SGF, Supreme Grumble Framer
Ah Oh - going to get THE visit by my rep for their new pricing policy.
That's funny so you must be at the correct level of better, but everyone's pricing has changed, it a an across the board system, no more negotiated deals. Simply based on volume. I think it is smart, I hate the idea of another shop selling less but getting a better deal.Didn't change a thing for me, except to provide a few more opportunities to save.
For those that haven’t gotten their visit yet, Larson is doing a new program where they classify customers based on how much they spend annually in moulding and accessories. In moulding they have a Base Price, Bronze, Silver, Gold, Platinum and Diamond plan and in accessories they have a Base, Gold, Platinum and Diamond plan. The category you fit into determines your discount. There are also new bulk purchase discounts for some supplies.What am I missing?
I agree with this. I agree with fair and consistent pricing.That's funny so you must be at the correct level of better, but everyone's pricing has changed, it a an across the board system, no more negotiated deals. Simply based on volume. I think it is smart, I hate the idea of another shop selling less but getting a better deal.
Here's the story Paul
Turns out that WB had specifically asked for him to look at LJ as a complete outsider with the only goal of how to make the numbers look more like they do at the highly profitable business where he is selling an unrelated product. The first thing he found was that there were way too many SKU's at LJ to run the way it should. That was the point the entire Crescent split occurred as they were needing to eliminate like items.
Sounds like WB has lost faith in the Harvard man he put in to run the place. It also looks like there are a lot of mistakes being made and a long standing business is suffering. Most frame shops are not big businesses and I think the new LJ does not understand who we are in their quest to make the company more profitable.
The work was done prior to the new leader being put in place. I would say the discussion in this thread is implementation of the new direction they need to accomplish the turnaround. All moulding businesses had huge price increases at the production level and passed on the increases. While I don't pay any attention to prices at LJ I know the change in discount structure achieved a large portion of the price increase.Sounds like WB has lost faith in the Harvard man he put in to run the place. It also looks like there are a lot of mistakes being made and a long standing business is suffering. Most frame shops are not big businesses and I think the new LJ does not understand who we are in their quest to make the company more profitable.
All the points you make are true. And maybe it works for very large companies. But I know that personally I like to have a good mix of large and small customers. The big ones fill the schedule up, but the small ones even out the workload. Further, and consistent with the posts on this thread, while the smaller customers require more resources, they also provide the most profit percentage.FramerCat said:Logistically it is far easier to deal with a few large companies than tens of thousands of small ones...
Our discount is the highest level because we have qualified for that based on their discount program. It is only my opinion that we don't have a huge volume of work here. We could be much, much, busier. I'm just surprised at how many people don't qualify.When Immaluma revealed her discount plan on supplies was their highest level even though they are a lower volume shop (I think that's what she mentioned) I wonder if that was giving out a secret information that will cause a ripple effect in the info folks share about their pricing.
Most of the discount programs go back to the old days when we could buy no chops. Since everything was length you were stocking a large portion of inventory so the 500ft, 1000ft, 2500ft & 5000ft prices were real. Many of the suppliers could offer fill in orders at the discounted price since it was a rare occasion that only a stick or bundle was purchased.The discussion of a discount program or any vendors discount is about the same deal you get going to BB and getting 60% off custom framing. It's really a "Carrot" program.
Exactly. Our discount remained the same, and is the highest in one category and middle of the road in another. Greater discounts for greater volume without favoritism makes perfect sense. Isn't this the way we give discounts to our own volume customers?I find it silly to make blanket statements like "they don't care about their customers" of course they do, they also care about their livelyhood and remaining a leading distributor in the industry. Larson does a huge amount to promote the industry, more than most. If anything this fair and smart change.
It's not the same for everyone, if you spend more you get more. Just like your quote. It's just not based on a rep and framer relationship or as you say the squeaky wheel.I don't buy the same discount for everyone argument.
In exchange I give them more business and I get more business.
I would strongly suggest re-thinking that logic because it is likely to come back and bite you in the @@@.I don't buy the same discount for everyone argument. If I am trying to expand my business whether it is due to competition or just trying to get new business I may offer better pricing to someone else other than a regular client. In fact, I do it all the time. I give the great discounts to those who need it the most. I would rather have some smaller profit business than not get it, or let someone else have it............
I knew both sides of the story before any of it was released to the public. Crescent was told to reduce the number of items and lower the price. LJ argued they were ordering more than the lower price customer but the other customer had the entire order shipped to one location. LJ's orders were numerous smaller orders going to multiple locations.(Deep harmonic voice here)
Jeff, here's some irony for you. Despite what the guy hired from LJ told you, one of the primary reasons Crescent and LJ split was that Crescent wouldn't give LJ a better deal (unpublished pricing) than the competition despite their volume consumption, thus protecting their smaller distributors from a pricing war. Now LJ is adopting that same model by having Tiered Published Discounts based on past performance.
That's interesting, because Larson's policy for accounts with multiple locations is that they only count the most productive location and do not combine all locations to qualify for a discount bracket. If what you say is true it sounds like LJ is adopting the rules that they argued against. So your saying that Crescent has the same sort of system for its wholesalers as Larson has for its retailers?I knew both sides of the story before any of it was released to the public. Crescent was told to reduce the number of items and lower the price. LJ argued they were ordering more than the lower price customer but the other customer had the entire order shipped to one location. LJ's orders were numerous smaller orders going to multiple locations.
I can answer yes to all of my vendors and this has nothing to do with who has the lowest prices. It has to do with helping those that they depend on to help them.Don't forget that there is a difference between price and value. I compare vendors based on what I get for my dollar not just on what discount is offered from a published price.
~ Do they have quality products?
~ Are they innovative in their offerings?
~ Do they refuse to sell to your customers directly and have consistent qualifications for buying from them?
~ Does the vendor offer free delivery?
~ Will they work with you on large jobs by offering to provide services like chop/join or a better price?
~ Do they offer terms that are favorable and offer terms discounts?
~ Is there consistency in their product?
~ Is their billing correct and do they promptly credit your account when there is a problem?
~ Do they have a rep that makes appointments, keeps them and is trustworthy both in keeping confidentiality about your business and others while still helping you to grow your business?
~ Do they stand behind their products and services?
~ Do they have the right attitude that it is just as important to them to please your customer as it is to you? In other words do they "get it" that your customer is ultimately their customer too?
~ Do they treat their own employees well?
~ Do they come out with new moulding designs or just pirate others?
~ How complete of an apple cart do they have?
~ Do they support the industry as a whole?
If you evaluate any vendor solely on price or supposed "discount" you are making a mistake because a good vendor offers much more value than just the cheapest price.
Yes they are a good company, but have not been able to get several mouldings lately, they discontinue plenty, and I cannot get Crescent which was a stupid decision in my opinion.Thank you, Dave. I believe that Larson passes your test, at least inour experience.
I would add one more:
Do they consistently stock what they sell? This is an area where lately, almost all distributors of supplies come up short.