TRANSPARENCY NOW! Manufacturing Factory Direct Cabinets and the Importance of Being Transparent
Last time we talked, we discussed how the global economy has brought about significantly accelerated market conditions where the competitive climate is no longer simply one company competing against another, but a company and its supply chain competing against the other company and their supply chain. This all sounds well and good, but success here is not automatic by any means and there are things you need to keep an eye on; by doing so, it will be much easier if everyone embraces a culture of transparency. 
Why is having a culture of transparency or 'openness' so important? If multiple contributors are looking to contribute value across this dynamic supply or in this case ‘value’ chain, all attempting to work in concert to achieve optimal levels of customer satisfaction, then why is consumer distrust at an all time high? If you are an independent home improvement professional, such as a builder, architect, interior designer, remodeler or contractor, you can learn from large corporations missteps that have created a “guilty until proven innocent’ customer mentality.
First - Who’s to Blame?
Who can blame the consumers when they have been conditioned somewhat by incentive strategies that are not transparent and in fact, many times outright misleading? Customers have had to navigate through well crafted pricing schemes many times only to struggle over what the real cost of something is—and whenever there is a question over the final price—isn’t it interesting how it seems to ‘never’ land in the customer’s favor. Unfortunately, the cabinet industry has turned such pricing ‘bait and switch’ gimmicks into an art form.
Primary examples include firms traditionally offering false list prices with discounts that are really inflated selling prices to offset the discount. Then there are the false claims from firms that are in no way the factory, promising that you can ‘buy kitchen cabinets factory direct’ as though you have arrived at the bottom of the pricing barrel. I heard a radio ad just today that said “on top of already factory direct prices, take another 20% off on all kitchen appliances”. It goes on and on…
The attraction to these tactics for companies is simple; they work in gaining them new sales. But, I want to compel you to go to a higher level and realize the danger in having hard earned trust lost. Our view at Crossroads is a traditional one that says, trust takes a long time to earn, but can be lost in only a moment.
Companies are beginning to recognize that transparency is the counterweight to public skepticism.
Many companies, thinking ‘what if we screw up’ are understandably reluctant to step out and expose themselves by tearing open the veil to the outside world. Do not stand by this old strategy mistake of being unauthentic and realize that the time has come to be asking “What if we never regain the public’s trust again? Realize that being transparent is a smart strategy. This brings us back to Transparency Now which we believe is not only good for business but clearly the right thing to do. It respects the consumer, values their investment, and does not insult thier intelligence with gimmickry that may produce a short term sale at the expense of long term distrust in the organization.
According to my senior kitchen designer, we offer factory direct cabinets in full traditional and contemporary collections and “we give each and every customer the truth, the whole truth, and nothing but the truth”. And as a company, we stand behind and empower that philosophy by offering no discounts, no special incentives, no gimmicks—just prices that are at their very lowest, every day; backed by a best price guarantee and a Lifetime Warranty.
Transparency empowers our entire team internally as well as it allows for consistent messaging across the organization. When you commit to transparency, people don’t have to get their (speculative, distorted) news through the proverbial grapevine.
Don’t Worry, You’re Not the First!
Citing companies from GM to Zappos in a wonderful blog by Vertical Response titled “5 Examples of How Being Transparent is Good for Business”, they remind each company that remains on the fence about becoming transparent, to take comfort that many other companies have already taken this leap of faith with the world and have been quite successful.
Share your ideas on being Transparent Now and Successes!
To Your Success,
Michael Baugus
-Crossroads CEO