NKBA/KBDN Dealer Salary Survey Results
By Edward S. Pell
Owners of kitchen and bath dealerships earned an annual average of $118,000 with perks during 2007. Managers at dealerships earned an average of $68,000 last year, while the average employee earned $54,000 last year, according to the recent National Kitchen & Bath Association/Kitchen & Bath Design News salary survey The survey polled nearly 750 respondents at dealerships across the country on their salary and benefits.
Earnings Figures
To put those salary figures in perspective, the average dealer owner earns $46 per hour on the job. According to the Bureau of Labor, that’s comparable to judges, pharmacists, actuaries and aerospace engineers. Remember that if anyone says what you do “isn’t rocket science.”
At an average of $28 per hour, managers at kitchen and bath dealerships make more than funeral directors, postmasters , and zoologists. Those occupations may seem apropos, depending on the people you manage.
Employees at kitchen bath dealerships averaged $24 per hour last year, about the same as respiratory therapists, building inspectors, and forensic science technicians.
Employees who had been in the industry less than five years made just under $40,000, on average. Those in the industry five to nine years averaged $52,000. Those in the industry ten to nineteen years reported averaging $61,000, but those in the industry 20 years or longer saw only a slight increase at just $63,000 on average.
The average worker in the U.S. was paid just under $20 per hour, or almost $41,000 annually; the average worker at a kitchen and bath dealership (regardless of position) earned almost $34 per hour, or an average of nearly $81,000 over their typical 46-hour workweek.
Salary vs. Commission
More than a third of dealer personnel polled were paid by straight salary, while almost a third were paid salary plus commission. About 10% were owners who took money from the business as they needed it, another 10% were paid commission only, 8% were paid on an hourly basis, 4% were paid an hourly wage plus commission, and 3% were paid commission plus draw.
There was no clear consensus on commission. A third of those being paid in whole or part through commission were paid commission on net profit, while nearly another third were paid commission on gross profit. Another 30% were paid commission based on price, while the remaining 5% were paid commission based on some other method, often a sliding scale.
The average amount of commission paid on net profit was 17%. The average amount paid on gross profit was 13%, and the average amount paid on price was 5%.
Medical & Other Benefits
Some 79% of those responding have a medical plan, and 52% have a 401k. A little more than half have a dental plan, 43% have a prescription drug plan, and 36% have life insurance through their company. Three out of ten have a vision plan, and almost two of every ten have profit sharing.
For those with a medical plan, the employer pays three fifths of the total premium cost, while the employee pays the remaining two fifths.
Nearly half of all dealer owners have no set policy for vacation days, but take them as they wish; 56% have no set policy for themselves for sick days, and 47% have no set policy for themselves on paid holidays. Those owners who did govern themselves with a policy averaged just under five vacation days, one sick day, and two paid holidays last year.
Among dealer managers, one in ten have no paid vacation, one in three have no paid sick days, and one in eight have no paid holidays. Those managers who did get them say they were entitled to an average of eleven paid vacation days, four paid sick days, and five paid holidays in 2007.
Almost one in five dealer employees say they were not entitled to paid vacation. Nearly two in five were not entitled to paid sick days, and nearly one in five had no paid holidays. For those employees who did get them, 2007 saw an average of nearly eight vacation days, three sick days, and five paid holidays per employee. About 36% of managers and 38% of employees say they have a flex-time arrangement.
Some 43% of dealer respondents have a matching 401k, with the average contribution matched by the dealership 36%. Managers and employees are vested after an average of 8.1 months.
Raises & Bonuses
Nearly three in ten dealer owners gave themselves a raise in 2007, with the average raise about 4% of salary; although two in ten owners haven’t given themselves a raise since at least 2002.
Just under 41% of managers received a raise in 2007, averaging 3.3%, while 28% of employees got a rise last year, averaging 3.0%.
Almost a third of owners, managers, and employees at dealerships received year-end or holiday bonuses last year, with the average bonus at $4,600. Just 8.7% received a performance bonus last year, with the average bonus paid $6,400.
Two of every three dealership owners have a company car; just one in seven managers and one in twenty employees do.
Average 2007 sales volume for the dealerships where respondents work was reported at $3.1 million; roughly one in five said the dealership they work at had more than $5 million in sales last year.
Respondents averaged 44 room sales themselves, totaling $742,000 on average. The average sales price for kitchen projects was $31,000, and average ticket for bath projects was $15,000.
Experience & Education
More than a third of respondents work for a dealership that’s been in business 25 years or longer; the average length of time the dealership has been in business was 17 years. More than one in six respondents had been in the kitchen/bath industry for 25 years or more; the average length of time served was 14 years.
Education pays. More than half of all respondents had a college diploma. Those with a college degree earned an average of $83,000 in 2007, 3.4% higher than those with some college or less. Owners with a college degree earned an average of $122,000, compared to $114,000 for those who didn’t; managers with a college diploma earned an average $71,000, compared to $68,000 for managers who didn’t; and employees with a college degree earned an average of $56,000, compared to $53,000 for employees who didn’t.
NKBA membership also paid. Professionals who were NKBA members earned an average of $81,200 last year, compared to $79,600 for those who didn’t. Employees who were NKBA members earned an average of $55,300, compared to $49,800 for employees who weren’t.
The NKBA and KBDN would like to thank everyone who participated in this survey.