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  1. #41
    Join Date
    Feb 2004
    Staten Island NewYork USA
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    Quote Originally Posted by Oldwrench View Post
    ^^^^THIS! There is nothing that gets you a higher priority with a supplier than paying your bills under 30. Nothing.

    I do work for a company that makes some sizable machines, they buy a little more then twice what I buy in volume from one particular company. They pay 45-60 days at best...I pay in 30. They get better pricing then I do and by a good margin.
    I know this as I have sat down with this customer on one particular job they no longer wanted to do in house. I wanted the job but just not competitive.
    So I went out there and we went over the numbers together. The guy looks at me kind of annoyed and says your marking up the material too much...whats that like 50%. Told him, no its 15% markup and he goes and gets an old invoice for the material which is way below my cost...I pull out my phone and pull up my quotation from the same vendor.
    That was simple, you buy the material, drop ship to me, I make the parts. For 15%, I'd much rather machine someone else's material.
    Whats funny now is that company drop ships to me on there delivery day, a day the Company cannot deliver to me as its not there delivery schedule, no exceptions.

    I spoke to my salespeople about it and they just said it the price structure as they buy X amount. I told them if they could offer me that pricing I'd buy alot more from them. We tried here and there but it was games on each material so its back to buy what I need from them, get the rest elsewhere.

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