What's your discount rate?

Discussion in 'Irrigation' started by JimLewis, Jun 1, 2005.

  1. JimLewis

    JimLewis LawnSite Fanatic
    Posts: 6,842

    For those of you who do a LOT of irrigation work, and have the option of buying from several suppliers, you have probably gotten to the point where you have negotiated your "discount rate" from your suppliers. I've been doing this lately with my suppliers. I've got several stores trying to beat out the other one by lowering my discount rate.

    Currently, I am at 50% off list for Rainbird and 48% off list for Hunter. We also get a large % off Febco, fittings, etc. but I can't remember them off the top of my head.

    Just wondering what some of the rest of you are at, if you know.
     
  2. DanaMac

    DanaMac LawnSite Fanatic
    Posts: 13,156

    I really don't have a flat amount per manufacturer. This spring I submitted a list to my 3 suppliers with the most common parts I needed and they gave me their prices. Then I can choose who to buy from. If it is just pennies, I pick up at any of them. If some thing is major in price, say $30-$40 on an RP, then I buy form the cheaper. But I don't have the purchasing power to ask for better rates because all we do is repairs. And I wouldn't ask for someone to lower my price anyway. I HATE asking someone to go lower because I hate it when someone asks me to lower mine when I'm doing a service call. But my pricing is pretty fair.
     
  3. dvmcmrhp52

    dvmcmrhp52 LawnSite Platinum Member
    from Pa.
    Posts: 4,205

    Good business sense...........

    Isn't it funny though if you mention price shopping you hear how everyone should support their local dealer no matter what the cost? :waving:
     
  4. JimLewis

    JimLewis LawnSite Fanatic
    Posts: 6,842

    DanaMac,

    Do you use Rainbird parts at all? If so, give me a few prices of some of the items you commonly use and I'll tell you what your current discount rate is. It's easier to figure out if you'll give me something a little more expensive than a pop-up head. Like a controller, rain sensor, valve, etc.

    dvmcmrhp52,

    It wasn't me who started shopping. I was pretty happy with Horizon until John Deere and Ewing started coming after me wanting my business and offering me bigger discounts. That's when I started shopping. THEY came to ME. After I took a look at their prices, I went back to Horizon and had a word with their managers. I was saying, "Hey, I've been with you guys for years and have bought over $100,000 in product over the years. And I haven't ever bought anything from John Deere. And yet they are offering me - just to start - better prices than what I've been paying with you. What gives?"

    Well, long story short, they got their prices in line with what the competitors were offering me. But it only made sense for me to mention it. There was a 5% difference. That can mean a lot of money over the course of a year. I started adding it up and realized that, "Hey! I do deserve a better rate. I give this guys a LOT of money each year." So it only made snese to ask.
     
  5. F6Hawk

    F6Hawk LawnSite Member
    Posts: 195

    Well, based on my sum total of one sprinkler system install that is currently ongoing, I don't exactly qualify for a discount rate, but I can tell ya that a local installer turned me onto a John Deere outlet about 1.5 hours away. He was kind enough to tell me his price on I-20s without me even asking, about $10.95. I called the distributor, and he said he would have to protect his contractor's price, which I understand, and expected a bit of a markup, but was surpriesed when he quoted me $17.02 per for 20 pieces. I think I read somewhere that the I-20 lists for around $21 something, so he technically gave me a break, but I can beat his price by $4 easily online, without doing much looking around. His prices on other items (wire, controller, etc) was decently competitive, but he charged shipping, and most folks don't if you order a set amount, usually over $100.

    Now, I don't mind a bit supporting the "local guy" on many things, but if they are going to try to pay for their kids' college expenses just off one sale to me, then feggadaboudit! I buy from a local hardware guy as much as I can, in fact just put up some privacy fence last month using him instead of Lowes or HD. I paid a bit more, but he is a very nice fella, and when I mentioned going to HD to rent a nail gun, he gave me his personal one for the weekend. Did I mention he was a great fellow? But I digress...
     
  6. dvmcmrhp52

    dvmcmrhp52 LawnSite Platinum Member
    from Pa.
    Posts: 4,205

     
  7. DanaMac

    DanaMac LawnSite Fanatic
    Posts: 13,156

    Jim - I'l PM you. I'd rather not everybody know what I pay and start a grudge match with companies and suppliers.
     

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