I'm done with my local disty...

[Able 1]

I ordered some parts to replace my exhaust last week(form Prochem Milwaukee) and they charged me 191.00 for 2 thermostats retail value is $70.00 :shock: I had my dad pick them up since I was too busy and I saw the invoice and was really pissed almost couldn't sleep last night. I do anywhere from 7,000-10,000 of biz a year with them and when I took it back to say that I wasn't paying $120.00 more then they are worth he said there will be a restocking fee of 20% :shock: :x I just said that would be fine (thinking I'll still save $80.00) and I told him what they were worth he said 70.00 a piece and I said no all together... He said "well thats Prochem"

I understand that distys have to make money but come on!!! I could understand 20-30 dollars but $120 markup!!!

I had to vent... I'm still really pissed!

I was going in there at least twice a month and shooting the breeze with anyone there.. Really thought of them as friends. I will not buy my next TM from them! A-HOLES!!!

 

[Bob Foster]

BIN there Dun that!

 

[Guest]

You have to remember, just because your in the carpet cleaning business,
doesnt mean you have to buy from a carpet cleaning dist!

 

[Blue Monarch]

Get some catalogs from carwash and powerwashing suppliers. They've got some great prices on some overlapping products.

This tip was brought to you by Odin.

 

[joey895]

What no replies of he's just being cheap, the distributor has to make a profit, we just don't understand, how can we expect our custy's to pay $100 per hour and then not be willing to pay the piper ourselves, blah, blah, blah.

Oh it's Sunday, those will show up tomorrow. :roll:

 

[everfresh1]

I always check the part for the name of the manufacturer than find a local distributer for that manufacturer as an example I needed a check valve for my Boxxer the hydramaster dealer wanted $90.00.
I checked the local parker store the same valve was $35.00 I never buy parts from my Hydramaster dist. unless I can't find it anywhere else Hydramaster marks it up than the dist. marks it up. Same way with Steamway.

 

[packfancjh]

Do you guys think distributors are supposed to be non profit. I agree some parts are a little rediculous when it comes to price but if we don't have markup then we don't make money. That is why we have become Briggs dealers also so we can get better pricing on parts for the engines.

 

[Brian R]

People (Companies) have to make money but there IS such thing as Price Gouging (sp).

 

[joey895]

Do you guys think distributors are supposed to be non profit. I agree some parts are a little rediculous when it comes to price but if we don't have markup then we don't make money. That is why we have become Briggs dealers also so we can get better pricing on parts for the engines.

So are the other companies that are selling this stuff for less, non-profit?

 

[packfancjh]

No but it's called being a middle man. If you can find the part through the manufacturer you will save a few bucks because the part doesn't have to be handled by another company. If you don't want to take the time or effort to go through them you can go through your local disty. It will be more due to going through another company and it will have another markup but it might be more convenient to some people.

 

[DannyD]

You have to remember, just because your in the carpet cleaning business,
doesnt mean you have to buy from a carpet cleaning dist!

Good point. I try within reason to buy from a CC Supplier. There are limits though. An example of that is a fresh & waste water tank. In the CC industry they're $$$ (like up to $800) where ya can go to an RV shop & get a 60 gallon tank for $79 or so.

If the price is similar the order of importance of buying something is:

1) If I like the person
2) How close is the shop to my house
3) How fast can I get it

 

[Ron Werner]

I appreciate making profit, and I appreciate that we need to make about $100/hr, and I appreciate that we should be willing to pay someone what its worth and not be so cheap.

HOWEVER, When looking at our pricing, we have a lot of costs that aren't visible and in order to make X amount in a day, we either need to work our ass off and clean as many jobs as we can or charge enough that we can afford to spend the time to do it right. Plus if we need to pay these high markups, we can't be charging $25/room and clean one house in a day.

When I can buy a product from the US, have it shipped to Canada, pay the dollar difference, the shipping, the duty and taxes, and STILL save the whole price of the part, there is some serious mark up. ie a hydroforce sells for $150 in the US, here it costs about $450!
And its the same product, apples to apples.

Its like we're in the marine busn, where a 25cent brass washer costs $25 just because it goes on a boat.
When a busn figures they have you by the short hairs, they charge whatever they want. Thing is, they don't have us by the short hairs and they will lose busn because we'll buy it from someone else and let them make their profit.

 

[Jimmy L]

DannyD fill out your profile

 

[Fred Homan]

Sometimes these distributors think they have you by the balls. NOT! They need to be more competitive because of the internet....

 

[Greenie]

Shit....we allw ant to be treated fairly, and receive value, but we also want service and those folks who help us to remain in business.

As for Danny's comment, when making comparisons, I try to keep things fair and apples to apples, If you are referring to a space saving vertical over the wheelwell tank (possibly with shelving built in), it would only seem to fair to price said tank against a similar RV tank.

We have a right to choose whom to give our money and support to. America is a beautiful thing.

 

[Bob Foster]

The thing is Greenie - not many people have ever known you (or Lisa) to rip them off. (According to "Lump" Cooper you do - but what does he know...)

Other distributors develop their "over priced" reputation usually because they are grossly overpriced and don't prove and affirm the value of dealing with their company EACH and EVERY time they deal with a customer. Those distributors, and their poorly trained or apprciated staff either don't give a shit or they don't know any better.

The each and every time thing is what you get and provide every time you answer the phone.

 

[Larry Cobb]

Keith;

As a distributor, I am faced with price choices every day.

I deal with Century 400 and Prochem on a weekly basis.

Some of their parts costs are very reasonable...

and some are higher than they should be.

It takes a sharp purchasing agent to know the difference.

On some items like vac motors, you have to buy from the manufacturer to be competitive in the market.

Compare a basket of parts from your supplier, to another supplier to get a good idea of overall costs.

A well-run distributor will direct source some of the common parts, saving you a considerable sum of money.

Larry

 

[Able 1]

I'm just saying a mark up well over 100% will make me price shop... Is that what my disty wants me to do? Or when I need something I go right to them.. I just expected them to be reasonable is all. I think there ultra pack is up over $40 a gal. there(thing is I never really looked at the invoices). Well when they look back and see when the last time I bought from them they will know why I haven't been back!!! Isn't 10% the going rate on restocking fees anyway?

One time the sales guy (at Prochem) told me that internet purchases were really hurting them.. So why would you screw me over and push me towards it?

I am not a cheap ass by any means but if I get aced as bad as this don't ever expect to see me unless I have NO other options.

The demeanor he had when I said I wanted to return the parts... Really pisses me off!!

I will say this again I understand mark up but don't understand ripping someone off that has been a great custy this bad. As a disty I think they know the best way for there valued custy's to get there parts and should point them in that direction if they want to keep them.

 

[Doug Cox]

First off I'd like to state that I deal with a few of the distributors on here and can honestly say I haven't felt ripped off by anyone. But I bought a new Cat 5cp pump last year and Powerclean wanted a grand for it but I found it for 600 bucks. Thats a large price difference I feel is too large. Powereclean also wanted 30+ bucks for a temperature relief valve that I bought for 5 bucks. Also too big of a price difference. Keith, to be honest, I feels it is your own fault for not asking for a price if its that important. I would pay the price and not do business with the Prochem distributor unless I had no choice. I have a hard time burning bridges because it might come back to haunt me, unless of course I feel they deserve it.

 

[Able 1]

I didn't burn any bridges I was very nice! But if they want me to price shop that is what I'll do.. That mark up was BS it's a fooking thermostat!! Price has not really been an issue with me and my disty before well except them charging me $40.00 for a case of blocks when I can get them for $18 now(never said anything about that to them).

All and all thank god for the internet!!

 

[Dolly Llama]

Shit....we allw ant to be treated fairly, and receive value,

GreenJaun, I'm curious..
do you shop around for the best price on raw materials, parts and manufacturing of your gadgets?

seems like some of the other distys are

I'd bet a nickel the savvy disty/suppliers do the same thing the savvy CCers do.
They look for a reputable outfit that has the best price on the goods they need.
Often times that's several to over a dozen sources


..L.T.A.

 

[Nate The Great]

All and all thank god for the internet!!

I believe you need to thank Al Gore for that one.

I believe in supporting local distributors but when they don't carry the products you need, you minus well ship it in yourself.

 

[Sticky]

Keep buying everything online and when your TM breaks why don't you take that online too

 

[Bob Foster]

Chances are that your online help for diagnosing a broken down truck and fixing it yourself will not only be better but it will be faster and cheaper.

Some distributors simply start throwing parts at a machine until it works again. They don't diagnose because they don't know how and a lot of the time the parts they need they have to courier in to their shop anyway. All machines suck and blow, but some are more reliable and easier to maintain.

If you are going to sleep at night you better know how to fix it yourself or have a very good and honest distributor close by. Many of the machines are complicated and hard to work on but then there are some that are easier and less expensive that even a regular person with minimal mechanical skills can repair and maintain themselves.

 

[MicahR]

I've been on both sides of this industry so here is my take on things and I'll use this as an example.

You can find this stuff all day long on the net and locally for $6.00 a tube

I love the stuff works great on everything from lubing stems in a valve to the inside of hoses when fitting them on brass.

I believe Prochem was the first company to have this in their products for sale.

Our distributor cost, if purchased from Prochem, is 6.56. Suggested retail from prochem 10.56

So here we have Prochem buying the stuff and putting their markup on it so they can make money on it. Then we buy it and need to make our money from it. $10.56 So what are we looking at 37.87% markup.

Now here's where things really get fun. Let's say your local distributor is not a Prochem dealer and buys Super Lube through hydroforce. Your local disty puts in an order for super lube through hydroforce. Hydroforce's price on Super Lube is 11.38 and the suggested retail price from Hydroforce is $16.26. Hydroforce makes their margin on what they buy it for from Prochem and then the dist get their margin when they buy it from Hydroforce at a 30% margin. (For those that don't know the margin is found by taking the retail price and subtracting the percentage off that price. Example: Cost 5.00 Sell: 10.00 = 50% margin)

So, Mr. Carpet Cleaner is out of Super Lube and he puts an order in through his local Interlink supplier who is not a Prochem Dist. The last time he bought Super Lube it was through a Prochem dealer and the cost was $10.56 he doesn't pay much attention to his invoice, but when he gets to looking at it he sees he's being charged over 16 bucks! WTF! So he hops on the web and finds it for 6 bucks from his local Ace Hardware. Six bucks? He's marking it up over ten bucks! He's ripping me off! I'm never shopping with him again! !#$^&%$@#@#$#%@#$%!

Sometimes there can be two or three markups involved. Two or three middlemen.

So now your wondering why in the world wouldn't a distributor just buy the Super Lube direct from Super Lube and save everyone money? Well, does it make much business sense to take the time to set up the account, deal with all the paperwork, and extra messing around to sell a product that doesn't make you much money anyway? What happens then is the distributor buys the Super Lube for the customers who like and and won't bother to do any research themselves or just don't want to make 25 stops in a day picking up all the things they need for a week or two worth of cleaning.

What do I do? I tell them to go to their local Harbor Freight and pick some up for 5.50 a tube. I get a 50/50 response. Either it's "I don't feel like running to Harbor Freight just give me a tube" (at 10.56) or "Thanks for letting me know! I'll go and pick some up later today."

The same thing goes for certain parts.

I'm not going to spend the time to try and source out every part we carry just to see if we can get it cheaper somewhere else or let the customer know where he can buy it cheaper. We do from time to time get a customer that will tell us get bought the same thing through so and so and got it for this much. In that case I research it and see if we can do something to save our customers money in the future.

Not every part is interchangeable even if it seems like it is. Case in point we've had a handful of customers say I'm not paying that price for a cat pump! They go and find it on the internet somewhere cheaper and they're back in a few months because they didn't buy a "hot-n-dry" pump and they cooked their seals. Just because it says 5CP doesn't mean it's going to work with your machine.

Long story short. Those who shop around can find a pretty good deal on things. It pays to shop around. I don't think any distributor expects any one of their customers to buy 100% of the things they need through them. BUT! There is usually more to the story than meets the eye. It's not that the disty is trying to screw you. I know that's not true about every disty in our industry. There are hack distributors just like there are hack carpet cleaners.

 

[floorguy]

I've been on both sides of this industry so here is my take on things and I'll use this as an example.

[You can find this stuff all day long on the net and locally for $6.00 a tube


So, Mr. Carpet Cleaner is out of Super Lube and he puts an order in through his local Interlink supplier who is not a Prochem Dist. The last time he bought Super Lube it was through a Prochem dealer and the cost was $10.56 he doesn't pay much attention to his invoice, but when he gets to looking at it he sees he's being charged over 16 bucks! WTF! So he hops on the web and finds it for 6 bucks from his local Ace Hardware. Six bucks? He's marking it up over ten bucks! He's ripping me off! I'm never shopping with him again! !#$^&%$@#@#$#%@#$%!

Sometimes there can be two or three markups involved. Two or three middlemen.

So now your wondering why in the world wouldn't a distributor just buy the Super Lube direct from Super Lube and save everyone money? Well, does it make much business sense to take the time to set up the account, deal with all the paperwork, and extra messing around to sell a product that doesn't make you much money anyway? What happens then is the distributor buys the Super Lube for the customers who like and and won't bother to do any research themselves or just don't want to make 25 stops in a day picking up all the things they need for a week or two worth of cleaning.

What do I do? I tell them to go to their local Harbor Freight and pick some up for 5.50 a tube. I get a 50/50 response. Either it's "I don't feel like running to Harbor Freight just give me a tube" (at 10.56) or "Thanks for letting me know! I'll go and pick some up later today."

The same thing goes for certain parts.

I'm not going to spend the time to try and source out every part we carry just to see if we can get it cheaper somewhere else or let the customer know where he can buy it cheaper. We do from time to time get a customer that will tell us get bought the same thing through so and so and got it for this much. In that case I research it and see if we can do something to save our customers money in the future.


Long story short. Those who shop around can find a pretty good deal on things. It pays to shop around. I don't think any distributor expects any one of their customers to buy 100% of the things they need through them. BUT! There is usually more to the story than meets the eye. It's not that the disty is trying to screw you. I know that's not true about every disty in our industry. There are hack distributors just like there are hack carpet cleaners.

perfect examples micah...

if every dist at least made an attempt to point me in the RIGHT (and yes cheaper) direction, then i think we as a custy would suprize them and come back and shop...(didnt we have this go-round not to long ago??)

Also things like super lube where you think you would seel more...then yes i think you need to go and get an acct to bring it in at a cheaper cost for custys... As far as every little thing...no we dont expect you to do that with everything...BUT on more common items abso-freakin-lutly

I go back to dist all the time who have said "go over here you can get it cheaper, more of them etc. Because i know they will treat me good, and on things i have o have, ill spend the extra coin...

In fact I buy chems at one place, that gives me the highest discount for quantity even if i only buy a few things...Why?? well i have bought large orders quiet a few times...but dont always need to... so there ya go

 

[Ron Werner]

I had to replace my glow plug controller and plugs. Bob found them online for $130US, the controller cost me about $329CDN here, plus $25 each for the plugs. I paid the extra because, 1, local guy was installing them and he had the parts immediately, not waiting for a week, plus 2, I knew he would have the correct parts and back up his work if there was a problem with them.

It all depends what it is. If you're in a hurry, pay for convenience. If you're not in a hurry, order and have it shipped.

 

[steve frasier]

I recently bought a LED urine light, it was $150 cheaper on a web site that sold Private Investigator stuff. I asked the local Interlink dealer if he wanted to match the price and he did

I know that sometimes they have to pay a min. don't know how much that affects the price you pay. Kind of like when you tell that lady you have a $100 min so that is what it is going to cost you to remove that spot

 

[Jeff Madsen]

As a hard working owner operator most of the time I just don't care if it costs me more from my local distributor. Time is my most valuable commodity, not dollars. I'm busier than a one-legged man in an ass-kicking contest - the last thing I want to do is comparison shop. It costs me what? A few hundred extra per year maybe - in return, I spend exactly zero time worrying about these issues. That time can be spent working and making $$$$. You're talking about a half-day worth of work in terms of the dollar difference over a year.