Materials Bids Negotiable?

[Rich Riddle]

Is one able to negotiate the prices suppliers offer in their bids for materials? I am installing a deck for a woman and the aluminum decking bid came in slightly higher than her budget. This aluminum decking prove exceptionally expensive. Do you think the manufacturer will negotiate a bit on price? Anyone ever try to negotiate a bid price for materials?

[Mark Bolton]

What? Are you serious? They quoted you/her a price, she "thinks" it's high and your thinking ask for a lower price?

I could see perhaps if you did a massive volume with your lumberyard asking them (would be a major favor) to cut their margin for the job (would have to be merited on your part cause you don't ask those favors often). But unless your doing major numbers with your vendors I simply can't see it.

Do you walk into the grocery store and negotiate? Department store? Gas station? No. The price is the price. Your only way to chop it is volume.

Zoikes.

[Rich Riddle]

No drama please. Yes, I am serious. It's slightly over her budget. Many items can be negotiated and I am simply asking if this is one. I walk in many places and negotiate prices for items that cost far less than these quotes. For a 250 square foot deck the bids are coming in about four thousand dollars just for the decking and clips.

[Jason Roehl]

Never hurts to ask: "Is that the lowest you can go on that?"

We've negotiated on groceries before. No, not most of the stuff on the shelves in the main aisles, but if there's a clearance section, sometimes you can, especially if you offer to take all of an item. Food service supply shops will often negotiate, too (we shop there for some items that we buy in quantity, then divvy up and freeze).

[Brad Adams]

I negotiate with my local lumberyard if I am pricing out a big job. They will almost always lower the price some.

[John Lanciani]

What? Are you serious? They quoted you/her a price, she "thinks" it's high and your thinking ask for a lower price?

I could see perhaps if you did a massive volume with your lumberyard asking them (would be a major favor) to cut their margin for the job (would have to be merited on your part cause you don't ask those favors often). But unless your doing major numbers with your vendors I simply can't see it.

Do you walk into the grocery store and negotiate? Department store? Gas station? No. The price is the price. Your only way to chop it is volume.

Zoikes.

When you buy a car do you pay sticker price?

[Jim Matthews]

When you buy a car do you pay sticker price?

Lots of places to buy a car.
Not so many suppliers of speciality items.

By the time you find the maker of a product, and negotiate to ship it to the site, you're at a logistic disadvantage.

As mentioned above, the repeat orders from large volume purveyors provides them negotiating power.

Unless the manufacturer will ship directly to the homeowner, this is an unlikely scenario.

The key to competitive bids is having more than one quote.

[James Conrad]

Lumber yards often have wiggle room, typically opening a cash account will get 5% and a credit account 10%. The more volume you do, the more negotiating power you have with them. If you are going direct to the manufacturer, they typically won't undercut their suppliers in your region, you'll pay a premium. Seek out one of their suppliers or a competitors product that has more local presence.

[Brian Elfert]

More places will negotiate prices than you might think. If it is the type of place that doesn't put prices on the merchandise they might be willing to negotiate. My brother has been unemployed for some time. He gets discounted prices for many things just by asking. It can't hurt to ask about a discount.

I've been shocked when I hear how low a price people have offered for used items and the sellers accepts their price. I don't have the nerve to offer someone 50% of their asking price when buying something.

[Mark Bolton]

When you buy a car do you pay sticker price?

Buying a car and negotiating on commodity items is not even in the same ball park. When you walk into any retail, or even wholesale, vendor they are not thinking of themselves as car salesman.

As has been stated, a big job, a special job, maybe. I'm not bragging but we did a 1200 sq' deck, all composite, all PVC handrail, lots of cedar. The job was clearly over the customers budget (came in around 25k) and never once did I consider asking my vendors who work with me daily to chop their margin so my customer could save money.

If I were buying a tractor trailer load, drop shipped, of material that my yard didn't even touch other than to process the invoice I wouldn't even have to ask. They would tack on 10-15 percent and be happy to cash the check.

It's about volume. Of course as has been said you can always ask. Maybe the yard is desperate or they hit you high bit I find that doubtful in this economy where everyone is always checking their prices.

[Mark Bolton]

More places will negotiate prices than you might think. If it is the type of place that doesn't put prices on the merchandise they might be willing to negotiate. My brother has been unemployed for some time. He gets discounted prices for many things just by asking. It can't hurt to ask about a discount.

I've been shocked when I hear how low a price people have offered for used items and the sellers accepts their price. I don't have the nerve to offer someone 50% of their asking price when buying something.

I couldn't agree with you more but at least in my world your mixing Apples and oranges.

Used or damaged items are not the same as new product. Walking into the homecenter to uh something and it's out of stock and you say "how much for the floor model" is completely different than going in to buy a brand new range and the price tag say 1200$ and you walk up to the salesman and say "uh.. Well.. That's a little over my budget.. Can you do any better?" You'll be out the door with no price chop. If you say your buying a house full of appliances there may be an incentive but not just because you feel the price is over your budget.

It's the first rule of business. Your price is your price. Period. If the it's out of the customers budget they either increase their budget or chop their wants/expectations.

[Phil Thien]

It's the first rule of business. Your price is your price. Period. If the it's out of the customers budget they either increase their budget or chop their wants/expectations.

I know where you're coming from, but there are many cases where the price is your price, until it isn't.

For example, a substantial purchase at the end of a month may be able to put an outfit over a sales goal. They may be willing to squeeze their margin a little in order to achieve a target. Does that work at superstores? You bet it does. But you better be talking to a guy (the manager) that has pricing discretion.

Many distributors may already be sensitive to pricing of competitive products. Mentioning a competitor's name can often result in a "well let us look at the #'s and get back to you" and some resulting savings after they have a chance to consider whether they want to cut their margins a bit or say goodbye to the sale.

Finally, things often boil down to comparables. Telling an outfit that their aluminum decking is nice but not 3x nicer than treated lumber is a legitimate objection. They may (if they're good) go into all the reasons why their product warrants the differential. But you can just as easily tell them it won't look brand-new 3x longer than the treated lumber. If they are hungry for business they may ask what it would take to get your order.

I'm not disagreeing with you, some outfits just will not negotiate on price. But it doesn't hurt to try, just be respectful and have good reasons for asking for an adjustment.

[Mark Bolton]

I know where you're coming from, but there are many cases where the price is your price, until it isn't.

For example, a substantial purchase at the end of a month may be able to put an outfit over a sales goal. They may be willing to squeeze their margin a little in order to achieve a target. Does that work at superstores? You bet it does. But you better be talking to a guy (the manager) that has pricing discretion.

Many distributors may already be sensitive to pricing of competitive products. Mentioning a competitor's name can often result in a "well let us look at the #'s and get back to you" and some resulting savings after they have a chance to consider whether they want to cut their margins a bit or say goodbye to the sale.

Finally, things often boil down to comparables. Telling an outfit that their aluminum decking is nice but not 3x nicer than treated lumber is a legitimate objection. They may (if they're good) go into all the reasons why their product warrants the differential. But you can just as easily tell them it won't look brand-new 3x longer than the treated lumber. If they are hungry for business they may ask what it would take to get your order.

I'm not disagreeing with you, some outfits just will not negotiate on price. But it doesn't hurt to try, just be respectful and have good reasons for asking for an adjustment.

Agreed, asking never hurts.. But I think it's a little overly optimistic and further the mere concept is a bit audacious. If the product were 3x the nearest competitor sure, though I think their market analysis would have them at that price point for a reason and it would be well documented in their sales literature why they already know they are more than their competition. If the product is used or a floor model, fine. Damaged, fine. Close out or discontinued, fine. This end of the month sales quota thing I have no clue. But in an apples for apples situation asking for a chop because it's over your, or your customers, budget is a stretch at best. Worth a try? Sure have a go. But....

[Rich Riddle]

Talked to a contractor who used the supplier today and he indicated his price was less than the one quoted, so called the sales representative to inquire about the price difference. She simply said, "Barry asked for a discount. Do you want the same one?" Long story short, they came down eight percent on the bid price with a simple phone call. Not quite sure how such a simple question caused drama for some folks.

[Art Mann]

I couldn't agree with you more but at least in my world your mixing Apples and oranges.

Used or damaged items are not the same as new product. Walking into the homecenter to uh something and it's out of stock and you say "how much for the floor model" is completely different than going in to buy a brand new range and the price tag say 1200$ and you walk up to the salesman and say "uh.. Well.. That's a little over my budget.. Can you do any better?" You'll be out the door with no price chop. If you say your buying a house full of appliances there may be an incentive but not just because you feel the price is over your budget.

It's the first rule of business. Your price is your price. Period. If the it's out of the customers budget they either increase their budget or chop their wants/expectations.

I normally ask the salesman at places like Home Depot and Lowes if he can get me a better price on things like new appliances and lawn mowers. Quite often, I actually get a better price - sometimes much better. It often isn't the first rule of business at these stores. It usually just takes the concurrence of the store manager. I got over being bashful about negotiating prices when I retired and got on a fixed budget.

[Phil Thien]

Talked to a contractor who used the supplier today and he indicated his price was less than the one quoted, so called the sales representative to inquire about the price difference. She simply said, "Barry asked for a discount. Do you want the same one?" Long story short, they came down eight percent on the bid price with a simple phone call. Not quite sure how such a simple question caused drama for some folks.

Mark was (is) talking about pricing a lumber yard quotes a repeat customer. You're dealing with (it seems) a manufacturer of aluminum decking, for the first and possibly only time.

Completely different animals.

For the record, I was pro asking for a better price. But if someone dropped the quote 8% and said I should have asked for a discount, I'd pocket the eight and ask for more.

That was round one.

Move onto round two.

[Brian Elfert]

I normally ask the salesman at places like Home Depot and Lowes if he can get me a better price on things like new appliances and lawn mowers. Quite often, I actually get a better price - sometimes much better. It often isn't the first rule of business at these stores. It usually just takes the concurrence of the store manager. I got over being bashful about negotiating prices when I retired and got on a fixed budget.

I've found the best way to get discounts at Home Depot or Menards is to get some Lowe's 10% off coupons. They may not be valid any longer at Lowe's, but Menards and Home Depot will take them if not expired.

[Wade Lippman]

Tell them you have cut your profit to the bone and need a 10% discount or the project just isn't going to happen.
They might do it or they might not; but there is no harm to trying.

[Mark Bolton]

Talked to a contractor who used the supplier today and he indicated his price was less than the one quoted, so called the sales representative to inquire about the price difference. She simply said, "Barry asked for a discount. Do you want the same one?" Long story short, they came down eight percent on the bid price with a simple phone call. Not quite sure how such a simple question caused drama for some folks.

Rich,
That's fine, but face the facts, what happened is the contractor, based on volume and being in the trade, was given a price for "his" level of business. You, all well and good, back doored his discount even though your not a contractor and likely may never do the quantity of business he will but because he divulged his pricing to you his vendor (wrongfully In my opinion) gave you his price.

If I have a pricing structure with a vendor that I have achieved based on my volume or business scale and I found out they have given that price to someone who didn't meet the same standards, you can darn well bet I will be looking for another vendor. And yes, this pertains to being in the trade, or being licensed, or being a commercial shop as well. My cabinet ply for instance comes into my shop from a vendor that sent a rep in to my shop to specifically make sure I was a legitimate shop before they would even open my account. Meeting that criteria I get discounted pricing, delivery, and so on. If I found out they were selling to Joe Schmoe in his garage id be a little confused.

I'm happy that you got a break on the material but it was the back door information from the contractor that got you there. Again all well and good but the contractor should be questioning himself as as should the vendor.

No idea if your a tradesman or not but can only assume not as youd have gotten his pricing to begin with.