Paul Dawson, Commercial Manager at Niglon, looks at why focusing on saving the pennies could put contractors at risk of mounting costs.
The electrical sector is expected to continue to grow steadily over the next few years, which is good news for contractors. However, the marketplace is still tough and increased commercial opportunities will put even more
pressure on time and resources.
We’re already operating in a sector where margins are tight and the pressure to complete projects on time to shorter programmes within exacting budgets is greater than ever. So how can contractors claw back some time and reduce their costs?
Your most precious commodity
One of the simple answers to this question, that’s often overlooked, is reducing the time and effort spent on purchasing materials. In recent years, some suppliers that had previously been dedicated to selling through wholesalers have started selling direct to contractors, bypassing traditional supply channels.
While, on the face of it, this looks to be of some financial benefit to contractors by undercutting wholesale prices, pennies saved here and there on price add up to considerable losses in time, which is the contractor’s most precious commodity of all.
Suppliers bypassing the wholesale channel may also sell to the end user who will try to save costs by purchasing direct and utilising the services of a contractor on an ‘installation only’ basis, therefore reducing the potential profitability of the project.
Trusted supply chain
As a supplier that’s always been dedicated to the wholesale channel – and will continue to be so – we understand the advantage to contractors of working with a trusted supply chain.
Firstly, it enables the contractor to deal direct with a single point of contact that they can trust. The electrical market is awash with products of varying quality and purchasing through a wholesaler enables contractors to access a wealth of choice quickly from a single trusted source, ensuring that they can select the best option within their budget constraints.
Secondly, a wholesaler can pass on the benefit of their own experience and that of their customers, offering good advice on a product that meets the contractor’s requirements on functionality, quality and price. While a supplier will only concentrate on selling their own products, a wholesaler can share other contractors’ experiences of better, easier to install or more modestly priced products that still comply with the specification.
Ultimately, time spent shopping around for cost savings on materials is not billable time on-site and time wasted in delays on-site, due to unforeseen issues with availability, could carry a high price when it comes to delivering within programme. Purchasing electrical components and accessories is much more than a transaction; when it’s critical to the success of your project and your business it needs to be part of a relationship that will add value to your operations and your bottom line.
Niglon offers a wide range of electrical products, which are only available through wholesalers and span six
categories: circuit protection, wiring accessories, industrial accessories, cable management, commercial lighting and fixing & tools. The high quality and variety is balanced by competitive pricing, ensuring value for money that enables contractors to provide a professional finish while improving their margin.