Too much choice?

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peter d

Senior Member
Location
New England
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

Senior Member
Location
Right here.
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.
 
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peter d

Senior Member
Location
New England
stickboy1375 said:
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.
 
Location
NE (9.06 miles @5.9 Degrees from Winged Horses)
Occupation
EC - retired
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

Senior Member
peter d said:
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

Senior Member
Location
Texas
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

Senior Member
Location
Asheville, N. C.
Too much choice

Too much choice

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

Senior Member
Location
New England
ceknight said:
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

Senior Member
peter d said:
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

Senior Member
Location
New England
ceknight said:
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.
 

dduffee260

Senior Member
Location
Texas
peter d said:
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

Senior Member
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

Senior Member
Location
Texas
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

Senior Member
ITO said:
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

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

mattsilkwood

Senior Member
Location
missouri
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:
 
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