Who gets the best price on materials

Guys

I often wonder if the large national roofing supply houses give better pricing to larger volume customers and if so are the discounts big? I feel that I have established some good relationships with my supply house sales reps and they have dealt pretty straight with me but you never know. Anyone worked as a supplier sales rep and have any inside knowledge to share? Thoughts from other fellow roofers?

Thanks

Three words, economy of scale. In my experience a good relationship can help, but no matter what the more you buy the better price you are going to get per unit. This applies everywhere in all facets of business.

Paying your bills within the terms and showing loyalty to suppliers (just as you, as a roofing contractor, want loyalty and prompt payment from your customers)will go quite a long way on your pricing.

Suppliers (in the Houston area, at least), tend to work on 4 - 5% margins on typical items and more on non-stocking items. So, you won’t see big price swings from one “good” customer to another.

Sure, if you get a large job, say a 2300 square apartment re-roof (I’ve done a few of these over the years) you will get a discounted rate on your shingles but it won’t be much. Maybe a $2.00 to $3.00 per square. That’s not much on the whole 2300 square job, but it is a LOT of margin on a 30 year laminate and pretty much all of the margin on a 3-tab.

I have an excellent relationship with my distributor, pay my bills ON TIME. Refer customers to them even if I dont get the job, etc… My monthly statements are between $50,000-70,000 dollars with them (march-november). They give me good pricing, but the service they give me is better. They will deliver, at no charge, things should we need at a moment so I dont have to pay a guy to go get it. I look at service more than pricing. Pricing at another distributor is $2.00 per sq higher for me, and the service sucks.

  • they give me things at cost for my house!!!

There are some companies that do enough business to get speacialprcing from the manufacturer. As stated earlier the more business you do the better price you will get. I worked for the largest nationwide supplier for over 5 yrs.

[quote=“PTROOFING”]I have an excellent relationship with my distributor, pay my bills ON TIME. Refer customers to them even if I dont get the job, etc… My monthly statements are between $50,000-70,000 dollars with them (march-november). They give me good pricing, but the service they give me is better. They will deliver, at no charge, things should we need at a moment so I dont have to pay a guy to go get it. I look at service more than pricing. Pricing at another distributor is $2.00 per sq higher for me, and the service sucks.

  • they give me things at cost for my house!!![/quote]

I second this, this is nearly identical to my situation, the service at a smaller shop can be great.