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Can “Buying Direct” Actually Cost You More?

We do an amazing number of floorcovering installations in Retail stores nationwide. Sometimes we perform labor only, installing materials that are Owner-Supplied. And now we have pallets full of excess product sitting in our warehouse – product for which we had no control over quantities purchased, where it was shipped to us by Retail Store Owners who thought they were saving money by “buying direct” from floorcovering manufacturers.

If you’re a retail operation with an individual or a team “fluent in floorcovering,” it might make sense for you to buy your materials directly from your floorcovering supplier. But if like most retail operations today, you are operating with as lean a staff as possible, you may be inviting more trouble than you realize. While the risks may carry different consequences, it might be likened to asking a junior fashion designer to articulate demographics, acquire property and negotiate leases. It is equally unreasonable to expect someone without significant estimating, quantity take-off and construction materials expediting experience to know how to get the right amount of materials to the jobsite at the right time. In order not to be short on materials – or “just to be sure,” inexperience drives people to add a giant waste factor so they aren’t short.

Just within the last 60 days, we have experienced job delays (which translates to store-opening delays) because Owner-supplied materials were insufficient to complete the job. How many dollars are lost in missing a store opening by at least a week – or wasted by having to air-freight materials from overseas or across the country to make up the shortage? In another recent case, we received double the amount of tile required for a mall project; the tile was expensive and shipped from Europe. Probably a $20,000 [waste] overshipment!

Wouldn’t it make more sense to have a floorcovering expert calculate and order exactly the amount of product you need for each new location? That trusted expert can manage your inventory (usually at zero or minimal cost) of flooring products, insuring that just the right amount of product arrives on time, at every jobsite, every time.

That’s what FloorTech does.

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