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\"Stocking\" Distributors

justme_2
justme_2 Member Posts: 14
in THE MAIN WALL
Wholesalers are banks! That is it. Corporate wants to reduce inventory. Boilers are one thing too have in stock. What about spare parts? In a no heat situation parts can be shipped almost anywhere overnight.

Nobody likes to stock. Inventory is money that can be used for something else.

Comments

  • Ragu_4
    Ragu_4 Member Posts: 44
    I need help understanding this

    What actually does the term "stocking distributor" mean? I buy Viessmann equipment from a "stocking distributor" but they don't have any in stock.

    Other guys I know buy their Viessmanns from a "non-stocking distributor" who has them in stock and at a better price.

    Please educate me. Thanks.



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  • Paul Pollets
    Paul Pollets Member Posts: 3,668
    Good Question!!

    We have the same "problem" in the NW. The local dealer has most of the units, and can have any special order available within 2 weeks. The new local rep does not stock the product, only selected repair parts.

    The rep is supposed to sell to the wholesaler, who sells to you. The wholesaler should obviously have the units "in stock".

    I'm not sure why Viessmann would allow the "stocking distributor" to sell the equipment to contractors without stocking the units. Or the reps.... Fortunately, we're close to the W. coast Viessmann warehouse in Langley, BC.


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  • Robert O'Brien
    Robert O'Brien Member Posts: 3,573
    Same Here

    What value does the wholesaler add in this situation?I found out recently that a wholesaler stopped stocking a certain brand boiler 8 mos ago. They have been picking them up at the Rep and delivering them to me.I found out when I went to pick one up and was informed they no longer stocked but I could go to Reps to pickup boiler. What service do they provide to earn their markup in this situation? It must be nice to get your markup with never having to order,receive,stock,inventory ,deliver or even touch or see the product

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  • Mike T., Swampeast MO
    Mike T., Swampeast MO Member Posts: 6,928


    Another wonderful question...particularly if you're not using the "supply house design method".

    I had that problem with a local "stocking" dealer for Unico (they're a branch from a St. Louis firm where I guess they might actually stock even though Unico is headquartered there.) Even though I needed nothing in the way of assistance from them I was willing to pay a bit of a premium for the local economy. It was too much when they added a freight charge!!! I was very happy with Webb Supply.

  • Ragu_4
    Ragu_4 Member Posts: 44
    The Letdown

    I guess the big letdown for me is my assumption (yeah, assumptions get us ALL into trouble) that to be given the go ahead to advertise as a "stocking distributor" of a particular brand insinuated a committment to that brand; I find that to be not necessarily true.

    It may very well be that in the case of a wholesaler with multiple branches (as is the case here) only one branch of the chain needs to have a few units in house for the entire chain to be deemed as a "stocking distributor", but I don't know that for a fact.

    It's funny but after all these years in the trade I'm finally getting really involved with product lines that I can confidently represent to my customers. I may simply have to interview alternative wholesalers who share in my vision. Thanks.

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  • Robert O'Brien
    Robert O'Brien Member Posts: 3,573
    \"Supply house design\"

    Reminds me of years ago when they first started artificial hips and knees,the medical salesmen were doing the operations!

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  • Paul Pollets
    Paul Pollets Member Posts: 3,668
    Good Thinking...

    Ragu, I've been able to tailor my stocking requirements with the local wholesaler of choice. In these days of "just in time" inventory, It's a good idea to find the wholesaler who will go to bat for you and wants the business. He will then make sure the products you need are available within 24 hrs. That's my idea of service.

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  • Supply House Rick
    Supply House Rick Member Posts: 1,399
    My view on Stocking Distributors

    Nobody can stock everything for everybody. We attempt to stock items for the equipment we sell. The days of supplier's carrying obscure items for obsolete equipment is over. If it doesn't move it's just taking up space and yes costing us money.

    We special order items all the time, you can get a package around the world and it will get there by 10:30AM. Now having the manufacturers to have replacement parts on their shelves is another story...

    Rick
  • S Ebels
    S Ebels Member Posts: 2,322
    It's to the point

    Around here it's gotten to the point where we have to stock the parts needed for service and I'm OK with that.

    I think that's the way it should be in the first place. We as "dealers" are the point of contact for the end user, not the distributor. Granted, that ties up lot's of $$ but I feel it's our responsibility and those costs have to figured into business overhead. The distributors around here don't seem to take the above mentioned responsibilty very seriously judging by the depth of product and service parts I find when I place an order.

    The wannabe's wind up running all over creation trying to find a piece needed to complete a job. Or in a worst case scenario, trying to find a service part for a customer whose equipment is down after hours. Those kind of things can turn a 45 minute service call into an all nighter. Who get's charged for that and how much do they get charged?...........Right! the customer does. So he winds up paying more for the guy who doesn't stock the parts than what he would pay at your higher rate due to maintaining inventory.
  • Tony_23
    Tony_23 Member Posts: 1,033
    Steve

    I like your style :)

    I've sold numerous parts out of my truck to competitors when the local "supply house" was out, and I still had stock in the shop.

    Besides, it's not uncommon for me to be 50 miles from home on a call, so stock is a good thing :)

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  • S Ebels
    S Ebels Member Posts: 2,322
    Thanks

    But I've never been accused of being "stylish". :)
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