Too much choice?

[peter d]

Have you ever run into the "problem" where you have too many suppliers to chose from? Within a 25 mile radius of my home, I have the following. If you're from New England, these names should be familiar:

Northeast Electrical
Electrical Wholesalers
Graybar
Granite City
Standard Electric
Concord
Munro
Yale
Rexel CLS
And numerous independents/2-3 store chains

And of course, at least a dozen Lowe's and Home Depots

It's a real drag living near the city. ;)

[mdshunk]

Once you get figured out who's got certain things for the best price, it all changes. I think it's better to cultivate a relationship with just a very few. Preferrably the one's who are willing to source hard to get items without crying and moaning about how hard their life is. Had a supply house counter guy drive to another store in his personal pickup truck to get a panel cover they were out of and bring it out to me on the job today.

[stickboy1375]

Peter I only use Electrical Wholesalers and 1 other wholesaler, it just keeps life simple I guess...

[jamesguy10]

Peter, as you know, I also have the same problem:grin:

[peter d]

Peter I only use Electrical Wholesalers and 1 other wholesaler, it just keeps life simple I guess...

I mostly use EW as well, and I even used to work for them for a short time. But lately they've been suffering from that inverse relationship of rising prices and falling service, so I've been looking elsewhere.

[peter d]

Peter, as you know, I also have the same problem:grin:

:D

Yeah, you half to drive half an hour just to get a locknut.

[ptonsparky]

What a dilema!! I have three within 20 miles and seven in 70 miles radius.

I mainly use two of the closer and they are both CED owned, which means they compete with each other tooth and nail. I normally don't have time to chase down parts from the others. Not worth the travel.

[ceknight]

Have you ever run into the "problem" where you have too many suppliers to chose from? Within a 25 mile radius of my home, I have the following......

Within 7 miles of my house I have:

Edward Joy Electric
Royal Electric
Solvay Electric
City Electric
Graybar
Cooper Crouse Hinds

And that's not counting the hardware stores and Home Despot.

Most of them are scattered around just enough that I'm always close to one if I need something after I've started a job, so that's a nice bonus. Some mornings, though, I wish I just had one or two that stocked everything... :)

[ITO]

Never trust a supply house and never get too comfortable with any of them.

I like to keep five open accounts and spread it around based on best price, and best service. Three supply houses get my big quotes and whomever is consistently low gets rotated out with one of the others back in. They know the game and get very competitive.

I keep it fair and don’t play number shopping games, which I think gets me the best numbers.

All supply houses make mistakes, its how fast they fix them and if they eat it when they do that defines my current favorites. Right now CED is head and shoulder above everyone else, but that will only last as long as they can keep their key people. The key person in any supply house is the inside sales guy (or woman), they are the ones you need to be working with, the outside salesman is just the guy who brings donuts and picks up your orders, the counter guy is just in training to be an inside or outside sales guy.

Also if you are not using a PO system, the supply houses pick up on that fact you are not watching and then they don’t play fair.

Just my opinions but how you handle your supply houses and your material purchases will make or break your business. A good purchasing agent (even if you wear that hat as the owner) can make their own wages in savings.

[Brady Electric]

Marc, I couldn't have said it better. I only use two supply houses, I have found like Marc establish a good relationship with one or two and you have it made. I stick by them in good times and bad times and it pays off. Semper Fi

[peter d]

Within 7 miles of my house I have:

Edward Joy Electric
Royal Electric
Solvay Electric
City Electric
Graybar
Cooper Crouse Hinds


Crouse Hinds has a supply house as well? Or can you just get their stuff much more easily because they have a warehouse in the area?

Around here, we have Leviton, Lightolier, and AFC (MC cable maker) close by so their stuff is very common and easy to find.

[ceknight]

Crouse Hinds has a supply house as well? Or can you just get their stuff much more easily because they have a warehouse in the area?

Yeah, the regional distribution's here in Syracuse. If someone doesn't stock it, all it takes is a phone call.

Crouse Hinds actually started here in Syracuse, glad Cooper decided to stick around and have a presence. For that matter, Pass and Seymour started here, too. All that history in this run down old dump of a city... :)

[peter d]

All that history in this run down old dump of a city... :)

Yeah, it' s sad because it wasn't always like that. We lost almost all of our manufacturing in New England as well. But it got replaced with "high tech," financial, medical, and other non-manufacturing industries. So we haven't had it nearly as bad as you have it out there.

[ceknight]

So we haven't had it nearly as bad as you have it out there.

Syracuse is putting all its economic development hopes on a bigger, shinier shopping mall. http://en.wikipedia.org/wiki/DestiNY_USA

If that isn't desperation (sorry, I mean "forward thinking"), I don't know what is. :)

[dduffee260]

Have you ever run into the "problem" where you have too many suppliers to chose from? Within a 25 mile radius of my home, I have the following. If you're from New England, these names should be familiar:

Northeast Electrical
Electrical Wholesalers
Graybar
Granite City
Standard Electric
Concord
Munro
Yale
Rexel CLS
And numerous independents/2-3 store chains

And of course, at least a dozen Lowe's and Home Depots

It's a real drag living near the city. ;)

What, no Wal-Mart???

[cschmid]

lol..... We have one Local supplier and every one else sends salesmen closest is 100 miles. when order is screwed up you don't get the privilege of running over to a competitor to get parts. oh yea we have HD no Lowe's or Menard's.

[ITO]

I have gotten “partnered” enough times by supply houses to understand they are not your friends, and their idea of “partner” is only between you and the salesman while the credit department has another definition.

The branch manager may or may not be a stand up guy, but majority of the time he is not in charge of the credit department, and for some strange reason every credit department for every major supplier in the county has to completely turn over about once every three years. New credit manages, new schemes, new deals, who are you again?

A lot of contractors don’t realize this but you can negotiate your own credit terms with the supply house, that are more to your liking. Little things like, no you can not invoice me until I accept delivery, and my billing cycle is from the 25th to the 25th, so if you want net 30, don’t bill me on the 21st and expect a check in 30 days, and if you still don’t get that and file an intent to lean you might as well close my account, because its over. If I do pay early its my choice and I want something for it, like a 2-5% discount.

My freight claims are the responsibility of the supply house, if you cant get it to me in one piece, I am not paying for it. Try explaining that to a credit department who just started their new job last week and does not even know your first name. Technically freight on a truck belongs to you, but I make the supply houses take responsibility for it, or I buy it from one that will.

If you want to form a business relationship then start with your inside sales man, and try to cultivate a good business relationship with the factory gear reps and fixture distributors, these are the people that will do something for you and when they move on its usually to another supply house or product line and you still get to keep the contacts only it may be for a different brand.

[satcom]

I have gotten “partnered” enough times by supply houses to understand they are not your friends, and their idea of “partner” is only between you and the salesman while the credit department has another definition.

The branch manager may or may not be a stand up guy, but majority of the time he is not in charge of the credit department, and for some strange reason every credit department for every major supplier in the county has to completely turn over about once every three years. New credit manages, new schemes, new deals, who are you again?

A lot of contractors don’t realize this but you can negotiate your own credit terms with the supply house, that are more to your liking. Little things like, no you can not invoice me until I accept delivery, and my billing cycle is from the 25th to the 25th, so if you want net 30, don’t bill me on the 21st and expect a check in 30 days, and if you still don’t get that and file an intent to lean you might as well close my account, because its over. If I do pay early its my choice and I want something for it, like a 2-5% discount.

My freight claims are the responsibility of the supply house, if you cant get it to me in one piece, I am not paying for it. Try explaining that to a credit department who just started their new job last week and does not even know your first name. Technically freight on a truck belongs to you, but I make the supply houses take responsibility for it, or I buy it from one that will.

If you want to form a business relationship then start with your inside sales man, and try to cultivate a good business relationship with the factory gear reps and fixture distributors, these are the people that will do something for you and when they move on its usually to another supply house or product line and you still get to keep the contacts only it may be for a different brand.


After 30 years with a local supply house, and not one problem, I get a call from the credit manager, where is the payment, when am I getting it, I am sending this to collection! , which he did, no need to say I would travel 100 miles if necessary, to avoid doing any business, with this company, The funny part was I had just talked to the owner, one day before this bright manager called. and let him know there was a check issued from our new credit line, and it may be a day or two late, he said there is no problem. Seems the owners, and credit people don't communicate very well, ITO you covered the subject very well.

[emahler]

and that supplier was recently bought out by a conglomerate and they are currently falling apart.....turnover, no communication, etc

[mattsilkwood]

i have 3 around here we use 2 of them most of the time one is right in town so we use them for odds and ends, also buy nearly all of our big wire from them.
the other one we use on bid jobs, its a little bit of a drive but worth it.

the last one you have to watch their invoices like a hawk but they are the only ones that stock caddy :mad:

[hardworkingstiff]

My biggest complaint about supply houses (and I've found them all to do this, just some more than others) is if I get material quoted for a job, I get a much better price than if I go in and buy it at the counter without a quote.

It is the main reason I quit dealing with Graybar.

[iwire]

My biggest complaint about supply houses (and I've found them all to do this, just some more than others) is if I get material quoted for a job, I get a much better price than if I go in and buy it at the counter without a quote.


I always thought that was a good thing as long as you plan ahead you can save big cake.

[ITO]

Quoting material is aways cheaper than counter prices, that is just how it work. Also the more you buy the better the deal. Counter prices are for T&M service work. Don't get mad a the supply houses, just take this new found knowledge and use it to your advantage.

[jrclen]

Have you ever run into the "problem" where you have too many suppliers to chose from? Within a 25 mile radius of my home, I have the following.
And of course, at least a dozen Lowe's and Home Depots
It's a real drag living near the city. ;)

What a drag that must be. 60 miles south of me, in the city, we have 3 wholesalers and HD and Menards. 60 miles NE we have 1 wholesaler where I do most of my business. 50 miles north are Loews and Menards. 40 miles west is HD.

[kid_stevens]

There used to be fifteen Wholesalers here in little Albuquerque and now there are ten and I still only buy from one. I shop the others and when a price is too out of line I let the counter people or the inside salesman know and the price comes down.

Home depot or Lowes only to keep from burning too much fuel. Saving 5 on a light and and not burning 5 more on gas can be a good thing.

[tshea]

Crescent-SqD, GE
Warner-Cutler
Graybar-SqD
Hein-Cutler
Standard-SqD
GESCO-GE
Boggis-Johnson-SqD
Nelson-Siemens
Viking-SqD
Lowes
HD
Menards

You see my problem? MOst of these suppliers are actually within 20 miles.

I couldn't agree more about developing a relationship with a supplier. Most of the time it's with the outside salesman, but also try to include the inside salesman. The branch managers rotate to quickly. The credit department is another story all together. I could tell you horror stories where they cut you off. How do you find out? When the electrician goes to the counter and the counterman says Sorry no can do.
I won't go into the exact verbage of the call to the credit dept, but it's not pretty!

[SPDsk8er]

Here in the Chicago area, there are hundreds of Distributors- literally. I agree that it is best to work with 2 or 3 vendors-can't put you're eggs all in 1 basket. There are so many "specialty" houses, too- I guess it depends on what you need and how much time you want to spend checking prices. Customer service has Always been very important to me, and getting correct, quality material in a timely manner is worth paying a bit more.

But when doing service work, its ALL about Location AND Local Stock. We are very lucky to have SO many sources available to us here- Its a good thing. Stock is important to me, so having a few "distribution centers" does not work for me as well as somebody with several well stocked locations. Oh, & the counter staff MUST be good, too.

Plus, we have Manufacturer Reps with very good stock near O'Hare as well- which helps smaller dists compete with the big boys.