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Over the past 15 years, Steve Feldman has been perfecting a replacement contracting niche with the potential to carve out a new space in the $147 billion kitchen and bath market.

“This is going to be the wave of the future,” predicted Feldman, president and co-founder of Renovation Angel, a nonprofit organization that brings in “white glove” crews to recycle luxury kitchens and baths rather than just demo them and send them to the landfill. Since 2005, the company has recycled nearly 6,000 kitchens and diverted more than 38 million pounds from landfills. It’s also created $20 million in jobs and distributed more than $2.2 million to charitable programs.

Feldman’s clever business model doesn’t just save otherwise junked kitchen and bath components. It also saves homeowners money in the form of charitable tax write-offs—and contractors’ the expense of doing demo work. “It’s a way for these contractors to offer a negotiating tool without it coming off their bottom line,” he said.

Now Feldman wants to expand the Fairfield, N.J.-based company nationwide with locations in Los Angeles, San Francisco and South Florida—all ripe with luxury homes. And his goal is nothing less than creating an entirely new market for used luxury kitchen and bath cabinets and fixtures.

“Nearly every luxury market has a an aftermarket, but not kitchen and bath. Why?” Feldman asked. “It took us 15 years, but now we know how to do it. Sometimes I consider myself the Henry Ford of luxury kitchen reuse. It’s a good-sized enterprise market, but we’re only scratching the surface. There’s huge potential here.”

Feldman says Renovation Angel is already selling and shipping used kitchen and bath components nationwide including appliances, granite counters, sinks and faucets. “They’re getting the whole package,” he said.

And more contractors are discovering the benefits of offering customers the pre-owned option, which offers substantial savings. For example, custom-made cabinetry can be had for up to 90% off the original price. At that price, Feldman said, more budget-minded customers might want to opt for a higher grade of cabinetry than what they otherwise could afford.

“Not everyone wants to put in this cheaper cabinetry that’s available,” he said. “This is a great value prop for people who don’t have the money or won’t spend the money.”

It’s also a great opportunity for contractors who want to develop their own niche of installing pre-owned kitchen and baths. But doing so will take some work.

Unlike typical kitchen or bath installs, working with pre-owned materials means contractors have far less design flexibility, especially when it comes to used cabinetry. While Feldman’s company isn’t doing those installs themselves, they do offer services to help contractors with retrofits.

“The team they have there is unbelievable,” said Mina Greiss, owner of Jersey City, N.J.-based Greiss Builders, which has worked with Renovation Angel for the past six years. “They’re trained to guide you through it, and sometimes they help you with design.”

Even with that assistance, Greiss said contractors need to have the proper team in place to do pre-owned kitchen and bath installs including architects and designers. “You really have to know what you’re doing,” he said. “But the savings outweigh the challenge.”