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lesco'price base different from contractor to contractor

Discussion in 'Pesticide & Herbicide Application' started by ant, Oct 1, 2000.

  1. ant

    ant LawnSite Silver Member
    Posts: 2,442

    why is lesco's price so different from contractor to contractor? i am not big contractor but i am loyal to my venders,with lesco being one of them it seems like i always pay a few $ more then some others. and those guys are big landscape companys but do no sales in fertilization,spend a total of $2000.00 a year at lesco and they pay less. last time i got grass seed i went throu a friend to save .17 cents per pound.DONT GET ME WRONG I AM NOT A BOTTOM FEEDER, I PAY MY BILLS ON TIME. I AM LOYAL. heck i sent a homeowner there and he paid the same for fertilizer.i have an anderson salesman that is a friend of mine and his productd are cheeper.
    what do you think?
  2. Hello Anthony:

    I do not know what to say, but in most cases the more you buy the better discount you get & then there is exceptions!

    In all cases of me buying power equipment for shop, the more I buy the more I save.

    Say for instance they have a minimum, like one of the biggest names out there says you have to buy 30-21" walk behinds to get free freight & get the Dirt Dealer Discount, this is their minimum.

    If you buy less than 30 you pay freight & get a tiny discount & no dating, most of time get billed at the end of the month.

    So you buy 30 units they give you 6 months to pay for them, as you sell them you have to send them the money in 24 hours during this 6 month period & if they come by & do audit, then they find out you didn't pay for 5 of them that you sold, then you pay on the spot or they go get Sheriff & chain & padlock your store till you pay. NO EXCUSES! All they want is their MONEY!

    BTW, If you still haven't paid for them in the time frame they give you. You have 2 options, you pay them off or pay 1 1/2% of the unpaid balance monthly till you pay for them. If you have bad sales, this then kills your ungodly 18% to 25% mark up that you make a fortune on.LOL

    They do not care if it takes you 5 years to sell some of those models, but then if you buy 50 you get a extra 5% off & get 9 months to pay for them. It goes on & on like that. Til you get to the Gold Dealer dealer discount & then they are doing everything they can do to help you sell these models, big discounts, LOL you even get plenty of brochures, you get the new models way before the Dirt Dealer does & all the other Luxeries that go with it. If at the time you can't buy the minimum, LOL they just cancel your dealership & "That's a Fact Jack!"

    If you can't buy the minimum your are nothing & probably will not be able to get the Dealership back? No loyality, just like mostly everybody else, the all mighty dollar is all that counts. It doesn't matter if you did business with them 10 years & always payed on time & honored your warranties like you should & even did warranties for the Gold Dealer too. The Gold Dealer sells product & that's all that counts! Gold dealer doesn't have to honor warranties & he can't be made to, because it's against the law.

    LOL, I sold a $800 Commercial mower Friday, I had it since 1996 & I made $50 over my cost for a almost 5 year investment. The guy told me I was a thief & I even gave him 1 blade & container of oil. That's why I stick up for dealers so much, I've been on both sides of the fence.

    Sorry about that I had to squeeze that in, because I get tired of hearing about dealers being thieves!


    On the other hand & this could possibly be your situation. I had a Parts Supplier that really wanted my business real bad & he told me if I buy a minimum of $500 in parts at the time I get extra 10% off & free freight. Well I jumped on that because I do not even make 10% of my gross, but I'm Dirt Dealer & I only got a $500,000 cash investment in my business, so I'm small potatoes & I'm treated that way by Power Equipment Manufactures all the time! Parts Suppliers are a little different. I thank them so much, because they try to help all Dealers, that pay on time.

    All the other dealers around me do not get this discount, some buy less & some buy a lot more. I personally do not think it's fair to others, I think it should be based on the quanity that is bought at the time of purchase but I'm what they call Dirt Dealer, so what I think does not count for much of anything.

    These are just my thoughts only, I think if you are buying on the spot & paying on the spot. That you should get discounts based on the amount of your purchase. It's the only fair way to do it & it makes sense to me? But what I think does not matter?

    Hey it doesn't really matter, because all these Gold Dealers probably will not be selling in the next 10 or less years because the Manufactures will be selling on line. The Gold Dealers that sell mainly Equipment will go out of business, unless they go after Parts & Service, this is lot of hard work & hard to do. This is why most of them have that look of disappointment on their faces now! JD has already said that half of their dealers will go out of business, because of this, unless they change their way of doing business. But still half will go under.

    If it makes any difference at all, I'm not a JD dealer.
  3. KirbysLawn

    KirbysLawn Millenium Member
    Posts: 3,486

    Anthony, I get a small discount because a buy a few pallets of seed/fert. However, a friend of mine gets a better discount because he buys many more pallets than I do. Along with that thought he also buys much more MSAM, Drive, Dimension, and whatever else.

    He has sold me a few bags on times when I ran out, he is closer than Lesco to me and a was a little cheaper. Keep working and you will grow and eventully get the better discound. Maybe find another landscaper friend and go in half on stuff if you buy in volume.

  4. Lazer

    Lazer LawnSite Bronze Member
    Posts: 1,446

    LESCO charges whatever they can get.

    You may be able to negotiate a better price when you buy in volume, but THERE IS NO PRICE STRUCTURE.

    Just another reason Lesco has such a notorious reputation.

  5. ant

    ant LawnSite Silver Member
    Posts: 2,442

    EACH APPLICATION i take 2 ton home unload it and work off the pallets. they gave no break. so i started to take 10 to 20 bags at a time from them insted of the pallets,why take up 32 cu.ft. in my barn.but what gets my goat is that they cant do any thing about the price.only if i bring in a "competators"price on a product that is the same. iv donot wont to stoop that low ,its like begging. they know that there is no outher in a 15 mile range.

    only if there were a way .......
    i spent $4600 so far this yr.
    a friend pays 8.00 for soil test i pay 10.00
    not a lot but i did 45 test this spring he did 2

    i got to go any wipe my tears talk to you ladder
  6. KirbysLawn

    KirbysLawn Millenium Member
    Posts: 3,486

    Have you confronted the Lesco store about this? That is not how our store operates here, I will as Mike on monday and see what he thinks. I would still ask them.
  7. ant

    ant LawnSite Silver Member
    Posts: 2,442

    ray yes i did they said that i am in a "bracket" based on last yr. purcheses
  8. gene gls

    gene gls LawnSite Gold Member
    Posts: 3,213

  9. jaclawn

    jaclawn LawnSite Senior Member
    Posts: 490

    I asked Lesco about this. Essentially I was told that they base your discount on how much you purchased the year before.

    I asked about buying in pallet quantities to get a lower price, but was told that I would have to buy by the truckload(14?) pallets at a time to get any further discounts.

    They have a system of brackets that you fall into. I don't know the numbers, but it is along the lines of 0-2000=Xdiscount. 2000-5000=xdiscount. 5000-8000=x discount...

    Now, I THINK, that they have a price sturcture depending on your type of business, that gets you an initial discount off list price. It is different for LCO, PCO, cemetery, school, tree svc, homeowner... I think that this is a basaeline, then you get your quantity discount on top of that.

    It is sad though. I can go in once a day and buy 10 bags, taking up 15 minutes of their time per day and get the same price as if I went in and bought 2 pallets of the same material in one shot, taking up a total of 10 minutes of their time.

    BINGO, it just hit me. Lesco wants you to use them as a storage facility. If you do this, just like Anthony said, stopping once a week or so, rather than buying enough for a month at a time, you are in the store more often. If you are in there, you may realize that you "need" something else. You just might see the sale that they are having on something, and decide that you just have to have it.

    This system gets you in the store more often. THe more often that you are there, the better chance you have of buying something extra.

    BTW- The discount program is only for seed/chemicals, not parts of equipment. THey don't count twords your "bracket"
  10. geogunn

    geogunn LawnSite Gold Member
    from TN
    Posts: 3,010

    grassmaster said:


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