Buying Power

Discussion in 'Pesticide & Herbicide Application' started by rcreech, Jul 19, 2007.

  1. rcreech

    rcreech Sponsor
    Male, from OHIO
    Posts: 6,072

    I am currently buying all my supplies from LESCO (excluding product I buy off the internet).

    I have two other friends in my area that have their own lawn health business, but they are dealing with someone else.

    We were wondering about putting our orders together next year which would give us more buying power to get bids or get better discounts to cut down on our input costs.

    If I get a vendors license I was thinking I could "re-sell" the product to them at cost and we could all take advantage of the volume (need to check with my accountant on this also).

    Has anyone ever tried anything like this? Would it be worth the hassle? From some of the prices I hear on here it doesn't sound like Lesco is doing me too bad...but I would love to save more $$$$$$. Plus I do think that their service is worth a little extra!
     
  2. Fertboy

    Fertboy LawnSite Member
    Posts: 62

    I currently do a group buy with my competitor my old boss :) When I went on my own we decided to do a few things to benefit both of us ,and one was go in on supplies together. It helps alot to get the best prices from lesco.

    My old boss buys fert buy the trailer and I buy pallets from him. Sometimes the saving are not as huge as you would think, but it does help the bottom line. We also spring in for 30 gal totes of post-herbs.

    Reselling Lesco products probably wouldn't fly to well. All the big corps like to keep their areas protected, and if you sold below what they sell for they would cut you off and you would be screwed both ways.

    Good Luck

    Ed
     
  3. rcreech

    rcreech Sponsor
    Male, from OHIO
    Posts: 6,072

    Thanks Fertboy,

    When I said "re-sell it at my cost" I meant to the guys that would just be within our group. Just a way to get to the buying power.

    Would they let us all buy seperate with the group rate? It would be much cleaner that way!
     
  4. Harley-D

    Harley-D LawnSite Senior Member
    Posts: 508

    I've heard of guys going in on pallets of seed for the fall. Maybe getting like 5 at a time and saving some $. I'm sure they don't care who buys it as long as it's sold and all together. They also have terms which is nice going into a busy time of year.
     
  5. americanlawn

    americanlawn LawnSite Fanatic
    from midwest
    Posts: 5,861

    Good move. We have done this for many years. We usually buy our products from LESCO or UAP (whoever gives us the best price). Our mowing subcontractors have a few of their own accounts where they apply "dry products" (Pre + fert or balanced fert). They either spot spray the weeds or else have us do the "liquid weed & feed" app's. We always order 22 tons at a time (full semi loads) to get the best price. Our round one was 70 tons (3 tons went to two of my friends in the business who mostly mow, and they saved over $3 per bag). It's a win/win deal.:usflag:
     
  6. rcreech

    rcreech Sponsor
    Male, from OHIO
    Posts: 6,072

    Awesome!

    Thanks...I am definitly going to look into this.

    American,

    Are you up front with them (dealer) and let them know what you are doing...or do you keep it hush?

    Do you purchase all of it and then reallocate it to your friends, or do you have them bill independently?
     
  7. mkroher

    mkroher LawnSite Senior Member
    Posts: 539

    screw lesco. they're all coorporate ***holes. Group buying to save $, just to be competitive is bullcrap. It sucks that you have to do that. If they lowered their prices and were HONEST about it, I'd give them my business.

    My quote from Lesco this past spring for dimension .10 was $25 a bag. That's an insult, when other local suppliers were around $17. I asked why it was $25. He said because my annual sales were under 5K. I replied "You wonder why?!" and slammed the phone down.

    I found a new supplier this year that I absolutely have faith in when it comes to service and price. When I need something I don't question the price, because I know I've been giving a fair one, and I don't need to price shop.

    I've done group buys before from lesco. Sure, I've saved money. But, I feel like I'm buying a car from a car salesman, and it doesn't feel right that we have to do it this way.
     
  8. americanlawn

    americanlawn LawnSite Fanatic
    from midwest
    Posts: 5,861

    I have always been up front with LESCO & UAP regarding the fact that a portion of our oder goes to others. They have never had a prob with it.
     
  9. americanlawn

    americanlawn LawnSite Fanatic
    from midwest
    Posts: 5,861

    You definetly got screwed. Even a one ton price should be better than what you paid. Try contacting my Clive, Iowa LESCO guys -- I know they will help you:waving: . Sorry you are paying WAY too much, cuz it just ain't right at all!!!
     
  10. mkroher

    mkroher LawnSite Senior Member
    Posts: 539


    No.. i DIDN'T get screwed. I didn't/don't buy from lesco. I get a quote from them, that's it.

    American, that quote of $25/bag was for one ton.
     

Share This Page