ᐅ Do you buy from a local building supply store or order online?
Created on: 13 May 2017 14:18
M
Mizit
We are generally not the type of people who need or want to watch every penny, and we understand the difference between cheap and affordable. I also see several advantages in buying something locally, where I can potentially go back to the store, make a complaint if needed, and have a contact person standing right in front of me—compared to ordering something from websites and possibly regretting it later because I tried to save a little and ended up receiving low-quality goods.
However, the budget is of course not unlimited, and where it makes sense, we want or need to save money. And this seems possible at first glance for all the products you want to install or lay.
Especially with doors, the price difference between what I have seen in local specialized stores and doors sold online seems huge. These websites even look reputable and have many reviews. It makes you wonder if it is justified to pay four times as much for a door at the local timber merchant when the product description indicates that the products should essentially be the same…
The same applies to flooring. Prices online for similar wear layers and wood types appear to be completely different from local prices, which seem significantly higher in some cases.
Now we are already considering whether we should order doors online or possibly also three new important windows online and then find someone through MyHammer to install them…
What are your experiences with online versus local shopping?
However, the budget is of course not unlimited, and where it makes sense, we want or need to save money. And this seems possible at first glance for all the products you want to install or lay.
Especially with doors, the price difference between what I have seen in local specialized stores and doors sold online seems huge. These websites even look reputable and have many reviews. It makes you wonder if it is justified to pay four times as much for a door at the local timber merchant when the product description indicates that the products should essentially be the same…
The same applies to flooring. Prices online for similar wear layers and wood types appear to be completely different from local prices, which seem significantly higher in some cases.
Now we are already considering whether we should order doors online or possibly also three new important windows online and then find someone through MyHammer to install them…
What are your experiences with online versus local shopping?
The “problem” with local dealers is sometimes the completely insane profit margins... Recently, a plumbing company tried to tell me that they only marked up prices by 30%. With a 30% margin, they don’t make any real money because they have to take responsibility for 5 years, and so on... Since the total amount is over 20,000 euros, a profit of more than 5,000 euros (just for the materials!) is definitely more than “not making any money.”
Many dealers are willing to negotiate prices to some extent... certainly not as much as a few years ago, but they still want to do business.
For me, it’s important that both sides enjoy the process. The dealer can be more expensive than online prices, but only if they provide a reasonable explanation. If someone starts telling me that online retailers don’t keep stock, or that handling defects is difficult, I simply don’t take them seriously because it’s clear they haven’t really kept up with online retail in recent years.
Online retail (there are plenty of specialized shops!) has now become a professional trade, the only difference being that you hardly need to leave the house to shop.
However, if the local dealer tells me that they dispose of all the packaging, clean up thoroughly after the job, then I find that acceptable, because in my opinion, these are the things that differentiate a local dealer from online retail.
Many dealers are willing to negotiate prices to some extent... certainly not as much as a few years ago, but they still want to do business.
For me, it’s important that both sides enjoy the process. The dealer can be more expensive than online prices, but only if they provide a reasonable explanation. If someone starts telling me that online retailers don’t keep stock, or that handling defects is difficult, I simply don’t take them seriously because it’s clear they haven’t really kept up with online retail in recent years.
Online retail (there are plenty of specialized shops!) has now become a professional trade, the only difference being that you hardly need to leave the house to shop.
However, if the local dealer tells me that they dispose of all the packaging, clean up thoroughly after the job, then I find that acceptable, because in my opinion, these are the things that differentiate a local dealer from online retail.
I have mixed feelings about this, since we also operated several retail stores within our company and I am familiar with the profit margins and returns of physical shops.
The online retailer requires far fewer staff and doesn’t have expensive showroom space. They also don’t need to have full staffing from 8 a.m. to 8 p.m. They are usually located in affordable commercial areas rather than highly frequented, costly locations. Due to the volume they handle, they also get better purchasing terms from manufacturers.
Then there are those customers who visit the store to see everything and get advice, but then end up buying online.
This practice ultimately harms the remaining specialist stores. It would be better to negotiate again if the price difference seems too large.
So, a local retailer actually can’t be cheaper unless the delivery is made via freight carrier and the order is picked up in-store.
On the other hand, an online retailer is always engaged in direct price competition, as only the lowest priced, readily stocked, or otherwise advantageous seller (e.g., Amazon) makes the sale.
At the same time, as a private individual, I naturally want to get as much as possible for my monthly budget.
The online retailer requires far fewer staff and doesn’t have expensive showroom space. They also don’t need to have full staffing from 8 a.m. to 8 p.m. They are usually located in affordable commercial areas rather than highly frequented, costly locations. Due to the volume they handle, they also get better purchasing terms from manufacturers.
Then there are those customers who visit the store to see everything and get advice, but then end up buying online.
cip&ciop schrieb:
We always first check out the specialist store ... and then order online as often as possible.
This way, you are mostly on the safe side and also save some money.
This practice ultimately harms the remaining specialist stores. It would be better to negotiate again if the price difference seems too large.
So, a local retailer actually can’t be cheaper unless the delivery is made via freight carrier and the order is picked up in-store.
On the other hand, an online retailer is always engaged in direct price competition, as only the lowest priced, readily stocked, or otherwise advantageous seller (e.g., Amazon) makes the sale.
At the same time, as a private individual, I naturally want to get as much as possible for my monthly budget.
B
Bieber081513 Jul 2017 14:33EA-Tec schrieb:
Recently, the plumbing company wanted to tell me that they only added a "30% markup," and that they don’t actually make any profit on 30% because they have to be liable for five years, etc. Since the total amount is over 20,000 EUR, more than 5,000 EUR (just for the materials!) profit for me is definitely more than "no profit"... A 30% margin in this context is not the same as profit; various costs still have to be deducted beforehand.
Musketier schrieb:
Online retailers need far fewer staff and also don’t have expensive showroom spaces. They don’t have to be fully staffed from 8 a.m. to 8 p.m. either.
In addition, they are often located in affordable commercial areas rather than in high-traffic, expensive locations. Because of the volume, they also get better purchasing terms from manufacturers. This varies greatly depending on the business. However, most people significantly underestimate the costs of running an online store. They are often much higher than for some physical shops. What many forget are the enormous online fees we pay. We have rental costs for storage as well as fees on platforms like Amazon, eBay, and Google. These amounts alone are double my former store rent. Then there is the warehouse, which is cheaper than in downtown Munich, but usually larger in size. Customers don’t forgive an online retailer if every size of sock A isn’t available. So you need a lot of space.
Well, you also need packers. They want to be paid and are not much cheaper than regular sales staff. You also can’t afford to have slow workers, so it’s better to pay 2 euros per hour more.
I see it simply: Any business owner not online will sooner or later have to close. Of course, there are exceptions.
What I notice about traditional shops is the rigidity of owners. They don’t inform themselves about prices, offers, or new suppliers. They keep working with the same routine for years. That is our biggest pricing advantage. Many stores buy at far too high costs.