Why do distributors sell to moonlighters?

marc

Where does the Wholesalers liability stop at? Most around here hand out free information, (heat loss, drawings on how to install tubing and boiler, free jobsite visits and technical service?)
If the system wont work as specified, who is to blame?

Maybe the reps and wholesalers should stick to their job and allow the contractor to design/install the system?

Marc

John R. Hall

Questions for article

Okay, service techs had their chance to speak in this 1/28 article. Now it is time for suppliers to talk about why they sell to moonlighters -- again in complete anonymity. I'd like to know a) why you sell to moonlighters; b) how you keep the sale from the watchful eye of the boss and customers; and c) if you think it is wrong snd why you continue to do it.


I am not judging anyone and your answers (or the person you may pass this along to) will make for a very interesting article for everyone. Remember, confidentitality is guaranteed. Thanks!


http://www.achrnews.com/CDA/Archives/BNP_GUID_9-5-2006_A_100000000000002 42656

Home Depot Employee

Number 1

I've been out of wholesale for awhile and now do nothing but, the most obvious reason I believe can be summed up as this:

Today’s moonlighters are potentially tomorrow’s customers. If you turn your back on them today when they may be trying to get started, they will not forget that later.

Not saying right or wrong but wholesalers have a fine line to walk here, especially the smaller ones when their future can be determined so easily.

jp_2

so true!!!

lumber yards shouldn't sell wood to home owners.

auto parts stores should only sell to licensed mechanics

hardware stores should be banned from selling copper pipe

homedepot should not be allowed to sell wire.

matter of fact, should just out right ban all homdepot type stores, think how that would benefit all trades.

minimum wage should be set to $20.00/hr

snowmobiles should only be allowed to go 30mph

people should be certified and licensed to burn wood in their houses.

I should not be allowed to give my dogs vaccinations.

might as well ban homeowner building permits too

funny how often your topic comes up.

America, land of the free, gee maybe we better change that too!

realolman

i wish

Id'a said that.

Very nicely put....People are always wanting to exclude someone aren't they?

I don't know about the minimum wage thing though.

Supply House Rick

Let me sum it up for you

Profit, suppliers make way more on the walk-in than on the large companies. They have to make margin somewhere.

Jim Pompetti

Sell to anyone

As long as they can protect the customer . When I first started I was a Moonlighter . I always had insurance and claimed my earning to the IRS. The code enforce was always notified and I pulled permits. Its a free country . The supply house should have a certificate of insurance on file. When the lawyers come looking they look at everyone.

jp_2

?

Is there a law that states supply houses can only sell to licensed contractors?

I've never heard about this?

Supply House Rick

NO

Suppliers can sell hydronics to anybody

bill nye_3

Money$$

It's all about the money. Mr Big time contractor wants the lowest discount because he does the most volume. Mr. big time is also on the 60 day column,oops.

Mr moonlighter doesn't get such a deep discount but he is paying CASH cod. Mr moonlighter is even picking it up with his own truck so mr supply house saves on the delivery cost.

If mr supply house doesn't sell to mr homeowner and/or mr moonlighter Home Depot will. cash is cash

[Deleted User]

Mr moonlighter is even picking it up with his own truck?

noooo, mr moonlighter picks up supplies on friday when he goes shopping for 'incidentals' for mr big time contractor's job, in mr big time contractor's truck, and some even get mr big time contractor's discount

Will Hanson

moonlighters

The extra income from side work when I was young allowed me to start the business. I always let my employer know what I was up to and in most cases they actually helped. They got started the same way. The bottom line is a license number on your card means nothing but you passed a test. We have all seen the work done by licensed contractors that makes us ashamed to be called a contractor. The suppliers who sold to me before I had the magic number get most of my business. My employees are welcome to do side jobs I even help them with design and let them use my accounts. I know that many would look down on me for this but if a man wants to work to make something for himself who am I to get in his way. By helping him I increase his knowledge, and his loyalty. Also his side job is done with professionalism. The only way I would have a problem with a supplier selling to a unlicensed guy is if he worked for me and I didn't know he was doing it. The suppliers I bought from would not allow me to buy from them without my employers blessing.

GLENN_14

that fine line

I manage a wholsale supply house. We have a corporate policy on who we sell heating equipment to. This is in part to the wonderful legal system we have in which a person can purchase a system install it in their own home, screw up the install and then sue the wholesaler who sold it because they did not know what they were doing. Yes this really happened. It also works as a great excuse to keep from selling to the general public. So we limit who we sell to and still deal with multiple problems when the "professionals" don't follow the install manuals... some of these same people take offense when we help others in the same business who want to better themselves. A fine line indeed...........

Home Depot Employee_2

oh come on

Glenn,
I am familiar with your co out of NT and your HVAC policy is good as the paper it is officialy written on. Perhaps you don't sell equipment and I admire you for that but, your other branch managers are. Its all about their P&L which so heavily weighs on their compensation.

John R. Hall

E-mail me offline

It might be best to e-mail me your comments directly. I don't want folks to hold back but I also don't want to encourage a war of words here. I'd like to see this thread stay up for a while. Thanks.

John R. Hall

E-mail me offline

Sorry for the duplicate!

scott markle_2

Mr. big

Wholesalers generally keep out homeowners and the inexperienced away with attitude and a reluctance to give time or respect to those who are unfamiliar with trade nomenclature. I can remember my own original forays into professional supply houses and the intimidation that was sometimes a part of that. I think that has changed a bit, plumbing counters are generally more friendly to outsiders than they used to be.

As far as moonlighters or small time professionals like my self, I wish the whole price structure game was a bit more transparent. Sure, Mr. big is doing volume, he has his own stock and this puts some relief on a wholesalers inventory etc. fine cut him some deep deals. However I think gouging the small timer is not a great practice, it fosters mistrust. Keep prices competitive for all, less good old boy and more free market, I think this is the way to do business in general.

What offends me is oversized (high end) equipment sold directly to homeowners, Not only are they paying extra for the pleasure of cutting out the installers potential markup, but they may end up buying more equipment than they need, hurting the efficiency of the system and wasting money. Bigger is better when you don't take the time to size it right, plus you make more on the bigger sale. Of-course some contractors sell oversized systems for the same reasons.

[Deleted User]

yep will,

that's the ticket, keep it on the up and up, and don't use the co's vehicle/gas, equipment/abuse, inventory

GLENN_14

JOHN HELP PLEASE

What is your e-mail. I tried the link you posted but it did not work

Al Corelli_2

Discount.

So, If I buy 35 thousand dollars a month from a supplier, and you only buy 5 thousand, you think we should get the same discount?

I would not buy from that supply house if that were so.

No offense to you. I was once part of a much smaller company, and I remember the discount structure very well.

To Learn More About This Professional, Click Here to Visit Their Ad in "Find A Professional"

jp_2

out dated topic?

Isn't this topic really outdated?

you can buy boilers on the internet, and all other necessary components.

on a sunday afternoon, I can buy a Taco 007 pump from the local grocery store! they have a hardware store in the grocery store.

Jeff_109

Jp,
You are correct you can buy anything on the internet. Many times you can get better prices on the net then what Wholesalers are charging contractors.
Some homeowners do a better job installing a boiler then many so called "pros" because the homeowner actually reads the manual.

Dave Yates (GrandPAH)

To make money.

They're running a business too. But, there's more to this than might meet the eye.

If the moonlighting employee is doing the transaction while on the company's time - that's stealing (time) and grounds for dismissal. Also means they aren't devoting their thought process to the company's work while at work and that they're saving their best effort for their moonlighting work. Ethics 101.

If the moonlighter isn't a legit trade business and needs to ask time-consuming questions or eats up counter time by returning unused items, then that costs our customers time while we wait behind folks who, to be quite frank, should be at HD or Lowes.

If any one of our suppliers falls into either of these categories, I can direct our purchases elsewhere if I don't like what they're doing. Don't like the program - change the channel!

Rich L.

Nooooo

I don't want my Mr Big Contractors/ employers discounted price. My favorite wholesaler gives me an even bigger discount when it's for me, whether I pay cash or run it through the company. BTW my company does only commercial/ industrial work and I do get approved before using my truck and tools for personal and or side work. Boss says no problem and appreciates being asked. (his words, not mine) Probably a whole nother thread on that one though!

[Deleted User]

yeahhh, strictly indus/ comm

we too, and the boss doesn't care if we do residential, and like yours, he also want's to know up front. but since the home office did the gps thing, it's now out of his hands regarding approval

[Deleted User]

read the manual?!

weee don' read no stinkin' manual!

an old wrench puller

Maybe....

The next question should be: When the moonlighter pays cash at the supplyhouse ..... what pocket does the counter guy put the cash in? Honor among theives... you know....

John R. Hall

e-mail

johnhall@achrnews.com