Red Ocean and Blue Ocean Strategy

Have You Heard of the Red Ocean and Blue Ocean Strategy?

This theory argues that the business world consists of TWO distinct spaces, described as the metaphor of red and blue oceans.

 

The red ocean represents all known industries competing today in what is the “known market space” Red ocean companies take the conventional approach of beating their competition, by mainly competing on price and stealing competition from one another.

 

What does this have to do with cabinets you may ask? Well, think about it this way. If you are a small and solo cabinet maker, your top competitors are those that have similar characteristics to you. Even though you may have 10+ years’ experience behind you in the industry, you may only be able to advertise your flat pack assembly services, as you do not have the means to invest heavily in building a cabinet shop and buy all the necessary big ticket equipment (e.g. CNC machine) to be able to manufacture custom cabinetry. 

 

How many cabinet makers can you count on your hand that are in the same boat as you? How can you stand out from the competition or even think to compete with the bigger fish in the industry? The service you provide is quite basic – you unpack the furniture and assemble it for your client. Your selling point may be that you will beat any cabinet maker by 5%. Sure, you may grab a few more customers here and there but it is not sustainable

 

No one wins if companies compete on price. You can get lower and lower until you outbid your competition, but in the end, you also lose. How? You are doing work that is worth more than what you are paid. The only winners in this situation are the clients. So how do you separate yourself from your competition? That is what the blue ocean is.

 
The blue ocean represents the unknown market space – the companies that are not in existence today. Blue ocean companies do not use competition as a benchmark, rather they use innovation. Blue ocean challenges companies to seek out uncontested markets and avoid crowded markets. Competition is intensifying, and with supply exceeding demand in most industries, it is imperative that to stand out from the hundreds in the market. But to do this, you will have to do something no one has ever done before.

So, how does this work with cabinet makers? Well, if you think about it, if you are able to provide a
selling point for your services, a competitive advantage over your competition, you would be able to charge more and stand out from the crowd. So what’s stopping you? It may very well be that you haven’t quite figured what you should do to do that. Well, . If you’re reading this post, I am going to tell you what to do and how to do it. If you implement this strategy, you will be several years ahead of your current competition and may possibly become one of the dominant players in this new and untouched market space.
 

So what is the answer? OneCab.

 

You’re probably thinking, “um what?? What does that even mean???”

 

Well, OneCab is our free online ordering system that allows trade professionals to quote and order cabinets in REAL TIME. We are your local manufacturer for cut-to-size here in Perth, as we believe that everyone should have access to large scale manufacturing at an affordable rate with real value for money. Our online custom cabinetry ordering system is created for cabinet makers and trade professionals in mind.

 

So, what’s the difference between this and the subcontracted cabinet maker you use? Faster turnaround times for your clients- we strive for 5-7 working days for flat packs and 7-10 working days for assembled cabinetry. You can literally customise every aspect of the cabinetry- the finishes, components, dimensions and more! See the screenshot below as to what you can do: 

 

onecab

What are start-up business benefits?

  • This software is absolutely FREE. Put that credit card away, we don’t need those details for you to create an account. Only pay when you submit your order.

  • You do not need to purchase expensive CNC equipment. We already have. So why not take advantage of that and send your orders to us for guaranteed quality cuts?

  • You do not have to lease a warehouse to store your equipment and materials. Once your project has been cut, you can pick it up flat packed from our factory or have us deliver it to your job site assembled and ready for your install

  • You don’t need to hire a team! If you have the tools and the knowledge, you can do it yourself or turn it into a small family owned operation

  • Our system automatically provides instant real time quotes. If you add a new component or change the shade, you do not need to submit the new order through to us to get the updated pricing. The quote changes right before your very eyes so your project completion date will not be hindered

  • Perhaps you market yourself as only assembling flat packs as you do not have the means to create custom cabinetry as it may be too expensive or not worth your while. OneCab literally takes the stress away from the manufacturing process, so you can focus on the sale side!

So, what do I do with this information? How do I market myself?

The best part of OneCab, is that our prices are low. How and why you may ask? You will be completing the site measure, ordering the cabinetry on OneCab and installing it yourself. That’s the bulk of the work and how we can pass those savings to you. We are only the manufacturing side of your operations.

You can hop onto your business social media and instead of writing, “Flat pack assembly service with 10 years of cabinetry knowledge”, you can add “We design and install custom cabinetry at an affordable price”. Check out the two ad examples. Which ad do you want to be posting? 

ad examples

Another bonus? You can very well offer this service at a lower price than big companies who also offer custom cabinetry. How? These organisations will have more overheads than a solo cabinet maker. They have to pay their employees (quotes team, sales team, designers, drafting team, cabinetry install team, those working on the production floor etc) a wage, while also factoring in electricity, the purchase of the machinery, depreciation, rent and everything in between. 

What a headache huh? 

In contrast, you may only have your ute and trailer, your tools and perhaps hire an apprentice to help you out. Your overheads are vastly lower than that of a bigger company so you can afford to reduce the cost of your cabinetry while maintaining the same quality as the bigger organisations. Not only will you be able to successfully compete against your current competitors, but you may very well be able to compete against bigger companies. 

So, what are you waiting for? Sign up here and have a play around with the features. Don’t hesitate to contact us at 0423 058 203 or send an email to sales@onecab.com.au if you have any queries. 

If you know someone who is a solo cabinet maker that is wanting to reach new markets, show them this post. You may very well change their life.

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