Knowing competitions material price

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Rewire

Rewire

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Location
Lake of the Ozarks
The guys brought their pick tickets in yesterday and as I was going through them I found a ticket for a role of 12/2 romex that was for a competitor it must have gotten mixed in by mistake. i noticed the price was 75.80 /250ft I called my supplier to check my price and got a quote of 81.56/250ft that is 10% difference I am some what miffed at this large a difference as I purchase an average $10,000 a moth from this one supplier. i want a better price and could use some input on how to handle the negotiation should I tell them I know the others price or keep my hand close to the vest.
 
match it or beat it

match it or beat it

With you buying that amount of nm on an average , there should not be any question to matching, or beating the competitors price! Do not hesitate to ask!!
 
There are a couple possibilities here. Prices for wire change daily. It's possible prices have gone up. You're understandably a little upset that you may not be getting their best price, especially considering the volume. I look at this from another perspective.

I don't like when people try to negotiate my price down. I set the price at a rate that allows me to make a very modest profit. It's a tough business and I don't want it diminished to comparison by price alone. I provide a much better than minimum service.

Likewise, my supplier delivers to my shop, has a nearly complete inventory of what I need, or can get it from the manufacturer. I can talk with them during business hours and receive materials quickly. For example I can call a supplier at 4:30 pm and the material will be at my shop at 7 am the next morning. The prices I get are very reasonable, especially in the low volume I purchase.

Do you see the connection? I provide a quality service & want to have a profitable business. I want my suppliers to have the same opportunity. Without them I'd be out of business.

Dave
 
Tiger Electrical said:
There are a couple possibilities here. Prices for wire change daily. It's possible prices have gone up. You're understandably a little upset that you may not be getting their best price, especially considering the volume. I look at this from another perspective.

I don't like when people try to negotiate my price down. I set the price at a rate that allows me to make a very modest profit. It's a tough business and I don't want it diminished to comparison by price alone. I provide a much better than minimum service.

Likewise, my supplier delivers to my shop, has a nearly complete inventory of what I need, or can get it from the manufacturer. I can talk with them during business hours and receive materials quickly. For example I can call a supplier at 4:30 pm and the material will be at my shop at 7 am the next morning. The prices I get are very reasonable, especially in the low volume I purchase.

Do you see the connection? I provide a quality service & want to have a profitable business. I want my suppliers to have the same opportunity. Without them I'd be out of business.

Dave
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I agree w/ Dave.

Also, your competitor may buy $20k a month. You don't know. You have every right to ask for a better price, but don't beat anyone up over it. I'm telling you now, it is a bad thing to bite the hand that sells you. You think your prices are high now? :)
 
Tiger Electrical said:
There are a couple possibilities here. Prices for wire change daily. It's possible prices have gone up. You're understandably a little upset that you may not be getting their best price, especially considering the volume. I look at this from another perspective.

I don't like when people try to negotiate my price down. I set the price at a rate that allows me to make a very modest profit. It's a tough business and I don't want it diminished to comparison by price alone. I provide a much better than minimum service.

Likewise, my supplier delivers to my shop, has a nearly complete inventory of what I need, or can get it from the manufacturer. I can talk with them during business hours and receive materials quickly. For example I can call a supplier at 4:30 pm and the material will be at my shop at 7 am the next morning. The prices I get are very reasonable, especially in the low volume I purchase.

Do you see the connection? I provide a quality service & want to have a profitable business. I want my suppliers to have the same opportunity. Without them I'd be out of business.

Dave
Click to expand...

Could not say it better, I never worried what the comp was paying, even if i could save , it would only increase my mark-up, it would not change the job price in any way.
 
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In my experience, pricing has always been like that.

If your gross material costs get to 200K a year, you need a purchasing agent who will negotiate and stay on top of material costs. It's a daily struggle and a good PA will pay his own salary.
 
lets face it--we all deal with a salesman who is assigned to your account.. what is his job??? to sell material for as much as he can. it's easy to get close to one particular supplier and not get competitive comp prices from others. and your time is limited and shopping seems to be a pain, but to keep people honest you have to do it!!! i caught a supplier, and he was my best supplier as far as service was concerned, fixing prices -- big time mistake. held a meeting with the branch manager--- asked for my balance to date --- wrote a check and never bought from them again-----that was graybar. the finance manager was a personnel friend and understood the problem --- never tried to re-connect the account because they knew they got caught with their pants down. this was near a $100,000.00 difference in a gear price. it is very important to have a one on one relationship with the owner(if possible) of your supply house--someone over your salesman. they can do many things the salesman wouldn't even attempt. they can pressure their reps to get you the best price if necessary, where the salesman can't argue with his computer... and if i don't feel comfortable with my salesman -- i ask for another---it works!!! this is money right out of your pocket........
 
charlie tuna said:
lets face it--we all deal with a salesman who is assigned to your account.. what is his job??? to sell material for as much as he can. it's easy to get close to one particular supplier and not get competitive comp prices from others. and your time is limited and shopping seems to be a pain, but to keep people honest you have to do it!!! i caught a supplier, and he was my best supplier as far as service was concerned, fixing prices -- big time mistake. held a meeting with the branch manager--- asked for my balance to date --- wrote a check and never bought from them again-----that was graybar. the finance manager was a personnel friend and understood the problem --- never tried to re-connect the account because they knew they got caught with their pants down. this was near a $100,000.00 difference in a gear price. it is very important to have a one on one relationship with the owner(if possible) of your supply house--someone over your salesman. they can do many things the salesman wouldn't even attempt. they can pressure their reps to get you the best price if necessary, where the salesman can't argue with his computer... and if i don't feel comfortable with my salesman -- i ask for another---it works!!! this is money right out of your pocket........
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Oh my, many years ago, that same supplier tried to bill us retail pricing, and the same salesman slamed it to a number of small contractors, until we all compared the treatment we were gitting and left, as you said never to return.
 
one thing i've learned is everything is negotiable...we deal with mainly 2 supply houses...1 is a small 5 location company where i've known the owner since i was 5 yrs old...the other just got bought out by CED....but my sales guy there has been my guy for 10 yrs and 3 suppliers....

but at both houses we get good prices...i let them make money, when i make money....and they squeeze their vendors for me when i need them to.

but they both know that i use specialized vendors as well... I have my wire company, my lighting company, my transformer company....these specialized vendors can't be touched by my locals most times...but on small jobs, when i get them using their wire, lighting, etc price, i'll order everything from them.

but i have a pretty open relationship with sales guys from both companies...my specialized suppliers are strictly price driven...no relationship.
 
I got so sick of dealing with the large chain distributor we have around here I started using a small family supplier exclusively. I know his prices are a little higher but the customer service makes the price worth it. If I have a problem with anything I call and speak to the owner, or his son, or his brother, etc. I dont normally scrutinize every ticket I get, but a couple of weeks ago I saw a line item-190' of 6-3 romex-close to $500.00-I almost fainted. I called the big chain, for the same amount-$300.00. I called the owner of the supply company and 1 hr later had a fax showing my credit for $201.00- It never hurts to ask for a lower price if its legitimate!
 
emahler said:
one thing i've learned is everything is negotiable...we deal with mainly 2 supply houses...1 is a small 5 location company where i've known the owner since i was 5 yrs old...the other just got bought out by CED....but my sales guy there has been my guy for 10 yrs and 3 suppliers....

but at both houses we get good prices...i let them make money, when i make money....and they squeeze their vendors for me when i need them to.

but they both know that i use specialized vendors as well... I have my wire company, my lighting company, my transformer company....these specialized vendors can't be touched by my locals most times...but on small jobs, when i get them using their wire, lighting, etc price, i'll order everything from them.

but i have a pretty open relationship with sales guys from both companies...my specialized suppliers are strictly price driven...no relationship.
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"i've known the owner since i was 5 yrs old.."


And one of those scum vendors, in that group slid it to me, and you know the rest of the story, after a lifetime of business, so never again will i be sucked in to dealing with one small supply house.
 
satcom said:
"i've known the owner since i was 5 yrs old.."


And one of those scum vendors, in that group slid it to me, and you know the rest of the story, after a lifetime of business, so never again will i be sucked in to dealing with one small supply house.
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not following you sat.....can you elaborate....

just as a clarification...the owner is not a childhood friend of mine, but we've been dealing with this supply house for 30 yrs...
 
emahler said:
not following you sat.....can you elaborate....

just as a clarification...the owner is not a childhood friend of mine, but we've been dealing with this supply house for 30 yrs...
Click to expand...

I did not name the company but it was taken over by the same group.

company in North Brunswick, now taken over.
 
Rewire said:
. . . i noticed the price was 75.80 /250ft I called my supplier to check my price and got a quote of 81.56/250ft . . .
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I'm paying $63/250ft for 12-2 NM at the orange store? Why aren't you?
 
LarryFine said:
I'm paying $63/250ft for 12-2 NM at the orange store? Why aren't you?
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I'm allergic to citrus.

No that's not it.

Cause they sell to Diyers, so I'd rather pay more than support the corporate monsters that are ruining America....:wink: :rolleyes: :D
 
Tiger Electrical said:
There are a couple possibilities here. Prices for wire change daily. It's possible prices have gone up. You're understandably a little upset that you may not be getting their best price, especially considering the volume. I look at this from another perspective.

I don't like when people try to negotiate my price down. I set the price at a rate that allows me to make a very modest profit. It's a tough business and I don't want it diminished to comparison by price alone. I provide a much better than minimum service.

Likewise, my supplier delivers to my shop, has a nearly complete inventory of what I need, or can get it from the manufacturer. I can talk with them during business hours and receive materials quickly. For example I can call a supplier at 4:30 pm and the material will be at my shop at 7 am the next morning. The prices I get are very reasonable, especially in the low volume I purchase.

Do you see the connection? I provide a quality service & want to have a profitable business. I want my suppliers to have the same opportunity. Without them I'd be out of business.

Dave
Click to expand...

except in this case, it's the same supplier (same service, same everything) pricing a commodity (yes copper is not a supply anymore, it's a commodity) different for 2 different customers.

do you not think that both customers are receiving relatively the same product and service from the supply house?
 
satcom said:
I did not name the company but it was taken over by the same group.

company in North Brunswick, now taken over.
Click to expand...

well, we stopped dealing with them years ago...same store...now, i only deal with them through my salesguy...but the old owners are gone, so it's not the same place.
 
The thing that bothers me more than anything about suppliers is that you talk to Joe & the price is $50. You talk to Jim & the price is $55. My best solution is to always talk to Joe. You'd think the price would be the same, but apparently different salespeople have different markups.

Dave
 
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