Bob Why can a homeowner get better pricing than me

Discussion in 'LESCO' started by Dallas Turf, Apr 6, 2005.

  1. Dallas Turf

    Dallas Turf LawnSite Member
    Posts: 246

    Bob,
    I have been a satisfied Lesco customer for years until now. You have great fertilizers. Why can a homeowner walk into Home Depot landscape supply and pick up Pre-m 25-0-7 for about $3.00 less per bag than I paid this morning at my service center. I have been buying from you guys for years. I should be getting better pricing than what home depot is selling it for even if they are an independent retailer. There are other companies that want my business.

    Thank You for your Time

    Jason
     
  2. Bob West LESCO

    Bob West LESCO Sponsor
    Posts: 176

    Good question, Jason -- thanks for bringing it up. We have heard about a couple of similar incidents in different areas of the country, and this is an issue that we are working to resolve.

    I'll try to get back to you w/ an update once I know more, but I assure you that we are looking into it.

    Thanks,
    Bob
     
  3. DLS1

    DLS1 LawnSite Bronze Member
    Posts: 1,619

    It is called loss leader hoping the customer will buy higher profit margin items in the store. Only problem I see is if Lesco says they can't sell it below a certain price and they do as a loss leader.
     
  4. Mowingman

    Mowingman LawnSite Platinum Member
    from Texas
    Posts: 4,666

    That is exactly why I do not buy at Lesco anymore.
     
  5. Dallas Turf

    Dallas Turf LawnSite Member
    Posts: 246

    Bob,
    By my complaint I want to know why can't my rep give me these prices at the service center. If home depot can afford to sell it for their prices why can't my local rep. Thanks
     
  6. Bob West LESCO

    Bob West LESCO Sponsor
    Posts: 176

    I hear you, Jason. It's a fair question, and that's one of the reasons we're looking into this. Without getting into too much detail here, let me assure you that we could not afford to sell our fertilizer products at these prices. I'm not going to pretend that I know what Home Depot's strategy is here, but I think DLS1 makes a good point about loss leaders. For us, our fertilizer is anything but a loss leader -- we have invested heavily in research and manufacturing over the years to develop the patented Poly Plus technology for slow-release nitrogen. We believe our fertilizers are premium products and not loss leaders.

    Plus, w/ the raw material price increases and the rising price of oil that we're getting hit with, we're doing everything we can just to maintain prices right now. Also, be sure you're comparing apples to apples because I know that a lot of our bagged products in Home Depot are 46-pound bags instead of 50-pounds.

    Bob
     
  7. Dallas Turf

    Dallas Turf LawnSite Member
    Posts: 246

    Bob,

    They are 50# bags. If you like I can post the prices for you. The 28-3-10 50%ppscu was over $2.00 a bag less when we picked up a pallet on Wed.
     
  8. Bob West LESCO

    Bob West LESCO Sponsor
    Posts: 176

    Thanks for the offer, Jason, but we've got this covered. I was talking about this w/ one of our Regional Managers from the Dallas area today. Thanks.
     
  9. Planet Landscaping

    Planet Landscaping LawnSite Senior Member
    Posts: 607

    Same case In CT :dizzy: . Bob and its costing customers for sure. Valley Green and others are fighting for our buisness. :waving:
     
  10. ProMo

    ProMo LawnSite Bronze Member
    Posts: 1,468

    lesco by me wants 30 dollars more for round up than I can get it for at another supplier so they lose all of my business
     

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