Cabinet Procurement Services and Support (CPSS) FAQs

In the conventional purchasing scenario, cabinet prices include hefty markups to account for various factors such as:

  • Bidding time
  • Potential losses
  • Ordering mistakes
  • Client satisfaction
  • Other operational expenses

However, with our procurement approach, we aren’t selling cabinets – we’re dedicated to sourcing the ideal product for you from vendors who only sell through dealer accounts. Here’s how we stand out:

  • In-House Dealer Representation: We hold dealer accounts in-house and act as your dealer representative, giving you direct access to these products and pricing.
  • No Markups: The key advantage is that we pass the cost on to you without any markups. You pay the vendor bill directly, ensuring complete cost transparency.
  • Transparent Fee Structure: Our fees are straightforward – they consist of a percentage of the cabinet costs, which is significantly lower than the traditional purchasing model. Unlike traditional dealers, our fees are based on services rendered rather than a cost-plus-profit margin.
  • Commitment to Your Interests: Our commitment to transparency and your best interests sets us apart. Acting as your trusted consultant and dealer representative, we prioritize your needs above all else, rather than focusing on profit margins like in the traditional cabinet resale model.

With Mod Cabinetry CPSS services, you benefit from a clear, honest approach to cabinet procurement, ensuring you receive the best value and service without the inflated costs.

Typically, a project saves $43,000 even after procurement fees for every $100,000 invested in cabinetry compared to conventional purchasing methods.

How? Firstly, you are not subjected to markups where the “other guy” profits significantly from your project. Traditional dealers markup cabinets on average 33% and often protect their margins by reducing the level of service they provide when you need it most, prioritizing their bottom line over your needs. In contrast, our procurement model ensures you receive maximum value and transparency, with all costs clearly outlined and no hidden fees. This approach guarantees you get the best service and quality without the inflated prices.

Let’s look at an example of $100k cost invoiced from manufacturer:

1. Traditional purchasing cabinet cost: $163,900

    • Base Cost: $100,000
    • Standard Margin for the dealer that is the “other guy” (33%)
    • Retail Cost: $149,000 (apply 1.49 markup to get 33% margin)
    • Retail Tax (Assuming 10%): $14,900
    • Total bid to developer is $163,900

2. Procurement cabinet cost: $100,000k

    • Base Cost: $100,000
    • Total cost to developer: $100,000

3. Procurement Service Fee: $20,000

    • 20% of base cost: $20,000

4. Procurement Savings: $43,900

    • Save on Markup: $49,000
    • Save on Tax: $14,900
    • Spend on procurement: $20,000
    • Total savings for developer: $43,900

The calculation shows that procurement services not only provide cost transparency but also result in significant financial benefits, making it a highly advantageous choice compared to traditional purchasing methods. Summary:

Other Benefits

  1. Price Transparency: Benefit from factory prices without any markups and enjoy transparent pricing throughout the process. This contrasts with traditional approaches that pose issues with hefty markups, safeguarding profit margins, and last-minute price changes as project details unfold.
  2. Experienced Team: Our design and customer care team has over 60 years of combined experience, ensuring expert guidance and support throughout the project.
  3. Vendor Relationships: We have long standing accounts with 10 different vendors, offering price advantages that are passed on to you. This enables us to leverage brands at different price points to meet your timing and budget.
  4. Consultative Approach: We work for you as a consultant, ensuring your best interests are always prioritized including collaborative problem solving.

We’re flipping the conventional model on its head. Our unique consultancy approach sets us apart from the traditional bid price method used in common purchasing models. Here’s how:

  • No Bid Markups: Instead of presenting “our” bid price with markups, we start by exploring your scope, budget, and options available through our vendor network.
  • Cost-Effective Pricing: We secure cabinets at cost based on your budget without any markups, leveraging our decades-long relationships and dealer at-cost discount accounts for a low consultancy fee.
  • Transparent Estimation Process: Unlike the traditional model, we first gather detailed information about your project and budget, then identify the best match in the market and obtain estimates at favorable manufacturer prices.

Consultancy Phase 1 service, priced at $2,000, includes:

  • Consultative Partnership: The $2,000 fee covers the comprehensive work involved in understanding your project, identifying suitable vendors, and providing a detailed layout and estimate.
  • Project Scope Understanding: We thoroughly discuss and understand the scope and budget of your project.
  • Vendor Identification: We identify up to three vendors from our approved list who can deliver the required cabinets, ensuring they match your specific needs and budget.
  • Vendor Exploration: If necessary, we explore additional vendors outside our list to find the best possible options for your project.
  • Layout and Estimation: Using the Model Unit Extrapolation Method, we develop a detailed layout of a single model unit for each identified vendor. By multiplying this pricing by the project of units, we provide a project cost estimate for all three collections.
  • Manufacturer Cost Estimates: You receive three manufacturer cost estimates without any retail markups.
  • Cost-Effective Investment: The $2,000 retainer will be credited towards our overall service fees if you proceed to the following phases.

How to Get Started

To get started with the Phase 1 service:

  1. Contact Us: Reach out, and we’ll send you a payment link to initiate the process.
  2. Initial Consultation: We’ll schedule an initial consultation to discuss your project’s scope and budget.
  3. Vendor Selection and Estimation: We begin the process of identifying suitable vendors and creating estimates at manufacturing costs without retail markups.

By choosing our procurement services, you benefit from a transparent, efficient, and cost-effective approach to cabinet procurement, ensuring you receive the best value and service.

Architectural Plans are Preliminary: Architectural plans provide a general layout and design vision but do not include the detailed cabinetry layouts and specific order lists required for manufacturing and installation.

Plans too Detailed Layouts: To turn these broad visions into reality, detailed cabinetry plans must be created that specify dimensions, materials, and configurations that manufacturers can actually build and install without issues.

Expert Liaison Required: Manufacturers typically do not engage directly in translating these plans due to the technicality and precision involved. An expert intermediary is necessary to ensure all details align with both the architectural vision and practical manufacturing requirements. That intermediary is generally the dealer which comes at the inclusion of a margin in it for them.

Avoiding Costly Errors: Without this expert translation and coveted vendor accounts the developer is locked out of many manufacturers and projects can encounter significant field issues, leading to delays and increased costs. Our consultancy service handles this translation, ensuring that your cabinetry fits perfectly and meets all specific needs.

Our Consultative Advantage: Unlike traditional purchasing through dealers who add substantial markups, our consultancy approach provides these translation services and access to vendor account directly, ensuring cost efficiency and accuracy without the overhead of a middleman.

Dealers add significant markups to cabinet prices to cover a variety of costs:

  • Bidding Time: The effort and resources involved in the competitive bidding process.
  • Operational Costs: Overheads like salaries, utilities, and office expenses.
  • Risk Management: Covering potential losses from order mistakes, client dissatisfaction, or project delays.
  • Customer Service: Ensuring high levels of client support and satisfaction.
  • Direct Payment to Vendor: Our secret sauce in saving you a lot of money and enabling you to order with efficiency and confidence is acting as your consultant rather than your dealer. This means that the developer is making the purchase directly and paying the vendor for the cabinets upfront, in full, directly to the vendor to initiate the cabinet order. This approach is our key strategy for saving you money since we’ve removed the added markups for floating financing, errors and omissions as well as eliminating retail markups, hidden fees, and additional taxes.
  • Cost Savings: Developers with liquidity to finance their own cabinetry purchase can save $43,900 for every $100,000 invested in cabinets using this strategy. This method offers an unparalleled return on investment, making it the most advantageous choice in the market.
  • Liabilities: Occasionally, issues such as reorders or field corrections may arise. Since you are buying the cabinets directly, these costs are covered by the developer.

Occasionally, issues such as reorders or field corrections may arise during the course of a project. When you purchase cabinets directly through our procurement model, these costs are transparently managed and covered by the developer. This differs from the traditional purchasing model, where the dealer might cover such costs although this often leads to an adversarial relationship as dealers are working to protect margins erosion.  While you may have to cover additional material costs directly, the overall savings from avoiding dealer markups generally outweigh these expenses. In short, the procurement model’s transparency means you know exactly where your money is going and only spend money on what’s needed to complete the job. Plus, this approach has several key advantages:

  1. Direct Accountability:
    • As you are purchasing the cabinets directly, you have full control and oversight of any additional expenses related to reorders or corrections.
    • This eliminates the adversarial dynamic often encountered with traditional purchasing models, where dealers may push back to protect margin erosions.
  2. Cost Efficiency:
    • By managing reorders and field corrections directly, you avoid the inflated costs that can result from dealers adding markups at the bid level to cover their operational expenses, remakes and financial risks.
    • You pay only for the actual cost of additional materials needed to address any issues, ensuring you are not overspending.
  3. Streamlined Resolution:
    • Direct purchasing allows for a more efficient and straightforward resolution of issues, as we are dealing directly with the vendor on your behalf as opposed to the warranty proof cycle with the purchasing method.
    • This can expedite the process of obtaining and installing replacement materials and minimizing project delays.
  4. Enhanced Transparency:
    • Our procurement model emphasizes transparency, providing you with a clear understanding of all costs involved.
    • You are not subjected to markups where the “other guy” profits significantly from your project. Traditional dealers often protect their margins by reducing the level of service they provide when you need it the most, prioritizing their bottom line over your needs. In contrast, our procurement model ensures you receive maximum value and transparency, with all costs clearly outlined. This approach guarantees you get the best service and quality at the best price.
  5. Risk Management:
    • While traditional models often include a projected markup to account for potential issues, our approach ensures you only pay for what you need.
    • This reduces financial risk and ensures that your budget is used effectively and efficiently.

By choosing our procurement services, you benefit from a model that prioritizes transparency, efficiency, and cost savings. Any issues that arise are handled in a straightforward manner, allowing you to maintain control over your project’s budget and timeline.

 

 

Choosing Mod Cabinetry Cabinet Procurement Services and Support (CPSS) means partnering with a team dedicated to delivering exceptional value and expertise. With 20 years in the business, over 60 years of combined cabinet experience, and strong relationships with more than 10 manufacturing accounts, we are equipped to handle projects ranging from budget multi-units (by the truck load) to custom homes (cabinet at a time).

Here are the key reasons why Mod Cabinetry CPSS stands out:

1. Unmatched Expertise:
– Our team brings over six decades of combined experience in cabinet design, logistics, and warranty support.
– We leverage our deep industry knowledge to ensure your project runs smoothly from start to finish.

2. Comprehensive Vendor Network:
– We maintain strong relationships with over 10 trusted manufacturing accounts.
– This extensive network allows us to source the perfect cabinets for any project, whether it’s a large-scale multi-unit development or a luxurious custom home.

3. Cost Transparency and Savings:
– Our procurement model eliminates traditional dealer markups, providing you with the true cost of cabinets.
– By paying the vendor bill directly, you gain complete transparency and significant savings on your project.

4. Dedicated Support:
– From initial project scope and budget understanding to detailed design layouts and ongoing support, we handle every aspect of the procurement process.
– Our team is committed to ensuring all logistics and warranty filings are managed efficiently, giving you peace of mind.

5. Integrity and Long-Term Partnerships:
– We operate with the highest level of integrity, always prioritizing your best interests.
– Our goal is to build long-term partnerships, fostering trust and collaboration to achieve the best outcomes for your projects.

At Mod Cabinetry CPSS, we care about what we do and strive to exceed your expectations. By choosing us, you’re not just getting a service provider—you’re gaining a dedicated partner committed to your success. Let us help you bring your vision to life with our unparalleled expertise and support.

  • Minimum Unit Requirement: To access our specialized CPSS services, projects must consist of at least 30 units. This ensures the highest level of comprehensive service and cost savings.
  • Projects Under 30 Units: For projects with fewer than 30 units, we provide cabinets through a traditional purchase agreement, leveraging our extensive experience and vendor relationships.
  • Consult with Us: Unsure of the best approach for your project? Contact us to explore the options that will best suit your needs and ensure optimal outcomes.

Choose Mod Cabinetry for reliable, efficient, and tailored cabinet solutions, enhancing the value and functionality of your projects.