Landscape Management, November 2014
The benefts of saving a small percentage off do not overcome the negatives Prusa says By locking in purchases early we create the associated lack of active market fexibility of choice Additionally we see inventory damage and loss while loading up our warehouses with truckloads of product Plus we tie up cash Today Prusa says he works hard at maintaining good relationships with his vendors but does not participate in early order programs I prefer to maintain market product and delivery timing fexibility in purchasing and to maximize cash retention he says In other words having the ability to obtain freshly produced product in a just in time manner while still maximizing cash retention is the name of the game Relationships Rule The vendor client relationship is really what its all about Prusa says Our goal is to always pay on time or early and by treating our vendors properly and being a valuable client we gain the beneft of favorable pricing and service he adds We try to treat our vendors as we would like to be treated by our customers Other landscape business owners fnd early order programs to be a game Larry Ryan president of Ryan Lawn Tree a 27 year old employee owned company based in Overland Park Kan is one of them If were a good loyal customer we want the best price regardless Ryan says I dont want to feel like were being manipulated or have to jump through hoops to get the best price I want my price based on the quality of customer that I am I always pay my bills promptly and that should count for more than how much product I am willing to buy in advance Ryan says while hes open to sitting down with vendors and discussing products and programs he tries to avoid getting locked into anything that wouldnt allow him to customize his program and change product on the spot Hes also found he gets similar pricing to early order in the spring Everyone wants to sell in the spring and you can get a similar price simply because the vendors want to stay competitive Ryan says My advice is to not get too caught up in early ordering Those who do order early say anything that helps them remain competitive in a low margin market is a plus Masons best advice is to do the research and seek out the best terms Calculate the rebates based on volume and which products ft best into your program He adds If youre going to commit yourself to a program make sure its the right one Payton is a freelance writer based in Philadelphia Larry Ryan November 2014 LANDSCAPEMANAGEMENT NET EOP7 PHOTO isTOck cOm denisenkO
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