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Discuss 'Trade' Pricing in the Plumbing Jobs | The Job-board area at PlumbersForums.net

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cr0ft

Plumbers Arms member
Plumber
Gas Engineer
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Hi all,

I've just received a quote for the supply of a fitted bathroom today from my supplier and decided to do a bit of shopping around to see how competitive the prices really are. I've just discovered that they are (in theory) offering me generous discounts of 20-40% however all they are really doing is taking these discounts off of an inflated list price stated on the quote. In reality my supplier sells items to me more expensive than my customers can buy the same items for online.

Is this the norm for us now or are there any decent trade only suppliers now that offer plumbers a true discount off retail prices?

Just wanted to here your views prior to telling my supplier it's time I was offered some real discounts.
 
it all depends where you have your trade account, i use pts, and compared to plumb centre there cheap, but it might vary from palce to place.
 
tbh i find the same with pts but always negotiating prices
 
If the customer is scowering the net, it is going to be hard to beat the price they are given, most of the time
Why merchants and manufacturers still use these stupid generous retail prices ,I do not know, most obvious one is radiator prices.
I get my merchants statements through at the end of the month and it shows retail price, massive discounts given and then my trade price, it is a complete joke
I find a lot of the prices you get from local merchants can be beaten, easily on the web and I often get stock form the internet
Where you can gain ,is on offers, a few times when I did bathroom suites, I would shop about, as if a suite has been in stock a while or clearing stock, you can get special offers, obviously this does not apply on new stuff just out and the problem now ,is a lot of wholesalers and merchants order straight from the manufacturer or importer as and when needed
If you do not get a big enough profit ,it is not worth supplying and having to manage the guarantee on the product, may as well let the customer have the hassle, if anything goes wrong and have to pay your labour on top to correct
(I do not like breaking quotes up to much and listing all the differant prices,I give a complete price,if they ask for it to be broken down,just say the bottom line will remain the same,so why,you may get this bit cheaper,I may get that bit cheaper,I like to supply everything myself as I know quality is good and all material is on site when needed,so thats the price)
Also maybe find out what is on special offer this week or month and try to push that
Compared to Plumb centre anywhere is cheap, however, after saying that, each branch manager has a great deal of leeway on prices and you can negotiate some good prices, if he is just looking to push his monthly figures over his target.
Generally merchants now try to get as much as possible, when they can and often do not pass on any further discounts or promotions unless they have to, if you want good prices you have to ask, go in with quote and internet price print out and see what they can do but if you negotiate a good price do not expect this to be the future norm,you will have to do this each time
I got some thermostatic valves ,the other day, from my regular merchants, as I was invoicing same day, asked for price, they said ÂŁ 91.76,joking I said, thought I was quoted around ÂŁ ÂŁ89.76,tell you what he says, I will do them for ÂŁ80,he thought he was doing me a favour, just got my back up really, why not give me that price anyway
Do not feel so guilty ordering stock valves from net now though
Only trouble is, the more I order from the net, the less they sell, the more the prices go up to cover there over heads but that is another story
Would mention ,I never get electric showers ,integrated shower mixer pump units from plumbers merchants, always electrical wholesalers as always alot cheaper

If I am doing a job, with a lot of materials or expensive materials were I maybe am able to improve my profit margins, I always plan ahead and shop around for materials and give enough time for them to be delivered, no longer do I just walk into my merchants and order over the counter, to many plumbers do this and loose a fortune over the year

You should this if the quote you get accepted from the customer is tight and also when good, as on a good priced job, there is more profit to be had if you get your costs down, just because you are being paid well does not mean you have to share it with greedy or uncompetitive suppliers

But then again.............

imho
 
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Thanks for the info puddle. I am aware from a friend just how much profit there is for plumbing merchants when it comes to bathroom suites etc in particular. A lot of them make around 80-100% profit selling to us at the normal trade price, i.e. 30% discount or something similiar from catalogue prices. The markup is huge.

The thought has crossed my mind of getting a group of plumbing companies together and going straight to the manufacturers to buy...
 
Keiran , what merchants were you using?

I priced up a new shower enclosure from Williams the other week, they gave me 35% off brochure price.
Then wnet into Bradleys in Pompey, got the same thing for 90 quid less, and that included the VAT.

It really gets my goat when they tell you this, knowing full well that you will be too busy too shop around.
Had the same thing with HPS recently.Been using them for boilers for a few years now, so had no real reason to doubt their pricing.Anyway priced for a ecotec 831.Told the custard the price, they tell me they can get it for ÂŁ100 cheaper on the net, including VAT and delivery.Made me look a right prat.

Graham
 
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Hello, nice to find another local plumber using these forums. I am using HPS and I pretty much have been using them exclusively for all of my stuff, like you because I'm too busy to get 2 or 3 quotes for every job.

It was only when I had some down time and looked into their 'list' prices online that I realised even with me passing on my full trade discount the customers can still buy cheaper online..

I'm trying to get enough plumbers together in Hampshire so that we can look into the possibility of getting wholesale accounts direct with the main manufacturers. They already ship orders to plumbing merchants directly once a week so I am looking into whether or not it's possible to cut out the middle man, pass on some decent discounts to customers and make some decent cash on materials ourselves. If you're interested then pm me your details. You can see mine using the link in my footer!
 
Why should there be any difference in the prices?

Why have a trade price at all?

Just sell it at buying in price, plus an acceptable profit or mark up?

It seems there are simply far to many people trying to get a slice of everything these days for doing nothing much. Its not added value its just mark up for nothing.

I got a ball o flow from one merchant cost 71p including vat, went to a local building merchant for same thing asked for ÂŁ1.58 plus vat, went to a local DIY shed and saw them at about ÂŁ3.68p.

When you look at it, how many hundreds of percentage mark up is there between each one?

Why do contractors want things cheaper than their customers can buy them?

Want to make extra cash and add mark up for doing nothing?

Lets be honest, unless you install the goods wrongly, then the guarantee period is usually covered by the manufacturers guarantee, so we can't so easily claim we are charging for covering a guarantee period for the extra mark up.

Lets play fair with the public and not treat them as a money making exercises, by wanting mark ups we have done little for.

Also it would be nice to see wholesale factory gate prices easily accessible to all.

Lets be honest, exactly how much things cost to make now days and what the manufacturers sell it to the wholesaler for, seem to be treated like state secrets.

Why are people behaving as though they are scurrying around in the dark regarding letting people know the true cost of goods?

What is wrong?

Are they ashamed to see the size of mark up they make?

Lets be honest the Brit public would seem to accept a certain level of profit, but may think twice about what seems what could be nearly 300% in some instances.

Surely if your being fair, you should never be afraid to let people know how much your making on materials.

The thing is if your not open about prices you may just get called a "rip off merchant" and loose work.
 
I am quite open about the discounts I get on my products, I agree that it's the best way to trade. By looking into buying direct I'm aiming to get better discounts not to keep the money myself but to pass these on to my end customers thus making me more competitive and winning more jobs.

In today's market everything you can do to help people save money helps imo.

I agree with a lot of what you are saying but there are always going to be different prices for people buying different quantities. I would expect to get a much better price if I am ordering 20 bathroom suites a year as opposed to a retail customer ordering 1. Now if I work in conjunction with 20 other plumbing firms all offering their business to the same manufacturers then that becomes a powerful buying prospect and allows us to undercut other firms that aren't working together.

Just an idea I'm playing with at the moment, but it would be good to know what others think of it. As I said, I'm particularly interested to hear from other plumbers in Hampshire, perhaps one in each town, so that it can be looked into in more detail.
 
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Hi CrOft,

Agree with you.

I once worked for a company that got a big open contract but seemed to start to rip the customer off regarding materials prices.

The customer found out, result lost contract and whether as a direct result or not we all eventually found ourselves on the dole.

If the company had played fair we might have stayed working.
 
Just an idea I'm playing with at the moment, but it would be good to know what others think of it. As I said, I'm particularly interested to hear from other plumbers in Hampshire, perhaps one in each town, so that it can be looked into in more detail.

I tried this idea years ago when I used to go to plumbing federation meetings, then there was not so much competition between merchants, and we could have got some good terms but could not get everyone together, though,thought,form a little co-operative, but each thought they could do better, none wanted to invest in stock items, that they had to buy anyway, many thought othesr would know their business and find out what jobs they were doing and who for, thought we would all dive in there and pinch each others work, that was then
Now we have more completion and with the internet, think not really viable,still say the best way to save ,is to plan ahead
Also when I first started out, one of the most credit worthy people in the community were plumbers, anyone would except a cheque or give credit to one, over any other trade and on power with solicitors or accountants or bankers, sounds strange now but it meant you would not have had to worry about payments ect, when goods arrived, now ,think that could become a big issue :(
 
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Yes, my merchant has been telling me that there biggest problem is getting plumbers to pay their accounts on time each month. They've seen a marked increase in firms not paying over the last year or so. All of this is happening in Hampshire which is scary as it's supposedly quite a well off county.

I agree with you re the internet. You can get some cracking prices on their to be honest - found this site last night at Bathroom Suites Shop. Bathroom Furniture, Vanity and Shower Enclosure UK . They seem to be very cheap on a lot of items, has anyone used them at all?
 
Why should there be any difference in the prices?

It seems there are simply far to many people trying to get a slice of everything these days for doing nothing much. Its not added value its just mark up for nothing.


Why do contractors want things cheaper than their customers can buy them?



Surely if your being fair, you should never be afraid to let people know how much your making on materials.

The thing is if your not open about prices you may just get called a "rip off merchant" and loose work.

i expect lower prices than the public as i buy a lot of that certain product... i also have to organise my accounts, pick materials up, chase up different materials for jobs - i dont agree with making a killing on materials but i expect 20 -30 percent.

dont think its not being fair - its being shrewd in business.
 
Yes, my merchant has been telling me that there biggest problem is getting plumbers to pay their accounts on time each month. They've seen a marked increase in firms not paying over the last year or so. All of this is happening in Hampshire which is scary as it's supposedly quite a well off county.

I agree with you re the internet. You can get some cracking prices on their to be honest - found this site last night at Bathroom Suites Shop. Bathroom Furniture, Vanity and Shower Enclosure UK . They seem to be very cheap on a lot of items, has anyone used them at all?

yep ive used those guys a few times...never had a problem.
 
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