price increase/being informed by supplier?

GW

Hello,

I just had a nice chat with one of our major suppliers today. A boiler went up in price about 9%; I never was notified that there would be an increase. Other suppliers (for other product lines) tell me in advance that there will be increases on major lines (Trane for example). I'm bugged because the GM made it sound like "if I sent notices out everytime there was an increase I'd have to hire a full time person to handle that", and when I said his competitors gave me notice, he said: "if you were to give me all your (pick a boiler/furnace) business, I'd give you all the information you would want, including the guy's name who made it."

So, I quoted a job and line up the order and I learn it went up. Am I out there or should I be expecting a little more service? I guess I'm more disturbed with the responce. I'm also rattled because I've bought about 12 of these boilers in the last 2 years or so.

gary

Jed_2

12 boilers in 2 Years?

is not volume buying. How long between your quote and order? In today's market, 30 days is generous. You need to protect yourself in YOUR quotes, WRTT(with regard to time).

Mad Dog

Suppliers...like us ...can get very touchy

when it comes to loyalty. As much as anyone tells you its "just business!" ...its a crock. I've gotten the same reactions from different suppliers at times too. Its very similar to a customer who calls only when they are stuck or to get "competetive" bids from you. We actaully had a fella who we had done 3 service calls for - no complaints...no problems. Then, he had the temerity (nerve) to "invite" us to participate in a "bidding" war when he was getting ready to do an extension. "I need you to give us a competetive bid...." (like he was doing us a favor) We politely told him we were not interested. Sure enough, 6 months after the job was "done" He called on a Sunday pleading for help because he couldn't "get in touch" with the installing contractor. Nothing personal...just a "business" decision not to go. Gary, I think you have to decide if your gonna dance with the girl you brought to the dance or not. A) Have a face to face meeting an address the issue or B)Tell your main supplier he needs to be more accomdating to you. Just speaking from personal experience. Mad Dog

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

GaryDidier

price increases

Gary, Some suppliers send notification some don't. It seems at present that prices are rising with consistent regularity making it difficult for a supplier to notify their customers in a timely manner.

My last letter from a supplier was kind of generic but also upsetting. It stated that prices would be increasing 8-10% for the next 3-6 months. How is that for blanket coverage? It looks like inflation is rearing it's ugly head! CYA in your contracts.

Gary from Granville

GW

never said

it was a lot, sorry if it sounded that way. I spent about 125G at this place in the last 12 months, does that matter or no? I pay my bills on the 10th. Does that matter or no?

I think you missed my point, or I'm out to lunch. If you re read the original post, my concern is other vendors notify me, this one doesn't, and it was a bit of a nuisance (from what I got out of the conversation) to give me a heads up that a major line is going to increase.

I can care less about copper and plastic and such. A boiler is a large ticket. a 1/2" 90 is not.

Gary

GW

That's

better than what I got!

GW

good point

I hear you loud and clear. Just like I got tweaked, I tweak my customers on occasion. My main pain here is the way it was handled, "I'll give you the guy's name who made it..." come on, that's a little out there don't you think?

I did dance- he said I would have to get a hold of my sales rep and work it out with him; it's the sales rep's job is what I heard from that comment.

Gary

Paul Pollets

How to get better service...

I only buy 2 boilers lines and have avoided problems buy talking to the rep. He advises me (as does the wholesaler) when price increases are due. I then order or have "tagged" my bid jobs at the old price. I'm allowed to have the "tag" for 120 days max, or pay the new cost when the equipment is delivered. It pays to know when the Mfg's are about to increase the cost. Once a year was normal, now 2x a year for some, copper & commodities, every 30 days.

I have a disclaimer on the proposal/contract that reads:
"Due to volatile market conditions, we will honor bid pricing for only 30 days. Contract pricing may be revised, if bid pricing not accepted and deposit received by:"



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

Weezbo

i also recently sat down and Dis cussed stickin me vs losin.

many good customers ...i say things real plain.and i can assure you even though i am no big time wheller dealer i Know a heck of alot of people and they seem to like me for whatever the reason..so,can you explain to me why the last purchase of a riello was so high?...and oh, by the way...whats with the price on the 2XX buderas and matching water maker?...oh did i mention that the price on the caleffi products was no where Near where the first attempt landed?..it does seem to bring around some sence right between the eyes when you say that you have no problem with the cost of an item here as you just purchased 10 new riellos and 6 new buderas and 8 more of another line and 2 more of another and will be needing a coupla ten more minimum this year....and hey if the previous oversights continue no problem...i helped Build Your business,in some ways iam every bit an employee here as are you...however if my last 20 years is going to end up with me getting the stick...fine i will mention it to my friends also.

ScottMP

Gary

Sounds to me like your buying from the wrong place.

Make your purchases somewhere else. I gaurantee you'll be notified of price increases.... alot.

I had a supplier that did not give me good service.

Notice the word " had ".

Scott

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

Mad Dog

He's being cute

As I said, make a decision. You are the one dealing with him and know the particulars and this guy's track record - maybe he is a jerk and you need to go elsewhere. He should have informed you no doubt. I stopped going to a supplier that I was doing about 25% of my business with for several years. He was wooing us more and more every year, and the reason we were buying more is that he was carrying the brands I wanted. However, his counter service was way too slow. One day, I was in a really bad rush and needed to be in and out in less than 10 minutes. When I saw it wasn't happening, I turned to leave in frustration..."where are you going, his counterman said, I can't wait I told him. The big idiot then began to lecture me that if I came in more often, I would not have to wait so long, to which I replied: "If I didn't stand on lines for 30 minutes for even simple things, I would be in more often!" The argu ment continued and I have not been in there in 3 years. They call and send Christamas cards every year, but I'll never go back now, not after gettin' dissed like that. Mad Dog

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

STEVE N

In defense of suppliers

I was a contractor for 20 years then had a back injury so I had to give it up. I work for a great supplier, very progressive and forward thinking. The way the metals markets were in the last year, it was impossible to stay on top of it. Many letters from vendors simply said as if this date there will be an 8% increase in water heaters. Now imagine getting letters like this constantly and trying to let your entire data base know. All you can do is call for current prices, and quite honestly its hard to hold them for 30 days... but we do.

good luck guys

steve

Einsiedler_2

stocked?

if the boiler is a stocked unit (on the shelf), I couldn't see them sticking it to you. I always sell for what I quote - unless its a special order item... then 30 days (or whatever terms they put on the quote). after that its time to reprice.

tell me you have a quote for the boiler in writing ?!?

if not - visit suplier #2 with hat in hand and hopefully you won;t take a hit.

9% increase...
I suspect this amounts to slightly more than 50% of what your markup was.. so you s/b ok. (tell me you mark up items you sell!)

g.l.
EIN

Don \"Grumpy\" Walsh

No excuse for not being informed.

In today's world of modern communications, it is unacceptable for a wholesaler to act with such indifference. Fortunately in my area, I get an e-mail every Friday morning from my prime supplier, telling me what items are due to increase and by what percentages within the next week. From another supplier, I get a fax (comes in overnight)each Tuesday and Friday informing me of the same sort of information. To set up that sort of database does not require much talent on their part, and the benefit, to us.. the customers, is of great value. Sounds like your wholesaler is taking the easy way around the problem. I hope it doesn't bite him in the cheeks before he wises up.

GW

great resonces

Thanks for all the input; I may print all these and hand them over. It's mainly the sarcasm that got my goat: "I'll even tell you the name of the guy who built the boiler...." talk about telling me to cram it, wow. I'm not exactly the community 'puts' either; I've got many vendors banging on my door looking for a piece of me. Oh well, I'll try not to lose any sleep tonight!

Gary

STEVE N

Grumpy....

I see where you get your nickname...LOL only kidding. You have some good ideas and I may just follow up on the fax idea. The internet thing is a good idea too I'm just not sure how many of our contractors check it daily. The point I was trying to make was not a lazy excuse for someone not doing their job.. it was a fact that some vendors give you no warning... with these vendors you are going to be late with your email or fax. Thank you for the tip though, I am always looking for an advantage over our competitiion.

Steve

Don \"Grumpy\" Walsh

Steve, no slam directed at you by any means. I just am pointing out that there are some wholesalers that have their act together. I personally think that if you were to set up an overnight fax notification (try it once a week for a start) you will find an increase in business volume. Both because your customers appreciate the "heads up" on price changes, and secondly, because your name is in front of them on a more frequent basis. Be creative, and tie it in with a special promo idea for the following week if possible. Oh, and if at all possible, use a "mail-merge" application type program, so each fax is custom addressed to the recipient. It really isn't a hard thing to set up.

Steve_35

> I have a

> disclaimer on the proposal/contract that

> reads: "Due to volatile market conditions, we

> will honor bid pricing for only 30 days. Contract

> pricing may be revised, if bid pricing not

> accepted and deposit received by:"


You're very generous. We generally limit it to 5 days.

Steve_35

You're very generous

> I have a

> disclaimer on the proposal/contract that

> reads: "Due to volatile market conditions, we

> will honor bid pricing for only 30 days. Contract

> pricing may be revised, if bid pricing not

> accepted and deposit received by:"


We usually limit it to 5 days.

Mark Eatherton1

ZERO DAY GUARANTEE

If materials are not purchased and stored by the buyer, and prices inflate between the time of contract signging and material ording/delivery, increase is passed thru to consumer with no markup.

Why should I eat it? If they want to "lock in " a price, then they need to be prepared to purchase the parts and store them at THEIR facilities. My suppliers can't cut me any slack, an I can't cut my custoemrs any slack. It sucks to be in business these days...

I've got some jobs that we started 3 years ago...

ME