Materials pricing
I dive into some of my key material line items and try to get the best pricing from suppliers.
One observation I have made is that one supplier may be the best price for frames, cladding, and timber but off-set it with mark-ups on small items (this had been mentioned to me by someone in the past).
If you have big orders take a good look at alternative suppliers and see if you get better pricing.
For example: Carters may currently have a best price for Weathertex 150 mm (smooth) per sheet but the hardware to connect the boards is DOUBLE the price of another supplier. I suspect they have a 100% mark-up on it.
It is just like buying products from Daiso or Poundland.
For examples x GST:
Weathertex Aluminium joiners (WJA3660) 3.66 m
Carters = $57.08 x GST (retail and on my account)
Mitre 10 = $37.08 (retail)
Mitre 10 = $26.88 (on my account)
TW = $23.40
When a tenderer puts a materials quote together, they will often get all materials from the one supplier for convenience and loyalty points etc. Of course, their margin is added to it. Carters is a popular choice.
If you are small and have the ability to cost manage key items, or work constructively with your team – why not try to challenge your large input costs?
