How To Deal With Suppliers

How To Deal With Suppliers

When you build your house you are going to be dealing with various suppliers for all the materials you will need. This means you will need to know which suppliers are the best to deal with. The following is a list of good rules of thumb when it comes to dealing with suppliers. It can mean you get the best supplies for the best prices.

• Deal with larger companies: Sometimes dealing with larger companies means saving money. It is like buying items from Wal-Mart rather than a specialty store, you may get potential savings just because of the sheer volume of purchasing that happens there. However, there are other advantages to dealing with larger companies as well. Often times larger companies offer greater selection, and are more concerned about keeping up their larger reputations, so you should get good service and products. Such companies include large lumber companies like Lumbermans, BMC West, etc. Other large companies include Home Depot, and Lowe's, etc.

• Deal directly with manufacturers: If at all possible this is a great option. If you can buy from the manufacturer you have a better chance of getting close to wholesale prices. You aren't paying mark ups due to shipping, and vendor profits. If you buy from the manufacturer you may have to pick the product up yourself, but chances are the savings will make that a good trade. Plus, there is less chance for damage due to shipping, and you are on site so you are sure to get the product you want because if they manufacture it they won't be out of it.

• Limit the number of vendors you deal with: This is not always going to get you savings, but it will get you more personal and often times better service. Sometimes you can get better prices because of the high volume of purchases you will be making with the company. Ask different suppliers if they give any high volume discounts, if not, consider the other benefits that come with dealing with fewer people.

• Open builder accounts: Builders get discounts, and you are a builder! Also, builders don't usually have to deal with retail sale's personnel, rather they deal with contract sales personnel in the back of the store, which is nice. Other advantage of opening a builder account often include special payment schedules, such as paying the open balance on the first of each month. This is an advantage because it gives you a little more flexibility in your budget. Also, you may be able to get early payment discounts by opening such accounts. This could save big money if you stay on top of keeping track of them, and actually pay early so you can get them.

• Inspect materials: This is going to be one of the biggest ways you can save money, and one of the most important ways of dealing with suppliers and keeping them honest. You should look at and inspect the materials as they arrive, and insist on having damaged materials, or materials that just don't look right, returned or exchanged. Doing this saves a lot of money. Why? Well, once something is delivered and accepted, and especially if it gets installed, it becomes your problem, and the supplier is no longer responsible for sending you damaged or faulty material. If something was faulty when it was delivered, and you did not check it, then you eat your mistake. If you don't inspect materials as they arrive you will lose money, not save it! Have subs inspect the materials. They don't want damaged materials anymore than you do. Framers will not want twisted lumber, electricians will not want faulty or incomplete lighting fixtures. You can call your subs and give them a list of what to pick up, or have them on site when the supplies are delivered. Have materials that are to be returned stacked in a special location on property, or preferably the garage. Make a list of the items you have received, and check it against return list invoice from suppliers.

• Get several bids: The only thing that doesn't have any room for negotiation in price is a postage stamp, not supplies. Other items can be purchased elsewhere for a better price if you take the time to find it. So it is with supplies. So, shop around and ask for a better price.

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