crafted cabinets for the discerning middle-upper market. Their in-house designers can design everything from contemporary modern to rustic, farmhouse to mission and even period designs. In addition to manufacturing cabinets, the business also crafts entertainment centers, mantels, bookcases, stair rails and more.

The Company outsources some of their parts for the purpose of better controlling costs, maximizing labor, and offering more variety in a smaller workspace. This is not your typical ma & pa cabinet shop – no RTA – no mass produced big box offerings. The business has about a dozen regular contractors that provide 60% of their sales, with no customer generating more than 10% of sales. In addition to contractors, the company also works with interior designers, architects, developers and one-time-retail accounts. The company has no advertising expense; instead relying entirely on referrals and repeat business. As a “just-in-time” manufacturer, they process all orders individually, selecting materials and cutting parts as needed, thereby allowing them to offer a larger selection. Approximately 75% of their marketing ranges from Spokane Valley to the Tri Cities with the other 25% concentrated in Northern Idaho. The business currently supports a 4 month backlog in orders.

The company operates from a 1,200 square foot showroom/office and a 6,000 square feet shop with three bays and a painting booth, that are both within a short walking distance. The showroom rent is $980 p/mo. with NNN charges and the shop rent is at $1,925 per month, with the Tenant responsible for maintaining the premises.

Ownership for the company, providing sales, design, and production management labor contribution is supported by nine hourly employees: (1) secretary/bookkeeper and (8) craftsmen/installers with compensation ranging between $14.50-$35.00 per hour.

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