Picking items from a material quote

[GoldDigger]

These are probably the "accounting specialists" as well that can't figure out how to make that work:huh:

How about a PO that puts them in inventory and then a sales receipt, invoice or other billing document that takes them out of inventory and converts them to a sale or receiveable, I figured that out with just high school accounting as my main education on accounting.

Until the government customer wants to see the original invoice price you purchased at rather than the internal price.
They will also want to know what you paid for the unit they got rather than the one you bought to replace it in inventory.

 

[kwired]

Until the government customer wants to see the original invoice price you purchased at rather than the internal price.
They will also want to know what you paid for the unit they got rather than the one you bought to replace it in inventory.

I know that happens, quite frankly it isn't their business IMO. How many people go to Wal Mart and want to know what the original purchase price for their items was? The final sale price will have some overhead costs added to it as well especially from a primarily retail business.

 

[kwired]

Had a local low income housing facility a few years back asking for a bid on a heating project - we were to install new electric heaters in the apartments. I actually was initially awarded the bid, but before contracts were finalized they found out they needed new bids because of the funding source requirements at that time the bidders needed to provide "American made" certifications on items to be used. I cringed a little bit but was willing to proceed, until they wanted certification from the product manufacturers that they used American steel. At that point I told them I wasn't interested in that circus anymore and declined to bid. I think they were mostly concerned with the heaters, but wasn't going to verify every raceway or cable fitting if it came to that either.

 

[jim dungar]

Until the government customer wants to see the original invoice price you purchased at rather than the internal price.

It is also easier to keep track of each unit for product recall and warranty claims.

Distributors do not always loose sleep over cherry picking contractors.
When I was working the counter once, a contractor got made and left because I wouldn't match the $.07/ea discount that he wanted to pay for (2) 1-pole switches. Instead he stormed out and drove 18 miles, one way, to prove to me that the 'customer was always right'.

 

[kwired]

It is also easier to keep track of each unit for product recall and warranty claims.

Distributors do not always loose sleep over cherry picking contractors.
When I was working the counter once, a contractor got made and left because I wouldn't match the $.07/ea discount that he wanted to pay for (2) 1-pole switches. Instead he stormed out and drove 18 miles, one way, to prove to me that the 'customer was always right'.

Sounds like he proved that he was right, but what he probably never found out is that you likely didn't care that he was right

Let me guess he wanted 7 cents on two switches when the general policy maybe was that you needed to purchase a full box of ten to get that discount.

 

[Cow]

If I ask for a material quote from several supply houses, is it unethical or "cheap" to only buy the certain items that each respective house had the best price on rather than buying everything from the house that had to lowest total price? Ive always felt bad about doing that. This would be say around a 10k order. Thanks for the input.

Yes. If a supply house gives you a quote for 10k in material and they determine they can cut their markup a certain percentage due to the volume of material they're moving, and then you come in and tell them you decided you only want 5-6k in material that had a better price then their competitor, I would fully expect them to not do you any more favors in regards to material pricing, delivering materials when you're in a pinch, etc. All the little things that go along with having a good relationship with your supply house.

Reap what you sow.

 

[petersonra]

Your supply house salesman might even be pricing the same exact bill of material to more than one bidder at different prices.

The friendly counter guy and free coffee and donuts is just a dodge to get you to forget about price, and from what I am seeing from some of you, a lot of you are buying into that nonsense. Cut the price and I will buy my own coffee and donuts.

By the way, have you ever had the supply house salesman tell you that the bid he gave you is his "best" possible price? If so, he almost certainly misled you (at best).

I don't see any of this being about "ethics" at all. it is just pricing and it can be all over the place for a lot of reasons.

 

[Cow]

Your supply house salesman might even be pricing the same exact bill of material to more than one bidder at different prices.

Absolutely. If we do 500k-1.5m/year in business with a supply house, our pricing should be A LOT better than a shop that only does say 50-100k/year with them. I would still never cherry pick a supply house quote. I would not like it if my customers did that to me.

 

[ActionDave]

Absolutely. If we do 500k-1.5m/year in business with a supply house, our pricing should be A LOT better than a shop that only does say 50-100k/year with them. I would still never cherry pick a supply house quote. I would not like it if my customers did that to me.

I guess it all depends. I work for a small outfit.

 

[jim dungar]

Sounds like he proved that he was right, but what he probably never found out is that you likely didn't care that he was right

Let me guess he wanted 7 cents on two switches when the general policy maybe was that you needed to purchase a full box of ten to get that discount.

Actually the guy continued to visit our counter at least once a day. The purchase quantity was not the problem. I was just tired of being hassled about every price I quoted.

My wife cherry picks her entire grocery shopping list, but, when I built control panels, I found it better to establish a buying contract with a supplier rather than price checking each project.

 

[kwired]

Actually the guy continued to visit our counter at least once a day. The purchase quantity was not the problem. I was just tired of being hassled about every price I quoted.

My wife cherry picks her entire grocery shopping list, but, when I built control panels, I found it better to establish a buying contract with a supplier rather than price checking each project.

Don't fight with the wife over the shopping list, it is sometimes not as much about where an item cost less or how much less as much as it is about having an excuse to go to some other store

 

[George Stolz]

My rule is fairly simple; irritate me and I don't call you. I don't really care what I pay for the kind of work I do. Maybe not the soundest business strategy but spending half the day getting a price (any price) for the sole reason that the person at the supply house is incompetent irritates me, costs me time, and time is my most precious commodity at this point. When circumstances warrant, I will check prices for sanity, but generally the competent, quick, intelligent source gets the business.

 

[Strathead]

I guess it all depends. I work for a small outfit.

IMO, small outfits will benefit far more from being loyal. You may pay more some times because the house doesn't have to compete for your business, but when you need help, they know you are loyal to them and are likely to do what they can, especially if you know how to keep it quiet.