Pooling orders together.....

I was just wondering if any of you smaller guys "group" your purchases with other companies to achieve better pricing?

Myself and a couple of other roofing contractors have started combining our weekly orders and the savings have been nice!

If we buy 100 Square of the same product(they can be different colors) we save over 10%. Example: OC Durations Under 100 Square they are $27 per bundle, over 100 $23 and over 750 $21.

How many of you work with your competition in order to leverage better pricing?

I think buyers group is where it is at.....if a person could ever organize it.

Just thinking out loud....>>>

Roof Doctors USA Said: Here is a program my company participates in.

http://www.symbiot.biz/networks/index.php?spType=0&pType=1

How about starting a thread on that Symbiot Program and discuss what it costs and how much business purchases you need to make to offset the initial investment or whatever else you can think of telling about the program.

Ed>>>

Twill.....Landmark pick up is actually $76 minus 3%.....contractors always get 50+ price.

I am not sure of skid prices on the other products you mentioned....for I dont use them. I know black paper is $14 roll if you buy full skid.

Twill...who do you buy your materials thru? ABC? Seems like you are being treated fair.

>>>

I think were being ripped off! :laugh:>>>

Back in the day, there were, I think 10 companies, that formed a Roofer's Mart here in NE Ohio. The whole goal being to save money, get dividends, and also sell to other contracting companies. Some of the companies, like ours, had multiple shareholders. About the only rule was that you had to be employed by one of the founding companies, and the up-front money to buy a block of stock. Several contractors filed bankruptcy, stiffing the group for some serious cash, it was hard to get competitors to buy from the group, and in the end, the interest was sold to another company to manage the interests of the remaining group. So in effect, yes, we are part of a buying group, but not one that would ever work for a group of small contractors. In the end, I think we all came to the conclusion that we were better off as roofers than as a supply house.

The company is still in effect, but today it amounts to little more than a YE rebate on our own individual company's purchases. It can be a nice amount too, but if you really shop around, the financial benefit isn't there.>>>

Yes Twill.....>>>

I guess the risk could be greater than I see. I have not had any problems, but I am the bulk of my orders. The distributor stores product. I simply put orders together, collect money and then place orders and pay.

I guess it could be dangerous for the guys who pay for materials up front, but I sure don't plan on ripping anyone off.

This is simply a way for us to make weekly orders and get the over 100 Square price discount.

Like this week I only needed 80 Square, but my buddy needed 40. So instead of him paying $85 x 40= $3400 + tax = $3638 and me paying $85 x 80= $6800 + tax = $7276 for $10,914 total.

Instead he gave me $3000 cash and I went and ordered 120 Squares X $70 = $8400 + tax = $9000 - his $3000 = $6000 for mine.

So he saved $638 on his 40 Square and I saved $1,276 on my 80 Square.

Just something to think on.....>>>

Here is a program my company participates in.

http://www.symbiot.biz/networks/index.php?spType=0&pType=1

>>>

I am buying I&W by the skid, also felt by the skid, saving $5.oo per roll of I&W, and $1.50 per roll of "roofers select" felt, not a lot , but it adds up after 20 or 30 jobs, as we use a lot of both. Every little bit helps. I like the sound of pooling with the competition, but actually it sounds risky to me also.>>>

Randy That sounds pretty sweet. I hope it continues to work for you. Do you have to warehouse anything? What added overhead if any ? Are you letting the distributors warehouse the materials ? How does that work. What kind of liability 's and overhead are attached to this system ?>>>

Well guys....you don't order until they pay, lol. Ass, gas or grass......nuttin is free :)

I honestly have had more homeowners not pay me then I have friends not pay me....and besides that, I have already saved/made $6,000 in 40 days by "pooling orders".....so even if I did get screwed and end up with extra shingles, they would be "free" to me....so to speak.

You guys worry too much, lol.

Just something to think about. $6900 for 100 square compared to $8400, thats a good savings.

It's not like you have to pool with other people...just pool your own jobs and order a month of materials at once....once you know how many square you need for the month, then negotiate a price.>>>

Randy please be careful. You are taking the full responsibility by putting it on your account . If someone runs into a problem it will impact you. These other guys I'm certain are up right and honest fellows. They can have problems not of there own making . It really feels risky to me .>>>

Twill...The way we have been doing it is a couple of my buddies who run roofing companies call me with orders on Sunday. I then place orders on my account on Monday and others pay me for their orders. I place the orders and schedule them for either pick up or delivery. The supplier dont care if it's 10 jobs, as long as it is the same brand of shingle and we order them in same day. I in turn then pay my account and get 2% discount, which is my "profit"

We are looking into buying our own fork lift and starting to order by the semi load and store them, but then we cant get supplier to deliver when we need, we will be responsible for loading and hauling.

You all take care. Randy>>>

Randy Back in the day when time wasn't like it is today, I owned a couple of three Mr Build franchises . It was an international contractors franchise. The franchise fees we paid went into a pool that would pay for but not limited to advertising on a national level . Being in the same group and knowing everyone involved with the franchise was a help . We tried to form a group of companies to undertake an enterprise to help push us beyond the capabilities of the individual franchise to buy material . A consortium . The problem with it was not everyone had the same motivations psychology on paying bills and or the where with all to pay on time , it didn't last very long . Caused a lot of angst and splits in the ranks . It wasn't a good idea to link individuals with different understanding and rules when it came to paying bills .>>>

Around here Bradco, ABC, Advanced all know each other and give us the same ball park numbers which are fairly competitive. The one thing that gave Bradco an advantage was that they did roof top deliveries and the others did'nt so a large flat roof went to them, no question. Recently they got rid of the boom truck so now equality rules.....>>>