Negotiating Pricing With Suppliers

DavidC

So far every report that I have read ranks price at around the #5 spot for reasons people bought contracting services. Surely current circumstances will curtail spending across the board. I see our biggest threat being the fact that people will spend less overall until things improve again. It makes even more sense to shop wisely, not go for the lowest bid. Quality buyers will still buy quality, but less of it.

So what if the suppliers made a truckload of money during the boom. Are you saying they should now share that with us? Is this what your customers are expecting from you, to share the wealth you earned in good times? My suppliers need to make money so they will be there to provide the service I get. I maybe could find better pricing at a big box but can't afford the time and effort required to shop there.

I am well aware that some companies get better pricing than I do and I get better than some others. I can't seriously believe that I have been singled out for increases and everyone else is left alone. Most yards I am familiar with use at least a 3 tier pricing based on volume of purchase.

On the other hand, my company was asked to help with store renovations and we get a handful of referrals each year from our favored supplier. If we were to start beating them up on price they would most likely lend that support to someone supporting them better.

The strong will survive, the smart will thrive. Be better prepared to educate your customers and don't go back to selling on price.

Good Luck
Dave

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www.CookContractingLLC.com

deckman22

Good points David, especially selling on price. If you do you will always be working for the cheap ones.

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Deckman
www.alscustomdecks.com

Remodel Bud

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Jason Whipple

A lot of suppliers will discount net-2% or even 5% if you pay in ten days or less as opposed to 30 days. Most won't boast about it, you have to ask them about it.

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Jason E Whipple, General Manager
Historic House Restoration, Cincinnati, Ohio
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