Business Case Analysis – Kitchen Cubes

Kitchen Cubes opened on March 1, 2009 in Kenosha, Wisconsin and although they are surrounded by numerous competitors they feel confident their business will soar above the rest. Kitchen Cubes is a family owned an operated business that sells and installs kitchen and bathroom counter tops, cabinets, sinks and faucets. The company’s main product focus is kitchen cabinets direct from the factory. The Kenosha News headline describ ed this trio perfectly in the January 1, 2009 edition. Dad, sons team up for new business.
A pastor, pilot and carpenter came together to share a family breakfast and landed in business together as contractors. That conversion two years ago, led Dan and sons Jake and Zach Molgaard to open Kitchen Cubes a business for installing kitchen and bathroom counter tops, cabinets, sinks and faucets. Becoming a business owner was something Dan Molgaard dreamed of having most of his life. Dan, with over 30 years of experience in the kitchen and bath industry, is the plant manager of Laminated Products Inc.
by day and by night he is the measurer, deliverer and installer for Kitchen Cubes. Dan’s day consist of thirteen to fourteen hours of non-stop working. Will all the long hours and dedication to both companies eventually wear him down? Co-owners of Kitchen Cubes, Zach Molgaard worked as a pilot for two years for corporate jets out of Kenosha Airport. Jake Molgaard did missionary work and was a youth pastor at a Clermont, Florida church for one year. Both brothers quit their jobs and went to work for Saco Industries in Lowell, Indiana.

Working at Saco gave both Jake and Zach the experience they needed to start their own business. When you first walk through the doors of Kitchen Cubes you get the look of a franchise store with a family owned touch. Kitchen Cubes is not out to obtain the high volume, high prices jobs, and they are looking to service the middle class families with the need for home improvements or upgrades. The middle class focus is shown in the company’s price and service. The problem is increased sales and not enough man power for the installation. Dan is the primary installer who only installs part time.
He is currently working thirteen to fourteen hours a day between the two companies and eventually he will burn himself out. The company needs to find a qualified, reliable installer that can assist with the installation of jobs. The company can work closely with the installer to establish a fixed installation cost. Location is not the problem because when people are looking to remodel they are seeking companies that provide product and service that they are inquiring about. Kitchen Cube has done its own customer survey in regards to cost. They offer services that the competition does not.
They offer free in home measurements, free 3D design service and free home delivery. During my interview with Zach Molgaard I asked if opening a new business now, during the current economic state was a concern. Zach reply, “We opened our business at the beginning of the current state. We had not experience the tolls on sales because we had no past sales to compare it too. We are making a profit each month so in our minds, the economy has not affected our business. In fact, I believe we are better off now because people are not selling their homes, they are remodeling them.
An issue that the company is currently facing is recognition. The company just marked it first year of business and each month they are making a profit. Local customers are well aware of Menards, Lowes, Hobo and even LPI for kitchen and bath cabinets but Kitchen Cubes is new to the area and only known through word of mouth marketing. A Kenosha News article that was published on January 1, 2009 was considered a great success in marketing their new establishment. During the Kenosha Expo weekend Kitchen Cube set up a booth to also share with the community their existence.
Those two marketing resourced brought the several leads as well as purchasing customers. Customers surveyed have only positive things to say about their experience with Kitchen Cubes. The franchise looking business comes with a family touch. Kitchen Cubes current web site contains a one page layout that shows the companies hours and location. One of the goals is to increase sales by developing the website to be an online store. Customers throughout the US can purchase kitchen cabinets online and have them delivered direct to their door.
The next step to advertising would be online advertising. Most consumers go to the internet verses the phone book when they are searching for a product. In order to get the Kitchen Cube name out in the public eye the company needs to invest in online marketing. Search marketing by Yahoo companies are able to reach more customers. In fact per the comScores search 2. 0, in July 2007 over 2. 3 billion searches occur on Yahoo each month. Yahoo helps you target specific demographics, local and/or national audiences