On going Vendor issue....

Pizza Shop Talk The Think Tank
1

Some of you may remember a few weeks ago I posted about one of our vendors making an offer if we used them as our sole vendor…well we did it. 6% over their cost. So things have been going pretty good…alot of less work or so it seemed until this past weekend…

I noticed one of our sauces went up 12.00 (From 55.00 to 67.00) a case so I opened the most recent email from our old vendors who still were sending me prices which hadn’t changed at all since the switch. His sauce didn’t move a penny at all. Checked the other vendor…theirs didn’t either. (18.00 cheaper a case) So when I placed my order I asked the sole vendor. He said he would check into it.

He arranged to have the price lowered 13.00 a case until Feb. I said I don’t want to sound ungrateful but what confuses me is if we are getting things 6% over cost…and you lower the price 13.oo that is about 18% off the case price. So you are losing money. He said no we can make special arrangements with the supplier. I said in a matter of hours…on a Saturday? He said you just don’t understand how it all works. I said explain it to me…he gave me the run around…

Paul…aren’t you the one who used to be a sales rep? Am I missing something…Does anyone see something I don’t?

Arghhhhhhhhhhhh…will it ever end?

2

I was a previous salesman, for what its worth…even contract price can get screwey…6% over what cost I might ask the salesman…6% over his cost…6% over landed cost…6% over…its always a game - so ya need to always keep an eye out…

that much of an increase is too much…other vendors may have better/sweetheart deals of they are being paid a slotting fee 2 carry the item, much like grocery stores get…

the salesman needs 2 make a living…he is probably expected to run a 85% food cost 2 be considered successful…find a supplier you can deal with, who gives you service & fair prices…check & verify as needed…

3

Kris, you experience is EXACTLY what I have seen happen with accounts that go sole source, escpecially if they are small accounts (less than 4-5 locations and less than a half million in food purchases)

I assume you compared prices on all the rest of the items you buy too? I like an trust my reps, but I don’t trust the companies further than I can throw them.

4

what I have done is set up a price contract and my rep and I go over the prices quartly.
I dont shop her around but I do make sure she is inline with everyone else and she seems to not gouge me much. LOL