So why give away so much money? It's good for the customer, it's good for the world, and ultimately, it's good for the bottom line because it makes my company stand out from the competition.
Bloomfield, CT (PRWEB) February 13, 2014
When David Mason entered ecommerce over a decade ago, only about 10% of the products he sold had pricing controls. "Now, I'd put the number closer to 85%," Mason said. These controls left Mason with an interesting dilemma, he couldn't compete with Amazon on distribution, and now he had no ability to distinguish himself on price either.
"I realized that we needed a different model, a model that would set us aside from the rest of the industry. As a solution, we turned to crowdfunding."
While the company has been very outspoken regarding the benefits of this solution for the general public good, today Mason revealed the business strategy behind the move.
"We have seen a clear spike in news coverage, social media links, and organic traffic as a result of this strategy," Mason says, for the first time this week publicly explaining how funding positive projects can also build up the bottom line. "Getting certified as a B Corp was also a huge help, as it demonstrates the legitimacy of the work we're doing in a way that others can immediately see and identify with."
Mason's business Tail of the Lion specialized in cabinet hardware sales. He decided to take his existing products, and use them to form a new, hybrid store, that combined crowdfunding with ecommerce. "I realized that pricing controls blocked me from charging less to the customer. In other words, they were forcing me to make more on each sale than I really needed to. So why not take that extra money and give it amazing causes around the world?"
Mason formed CabinetHardware.org, an ecommerce company that donated 10% of its revenues, about 50% of its profits, to crowdfunded projects. "There's nothing new about connecting a website with charitable causes. What sets us aside is that anyone in need can apply to us directly for a grant, and our customers decide which ones get funded."
"So why give away so much money? It's good for the customer, it's good for the world, and ultimately, it's good for the bottom line because it makes my company stand out from the competition."
Through its charitable arm, the FlowOver Project, CabinetHardware.org provides opportunities for qualifying individuals, families and organizations to apply for one of the company’s relief grants that can ultimately help build schools in Nicaragua or teacher housing in Malawi, retrofit old buses to create mobile showers for San Francisco’s homeless, help businesses rebuild after Hurricane Sandy’s destruction, or end the primary cause of infant deaths in Nepal by building indoor toilets for impoverished villagers and urban slum dwellers in Nepal.
CabinetHardware.org visitors and customers are invited to vote for those grant applications they would like to see funded, and in doing so help a worthy cause move one step closer to achieving their goal. No purchase or donation is necessary to vote, and customers who do choose to purchase products can earmark a portion of their purchase price to any of the relief causes without absorbing any cost for their donation.
CabinetHardware.org transfers 10 percent of each sale to its relief grant fund.
For more information, visit the CabinetHardware.com website, click on the Relief Projects tab, and find out more about how you can help others in real need at no cost to you.
http://www.CabinetHardware.org is a combination e-commerce site and crowdfunding platform founded in 2013 by entrepreneur David Mason. Ten percent of every dollar spent on the site is donated to relief efforts to help needy families rebuild their homes after a disaster, and others in crisis. Anyone with a qualifying project representative of a charitable cause can apply for one of the company’s relief grants through its charitable arm, the FlowOver project. CabinetHardware.org visitors and customers vote for those grant applications they would like to see funded. No donation is necessary to vote or to purchase products. Customers who do earmark a portion of their purchase price to a cause absorb no cost for the their donation. CabinetHardware.org transfers 10 percent of each sale to deserving causes.