Supply House Negotiation - General Discussion - Contractor Talk

Supply House Negotiation

 
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Old 01-09-2008, 07:56 PM   #1
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Supply House Negotiation


What do you guys do to negotiate deals with your supply houses.
I'm not talking lumberyards where we all get a discount based on our purchases, I mean like flooring companies and fixture places.

I am planning on having a meeting with local granite guys this week and I have no idea how to broach the subject.

I am not a big contractor by any means but I sent 8 customers to HD last year to pick out their granite for various kitchens, baths, and basements. I figure it was worth about 20K in granite so I would like to send all this business to a local guy and hope to get some sort of benefit out of doing so.

I am still sending customers to HD for cabinets and flooring too. I have my own installers but HD is getting all the benefit and dealing with them has become a complete PITA.

Please feel free to PM me if this is a topic that is not for the public.

Thanks Murph
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Old 01-09-2008, 08:22 PM   #2
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Re: Supply House Negotiation


I've never tried to negotiate kick backs from suppliers. I do hope for an extra level of service and attention as a result of my volume bussiness, and I expect any warranty issues to be dealt with promptly. It's also nice when they can get you out of the occasional jamb. One hand washes the other. You don't get that from home depot. Phil

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Old 01-09-2008, 08:25 PM   #3
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Re: Supply House Negotiation


What exactly are you trying to negotiate?
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Old 01-09-2008, 08:41 PM   #4
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Re: Supply House Negotiation


How many of you have heard this from the customer….I will let you get it cause you get a better price than we can. Or I have a friend at Joe Blows Warehouse and I can get it for almost free. The customers believe the contractor should give them the same cost for what ever the contractor pays. And more contractor then not give it to them….So when a contractor talks to a business person and asks for a discount, I believe a lot of them ask themselves “why” they are just going to give it away anyway.
Use this as your opening statement to the supplier….I am tired of competing against contractor and suppliers who give home owners the edge. Would you be able to give me a discount that was fare, and beat what our competitors are giving homeowners.
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Old 01-09-2008, 08:49 PM   #5
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Re: Supply House Negotiation


There's GOT to be a better place locally for you to send your customers than HD. Don't you have any kitchen design centers? We have several that we work with, they already know to mark up all prices 20% for our customers that come in to pick out cabinets.
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Old 01-09-2008, 08:56 PM   #6
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Re: Supply House Negotiation


just remember each time you send them to HD you are giving your competition more and more money, try local shops most are so fed up with HD they will work closely with your and your clients.
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Old 01-09-2008, 09:21 PM   #7
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Re: Supply House Negotiation


Suppliers that I've dealt with for years have given me discounts.It all depends on how much business you plan to do with them as to the size of the discount.
Try building a relationship with a supply house that carries a product you'd like to use and offer them your business .Ask about discounts,how much,at what amount of purchases,when they would start.
It never hurts to ask,especially if you plan to use them exclusively
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Old 01-09-2008, 09:46 PM   #8
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Re: Supply House Negotiation


Quote:
Originally Posted by Murphy View Post
What do you guys do to negotiate deals with your supply houses.
I'm not talking lumberyards where we all get a discount based on our purchases, I mean like flooring companies and fixture places.

I am planning on having a meeting with local granite guys this week and I have no idea how to broach the subject.

I am not a big contractor by any means but I sent 8 customers to HD last year to pick out their granite for various kitchens, baths, and basements. I figure it was worth about 20K in granite so I would like to send all this business to a local guy and hope to get some sort of benefit out of doing so.

I am still sending customers to HD for cabinets and flooring too. I have my own installers but HD is getting all the benefit and dealing with them has become a complete PITA.

Please feel free to PM me if this is a topic that is not for the public.

Thanks Murph
Oldfrt and Buildenterprise got you covered on this. Some showrooms will add 20% more or less to what your customers buy and some dealers will quote your customer retail and you will buy for less. DON'T sell at your cost, there are many reasons for this, but your WORKING, even when your just GIVING ADVICE, get paid for what you know!!!!
Home Depot? Breaks my heart to hear you send people there, look into other options and you may find some gold at the end of the rainbow.
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Old 01-09-2008, 11:40 PM   #9
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Re: Supply House Negotiation


Are yoy just starting out. I am, just turned one. I to use to send/escort customer to HD and Lowes. It was easy/convienent. I am making a quick change of that though. I am just talking and asking some of the local suppliers/windows/pluming/ect... You would be very suprised at how receptive they are to new people. Think about it. They want us to use them and not Lowes/HD. They will deliver, help w/ invoiceing problems, if something is damaged/screwed up they fix it fast. Something comes in from HD/Lowes it takes forever. I had to order cabinets three times before they cam in not damaged from HD. These cabinets could have been fixed by me but I was not going to do that. I tried to talk to manager and he said he would give me $100 off. I went back about a week later for something and they had them on the floor and had dropped the price by $175. What kind of B/S is that. Well, they had time to talk to corprate, and blah, blah. I have not yet asked for a discount from the supply wharehouses or anyone else. I know that I do not do enough yet to justify a discount, but I know if there are any problems they will take care of me. A quick tip, alot of the local stores don't mind if you tell a customer " Let me sand you Mr and Mrs johnson down to my salesman George at XYZ Windows." They will treat your customer better than HD/Lowes and will make you look better. They will watch you aZZ and and some will not order till you give the go ahead. That way you can see if the customer ordered something wrong and the salesman did not catch it. Try ProSource for flooring. They will help you make money. Look it up in the archives. Some like it, some don't. It has paid for itself and now I make money on it. Hope this all helps. Fight the power.
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Old 01-10-2008, 05:56 PM   #10
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Re: Supply House Negotiation


Thanks for all the help. I hope to develope a relationship with these folks that will continue.
Murph
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Old 01-10-2008, 05:58 PM   #11
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Re: Supply House Negotiation


Drop Home Depot and Lowe's as fast as you can. I'm sure you can do so much better at local suppliers. If nothing else just in the design work.just take tile some time and read the complaints. (Google Home Depot complaints) I do business with Home Depot and Loews because I have to but not for kitchens and baths, windows doors or trim.
I had a small showroom in which we sold kitchens and I was a distributor for a cabinet company that had four different lines. I was buying my cabinets for10 to 15% less than Home Depot mainly because they have a advertising budget built in in order for them to supply them with all their displays literature and so on.I had to buy my displays which were credited back as I purchased cabinetry. We finally went to strictly custom-made cabinets and dropped all that.
I might suggest a good interior designer which helps in all the selections and they can charge independently of you. Customers love it because they don't have to do all the running around and in addition end up with all the selections and colors picked correctly and don't mind paying for it.
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Old 01-11-2008, 12:01 AM   #12
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Re: Supply House Negotiation


Be carefull of those designers. Sometimes they can really mess things up. I have finaly found a good one to work with. Plus, if you find a good one, they will bring you buisness, and you bring them buisness.

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