4 Ways Price Buying is Costing You Money

Boyd Metals

As managers look for ways to increase profit margin, the focus often falls on making cuts where the most money is spent. It really is understandable how a price buying strategy comes about. But, as this happens, the important question is this: Is choosing suppliers for your services or materials based on price really going to save money?

While it might seem like a good strategy at first, it is one that can backfire on you in unexpected ways. Here's how:

1. You Sacrifice Quality

Materials like steel and aluminum and processes like shearing and oxy-fuel plate cutting are universal in quality, right? Well...actually, NO. When you find a supplier whose prices undercut others with similar materials or processes, it could be for a number of reasons. But, in many cases, distributors selling material at significantly lower prices are able to do so because that material is produced at lower cost. Lower cost indicates lower grade material, or possibly even unethical business practices somewhere along the line. Neither of these should be associated with you or your business.

2. You Sacrifice Proximity

Your business counts on the speedy processing and delivery of your materials. Having a supplier you can trust who delivers on-time keeps your daily activities running smoothly. Sourcing materials from the east or west coast, if you are in the Midwest, can add a significant amount of shipping cost and time to your order. These same considerations come into play if you are using a supplier that is not based in the United States.

3. You Sacrifice Customer Service

Let's face it - sometimes your supplier might make a mistake. Maybe your materials are cut with a curvature that is a quarter inch too narrow or they sent you the wrong quantity of a crucial steel product. Everyone is human. This can be expected. But the real problem arises when a business attempts to skirt their responsibility for making things right. It could be that righting the wrong will backlog their activities. Or maybe they simply aren't interested in making things right. In either case, this lack of customer service will have a costly impact on your own business. Finding a company who acknowledges its mistakes and works overtime to make it right is extremely important to your success.

4. You sacrifice Deadlines

The vast majority of steel suppliers offer delivery, but only if your order exceeds is a certain size. Typical weight minimums range from 2500 to 5000lbs and restrictions like these can delay your projects. If your supplier offers lower prices, but won't deliver what you need, you don't come out ahead - and neither will your clients. At Boyd Metals, there is no minimum weight for delivery. You can order the amount of material you need and have it delivered without having to purchase any extra material or delaying your project.

Your business needs a supplier that is nearby and provides quality materials. They need to have fantastic customer service and offer delivery for exactly you need - when you need it. Sacrificing any of these qualities is a costly mistake that will impact you and your clients negatively.

If you are located in the five-state area of Arkansas, Kansas, Missouri, Oklahoma and Texas, Boyd Metals is the supplier you are looking for.

Contact Us

Boyd Metals is a full-line steel service center. We maintain five strategic warehouse and office locations and deliver to your project location. We are committed to providing top-quality materials and exemplary customer service. Contact us today to learn how we can help your business succeed.

Tags: The Boyd Difference, Sourcing Materials, Delivery