SW Raising Prices Again

BMAN

I got a call from my SW rep. He informs me that they are raising prices across the board 8.5%. This after they just had a raise of 11% last year citing fuel prices. So fuel prices are down almost a buck and they raise again? We should politely walk away and say thanks for the memories but with your competition selling products comprable and sometimes better than you at better prices what is the incentive to buy from you?

Richard

When is this taking place?

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Rich

BMAN

I think the first of the year.

lornmastro

i was using sw almost exclusively....but now there prices are alot higher than bm prices...using bm....but i was told the increase in prices was caused by an ingredient used in the paint that was only produced in new orleans and the plant was destroyed in the hurricane last yr.

slickshift

We've had discussions of SWP pricing here before and the thing that comes out is that SWP avg. retail price (not w/discount) varies greatly from region to region (over 25%, which is a huge difference)
I've come to the conclusion that SWP charges what the market will bear

Also, I've noticed that SWP reps and store mgrs./employees really tend to suffer from the "You Can Say That" syndrome

These are stories higher ups in the company give to the mid/lower levels to answer/address a question/problem
They are usually written/invented by marketing/sales

Str Mgr:
What if my customers complain of the price increase?
Rep:
"You can say that.....(blah blah...Ayatollah/Oil/BuyOut/SafetyReasons/Etc)"

Rep:
What if my stores still want to carry that discontinued product?
Regional:
"You can say that....(blah blah...we had complaints/they exploded/ they were made by the French and we're boycotting them/The new ones are better/Etc.)

It doesn't mean it's true
It doesn't matter that they are lies/crap
In the above exapmles the true answers are
"because we can"
and
"because this one costs less and we can charge the same"

But the contact can't tell the customer that
So... "You can say that..."
And now no-one was lying
They were just told....

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Originally Posted by ModernStyle I have never used this crap before and I pray to the paint gods that I never have to use it again, I would rather use Behr

AFI

AGAIN?

It easy for me, If SW give me a incentive I'll buy it from then if not forget it. I'll switch complete to BM.

AAPaint

If I could stomach BM paints I would switch because of the prices, but I just can't handle using that crap. Had to do a little work yesterday with some super spec interior eggshell. Grrrr....like painting with glue. Guess I gotta get me a glue spreader to keep prices down.

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AA Quality Painting & Pressure Washing LLC
Jacksonville Painters
Jacksonville, FL.

George Z

It costs about $4 a gallon to make paint. Maybe $4.25 for top line.
All you faithful followers, don't believe God Sherwin's excuses.

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donb1959

George,
What paint do you use?

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BMAN

I use 90% Sherwin, some BM Some Valspar(Lowes) and Some Muralo.

George Z

All kinds
Benjamin Moore
PPG
ICI
Para Paints-SICO-Ideal, local brands.
Farrow & Ball for the eclectic ones...(now that's expensive)
Paint cafe for the colour crowd, now owned by PPG

Whatever the customer wants and we approve.

I have no need to be loyal to anyone but my company.

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BMAN

I agree about the loyalty issue. I just got a call from my area rep to meet and talk about my pricing strategy and I told him it doesnt matter because I am done with them.

he got silent.
Then I told him they have a new excuse every year to raise my prices while my customers dont want to hear it.
He says its because raw material prices are up because of overseas competition. I say isnt competition supposed to drive prices down?
He doesnt have an answer.

slickshift

Don't confuse his excuses with logic
That ruins the whole thing



Just another "You Can Say That..." BS line
Most people would nod and agree "ya overseas competition...it's a bastich" and not think about that for more than 1.47 sec. because most people don't want to change their habits

You just ruined it by actually thinking
Lol

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Originally Posted by ModernStyle I have never used this crap before and I pray to the paint gods that I never have to use it again, I would rather use Behr

Danahy

I have a SW rep calling me offering me a bunch of gallons for free, for me to try... I couldn't imagine switching to anything but BM. I use top line egg, it costs me a bit, but the customers pays for it. I also like that I could put in on with a 30mil roller, and it still levels out perfectly with the brush.

Flawless Finish

They have more costs than the materials. They have overhead just like us. How are they supposed to pay the reps and keep the electricity on in the stores?

Brushslingers

I asked my buddy, a SWP area manager here about a price increase... his response?

"What increase?"

heh.

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Benn

George Z

Sure, but the raw materials excuse does not apply to their phone bill expense.

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GoodPainter

Sorry I don't use that chain

Robert

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slickshift

Yeah, I did mean "...the local/regional market will bear"
I expect no increase here, as they are already mind-bogglingly expensive
But hey, you never know

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Originally Posted by ModernStyle I have never used this crap before and I pray to the paint gods that I never have to use it again, I would rather use Behr

Brenda

I was told by my store rep last week that there will be an increase by Dec or Jan.. Another bit of info he had was that S/W was going to put everyone on the same discount plan, this plan would put us in different levels based on how much money is spent annually.
I am anxious to see the new numbers. I have had a good business relationship with my rep. and he has worked with me on my prices and I in return have tried to buy the bulk of my materials from him. He did say that a written request would have to be submitted to have a particular item re-priced. He quoted the facotry thing as the reason for price increase.
Bend over boys, it's coming!

Brenda