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Plumbing Wholesaler problem!!!!!

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  • Plumbing Wholesaler problem!!!!!

    Hey guys im a newbee from Texas got a problem and need advise. Went to bid job for tankless heater install today and got pricing from my wholesaler and quoted job to woman and marked up heater 10% and she called me out on price come to find out my supplier quoted her the same product cheaper than my price by $75. Crazy huh!!! what recorse should I take to get this problem back in my favor! I still took the job for labor only and told her to buy the heater and offered her a position over my supplies HA HA Help

  • #2
    Re: Plumbing Wholesaler problem!!!!!

    If any of my suppliers sales to a customer cheaper than what I BUY it for then someones going to get an earful and lose my business.

    Did they offer it to them cheaper than you can buy it or cheaper than your cost+10%?

    J.C.

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    • #3
      Re: Plumbing Wholesaler problem!!!!!

      I usually call the manager and tell him that not only did you lose my business , but that I guarantee I will tell no less than 10 contractors how wholesaler xxxx undercuts contractors. Then, the manager is usually unconsulable for at least 10 minutes! Soon the phone will ring and the manager answers with a big grin, "xxxx wholesale house, will this be cash or credit?
      spodelee

      Until lions have their own storytellers, stories of the hunt shall always glorify the hunter

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      • #4
        Re: Plumbing Wholesaler problem!!!!!

        doublel, read this thread and you'll see my problem from a few weeks ago.

        http://www.ridgidforum.com/forum/sho...982#post192982

        rick.
        phoebe it is

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        • #5
          Re: Plumbing Wholesaler problem!!!!!

          Originally posted by PLUMBER RICK View Post
          doublel, read this thread and you'll see my problem from a few weeks ago.

          http://www.ridgidforum.com/forum/sho...982#post192982

          rick.
          OMG!!!
          What does this have to do DoubleL's issue.




          SPAZ!!!!

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          • #6
            Re: Plumbing Wholesaler problem!!!!!

            I used to buy 90% of my material from an out fit that was 'wholesale or no sale" They have since changed ownership and their new policies and pricing structure have turned many contractors to other sources.

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            • #7
              Re: Plumbing Wholesaler problem!!!!!

              Originally posted by drtyhands View Post
              OMG!!!
              What does this have to do DoubleL's issue.




              SPAZ!!!!
              lets see, supply house selling tankless and csst to the non licensed homeowner.
              i take a stand and speak to the manager.

              sounds very similar if you ask me

              rick.
              phoebe it is

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              • #8
                Re: Plumbing Wholesaler problem!!!!!

                Originally posted by PLUMBER RICK View Post
                lets see, supply house selling tankless and csst to the non licensed homeowner.
                i take a stand and speak to the manager.

                sounds very similar if you ask me

                rick.
                Shame on me for being short sited.

                Comment


                • #9
                  Re: Plumbing Wholesaler problem!!!!!

                  I would give an ear full but, the mark up on water heaters in general is not much. My supllier claims their mark up is only 10% for contractors. Not much profit for them. I gennerally mark up big money items such as water heaters and fixtures 5% cause you will price yoursel out businness the way the economy is today. Best to make a little than none at all.

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                  • #10
                    Re: Plumbing Wholesaler problem!!!!!

                    Not me. I mark up at least 20% or they can get their own and no warranty from me.

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                    • #11
                      Re: Plumbing Wholesaler problem!!!!!

                      Originally posted by DoubleL View Post
                      Hey guys im a newbee from Texas got a problem and need advise. Went to bid job for tankless heater install today and got pricing from my wholesaler and quoted job to woman and marked up heater 10% and she called me out on price come to find out my supplier quoted her the same product cheaper than my price by $75. Crazy huh!!! what recorse should I take to get this problem back in my favor! I still took the job for labor only and told her to buy the heater and offered her a position over my supplies HA HA Help
                      If your markup on the heater was only 10% you were losing money on the heater to begin with. Your cost of sales must be higher than 10% so your markup should be you actual cost plus your cost of sales plus you profit.

                      As for your wholesaler, you need to figure out if you want to support a guy who does not support you.

                      Mark
                      "Somewhere a Village is Missing Twelve Idiots!" - Casey Anthony

                      I never lost a cent on the jobs I didn't get!

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                      • #12
                        Re: Plumbing Wholesaler problem!!!!!

                        A. 10% MU on material- it doesn't pay to handle it for such a slim"margin". Is that before tax or after?

                        B. If you need the work take it for labor only with an extra 15%-20% added to your bid for lost profit.

                        C. Have her sign a notice that you only warrant your labor and the MATERIAL THAT YOU SUPPLY. You are not responsible for service, repair, replacement or adjustment of items supplied by others.

                        D. Ask the wholesaler owner or branch manager how a homeowner can receive a better price than you do. Ask him face to face, calmly, and then be quiet while he tries to give you a good answer. Hopefully other contractors are standing nearby.

                        E. " D" is using the assumption that you are a regular customer, not behind on your bills, and buy enough from them to deserve the discount, and are a licensed contractor.

                        F. I would ask him for a commision on the sale he made to her ( don't hold your breath). You lost out on the sale, why should he profit at your expense. Also tell him you want to review all of your discounts to see if your other prices from him are reasonable. If there are other contractors around make other demands, in a quiet non-threatening manner.

                        G. No threats, no promises. If you are a good customer just stop buying from them, if you want to. They will certainly notice the reduction in sales. Depending on the area you are in you may need to buy from them in the future and rather than having to eat crow they will be happy to see your smiling dollars and you can always rub their face in it whenever you ask for pricing.

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                        • #13
                          Re: Plumbing Wholesaler problem!!!!!

                          I markup my water heaters and other large ticket items by 25%. If the customer expects me to buy it, transport it, and warranty it, then 25% I feel is a great bargain.
                          I don't mind installing customer-supplied heaters as long as they buy the right heater, provide their own transportation of the tank and they understand that I won't provide the same warranty as if I supplied it.
                          Last edited by Service Guy; 12-23-2008, 08:00 PM.
                          Water Heater Reviews & Water Heater Information

                          Comment


                          • #14
                            Re: Plumbing Wholesaler problem!!!!!

                            Originally posted by APHCO View Post
                            A. 10% MU on material- it doesn't pay to handle it for such a slim"margin". Is that before tax or after?

                            B. If you need the work take it for labor only with an extra 15%-20% added to your bid for lost profit.

                            C. Have her sign a notice that you only warrant your labor and the MATERIAL THAT YOU SUPPLY. You are not responsible for service, repair, replacement or adjustment of items supplied by others.

                            D. Ask the wholesaler owner or branch manager how a homeowner can receive a better price than you do. Ask him face to face, calmly, and then be quiet while he tries to give you a good answer. Hopefully other contractors are standing nearby.

                            E. " D" is using the assumption that you are a regular customer, not behind on your bills, and buy enough from them to deserve the discount, and are a licensed contractor.

                            F. I would ask him for a commision on the sale he made to her ( don't hold your breath). You lost out on the sale, why should he profit at your expense. Also tell him you want to review all of your discounts to see if your other prices from him are reasonable. If there are other contractors around make other demands, in a quiet non-threatening manner.

                            G. No threats, no promises. If you are a good customer just stop buying from them, if you want to. They will certainly notice the reduction in sales. Depending on the area you are in you may need to buy from them in the future and rather than having to eat crow they will be happy to see your smiling dollars and you can always rub their face in it whenever you ask for pricing.
                            Good advice all around I think.
                            "When we build let us think we build forever. Let it not be for present delight nor for present use alone. Let it be such work that our descendants will thank us for, and let us think, as we lay stone upon stone, that a time is to come when these stones will be held sacred because our hands have touched them, and that men will say, as they look upon the labor and wrought substance of them, "See! This our fathers did for us."
                            John Ruskin (1819 - 1900)

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                            • #15
                              Re: Plumbing Wholesaler problem!!!!!

                              Hey guys thanks for the advice I went to supplier today to pick up some copper couplings to use on the job in question and got in a small confrontation with the store manager he credited my account the difference of the quote to me and her I think he said it was $65 and some change. I felt a slap in the face with a cheap buy off approach he gave me. I asked him if he had a list of the plumbing contractors he supplies and if all there liscenses and insurance creditials were on file and if so I wanted to see them. and after a few other contractors started to open there ears. The store manager wants to meet with me on Friday so I need some more suggestions and good ammo for the meeting!!!!! I would like to know if there are rules that wholesalers have to abide by if not it looks as if i might become a small operation to get cuts on all my material. I know i spend over 100,000 a year on parts maybe i should open up my own showroom!!!! Thanks guys

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