Cmr Case

CMR, which was previously named Mike’s Cabinets, is an architectural millwork company that competes in both residential and commercial construction markets. The natures of these two different market segments are little bit of different. Commercial business takes approximately 60% of CMR company’s total order quantity and 80% of its revenue. CMR provides a larger portion of sale force and also provide a showroom for commercial customers due to the high demand and the importance. Compared with residential cases, commercial cases have larger amount of value with up to 5 billion and it is more difficult and needs more time to spend for negotiate and display before officially sign up the commercial contracts. Since the value for commercial contracts is fairly large and attractive, there are always more than one millwork companies bid to compete, which made the got offer rate of commercial contracts significantly lower than that of residential contracts.

For the residential cases, the project managers and relaxed employees usually need to make their timetable more flexible and get used to customers’ different specific requirements. Residential has a shorter cash flow cycle compared with commercial due to ease of process and it generally has a lower labor and material cost, which means higher gross margin rather than commercial cases.

Another difference between residential and commercial is the way to keep customer relationship. For residential customer, it is a good way to spend some time to talk face to face and provide them some plans that can meet their specific needs and preference while for commercial customers, it is a good way to win the contracts by providing a lower bid. CMR company also think highly and pay much attention on maintain good relationship with contractors than can give them positive influence no matter in residential or commercial cases.  

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