Just testing my plumbing business idea!

[kevm82]

hi everyone, just joined and thought this may be a good way of testing a business idea that is in my head. its fairly new so any feedback would be great.
just a quick summary of me, i am 30 and have over 10 years experience working in plumb center, grahams plumbers merchant and my local central heating boiler spares shop.
i been trying to think up something different for a job, here goes.
due to my experience of dealing with plumbing materials and engineers i was thinking of becoming a freelance materials buyer...if that makes sense! I would aim at small plumbing companies all over the uk, one man bands to maybe a company with 3 or 4 employees on there books. Maybe the type of companies that dont have or dont want to waste time going around the town ordering materials for the next job, they just phone me up then i can source the materials from the merchants they deal with, finding the best price at the same time. It will leave the plumbers to carry on making money doing there actual job.
I would also think of doing a price comparison list each money for companies, maybe 50 items they use the most, then compare prices with the merchants they deal with so the plumber can see where he gets the best deals etc. just saving the plumber the time of doing it themselves and saving them money in the long term.
i described it as a freelance buyer because hopefully i could secure work with lots of engineers throughout the country.
If u are a engineer what would you pay to use this service each month?
thanks for listening, any feedback would be great!

 

[plumber0808]

What would you charge? It's a good idea but if it is not a competitive price per month or per order I would just phone them myself and get them delivered to me.

 

[plumber0808]

Also, is there that much of a margin available to make a decent living.

 

[kevm82]

difficult to decide what i would charge, obviosuly i would like to have a good income. I dont think it would cost much to set up as i can work from home and i think the outgoings would be kept down apart from a website and phone bills. If i was charging per month at £75 and you had 30 customers a month then i would be happy but would the plumber!? I am getting the feeders out to the local engineers and plumbers i know to see what they think.

 

[kevm82]

i have also looked around on the internet and i can't seem to find anyone else out there that offers this sort of service.

 

[Hybrid]

I'd be prepared to pay a percentage of my mark up and that's about it.

 

[stoker122]

Most guys know where they can get the best prices already (Williams) it only really takes a quick look on the interweb while pricing the job. It's a nice idea but you would need to save your customers £200 a month to justify the £75 and for £200 I could spend a day doing it myself!

 

[TomLane]

Agree with previous comment, what would your charge be?!?

All well & good offering to do the leg work so to speak, but if it doesn't actually make the engineer any savings what would be the point?

No disrespect but we have enough to pay out on without adding more to it without making us any saving overall. Granted there may be a saving on materials but if we still have to pay for the privilege of that saving then surely it's negated?!?

Perhaps there is a reason why you haven't found a freelance buyer/seller anywhere else?!? Do you the bigger retailers/merchants have it sewn up?!

Perhaps Ray Stafford might like to add his infinite words of wisdom to this as this is his area I would say.

 

[Bazz]

hi everyone, just joined and thought this may be a good way of testing a business idea that is in my head. its fairly new so any feedback would be great.
just a quick summary of me, i am 30 and have over 10 years experience working in plumb center, grahams plumbers merchant and my local central heating boiler spares shop.
i been trying to think up something different for a job, here goes.
due to my experience of dealing with plumbing materials and engineers i was thinking of becoming a freelance materials buyer...if that makes sense! I would aim at small plumbing companies all over the uk, one man bands to maybe a company with 3 or 4 employees on there books. Maybe the type of companies that dont have or dont want to waste time going around the town ordering materials for the next job, they just phone me up then i can source the materials from the merchants they deal with, finding the best price at the same time. It will leave the plumbers to carry on making money doing there actual job.
I would also think of doing a price comparison list each money for companies, maybe 50 items they use the most, then compare prices with the merchants they deal with so the plumber can see where he gets the best deals etc. just saving the plumber the time of doing it themselves and saving them money in the long term.
i described it as a freelance buyer because hopefully i could secure work with lots of engineers throughout the country.
If u are a engineer what would you pay to use this service each month?
thanks for listening, any feedback would be great!

Ive always been taught to keep a idea on the lay low
lol

 

[Ray Stafford]

Perhaps Ray Stafford might like to add his infinite words of wisdom to this as this is his area I would say.

It's not a daft idea, but I think the devil is in the detail.

Lets assume that the OP intends to act as an agent - ie the contract for sale is still between the merchant and the installer. In the first month or so, I can see that an experienced buying agent (particularly an ex-merchant) could get better deals from national merchants than some installers currently get. However, once the installer has seen the invoices at the new lower price - what does he need the agent for? Why keep paying that percentage when he could just phone up and buy it himself at his shiny new terms?

The only way to guard against this would be to have a long term contract, and I think that most installers would be a bit wary of entering into any long term agreement.

If the OP intends to act as a reseller (ie keep his purchasing terms secret, and invoice the installer himself) then a single bad debt or even late payments could wipe him out.

On the practical side, I am also not convinced that it is more efficient to involve a third party. I reckon we get more cock ups in 3 cornered conversations with firms that employ a buyer, so we aren't talking to the person who has actually seen the job.

It wouldn't make any difference to us - we have a single price policy anyway, so any purchasing agent wouldn't have any margin to play with.

Just my initial thoughts about some of the problems. It may be possible to overcome them given time and thought.

Ray

 

[lame plumber]

why employ someone to do what I can do anyway, and I want a local independant merchant so I work with mine to keep prices low and give him some trade, a third party would be pointless.

 

[markfxy]

It's been done before didn't work thats why theres nobody doing it now

 

[erpkid]

Understand why you have come up with this but we have enough middle men as it is. My customers pay what we pay generally for parts - we are not open book but as near as it can be. We make our money on honest labour. For the sort of fee you are suggesting you need to aim at the big outfits and you will find they already have someone doing the purchasing so it will be a big ask.

 

[Killy Bing]

Im sure in some dark under stairs cupboard at british gas is a guy who once had this idea!

i like it however it would only be practical at a very large company, but thats where the store man and office staff come in and do the job.

Sadly this is a merchants job.

if your good at it then maybe look at going to a different field?

 

[Jimbob]

I think this is only practical for a larger company. They have done the hard bit by pricing job, writing up a spec and materials list. Sending it to multiple suppliers is easy.

 

[Mrs Tara Plumbi]

I also can't see this working. We either already know where we're getting stuff - convenience, good deal, etc. or we do our own research. What you offer may save time and money but I think few people will want to pay out for that service - --- in the way described.
But don't give up, keep sleeping o it and you ma find a different way for it to work.
Adverts on your website might help pay for it - but probably as pocket money not a real FT living.
May be if people can place orders through your website you can get a % from the merchant.

 

[Paulus]

It is a good idea but I can't see any plumber paying much for the service you propose. As Tara says, the only way you could make money out of it is to get a % from the merchant. Maybe if you sign up to one or two merchants and provide them with a high volume of sales this could be possible.

 

[lame plumber]

its already done by quantity surveyors working for the big guys, the rest of us just diy