McMaster Open Account

zipfactor · Apr 4, 2017

I run a fairly small business and spend roughly $2-$3K a year with McMaster, for maybe 3 to 4 years. Not huge, I realize, but not completely insignificant either I would think. This year we have a few big (for us) development projects (~$100K total)in the queue and plan on spending between $10K-$15K with McMaster. My issue is that, because the way these projects are funded, we would need to use an account (get credit) so that the invoice can be paid by the 3rd parties' accounts responsible for funding these projects.

I've requested an open account from McMaster and they are saying only credit card purchases will be accepted as we are too new and small of a company. Our business is 4 years old. I'm surprised they wouldn't let us fill out an account application and provide trade references. It was just a flat out no.

So the question is: Do you guys have any tricks to get McMaster to allow for an open account? Do many of you use an open account with them?

Thanks,
Ben

BGL · Apr 4, 2017

Did not have a problem with McMaster after six months of 1k a month average purchases when a new company - whenever I am denied credit I politely request to speak to a person in higher authority, has worked every time.

guest · Apr 4, 2017

I've been buying from McMaster on account forever.

The third party thing is odd to me though- I wouldn't extend credit to you if the reason you wanted it was so someone else could pay the invoice. I would want the credit app from the person who was going to write the checks.

zipfactor · Apr 4, 2017

guest said:
I've been buying from McMaster on account forever.

The third party thing is odd to me though- I wouldn't extend credit to you if the reason you wanted it was so someone else could pay the invoice. I would want the credit app from the person who was going to write the checks.

Understandable, however, we are able to pay the invoices. Its an accounting thing that I'm not able to get into.

Shop Supply Guru · Apr 4, 2017

If you have to buy that much at one pop you should send out the list to quote to different places, Motion, MSC, local nut & bolt place. I used to work for a place that sold nuts, bolts, bearings, / just about everything industrial wise and a lot of people would just send me a list of McMaster numbers and I would save them 20%-40%. This may not matter much to you as you are not paying the bills but the other places may offer credit.

ewlsey · Apr 4, 2017

Get the 3rd party to set up the account.

McMaster is funny about this. I always did credit card for my orders and I still do. After a year or so, an option showed up on my account to use an open account. I still use the credit card. 30 day terms don't do much for me.

Bobw · Apr 4, 2017

Shop Supply Guru said:
send out the list to quote to different places, Motion, MSC,

I can give you MSC's quote.. Double, period, end of sentence. I wouldn't waste my time..

But I do agree, McM is a one stop shop, and odds are if you do the leg work, or have Qty, you will get it cheaper.
I've also found, that on some things, they are the cheapest, or at least the cheapest I could find.

As for an open account. I've had one for going on 10 years.. I'm not sure what was involved, but I think
it had to do with some large orders, that's also when shipping went from ground to overnight on everything.

Unrelated McMaster Carr story.. Many Many moons ago had to modify a screw, the print had the manufacturer and
part # on it. Needed 2 boxes of screws, about $15 worth, the company had a minimum order of $100, so we had
one of the shop hands get on the phone with Manufacturer/distributor to make a $100 order.. What is the cheapest
bushing you have? "ABC123 for 39 cents", I'll take one of those, whats the next cheapest bushing you have, "ABC124
for 43 cents" I'll take one of those.. After about 5 minutes the order taker gave up the McMaster Carr part #
for the box of screws.

Mud · Apr 4, 2017

OT - McM handles their open accounts as well as they do everything else. You can just mail a check with no additional information on it, no account number, no invoice number, nothing, no invoice copy either, and they will post the payment to the correct account and to the correct invoice.

However, McM does not do statements. If I want one, I have to call and request it, and they will issue one as of that day, no problem, but getting a monthly statement just isn't going to happen.

TeflonDave · Apr 4, 2017

zipfactor said:
I run a fairly small business and spend roughly $2-$3K a year with McMaster, for maybe 3 to 4 years. Not huge, I realize, but not completely insignificant either I would think. This year we have a few big (for us) development projects (~$100K total)in the queue and plan on spending between $10K-$15K with McMaster. My issue is that, because the way these projects are funded, we would need to use an account (get credit) so that the invoice can be paid by the 3rd parties' accounts responsible for funding these projects.

I've requested an open account from McMaster and they are saying only credit card purchases will be accepted as we are too new and small of a company. Our business is 4 years old. I'm surprised they wouldn't let us fill out an account application and provide trade references. It was just a flat out no.

So the question is: Do you guys have any tricks to get McMaster to allow for an open account? Do many of you use an open account with them?

Thanks,
Ben

Try escalating the issue at McMaster. Also can the third party offer purchasing assistance. Are you a vendor of McMaster?

Mcmaster is the kind of outfit that has very good customer service. They are the kind of place that will ship a $1.35 item out same day and charge you damn near cost for shipping. Sure you pay a premium price on most items but they are a top notch distributor. I'm sure there is a way to close the deal you just haven't got there yet. If you posture like you is too small and too new well you get it... Sounds like you can get the third party to chime in and open an acct. A conference call can get it done or a visit to or from the vendor might seal the deal. McMaster got the best website I have seen for a distributor and accts info and shipping instructions are easily tailored to situations like yours.

Well at least they were when I set up an acct.

Mud · Apr 4, 2017

If the 3rd party want to see the invoices so they know that they are paying your cost, perhaps you could get them to issue a debit card to you to use for the purchases you make at McM for their material?

SIM · Apr 4, 2017

Your not by chance asking them to work with you on third party billing or something off the beaten path, are you?
If so, keep it simple and you just want open account.

If trying to open an account and they refuse, ask for a manager, their manager...they are usually extremely helpful...but you may need the right person.

Now if you are wanting to purchase wit third party paying....how about they open an account For You to purchase. You order on their account and ship to you. I ship crap to others all the time, bill comes to me.

Now the bad part about McMaster, if they have a policy they Stick To It, even if they loose the sale. I did a prototype using some items from them. Parts cost a little more, but I had next day. My prototype sold and I now needed 1000 parts for first installment, not 1 piece, it was a $20+ part, so figured they would work with me on pricing. Price for 1 or 1000 was the same, so what if I bought for 2 installments 2000 pieces? Nope, they would not shave a penny off. Which was good cause I bought the parts for less, so much less.

Tonytn36 · Apr 4, 2017

SIM said:
Your not by chance asking them to work with you on third party billing or something off the beaten path, are you?
If so, keep it simple and you just want open account.

If trying to open an account and they refuse, ask for a manager, their manager...they are usually extremely helpful...but you may need the right person.

Now if you are wanting to purchase wit third party paying....how about they open an account For You to purchase. You order on their account and ship to you. I ship crap to others all the time, bill comes to me.

Now the bad part about McMaster, if they have a policy they Stick To It, even if they loose the sale. I did a prototype using some items from them. Parts cost a little more, but I had next day. My prototype sold and I now needed 1000 parts for first installment, not 1 piece, it was a $20+ part, so figured they would work with me on pricing. Price for 1 or 1000 was the same, so what if I bought for 2 installments 2000 pieces? Nope, they would not shave a penny off. Which was good cause I bought the parts for less, so much less.

Yea, that is not McMaster's business model. They aren't into high volume sales of one item. They are into low volume sales of a million+ of different items. You need it, they have it..and you can have it today, tomorrow or day after tomorrow depending on how close you are.

On a side note, it would be interesting to know how many hundred of thousands (or millions) of a$$'s they've saved over the years by that strategy. They've saved mine several times.

true temper · Apr 4, 2017

The first time I Ever called McMaster was to order some 1/8" pipe plugs. They opened an account while I was on the phone, needing only my billing address. no credit info no nothing. Even sent me one new catalog. That was 10 years ago or so.

BobRenz · Apr 4, 2017

McMaster got the best website I have seen for a distributor and accts info and shipping instructions are easily tailored to situations like yours.

AMEN! There are other distributors who try to get my business, and they always ask "what can we do to get your orders?" I tell them to get a web site like McMaster's, then we can talk.

extropic · Apr 5, 2017

true temper said:
The first time I Ever called McMaster was to order some 1/8" pipe plugs. They opened an account while I was on the phone, needing only my billing address. no credit info no nothing. Even sent me one new catalog. That was 10 years ago or so.

Really ??? That story is incongruent with the many tales of problems "qualifying" for a catalog. Were you buying a truck load of 1/8" pipe plugs? Did your company name sound like a Fortune 500 company. Maybe having no track record at all (with McM) is better than having a low $ record.

extropic · Apr 5, 2017

Worst case, get a new credit card of your choice, add it to your McM payment options and select it for purchases related to the special project. You reconcile the CC bill with McM receipts and your customer pays the CC bill? PITA!

SIM · Apr 5, 2017

Tonytn36 said:
Yea, that is not McMaster's business model. They aren't into high volume sales of one item. They are into low volume sales of a million+ of different items. You need it, they have it..and you can have it today, tomorrow or day after tomorrow depending on how close you are.

On a side note, it would be interesting to know how many hundred of thousands (or millions) of a$$'s they've saved over the years by that strategy. They've saved mine several times.

That is pretty much what they said, they could not have been nicer about it, just the prices listed are the prices offered. Yes some get quantity breaks, but they are listed in the catalog.

That said I ordered parts for a job about 10 years ago...sales on item got real slow, slow to point on last order I just sold them my sample, never thought to make notation of sizes. Then couple weeks ago I got a sizable order, couldn't find records of which item I used and they had several variations. I called them hoping maybe in their history they show'ed which I purchased. Nope, but they apologized and sent me a sample of each of the variations...no charge.

As to ass savings...yes they have saved mine more then a few times. I needed a $1.50 hinge to get a sample done and on a plane that night for a customers BigWig meeting the following morning. Couldn't find anywhere but McMaster, they said no problem they'd messenger it to me. $80.00 for messenger and $1.50 for the part, job made it out the door right at the edge of UPS pickup time.

zipfactor · Apr 5, 2017

extropic said:
Worst case, get a new credit card of your choice, add it to your McM payment options and select it for purchases related to the special project. You reconcile the CC bill with McM receipts and your customer pays the CC bill? PITA!

I had the same exact thought. No go. Why? I have no idea.

zipfactor · Apr 5, 2017

SIM said:
Your not by chance asking them to work with you on third party billing or something off the beaten path, are you?
If so, keep it simple and you just want open account.

If trying to open an account and they refuse, ask for a manager, their manager...they are usually extremely helpful...but you may need the right person.

Now if you are wanting to purchase wit third party paying....how about they open an account For You to purchase. You order on their account and ship to you. I ship crap to others all the time, bill comes to me.

Now the bad part about McMaster, if they have a policy they Stick To It, even if they loose the sale. I did a prototype using some items from them. Parts cost a little more, but I had next day. My prototype sold and I now needed 1000 parts for first installment, not 1 piece, it was a $20+ part, so figured they would work with me on pricing. Price for 1 or 1000 was the same, so what if I bought for 2 installments 2000 pieces? Nope, they would not shave a penny off. Which was good cause I bought the parts for less, so much less.

I simply asked to open an account, did not explain the situation. Thanks for the input, I probably will have the 3rd party open an account and just have them ship to us directly. Seems like getting an account with what seems to be our low $ business is not worth haggling for.

Brandonisneat · Apr 5, 2017

I'm a small business, I get cash back on my CC so that seems like a better option than 30-day terms. Am I missing something?

McMaster Open Account

Cast Iron

Hot Rolled

guest

Guest

Cast Iron

Hot Rolled

Diamond

Diamond

Diamond

Aluminum

Diamond

Titanium

Diamond

Stainless

Stainless

Stainless

Stainless

Titanium

Cast Iron

Cast Iron

Plastic

Similar threads