I'm curious about your experience with suppliers. It seems like different salespeople at the same supplier give you different prices for identical items. I'm not talking about market price for copper, but things like a duplex, or steel box. I talk with Joe & it's 50 cents, I talk with Jim & it's 75 cents. My only defense seems to be to request a quote for every little thing. One supplier will charge me $5, but if I get it at the counter without a quote it seems to be $7 instead of $5.

Drives me bats.

Dave

This might depend to some degree on the use of computers by your supplier. My main supplier is fairly large & I can usually get the same price on all the commodity items since the computer will do my pricing from the lowest column price in the trade price book. Larger items I usually get a quote.

I also try to deal with just one or two people on a consistent basis. Pricing seems to improve the longer you deal with the same people, especially when they come to recognize you as a steady customer.

Tom

I used to have this problem with my supply house. The price I paid on any item would vary with the counter guy I was dealing with. When I finished a large commercial job a few years ago I sorted through all of my invoices on the job and found I had paid as little as $1.38 and as much as $2.45 for the same Hubbell 5352 duplex receptacle on the same job. I sat down with the branch manager and he set my account up on a set margin so no matter who ran a ticket for me I was paying a set margin for materials. I told him I wanted him to make money but I needed consistancy from him so I could make money too. I think if you pursue this with your supplier from this viewpoint you'll find it to be a communication problem they are willing to correct. It's in everyone's best interest.

That's exactly the problem I had, Fred and it sounds like a great solution. Thanks.

Dave

We have to really watch our invoices. Our main supplier uses a computer system, but somehow our prices still fluxuate. Usually only on items have have negotiated a better price on. Like a recessed can at $8.15 will somehow slip back to $11.40. We call and they correct it. It will stay at $8.15 for a month or so, then somehow it goes back to $11.40. We save $300 or so every month just by reviewing the invoices before we pay.

I am sorry to hear that am not alone with that problem.

I don't seem to have that problem. I use one supplier (CLS) and they are very good to me. Everything is computerized and I don't think they are interested in taking the time to adjust the pricing just to screw me.

We've got supplier's inside salesmen that take care of our pricing. We give them some big orders, so we get very good prices.

They don't know this at the front counter of a branch store. They just see another guy in a white truck wanting a will call counter order.

If we make sure it goes through our assigned salesman, the savings are tremendous.

[This message has been edited by electure (edited 11-15-2004).]

I have used a couple different suppliers in trying to find the right one. I learned early that it is best to get an inside salesman as soon as you step in the door for the first time. It doesn't hurt to say hello and be friendly anytime you goto the supply house either. Makes it that much easier to do businees and when crunch time comes they are always willing to help.

The margin setting is the key. I have found over the years that there are about three different prices you can be charged. Many times it depends on the volumn of your monthly purchases as to which one you are charged each month. Dealing with the same supplier and salesperson helps also.

Now let me ask if any of you have had dealings with "online" suppliers? If so, what was your experience. Thanks!

Who are some online suppliers?

I have used Rexel for online ordering. I have an account set up where I can have the order made and my wife can pick up(small inventory items) on her way home from taking the kids 2 school. I am always looking for systems to run by themselves w/o much of my effort. It is a constant learning process. When you are green you grow, when you are ripe, you rot!

Steve

This is called "Price Level". Most Suppliers as well as us Contractors, Have what is called price level. That's our base price for an inventory item or labor item, PLUS a percentage fee. You can charge 5,10,20,30 or 50% more than your base price if the Customer has poor payment history, or it's a new Customer. I lower the price level as We get more and more business from the same customer.

Bottom Line, when you buy a part; The person typing your order has the option to choose his price level to ALL cash transactions. Do the smart thing and Open an Account with the Supply House. They most likely lower the Price Level as they see more and more business coming from you.


Remember: Bad Customers cost MORE, than you think. GOOD Customers pay on time, and order service very often. That's my view.

Being at a supply house now after 20 years in the field I can honestly say that everyones comments here are correct. There is a problem at a counter if the customer is not set up on a matrix or if he always wants his slips priced at the counter, otherwise it's blank and it goes to the branch manager for pricing. We set up one customer with a matrix system and since then have never had a bill dispute since.
~Andy