Supplier Inside Knowledge

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You are going to want to have some insider knowledge about the supplier you are considering hiring, and buying materials from. So, once you have selected three or four suppliers and contacted each one to bid on your project, you can do some things in the meantime while you wait for your bids to get back to learn more about the supplier.

One of the best ways to get insider knowledge about a supplier is by asking someone that works for them. So, before settling on a materials supplier, interview one of the salespeople in charge of large accounts. You want to know everything you can about quality, pricing, discounts, delivery, terms, and advice.

In order to learn as much as you can, conduct an informal interview and ask them the following questions:

  • Are preferred brands readily available from the supplier? If not, can you easily order them? (This will be important to know because you are not going to want to wait on materials, especially if it is a popular item, you might have to wait for a long time while they fill a back order, so ask for details.)

  • What are your prices on ____________________? (If there are specific products you want, find out pricing on those products.)

  • What discounts and terms are available to licensed contractors? (Just because you are not a licensed contractor doesn't mean you should not be able to get the same discounts and terms as them, so find out what kind of treatment they get, and expect the same.)

  • Can you offer the same discounts and terms to owner-builders? (If they can't you are better off finding someone else to be your supplier.)

  • What discounts are available to owner-builders for cash and carry? (Most people buy on time, and have items delivered, you could save a lot of money if you pay cash and take them with you then and there, so find out if they offer any special discounts for this.)

  • How can I set up an account with you, and what are the terms? (Because you are on a loan draw if you had financing for your house, you are probably going to set up an account with the supplier you choose and pay monthly, so find out all you can about their programs.)

  • When is the billing cut-off date? When is payment due for a discount? Without a discount? (Most places offer early payment discounts, so if you know about them, you will be able to save a lot of money.)

  • When do you receive ordered materials from your primary warehouse? (Daily, monthly, weekly, every other day? You want to know so that if you need something fast and they don't have it you do not have to wait a month to get it.)

  • How soon can you typically deliver materials to our building site? (You will likely have your supplies delivered as they take big trucks and sometimes special equipment, so make sure that if you are having supplies delivered that they can get them to you by the time you need them.)

  • How soon before the delivery truck leaves can I call in an additional order for delivery? (You might not realize you are short on nails, and want to have some delivered with your lumber delivery, why make two trips, can't you call it in and get it on the same load? Find out!)

  • Can you get me better pricing for concrete and other bulk materials than I can get myself? (If they have good bulk pricing they will be worth your while.)

  • Will I have a specific salesperson assigned to my account? (This is what you want, that way you don't get things lost in transit by passing through a bunch of people, rather you have one person, and a direct line of communication.)

  • Who would I talk to if I can't come to an agreement with a salesperson?

If you get these questions answered, when their bids come back, if they are good bids, and if the salesperson answered these questions satisfactorily, and they have a good reference, then go ahead and hire them.

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