National vendors screwing with business

C

comsparky

Member
Location
NJ
Occupation
Electrician
Recently I feel like I'm being pushed out of several companies in favor of national vendors. I've worked for these companies for 17+ years and always drop everything for them. No BS, I've left Christmas dinner, as well as my wife's b-day party for one of these customers. Take calls and dispatch at 3AM, you name it I've bent over backwards. I've never told them no.

Now they don't even ask for a quote and give the work to one national company. Supposedly the vendor has locked in a high volume of their work for what I assume is a lower rate. I highly doubt they have shops in 50 states. I do know their guys are constantly flying from the east coast to California, to Texas etc. They're rarely home, most are young, or divorced. I have no issues with the guys, they're just trying to make money. Although I wonder are these companies really licensed and insured in 50 states? How could I or any local shop compete with this ?

I wish the NJ electrical board would set some type of restrictions to protect the electricians living in our state. After 18 years in business I'm starting to wonder if I can hang on without my biggest clients. It's becoming increasingly cut throat. It seems I don't even have the chance to undercut them and fight back.

Is anyone else running into these issues ?
 
Big companies discovered a long time ago that reducing the number of venders used dramatically lowers their costs.

Maybe you should see if you can get on board with their preferred national EC vender as a local supplier to their EC. Most of these national vendors use some kind of local contractor as their point man.

You are right that you will probably find the rates are lower, but since you don't have to grub around to get the business, you might end up making more money on the deal. It is very expensive to support the sales and marketing effort to get business. Those expenses don't exist to you if you just get calls from someone telling you your next project.
 
The new vendor is based in the Midwest. They recently purchased a smaller company in upstate New York. They usually send the guys from NY, about five hours from North NJ. I don't even think they're an EC. They probably pay someone to use their license in each state. Or they don't even bother at all. Most of these jobs aren't inspected. It's mostly DC power, telecom work / UPS battery testing and replacement.

I dunno, here in NJ, fewer vendors usually means higher prices due to complacency. They may give them sweet prices in the beginning. After a few months or years, the prices will become insane. That's just how business works. When you have a monopoly, you increase pricing. That's how you win the board game.

You are right, I've been lucky for many years not having to advertise and beg for work. I guess I better get my knee pads out of storage.
 
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