This article covers the typical costs and factors involved in running a kitchen design studio. It provides a clear understanding of the budget range, key cost drivers, pricing structures, and trends in the kitchen design industry. If you're starting your own kitchen design studio, this guide will help you plan your business effectively.
Our business plan for a kitchen design studio will help you build a profitable project
This guide explores the average project value for a kitchen design studio and answers the most critical questions you’ll need to address when starting such a business.
If you want to dig deeper and learn more, you can download our business plan for a kitchen design studio. Also, before launching, get all the profit, revenue, and cost breakdowns you need for complete clarity with our kitchen design studio financial forecast.
Kitchen design studio projects typically range from small remodels to high-end renovations. The average project value depends on location, project scope, and market segment. Here’s a detailed breakdown:
| Project Type | Budget Range | Cost Breakdown |
|---|---|---|
| Full Renovation | $17,500 - $65,000 | Design fees: 8–20%, Materials & installation: 60-80% |
| Mid-range Remodel | $20,000 - $40,000 | Design fees: 10-15%, Materials & installation: 60-70% |
| Luxury Remodel | $40,000 - $150,000+ | Design fees: 10-15%, Materials & installation: 65-80% |
| Partial Upgrade | $5,000 - $20,000 | Design fees: 8-15%, Materials & installation: 50-70% |
| Apartment Kitchens | $12,500 - $25,000 | Design fees: 10-15%, Materials & installation: 50-65% |
What is the typical cost for a full kitchen design project?
Clients typically spend between $17,500 and $65,000 for a complete kitchen design project, with the smallest projects starting around $5,000 and luxury projects exceeding $150,000. Mid-range projects generally fall in the $20,000 to $40,000 range.
The design fees typically make up 8-20% of the total cost, with the majority of the budget allocated to materials and installation. Luxury projects can exceed $150,000 due to high-end finishes, appliances, and custom work.
The project cost is highly influenced by the complexity of the renovation and the quality of materials chosen.
What is the usual range between the smallest and largest kitchen design project budgets?
Kitchen design projects can vary greatly in terms of budget. Small projects may cost as little as $5,000, while high-end luxury remodels can exceed $150,000.
The typical project falls within the $12,500 to $40,000 range, depending on the scope of the work and the materials chosen.
Luxury renovations, especially those with custom cabinetry and high-end appliances, often drive up costs significantly.
How much of the total project cost typically goes to design fees versus materials and installation?
Design fees usually account for 8-20% of the total project cost. The rest of the budget is allocated to materials and installation.
In mid-range projects, installation and materials typically account for 60-80% of the total budget. For luxury remodels, this percentage can go up to 85% or more.
The costs for cabinetry, countertops, and appliances often make up a large portion of the materials budget.
What is the average square footage or size of kitchens designed in these projects?
The average kitchen designed in these projects typically ranges from 150 to 225 square feet. Luxury kitchens, especially in larger homes, may be 400 square feet or more.
For apartment kitchens, the size can be as small as 70 to 150 square feet, depending on the layout and available space.
Luxury homes often feature more spacious kitchens with larger layouts and premium finishes.
How many kitchen projects does a studio usually complete per year?
A typical kitchen design studio completes between 40 and 60 projects annually. Boutique and high-end firms often complete 10 to 25 larger projects each year, depending on the market segment.
Some studios may complete more projects in urban areas with higher demand, while others focus on fewer, more complex renovations in luxury segments.
High-end studios may also offer more customized, high-quality work, which can affect their project output.
What percentage of projects are full renovations compared to partial upgrades?
Approximately 55% of kitchen design projects are full renovations that involve major layout changes. The remaining 45% are partial upgrades, which typically include cosmetic changes like new cabinets or countertops.
Full renovations are generally more expensive and take longer to complete, whereas partial upgrades are less expensive and can often be completed more quickly.
Clients opting for partial upgrades tend to focus on refreshing the look of their kitchen without changing the overall layout.
How do location and market segment influence average project value?
Location and market segment significantly influence the average project value. In urban areas and affluent markets, projects typically exceed $35,000, with luxury studios averaging between $25,000 and $150,000 per project.
In suburban or entry-level markets, the average project value is closer to $12,500 to $25,000.
Urban markets may have higher labor and material costs, driving up the overall project value.
What are the main cost drivers that affect project value the most?
- Cabinet and hardware quality
- Countertop material and installation
- Appliances (higher-end brands can double costs)
- Labor costs, especially for custom work
- Location and local labor rates
How do studios structure their pricing — fixed fee, percentage of total cost, or hourly rate?
Studios typically use one of three pricing models:
- Fixed fee packages for well-defined projects
- Percentage of the total cost (usually 8-15%)
- Hourly rates for consultations or small-scale projects ($120–$220 per hour)
What profit margin is generally achieved on a standard kitchen design project?
Standard profit margins for kitchen design projects range from 10% to 20%, with boutique design studios typically achieving higher margins.
Mass-market providers may have slightly lower margins due to higher competition and more cost-sensitive clients.
Specialized firms that focus on luxury kitchens or high-end materials may achieve the higher end of this margin range.
How have average project values changed in the past two years?
Average project values have increased by 10-20% in the past two years, mainly due to rising material costs, labor shortages, and increased demand for high-end finishes.
For instance, the cost of major renovations has risen from $35,000 to $40,000 since 2023.
This trend is expected to continue as the demand for luxury renovations remains high post-pandemic.
What trends or technologies are currently influencing project budgets in kitchen design?
Several trends and technologies are influencing project budgets, including the integration of smart home technology, sustainable materials, and high-end appliances.
- Open-concept kitchens with custom islands
- Smart appliances and integrated technology
- Sustainable and non-toxic materials
- High-end custom cabinetry
- Energy-efficient lighting and water systems
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are encouraged to consult with a qualified professional before making any investment decisions. We accept no liability for any actions taken based on the information provided.
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Sources
Read more articles
- Kitchen Design Studio Business Plan
- Kitchen Design Studio Profitability
- Tool for Budgeting a Kitchen Design Studio
- Tool for Revenue Projections in Kitchen Design Studios
- Complete Guide to Running a Kitchen Design Studio
- Kitchen Design Studio Startup Costs
- Bank Financing for Kitchen Design Studios
- Understanding Profit Margins in Kitchen Design Studios
- Kitchen Design Pricing Structure