Moderators: Mike Iubelt, Jason Susnjara, Larry Epplin, Clint Buechlein, Mike Iubelt, Jason Susnjara, Larry Epplin, Clint Buechlein
Just to clarify, HD won't be doing ANYTHING other than selling this product and having it shipped to it's stores. Their business model is cheap labor, and lowest priced products. If, and only if, they can obtain the markup they REQUIRE to sell this product, without adding labor costs to their bottom line, would they even consider it. Their distribution network is in place. They have over 2200 stores in the US, Canada, and Mexico. They even acquired a 12 store home improvement chain called The Home Way, in China, 5 years ago. All this is, to HD, is another 'service' they can offer (if clicking on cabinets, resizing them and picking a material/finish = offering a service) and a coupla pallets a week/month to pull off a truck that's already got CFP products on it and has made it's way from CFP to HD's hubs and to the stores. They place their orders for lumber/building materials based on weight-per-flatbed trailer, and often pay for a partially empty truck if they don't need a full one. They won't even blink at a few extra pallets. And the best part for HD is, if it's not working for them, they'll just discontinue it. If it does work, it's pure profit.Michael Kowalczyk wrote:There may be several opportunities here and there can be a temporary game changer. If we are able to participate in youbuild.com it may open doors for some of us who do not make cabinets as our core business or others that would like to keep there CNC running. If the purpose is to have HD market & CFP supply and manufacture the DIY products then it will indeed cut into some markets but there is no way that CFP can produce them as economical as we can here in Houston or someone else with a CNC on the West coast can. CFP will only be cost effective within a certain radius. Not sure but I doubt it would make sense for HD to set up a full shop. They could not afford, IMHO, to pay someone will the proper skills full time to produce the throughput, at each location, needed to be profitable and what about all the lines of cheap cabinets they are already selling.
Mike, Curious to know by what source are you able to state the above? Is this a factual statement that can be verified or are you just adding more speculative opinions to the mix?Mike Seisser wrote:
Just to clarify, HD won't be doing ANYTHING other than selling this product and having it shipped to it's stores.
Michael Kowalczyk wrote:Mike, Curious to know by what source are you able to state the above? Is this a factual statement that can be verified or are you just adding more speculative opinions to the mix?![]()
Scott Val has posted in the Ecab section that said we should get a new update in February but you know how target dates are for releases.
As I said, I'm as full of shit as anyone else, but I'm painfully familiar with their business model, working as a floor associate and now receiving associate for the past 2 years to make ends meet. You don't just get endcap space with Home Depot unless they stand to make a very nice profit. It's tough to get regular shelf space with them, and they're notorious in the retail industry for it.Jason Susnjara wrote:YouBuild is currently being test marketed at one location in Charlotte, NC. YouBuild products can either be purchased via the internet (http://www.youbuild.com) or through the end cap at the Wendover Road Home Depot location. YouBuild products are generated and resized using eCabinets. Customers can select products, resize if needed and then order. The order goes to Columbia and they machine and package the components for each job. Columbia then ships the products to the Home Depot store for the customer to pick up. The customer takes his products home and assembles them.
This is the basic flow of the program. We are unsure where it will go from here. The lock-dado joint is currently being tested in this application and once we feel it is ready, we will send it out as an update for eCabinet Systems.