Why do some companies / people do this??
Discussion
I've been using a local steel supplier for the last year or so, probably spent around £3k with them; not a massive amount to them, but it is to me. I'm not looking for the lowest price necessarily, but someone I can trust not to screw me over and I thought these guys were it. I know they haven't always been the cheapest by a few %, but the prices have been, on average, very competitive and the service has been good and they haven't let me down with a delivery. Until a couple of weeks ago.
I needed a few lengths of 25mm angle for a rush job, knew they couldn't deliver that day, so called and said I'd come and collect, if they could cut them in half for me, then I could get them on the roofrack. No problem, they said, come on over and they'll be ready. And they were - but they wanted twice the normal price for them ie I have been consistently paying around £4.50 a length, this time it was just over £7. I know that steel prices can change, but not by that much. And it wasn't a cutting charge (they were flame cut, and not neatly).
So now, instead of being one of my suppliers, they've lost a customer due to greed. Why? Why do that? Why not work with a customer and reap the benefits as they grow? And all for the sake of a tenner. Dumb.
My local Travis Perkins is the same - I got some Postcrete off them on Friday at £6.41 a bag, + VAT. Went into one about twenty miles away today as I needed more than I'd estimated (shoulda dug a smaller hole!), bought the same stuff, same quantity for £5 a bag, including VAT. So I won't be using the local one again.
Just seems like a crazy way to work with your customers.
I needed a few lengths of 25mm angle for a rush job, knew they couldn't deliver that day, so called and said I'd come and collect, if they could cut them in half for me, then I could get them on the roofrack. No problem, they said, come on over and they'll be ready. And they were - but they wanted twice the normal price for them ie I have been consistently paying around £4.50 a length, this time it was just over £7. I know that steel prices can change, but not by that much. And it wasn't a cutting charge (they were flame cut, and not neatly).
So now, instead of being one of my suppliers, they've lost a customer due to greed. Why? Why do that? Why not work with a customer and reap the benefits as they grow? And all for the sake of a tenner. Dumb.
My local Travis Perkins is the same - I got some Postcrete off them on Friday at £6.41 a bag, + VAT. Went into one about twenty miles away today as I needed more than I'd estimated (shoulda dug a smaller hole!), bought the same stuff, same quantity for £5 a bag, including VAT. So I won't be using the local one again.
Just seems like a crazy way to work with your customers.
Commitment and loyalty works both ways, don't be stubborn in not using them again and show them some loyalty and in return ask for the same.
All suppliers are the same, somewhere along the line you will have a fall out with 1 or more suppliers - being stubborn about will cost you more money in the long run.
After all everyone is in if for the same reason to make money!
You can walk into 2 different Tescos to buy the same sandwich and the price can vary, this is how a lot of businesses work.
I have a good working relationship with our suppliers, I understand that they can't do what I ask every time but I don't start whinging about it, I weigh up the costs in time and money of going elsewhere or using them and make a decision.
All suppliers are the same, somewhere along the line you will have a fall out with 1 or more suppliers - being stubborn about will cost you more money in the long run.
After all everyone is in if for the same reason to make money!
You can walk into 2 different Tescos to buy the same sandwich and the price can vary, this is how a lot of businesses work.
I have a good working relationship with our suppliers, I understand that they can't do what I ask every time but I don't start whinging about it, I weigh up the costs in time and money of going elsewhere or using them and make a decision.
It's just life but it baffles me too.
I worked with a design agency once with which we spent tens thousands of pounds a year. I spoke to them about a rebranding exercise and they sent me a quote. It was quite a lot and so I didn't progress. Next thing they do is invite me to a meeting to show my their first drafts (£1500 of work). I said 'Nice but I didn't ask you to do these but when it goes ahead I'll pay for the work.' The MD said he assumed I wanted to go ahead and pushed for the £1500. In the end we paid up and dropped them. That was an end to 7 yrs working relationship and any/all future work. I never got my head around what he must have been thinking that day. He was a nice, sensible, successful guy but just seemed to lose sight of the bigger picture. A fellow director did try to get us back, realising that the MD had cocked up, but it was too late and we moved on to spending tens of thousands with another agency.
I worked with a design agency once with which we spent tens thousands of pounds a year. I spoke to them about a rebranding exercise and they sent me a quote. It was quite a lot and so I didn't progress. Next thing they do is invite me to a meeting to show my their first drafts (£1500 of work). I said 'Nice but I didn't ask you to do these but when it goes ahead I'll pay for the work.' The MD said he assumed I wanted to go ahead and pushed for the £1500. In the end we paid up and dropped them. That was an end to 7 yrs working relationship and any/all future work. I never got my head around what he must have been thinking that day. He was a nice, sensible, successful guy but just seemed to lose sight of the bigger picture. A fellow director did try to get us back, realising that the MD had cocked up, but it was too late and we moved on to spending tens of thousands with another agency.
Just gone through very similar with our steel supplier, 10 lengths 25mm box section = £78.00 + vat,
4 days later the customer has added some more frames PDQ, and we are going down to collect another urgent box section, so i add a further 3 lengths of 25 box, when i get the invoice im in shock, £71.10 for the additional 3 lengths.
called and complained and got £25 back, erm thats still £15 per length.
4 days later the customer has added some more frames PDQ, and we are going down to collect another urgent box section, so i add a further 3 lengths of 25 box, when i get the invoice im in shock, £71.10 for the additional 3 lengths.
called and complained and got £25 back, erm thats still £15 per length. My job is a buyer and one thing i've learnt is always support those suppliers that do and have looked after you but again it works both ways, Those that take the piss lose my business.
Loyality is very important to me.
A company kept harrasing me for my business a few months ago and eventuallly I said 'yes i'll give you a go if your competative and give good service'
I placed an order and the goods received were not as described on their website so I said 'can i send those goods back order the correct items and we'll pay the shipping costs?' yep no problem but there would be a 30% restocking fee. I argued the toss with the manager but to no avail. I was mad because their website was incorrect.
As it was our first order we paid proforma and I could have done a charge back on the credit card but as it was only 100 quid we left it and swallowed the stocking fee.
I vowed never use them again, maybe I was biting my nose off to spite my face but I certainly wont support a company who wont support me. They again in the months followed started calling me again so i told them exactly what I thought, I said dont bother caling or sending me another catalogue because it's going straight in the bin, Your 33 quid restocking fee has probably just cost you up to 10k's worth of potential business.
I was harsh looking back now but this could have easily been resolved or come to an agreement.
Going back to the OP, i'd say if you feel shafted, dont let it lie, send an email or better still call them expressing your disatisfaction.
If your not happy with the outcome then walk away.
Our metal and ally supplier is brilliant and supportive in every way annd there are a million of them out there.
As a supplier they should be supporting their customers, if they dont then somebody else will.
Loyality is very important to me.
A company kept harrasing me for my business a few months ago and eventuallly I said 'yes i'll give you a go if your competative and give good service'
I placed an order and the goods received were not as described on their website so I said 'can i send those goods back order the correct items and we'll pay the shipping costs?' yep no problem but there would be a 30% restocking fee. I argued the toss with the manager but to no avail. I was mad because their website was incorrect.
As it was our first order we paid proforma and I could have done a charge back on the credit card but as it was only 100 quid we left it and swallowed the stocking fee.
I vowed never use them again, maybe I was biting my nose off to spite my face but I certainly wont support a company who wont support me. They again in the months followed started calling me again so i told them exactly what I thought, I said dont bother caling or sending me another catalogue because it's going straight in the bin, Your 33 quid restocking fee has probably just cost you up to 10k's worth of potential business.
I was harsh looking back now but this could have easily been resolved or come to an agreement.
Going back to the OP, i'd say if you feel shafted, dont let it lie, send an email or better still call them expressing your disatisfaction.
If your not happy with the outcome then walk away.
Our metal and ally supplier is brilliant and supportive in every way annd there are a million of them out there.
As a supplier they should be supporting their customers, if they dont then somebody else will.
I think it's important to let people try to sort out the problem, though I must admit I haven't always done that myself. Even something little like being over-charged in the pub - people make mistakes, it's as much about how they sort them out afterwards as anything. If they don't sort it out to your satisfaction, then you vote with your feet.
I dunno, I've bitten the bullet on a couple of other occasions when individual items within an order have been more than previously charged, I just feel that this one was opportunistic.
I had similar with a local galvaniser as well - phoned a few times for prices for quotes I was doing, eventually took an order in off the back of the rates given, and then got hit for a minimum order charge, which took all the profit out of the job for me. They promised "to do something with the next order" and to email me with their pricing details when I complained, but did neither.
Maybe I'm just a soft touch...
I had similar with a local galvaniser as well - phoned a few times for prices for quotes I was doing, eventually took an order in off the back of the rates given, and then got hit for a minimum order charge, which took all the profit out of the job for me. They promised "to do something with the next order" and to email me with their pricing details when I complained, but did neither.
Maybe I'm just a soft touch...
I order my Farrow and Ball paint from a local well known supplier for a good few years. One day last summer I needed 2 tins of a Colour that needed to be delivered to their Store. Delivery can be 3 days or you can pay £15 express delivery and get it next day to your site. I paid the £130 for the 2 tins and 15 for express delivery as I needed the job done by the Saturday when my customer returned. This was a Tuesday afternoon order so i would get the goods Thursday first thing giving me 2 days to paint the Halls.Thursday morning...no paint...phone store...order on way to store...store will deliver late afternoon...I say b
ks, tell me when ya get it and I be straight in...they phoned just after dinner...time I cross city and back to site it would be very late and I lose a days work...
So I collect from store myself and demand my £15 back not only cos they didn't arrive when they should have but also because I lost a days work and the job was not quite finished after promising my customers it would be, even after working really late both of the Thurs and Fri...
They would not refund my £15 because the Delivery was not made by them...I let rip in front of the shop making sure everybody knew and said fking Shove your Store I'm never coming back...
I now go to Homebase all the time and boost my Nectar points haha
ks, tell me when ya get it and I be straight in...they phoned just after dinner...time I cross city and back to site it would be very late and I lose a days work...So I collect from store myself and demand my £15 back not only cos they didn't arrive when they should have but also because I lost a days work and the job was not quite finished after promising my customers it would be, even after working really late both of the Thurs and Fri...
They would not refund my £15 because the Delivery was not made by them...I let rip in front of the shop making sure everybody knew and said f
king Shove your Store I'm never coming back...I now go to Homebase all the time and boost my Nectar points haha
Just an idea but find a local engineering fabricator who keeps stock of common materials, arrange to buy the odd bit of material with them instead of a steel supplier. We sometimes help people out like this.
Steel stockists really don't want to mess about with small quantities as their margins are so tight, thats why they add on extras for their own agro, cannot blame them really, everyone needs to make a crust.
Steel stockists really don't want to mess about with small quantities as their margins are so tight, thats why they add on extras for their own agro, cannot blame them really, everyone needs to make a crust.
Its a funny one I had a similar thing recently we have panels painted (roof for an Elise/VX) been using same painter for years always very good but he got greedy adding over £100 onto the job in the space of 3 years and trying to tell me there was £60 worth of paint going into the job (Theres £10 max)
I think sometimes familiarity can breed contempt when it comes to customer relationships. I knew I could get the same done elsewhere cheap but I was happy with his work and unusually for a painter he was quite reliable/accurate with timescales. Currently have two jobs in with other painters who have both quoted almost 1/3 of the cost. Hopefully the results will be decent!
I think sometimes familiarity can breed contempt when it comes to customer relationships. I knew I could get the same done elsewhere cheap but I was happy with his work and unusually for a painter he was quite reliable/accurate with timescales. Currently have two jobs in with other painters who have both quoted almost 1/3 of the cost. Hopefully the results will be decent!
einsign said:
Steel stockists really don't want to mess about with small quantities as their margins are so tight, thats why they add on extras for their own agro, cannot blame them really, everyone needs to make a crust.
That is true, however, if it is a guy of the street who you have only seen once and will never see again then fair enough, but when it is someone who gives you repeat business you have to realise that when they do want a small quantity you may not make any money. Steve57 said:
Just gone through very similar with our steel supplier, 10 lengths 25mm box section = £78.00 + vat,
4 days later the customer has added some more frames PDQ, and we are going down to collect another urgent box section, so i add a further 3 lengths of 25 box, when i get the invoice im in shock, £71.10 for the additional 3 lengths. called and complained and got £25 back, erm thats still £15 per length.
The second price is likely to be the normal cost, the former with some sort of discount which they normally apply but probably didnt4 days later the customer has added some more frames PDQ, and we are going down to collect another urgent box section, so i add a further 3 lengths of 25 box, when i get the invoice im in shock, £71.10 for the additional 3 lengths.
called and complained and got £25 back, erm thats still £15 per length. From the other side of the fence...
We have early order discounts. They are not negotiable (well maybe a bit) but they are there to provide an incentive to order stuff in good time and not try to order stuff at the last possible second. On the face of it it costs no more to produce an order placed 1 week prior to delivery or 1 day, in our case it costs significantly more due to disruption to the production line.
We have early order discounts. They are not negotiable (well maybe a bit) but they are there to provide an incentive to order stuff in good time and not try to order stuff at the last possible second. On the face of it it costs no more to produce an order placed 1 week prior to delivery or 1 day, in our case it costs significantly more due to disruption to the production line.
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