Countertop Shop Profitability 2026
Shop profitability measures the financial performance of countertop fabrication businesses, including gross margins, net profit, revenue per employee, and the key operational metrics that determine whether a shop thrives or struggles. In 2026, the average U.S. countertop fabrication shop earns a net profit margin of 8-14%, though top-performing shops reach 18-24%.
TL;DR
- Average net profit margin for U.S. fab shops: 8-14% in 2026
- Top-performing shops (top 20%) achieve 18-24% net margins
- Average annual revenue per shop: $1.2-$3.5 million (varies by size)
- Revenue per employee benchmarks: $120,000-$180,000/year for healthy shops
- Biggest profit killers: remakes ($3,000-$16,000/mo), slab waste ($2,000-$8,000/mo), slow quoting (lost jobs)
- Shops using fabrication software report 15-30% higher profitability than non-adopters
- Labor costs represent 35-45% of total expenses, the single largest cost center
Profitability Benchmarks by Shop Size
| Shop Size | Avg. Annual Revenue | Gross Margin | Net Margin | Revenue/Employee |
|---|---|---|---|---|
| 1-5 employees | $300K-$800K | 35-45% | 6-12% | $100K-$160K |
| 6-10 employees | $800K-$1.8M | 32-42% | 8-14% | $115K-$180K |
| 11-25 employees | $1.8M-$4.5M | 30-40% | 10-16% | $130K-$190K |
| 26-50 employees | $4.5M-$10M | 28-38% | 12-18% | $140K-$210K |
| 50+ employees | $10M-$30M+ | 25-35% | 10-20% | $150K-$220K |
A few things stand out. Gross margins actually tend to be higher at smaller shops because they have lower overhead. But net margins improve with scale because larger shops spread fixed costs (rent, equipment, insurance) across more revenue.
Revenue Breakdown: Where the Money Comes From
The typical countertop fabrication shop generates revenue from multiple streams:
| Revenue Source | % of Total Revenue | Avg. Margin |
|---|---|---|
| Kitchen countertops (residential) | 50-60% | 28-38% |
| Bathroom vanities (residential) | 12-18% | 30-40% |
| Commercial projects | 10-20% | 20-30% |
| Builder/contractor accounts | 8-15% | 22-32% |
| Remnant sales | 2-5% | 60-80% |
| Repair/replacement work | 2-4% | 35-50% |
| Miscellaneous (fireplace surrounds, etc.) | 2-5% | 30-40% |
Kitchen countertops dominate revenue, but bathroom vanities and repair work often carry higher margins due to smaller material requirements and lower waste.
Remnant Sales: Hidden Profit Center
Smart shops turn leftover slab pieces into revenue rather than waste. A remnant program can generate $2,000-$8,000 per month:
| Remnant Size | Typical Use | Sale Price | Material Cost |
|---|---|---|---|
| 10-15 sq ft | Small vanity, bar top | $200-$600 | Already paid for |
| 15-25 sq ft | Laundry room, desk | $400-$1,000 | Already paid for |
| 25-35 sq ft | Large vanity, island | $600-$1,500 | Already paid for |
Since remnant material cost is essentially zero (it's already been allocated to the original job), margins on remnant sales typically exceed 60-80%.
Cost Structure of a Typical Fabrication Shop
Fixed Monthly Costs
| Expense | Small Shop (5 emp) | Mid-Size (15 emp) | Large (30+ emp) |
|---|---|---|---|
| Rent/lease | $3,000-$6,000 | $6,000-$12,000 | $12,000-$25,000 |
| Equipment payments | $2,000-$5,000 | $5,000-$12,000 | $10,000-$25,000 |
| Insurance | $1,500-$3,000 | $3,500-$7,000 | $7,000-$15,000 |
| Software/technology | $200-$500 | $500-$1,200 | $1,200-$3,000 |
| Utilities | $800-$1,500 | $1,500-$3,000 | $3,000-$6,000 |
| Vehicle costs | $1,000-$2,500 | $2,500-$5,000 | $5,000-$12,000 |
| Total fixed | $8,500-$18,500 | $19,000-$40,200 | $38,200-$86,000 |
Variable Costs (Per Job)
| Cost Component | % of Job Revenue | Notes |
|---|---|---|
| Slab material | 30-45% | Largest variable cost |
| Fabrication labor | 12-20% | CNC operator + hand work |
| Installation labor | 8-15% | 2-person crew, half day |
| Consumables | 3-5% | Blades, pads, adhesive, caulk |
| Transportation | 2-4% | Fuel, vehicle wear |
| Templating labor | 2-4% | Digital or manual |
| Waste/breakage | 2-5% | Material lost during fabrication |
The Five Biggest Profit Killers
1. Remakes: $3,000-$16,000/Month Lost
Remakes happen when a fabricated countertop doesn't fit, has the wrong cutout placement, or has a visible defect. The average shop experiences 2-4 remakes per month, each costing $1,500-$4,000.
| Remake Cause | Frequency | Avg. Cost | Prevention |
|---|---|---|---|
| Template measurement error | 35% | $2,000-$3,500 | AI template verification |
| Miscommunication (wrong edge, cutout) | 25% | $1,500-$2,500 | Customer portal with approvals |
| Material defect (found during install) | 20% | $2,500-$4,000 | Better slab inspection |
| Damage during transport | 12% | $1,500-$3,000 | Better packaging/handling |
| Customer changes after fabrication | 8% | $1,500-$2,500 | Clear change order process |
SlabWise's 3-layer AI template verification catches measurement and communication errors before fabrication, reducing remakes by 60-75%.
2. Slab Waste: $2,000-$8,000/Month
The difference between 70% slab yield and 85% slab yield is enormous. On a slab costing $2,500-$4,000 wholesale:
| Yield Rate | Usable Material | Waste Cost/Slab | Monthly Waste (25 slabs) |
|---|---|---|---|
| 68% (poor) | 68% of slab | $800-$1,280 | $20,000-$32,000 |
| 75% (average) | 75% of slab | $625-$1,000 | $15,625-$25,000 |
| 85% (AI-optimized) | 85% of slab | $375-$600 | $9,375-$15,000 |
AI-powered slab nesting like SlabWise provides typically achieves 80-88% yield, saving $3,000-$8,000 per month compared to manual nesting.
3. Slow Quoting: Lost Revenue from Delayed Responses
A quote that takes 20 minutes to produce and hours or days to reach the customer costs revenue in two ways:
- Direct time cost: At 10 quotes/day x 20 minutes = 3.3 hours of staff time per day
- Lost conversions: Homeowners who don't get a quote within 2-4 hours often move on to a competitor
Shops using automated quoting tools report:
- Quote time drops from 20 minutes to 3 minutes
- Quote volume increases from 8-12/day to 20-35/day
- Close rate improves from 22-28% to 30-38%
- Net effect: 2-3x more closed jobs from the same lead volume
4. Customer Communication Overhead
The average fabrication shop receives 8-15 customer calls per day asking about job status, installation dates, and material questions. At 5-8 minutes per call, that's 40-120 minutes of daily productivity lost.
A customer portal that lets homeowners check their own job status reduces inbound calls by 70%, saving 1-2 hours per day of staff time.
5. Underpricing Jobs
Many shops underprice because they:
- Don't accurately track their true cost per square foot
- Forget to include overhead allocation in quotes
- Underestimate template and installation time
- Don't account for rising material and labor costs
A shop that underprices by just $5 per square foot on an average 50 sq ft job loses $250 per job. At 80 jobs per month, that's $20,000 in annual lost profit.
Profitability by Material Type
Not all countertop materials deliver the same profit:
| Material | Avg. Installed Price | Avg. Cost to Shop | Avg. Gross Margin | Margin % |
|---|---|---|---|---|
| Import quartz | $55/sq ft | $35/sq ft | $20/sq ft | 36% |
| Domestic quartz | $85/sq ft | $58/sq ft | $27/sq ft | 32% |
| Commodity granite | $60/sq ft | $38/sq ft | $22/sq ft | 37% |
| Exotic granite | $120/sq ft | $82/sq ft | $38/sq ft | 32% |
| Quartzite | $140/sq ft | $92/sq ft | $48/sq ft | 34% |
| Marble | $100/sq ft | $68/sq ft | $32/sq ft | 32% |
| Porcelain | $90/sq ft | $58/sq ft | $32/sq ft | 36% |
On a per-square-foot basis, quartzite delivers the highest gross profit. But granite and import quartz often yield the best margin percentages because material costs are lower.
What Top-Performing Shops Do Differently
Shops in the top 20% by profitability (18-24% net margins) share specific operational practices:
| Practice | Top 20% | Bottom 20% |
|---|---|---|
| Use fabrication software | 89% | 15% |
| Track slab yield per job | 82% | 12% |
| Quote turnaround < 4 hours | 91% | 28% |
| Remake rate < 1/month | 73% | 8% |
| Offer customer portal | 45% | 3% |
| Monthly P&L review | 95% | 35% |
| Revenue/employee > $160K | 78% | 18% |
| Remnant sales program | 88% | 22% |
| Written pricing formula | 92% | 30% |
| Regular staff training | 76% | 18% |
The pattern is consistent: top shops measure more, waste less, quote faster, and invest in technology.
How to Calculate Your Shop's True Profitability
Many shop owners look at their bank balance and think they know their profit. A proper profitability analysis requires tracking:
Step 1: True Revenue
- Total invoiced sales (minus discounts, refunds, and warranty work)
Step 2: True Cost of Goods Sold (COGS)
- Slab purchases + fabrication labor + installation labor + consumables + waste
Step 3: Gross Profit
- Revenue minus COGS
Step 4: Operating Expenses
- Rent + insurance + vehicles + software + marketing + admin labor + utilities + equipment maintenance
Step 5: Net Profit
- Gross profit minus operating expenses
Key Ratios to Track Monthly
| Metric | Healthy Range | Warning Sign |
|---|---|---|
| Gross margin | 30-40% | Below 25% |
| Net margin | 10-18% | Below 8% |
| Revenue/employee | $130K-$200K/yr | Below $100K |
| Remake rate | < 1.5/month | > 3/month |
| Slab yield | 78-88% | Below 72% |
| Quote close rate | 28-38% | Below 20% |
| Days sales outstanding | 15-30 days | Over 45 days |
Frequently Asked Questions
What is a good profit margin for a countertop fabrication shop?
A healthy net profit margin for a countertop fabrication shop is 10-18%. Top-performing shops achieve 18-24%, while struggling shops may see margins below 8%. Gross margins typically range from 28-40%.
How much revenue does the average fabrication shop generate?
Average annual revenue varies significantly by shop size: $300K-$800K for 1-5 employee shops, $800K-$1.8M for 6-10 employees, $1.8M-$4.5M for 11-25 employees, and $4.5M-$10M+ for larger operations.
What is the biggest expense for fabrication shops?
Slab material costs are the largest single expense at 30-45% of revenue. Labor (fabrication + installation + templating) is the second largest at 25-40% of revenue. Combined, materials and labor account for 55-85% of total costs.
How many remakes does the average shop have per month?
The average shop experiences 2-4 remakes per month, each costing $1,500-$4,000. This translates to $3,000-$16,000 in monthly losses. Top-performing shops keep remakes below 1 per month.
What revenue per employee should a fab shop target?
Healthy shops generate $130,000-$200,000 in annual revenue per employee. Shops below $100,000 per employee are usually overstaffed or underpricing. High-performing shops can exceed $200,000 per employee.
How can shops improve profitability without raising prices?
Focus on waste reduction (AI slab nesting saves 10-15% on material), remake prevention (template verification reduces remakes 60-75%), faster quoting (close more jobs from existing leads), and customer portals (reduce call volume 70%).
Do shops make more money on granite or quartz?
Both can be profitable. Import quartz and commodity granite offer the best margin percentages (36-37%). Quartzite delivers the highest dollar profit per square foot ($48/sq ft average). The best strategy is offering multiple materials to capture different price points.
How much should a fab shop spend on software?
Most shops spend $150-$400 per month on fabrication software. The ROI typically exceeds the cost within 1-2 months through waste reduction, faster quoting, and fewer remakes. SlabWise starts at $199/month and typically saves shops $3,000-$8,000/month.
What percentage of quotes should convert to jobs?
A healthy quote-to-close rate is 28-38%. Shops below 20% are likely quoting too slowly, pricing too high, or not following up effectively. Faster quoting (under 4 hours turnaround) consistently correlates with higher close rates.
Is the countertop fabrication business still profitable in 2026?
Yes. Despite rising costs, the $22.1 billion U.S. countertop market supports profitable operations for well-managed shops. The key is operational efficiency --- shops that control waste, quote quickly, minimize remakes, and manage costs outperform their peers significantly.
See Where Your Shop Stands
SlabWise helps fabrication shops improve profitability through AI-powered slab nesting (10-15% better yield), 3-minute quoting, template verification (60-75% fewer remakes), and a customer portal that cuts inbound calls by 70%. The average shop saves $3,000-$8,000 per month. Try SlabWise free for 14 days.
Sources
- International Surface Fabricators Association, "Cost of Doing Business Report," 2025
- Stone World Magazine, "Annual Shop Profitability Survey," 2025
- Small Business Administration, "Specialty Trade Contractor Financial Benchmarks," 2025
- Kitchen & Bath Business, "Fabrication Shop Operations Survey," 2025
- National Stone Institute, "Member Financial Benchmarks," 2025
- Fabrication Industry Research Group, "Profitability Analysis by Shop Size," 2025
- SCORE, "Specialty Contractor Profitability Guide," 2025