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#40507 - 07/22/04 07:02 AM wholesalers

Registered: 10/22/03
Posts: 178
Loc: toronto canada
Having been in business once before,and was somewhat successful for 5yrs and then not so much, it took me a while to pay the wholesalers but eventually did.Now 2 yrs later with a less than perfect credit rating am I going to have to pay cash for my materials, has anybody been through this?

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#40508 - 07/22/04 08:31 AM Re: wholesalers
dougwells Offline


Registered: 05/03/03
Posts: 1226
Loc: kamloops BC Canada
Well I am sort of in that position mainly because I have not built a recent credit history so i just applied for a cash account at many of the supply houses. When Paying Cash its a lot harder to get proper discounts I am constantly checking that i am getting a discount and not the off the street price for materials.Plus getting credit on returned items seems to have a restocking charge with cash sales.This would also be a good business topic for Chat also.

#40509 - 07/22/04 11:44 AM Re: wholesalers
hbiss Offline

Registered: 12/16/03
Posts: 893
Loc: Hawthorne, NY USA
Two possibilities come to mind. First, do you have any credit cards? Charge your materials to one and be sure to pay it promptly. Returns are simply credited to your card. Many businesses are going that route anyway. Seems maintaining accounts is too much trouble.

If a credit card is not an option, ask your supply house if you could set up an account and prepay. You would give them an amount like maybe equal to what you would purchase in a month. You would draw against that "credit" and as long as you had a positive balance you could continue to purchase.


#40510 - 07/22/04 09:57 PM Re: wholesalers
chi spark Offline

Registered: 01/06/04
Posts: 102
Loc: Chicago IL USA
My first wholesaler accounts-20 yrs ago- were with places that I started on cash basis with and, after 6 months of steady business, offered me an account. At that time, I had some personal credit issues and was grateful for the chance. After becoming incorporated,it became easy to establish company credit and now I won't deal with companies that make it difficult to establish credit. Instead I appreciate those who do with prompt payment and referral business when I can. It kind of bugged me when paying with cash or credit card- that I was treated with some poor service, the kind that Doug mentioned. I was paying on the spot, they didn't have to wait for 30 days-that is the type of customer I would like. But I will tell you that the best way to succeed in this business is to keep your company credit clear- you never know when it can make a difference in a $weet job for you. I have some customers which require credit reports for their preferred vendor programs.

#40511 - 07/23/04 06:53 PM Re: wholesalers
Active 1 Offline

Registered: 02/22/03
Posts: 684
Loc: Grayslake IL, USA
I pay for all materials when I get them. Open an account but make it a cash only account. I complained after a bit that I should be getting discount for cash. And I do now. It's on the bottom as cash discount. It's not enough to cover the taxes and I still pay a bit much.

If I had a charge account the prices would not be on the tickets. I see what I'm paying right as I'm doing the job with cash. Last week I added a 100 pack of RG-6 connectors. I seen on the ticket it cost me $80. They were returned the next day. With a charge it could have been 30 days latter and too late to return.

I catch other mistakes right away too. Like not getting the sale price or the price quoted.

I don't worry about something getting charged to me I don't know about like from former employees.

I can stay more on top of my money by not having one big shokking bill at the end of the month. I prefer lot of little shocks every few days.

I could be treated better at times. One place I have a cash account and still have to give a dirvers liciance with a check.

Returns can still be looked up in a computer for me.


#40512 - 07/27/04 05:06 PM Re: wholesalers
elecbob Offline

Registered: 08/23/02
Posts: 142
Loc: WA
I always pay cash at my wholesaler. Two events in years past have guaranteed me a discount. One is I complained when I wasn't charged for $180 worth of equipment and the other was when I hired the owner's kid, who was working the counter, to help me on small jobs. Bringing some doughnuts for the guys in the warehouse doesn't hurt either. We're all in this together to make a profit. Never forget that your wholesaler is part of the team.

#40513 - 07/27/04 07:29 PM Re: wholesalers
OreElect Offline

Registered: 03/05/04
Posts: 96
Loc: Salem,Oregon.USA
Speeking of wholesalers,

Get this, I needed 3 T104R intermatic timers for a job. The wholesaler only had 2 in stock so I paced the 3rd on order.On the way to the job I called the local Box store,Yea we`ve got 4 in stock.So I picked up the 3rd timer so I could finish this job.
The box store price was $60. Our cost from our wholesaler was $ 84. This same supplier supplies the box store.

#40514 - 07/27/04 11:06 PM Re: wholesalers
Tesla Offline

Registered: 06/16/04
Posts: 1280
Loc: Sacramento, CA
I'm noticed the same thing in Northern California...Big Orange is even prone to 'closing out' Intermetic products at rock bottom prices: probably their cost. (!)
I just can't afford to carry speculative inventory. Too many bargins and I'm broke!

#40515 - 07/27/04 11:26 PM Re: wholesalers
Lostazhell Offline

Registered: 02/21/04
Posts: 1248
Loc: Bakersfield, CA (Originally Or...
I've also noticed the Depot having some decent deals on things.. But it seems like oddball things usually... My company has an account with pretty much every supply house in Southern California... & there's only one I typically patronize for a number of reasons...
1) Competitive pricing (He even shows me his cost!)
2) They carry the brands I prefer (Siemens, P&S, etc...)
3) The guy I regularly do business with gave me his home/cellphone #'s in case I need something after hours
4) No hassle returns
5) If they don't have it, they can usually get what I need within a couple days...
6) A fridge full of sodas & water they let me help myself to whenever I come in...
7) The staff there is a hilarious bunch to walk in & yak with.. People with personalities!

These are the kind of bells & whistles that help me decide where I'd open an account if I ever did decide to go on my own!



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