Savings from buying in larger volume?

[baileyuph]

I will stay away from actual cost on buying rolls of vinyl, but what percent would you expect to save on a 3 roll order.

If you know, just give a percent savings over by the yard cost.  Like is it 10 percent on a roll and even more if I buy three rolls.

Currently looking to do a rather large project and am wondering what to expect before talking with a distributor.

Be nice if it is in the area of 30% off yardage price, not sure if it will go that much?

Doyle

[Lo]

Hello from a new person to this forum ...

I recently went through the process of learning about bulk discounts for a commercial job that was estimated to be in the 3-4 roll category. One company that I have used routinely for fabric and vinyl told me they could offer a discount of 8% ... seemed OK until a second smaller company I contacted stated they could offer a 20% discount!!!

Even more incredible, the 2nd company did not carry the color and style the client wanted but would order it direct from the mill for us plus their price was $10 retail less than the other guys ... guess who got the order!!

I also negotiated a discount on 70 sheets of foam for the same job; only 7% but better than nothing.

Thus, I have learned to ask for better pricing for quantity whenever I am working up a bid now ... and I will go to smaller sources if needed just to get better pricing. Good luck  :)

Marlo

[baileyuph]

Thanks and welcome LO!

I sent you a PM with another question.

We are working on a rather large project that could lead further.

Doyle

[byhammerandhand]

Back when I took economics (aka "The Dismal Science")  I studied "economic order quantity" http://en.wikipedia.org/wiki/Economic_order_quantity  

This is based on ordering costs (e.g., shipping), holding costs, etc.   Among other assumptions, it assumes even demand.   I thought it also included quantity discounts, but apparently not from that article.   That would work for things like staples (see previous discussion).  It does not include waste such as never needing that particular item again, spoilage due to age, going out of fashion, damage from storage, tripping over it for the next three years (implied holding costs).  Nowadays, there is "just in  time" believing that having stuff sit around before the immediate need is just waste.

I remember touring a JIT factory a number of years ago.   They had a wall of fasteners.   The fastener sales rep came in every week, did a physical inventory and parts that reach reorder point were put on order for delivery on Monday.   If a part reached critical point, he'd phone in the order and a truck was dispatched for same-day delivery (over an hour away!).   Now I'm not an expert, but this seemed a bit silly to me.   It would cost more to dispatch a truck than to just keep a couple hundred dollars more nuts and bolts on hand.

Oops, sorry, I guess that wasn't the question...   I'm visiting grandkids and MTBI (mean time between interruptions) is about 0.5 minutes.

[bobbin]

I am a small shop (wicked small!).  But in my own small way I try to take advantage of "case" or "pack" pricing.  For instance:  I do a lot of zipper replacements.  I am more likely to buy a "pack" than pay for a single item I don't have in stock.  I will do that because I know I will use them, and I can "afford" to sit on the stock, since they don't "go out of style".  This is how I "build inventory".  Rather than cut down a 72" #10 zipper to 30", I'm more likely to buy a pack and take a cost "hit".  I know I will use them.  I also know that I can adjust the retail price of my stock any time I wish which increases my mark-up and profit.  I get calls from DIYers for that sort of item, too.  I charge full freight and then some because I have it and JoAnn's doesn't!

As for "fabrics"... the only things I buy in full rolls are fibreglass screen and 30g clear vinyl.  Foam? by the job. My goal is to minimize "leftovers".  But that said, leftover foam is gravy for me! I sell it at the same per/inch price and will glue and piece with customer's approval.  My labor quote absorbs the time required.   

[Mojo]

I cannot discuss prices as several of us use Miami Corp. I know they are very close on price for everyone but big buyers do get a bit of a cut, not much but some. And they should get bigger breaks. The more you buy, the cheaper it gets. Roll purchases are always cheaper and I buy alot of full rolls. The coach manufacturers thankfully used standard colors but I do get requests for some weird colors and on those I buy by the yard. On the standard colors I try and order by full roll lots.

I have a flat rate $ 10 shipping charge on all orders because Miami uses a courier in my area. if I order 5 yards or a 65 yard roll its $ 10. By buying a full roll I can complete about 4 full orders for a quad slide coach. So that saves me $ 30 on shipping. Now add in the discount per roll vs by the yard and I am looking at over $ 100 savings per roll. When your buying alot of rolls per year it all add's up.

I also buy bulk in everything - string, thread, bobbins, you name it. The main reason why is time. My time is valuable like it is to many of you. We are, for the most part, one person shops and when we are away from the machine we are not making money. Ordering supplies is time wasted and besides I hate doing it. Nothing against Miami Mike as we always have some great laughs together on the phone but I typically hate talking on the phone.

I save money and I save time by sole sourcing all my fabric and thread through Miami. I do have to go to two other suppliers for things Miami does not carry but everything else I can make one phone call or send one e-mail for. And besides, I could never get the level of service I get from Miami Mike. He is a rockstar among sales people and does anything and everything to move my business and make things easier for me.

Chris

[baileyuph]

yes, to the idea that smaller orders or multiple orders v/s buying the same needs with less shipping can add up over time.

I am looking for a "best price" on a specific Naugahyde, the volume is also relatively large initially but will definitely grow.

Question:  Who owns Naugahyde and where is it made?  My latest recall is Canada(?).  Another thought is are the processors who make vinyl decicated to a brand or simply an independent mill that make almost any brand to that spec?  Doesn't seem likely that there would be a plant for almost each brand, does it?  Instead, perhaps several brands are made by one large chemical plant, I.e. Dow?

In years ago, U.S. Rubber actually owned the Naugahyde line and made all their own vinyl (as told), but things transition regarding ownership and where things are made quickly over time.

Seems to be less US actualy plants operating today in this capacity.

Doyle

[Miami Mike]

Doyle  not sure on what kind of vinyl you are talking about. Upholstery vinyl TARPING vinyl or some other kind of vinyl? Any time multi roll orders come in we look at them and try to give you the best price we can. If it will be something we will get repeat orders we will look into that as well. Now most of my pricing I do I try to get a no haggle price. The back and forth takes to much time for all. Again it depends on the product we are talking about. For Miami if its an every day selling product we work better on them. If its that brand we sell little of but can get we may not have the best price on it.

I am sure every other jobber does this to a point. I think it depends on what the product is.

I'm not sure if you buy from Miami or not but we do our best to work with every client on their needs.

[Miami Mike]

PS

We do have a sales rep in your area. I can find out when he will be in your area again?  Give me some info so we can help you.

[baileyuph]

Mike the vinyl we are going to use on this new account is Naugahyde, more specifically their naugasoft.

We are preparing a proposal for about 40 items that will take approximately 40 to perhaps 60 yards.  Then, this corporation has other installations, several in our market area, I am told who will probably need almost that many products.  

Then, going forward, there will be maintenance requirement as the products experinece wear and/or damage.

My business already uses this product (the naugasoft) for another corporate client of ours, same color and we frequently have the maintenace task, or replacements, on that working agreement also.

I am in St.Louis, Mike, Mojo speaks very highly of you.

You can email me or Pm me if you deal in Naugahyde and I will introduce you as a source to the planning activity.  We presently buy from a large distributor who ships from the midwest or Michigan.  In our naugasoft activites we fabricate in about two colors, which ups our volume in those colors.  This potentiall puts us in a volume customer status, especially if and when the business is expanded to covered more of the new corporate coverage.  Like I said, the aftermarket virtues of this account will be healthy also.

Pm, me if you supply naugasoft.

Thanks for responding Mike.

Doyle

 

[Mike]

I buy alot of full rolls. The coach manufacturers thankfully used standard colors

Chris

for a time  sea ray boat had a few tweed colors special woven for them from sunbrella   at first I noticed it was  like dubenet tweed  only with a not red and black a red and butgandy , any way owner had a factory biminiand enclosure but then wanted a custom camper  top and enclosure added but the color wasn't available , there have een other colors ive seen over time also  such a pain it was I lost many jobs because of this   a few replaced all there canvas even though it was near new beacause of the color issue

[Mojo]

Mike, not to Hijack Doyles thread but what I didn't know till Mike told me is that the boating industry drives the colors for canvas and some vinyl. Bayliner used a color called " Wine ". They dropped that color in production and soon after Recacril dropped the color all together.

The RV industry follows the lead of the boating industry when it comes to colors. I use roll's of Linen and Charcoal tweed. They also have the tweed in forest green and a red tone as well. Gorgeous fabric and is very popular among the guys with high end coaches.

Heather Beige, Charcoal tweed and Linen Tweed are the three colors I stock and buy in bulk ( 65 yd rolls ). Miami has two prices - cut yardage price and roll price.

Chris

[crosjn]

IMHO, you need to contact some distributors and talk to a sales person not just the guy who picks up the phone.  I don't use Miami and maybe I'm breaking protocol, but I do buy quite a bit of vinyl.  I go through Keyston Brothers - they have branches in several states.  (You can call Dallas and ask for Pete if you want 214-765-6360 -- tell him Jeff from Markham sent you).

Keyston has a 3 roll set price and it's around 20%-30% less than 1yd.  But just as often, I find that calling three different suppliers will get me three different prices with significant variation.  Douglas Industries in New Jersey is another good low-cost source.

As far as I can tell, the bigger the distributor, the bigger their discount is from the manufacturer--and that means the better your able to get discounts.

I can tell you though, you need to buy literally truck-loads of vinyl on a routine basis to get to the mills.  I work with clients who order 500-1000yards at a time for hotel renovations...  They can't order from the mill because they don't qualify in terms of regular volume.  (And often they get 50%-off list straight discount pricing.)