The method, step by step
- Materials. Panels, shelves, backing and edge banding for this job, at what you pay, including waste. Ten percent waste is a fair starting figure if you cut your own.
- Hardware and accessories. Rods, slides, handles, baskets, lighting. These are where quotes most often miss cost.
- Labor. Design, shop and install hours times what an hour really costs you: wages plus payroll taxes, insurance and paid time off. That is usually 25% to 35% above the wage.
- Overhead. Rent, trucks, software, insurance, your own salary. Take last year’s overhead divided by last year’s job costs. For many small shops it lands between 15% and 30%.
- Margin. Divide by one minus your target margin. To keep 40%, divide by 0.60. Do not multiply by 1.40. That is the most common pricing mistake in the trade, explained in markup vs margin.
Check it against what closets sell for
$4,000Median approved closet quote
$1,700 to $8,000The middle half of jobs
$14,000+The top one in ten
If your cost-up price for an ordinary walk-in is far outside that middle band, find out why before you send it. Either your costs are unusual, or a number is wrong.
Per linear foot is a check, not a method
A price per foot is quick, and clients like it. But a foot of double hang and a foot of drawers cost very different amounts to build. Use per-foot pricing to sanity check a quote or to give a range on the phone. Build the real quote from sections and parts.
Three ways closet companies undercharge
- Free design. Two hours of design on every job that does not close is paid for by the jobs that do. Put design time in your labor.
- Forgetting the second trip. A return visit for one missing part can wipe out the profit on a small job. Add a little for it.
- Old prices. If your price list has not changed in a year and your supplier’s has, your margin has shrunk without you deciding it should.
Figures are combined across closet companies using ClosetCRM: 7,026 approved quotes and their invoices in the 12 months to November 2026. No single company’s numbers are shown.