Crazy price discrepancies~what would you do?

[Waxman]

Our company has had a love/hate relationship with local distributors (chems and supplies) forever, it seems.

With the ease of internet ordering at big supply houses that service our industry, pricing becomes easy to compare.

It seems silly that a 55 gal drum of cleaner is $350+ from a distributor who buys locally and ships to me when I can (and did) buy the same drum from a supply house for $180+.

YES, the salesman offers some service; try this pad/compound/idea etc. Some of the ideas have made the company extra $$. However, would you put up with the almost doubled prices??? On tools (air tools etc) it is over double the cost.

 

[bigleo48]

On a regular basis I get local chem suppliers sales staff visiting or calling. Before they even start talking I tell them I pay a buck a gallon for my presoak...which I know is usually 10 to 15 times cheaper than they sell it for. That usually stops them in their tracks. However, some of my independent carwash acquaintances are still paying upwards of $16/gal!?!?

 

[JustClean]

Personally I am prepared to pay up to 20% more if I can support a local company. Everything higher for the same product they have to explain why they try to rip me off.

 

[Earl Weiss]

On a regular basis I get local chem suppliers sales staff visiting or calling. Before they even start talking I tell them I pay a buck a gallon for my presoak...which I know is usually 10 to 15 times cheaper than they sell it for. That usually stops them in their tracks. However, some of my independent carwash acquaintances are still paying upwards of $16/gal!?!?

Yhe smart salesman would match it and just dilute it more.

I have had a couple set up samples. So far they couldn't touch KR for Some tunnel and SS stuff. Wheel clenaer and drying agent I buy from local reps. Wasn't happy with these KR items.

 

[Earl Weiss]

Thank heaven fir the internet, A little searching can be worthwhile. Shocks from equip supplier $140 on the net $80 including S&H another $60 from supplier $24 on the net. Ba,doe blower motor $1500 from supplier $1100 on the net. Sonny's used to be the cheapes always for Hydraulic motors. Now the local guy beats them?

 

[Ric]

On a regular basis I get local chem suppliers sales staff visiting or calling. Before they even start talking I tell them I pay a buck a gallon for my presoak...which I know is usually 10 to 15 times cheaper than they sell it for. That usually stops them in their tracks. However, some of my independent carwash acquaintances are still paying upwards of $16/gal!?!?

What presoak you paying a buck a gallon for?

 

[robert roman]

“It seems silly that a 55 gal drum of cleaner is $350+ from a distributor who buys locally and ships to me when I can (and did) buy the same drum from a supply house for $180+.”

This is same dynamic as Wal-Mart and mom and pop store that sell the same commodity.

Would you buy if price was $180 plus 25 percent? Could the distributor make a profit from this price?

My guess is he can’t or is unwilling to because the margin is too shallow.

How many $180 plus 25 percent drums do I have to sell to equal profit from one $350 drum?

 

[bigleo48]

Ric,

A lot of powders are in the $50 range for 50lbs box that makes 55 gallons. The KR Correct https://www.kleen-ritecorp.com/p-2667-simoniz-correct-50-lbs-hazardous-material.aspx is $46 a box and has sufficient surfactant not to require any. Add taxes and I get free shipping...about $1/gal

 

[PaulLovesJamie]

What do I do? Easy. Add up the total additional $ I would be paying the distributor, and evaluate whether the service he provides is worth the extra $. This is one of the main reasons that the concept of "the middleman" has been squeezed out of business over the past 3 or 4 decades - they dont add value. Based solely on your description, I wouldnt be buying from that distributor.

Now dont get me wrong, some distributors do add value; expertise, immediate stock, delivery, installation, QC, peace of mind, etc etc - there can be any number of quantitative and/or qualitative value adds. A few of the folks on this forum come to mind. But in general I dont find a lot of product distributors adding value in our industry.
Yes I'm fully aware of manufacturers outsourcing sales, I dont think it applies to the OP's question.

 

[PaulLovesJamie]

Yhe smart salesman would match it and just dilute it more.

Earl, I respectfully disagree, I dont consider that to be a smart salesman.

 

[Earl Weiss]

PaulLovesJamie


Quote Originally Posted by Earl Weiss View Post

Yhe smart salesman would match it and just dilute it more.
Earl, I respectfully disagree, I dont consider that to be a smart salesman.


Of course. But then the smart salesman asks the potential customer what his dilution rate is.

The OP provided no such information. Without that, comparisons are meaningless.

I have had 3 or 4 sales men / women tell me their more expensive product could be diluted more so it would actualy cost less.

So, they give me a sample and I hook it up to my system without change to see if it meets or exceeds what I have and if I can dial the dlution down.

 

[Earl Weiss]

And the correct answer is ...........................-0-
Because unless all the customers have their head in the sand, pretty soon that is how many $350.00 drums they will be selling.

 

[norton]

I use the locals when I can if they are in the ball park on price. In an emergency when I have to buy local I get what I need then check internet to see what the price is and if I should stock the item. HP SS bay hoses for example were $65 local but only $15 from KR. I have found over the years that it is pretty hard to trust local distributors on chemicals. 3 times in the last 20 years I have found them diluting chemicals with water but still charging the non diluted price. It is just to easy for them to skim say 5 gallons off a 55 gallon barrell.