Bulk purchasing of landscaping materials

Hi Kirsty - me and a mate who runs a building firm looked formatively into this a couple of years ago as a joint venture.

We were basically going to stock sands, gravels and cements. We were then going to set up a business selling the stock locally to reduce our outlay risk and (hopefully) eventually make some small profit.

In the end we couldn't find a suitable plot for sale or rent so the idea was forgotten about - but if it was done on a small scale and the stock was advertised to local builders and landscapers, and then also to the public then it could be a viable additional business. I know a local aggregate suppliers that makes an average 400% mark-up on their stock!

If you go for it then treat as an additional business and not as an aid or supplement to your current business. Good luck!

Nicky @ GardenImprovements.com

Kirsty Blair said:

You are all right - just thinking of ways to get better prices. Have any of you done deals with your suppliers - if you use so much stuff you get extra % off your prices? I've just been looking at what I used last yr and scottish cobbles comes to about 20tonnes - I know it depends on trends/customers but based on what I'm buying I must be able to get stepped pricing. Will have to discuss with my suppliers.

I have looked into this in the past especially because as a contractor you seem to be at a competitive disadvanatage to a company who supplies and installs. I.e. a large garden centre who has there own hard landscaping team or a fencing supplier who has an internal resource to be able to erect the fencing make a greater mark up on the materials then a contractor ever will plus any surplus materials get rolled back into the retail side of the business which minimises waste.

I looked at getting 20 tonne loads of aggregates tipped at my yard but then realised I would need to buy a front loader to load them and at least a 7.5 tonne truck to ensure that I wasn't endlessly going back and forth in my LDV tipper. I decided on just having loose loads delivered to site and then ferry any surplus to my yard at the end of the job.

I think you have to be careful with what you do buy and ensure that is something that you can use as you can end up accumultaing a lot of junk.

I rent about 1000 square feet of secure storage and an external area of a similiar size for £250 pcm.

Replies

Nick Donaghey @ Garden Gurus March 5, 2010 at 10:32pm

The extra handling alone puts into question the viability of doing this. I agree with Steve - cost per project based on supplier prices at the time rather than trying to squeeze a bit extra margin for a lot more hassle.
Kirsty Blair March 5, 2010 at 10:54pm

You are all right - just thinking of ways to get better prices. Have any of you done deals with your suppliers - if you use so much stuff you get extra % off your prices? I've just been looking at what I used last yr and scottish cobbles comes to about 20tonnes - I know it depends on trends/customers but based on what I'm buying I must be able to get stepped pricing. Will have to discuss with my suppliers.
Nicky @ GardenImprovements.com March 6, 2010 at 10:20am

Hi Kirsty - me and a mate who runs a building firm looked formatively into this a couple of years ago as a joint venture.

We were basically going to stock sands, gravels and cements. We were then going to set up a business selling the stock locally to reduce our outlay risk and (hopefully) eventually make some small profit.

In the end we couldn't find a suitable plot for sale or rent so the idea was forgotten about - but if it was done on a small scale and the stock was advertised to local builders and landscapers, and then also to the public then it could be a viable additional business. I know a local aggregate suppliers that makes an average 400% mark-up on their stock!

If you go for it then treat as an additional business and not as an aid or supplement to your current business. Good luck!

Nicky @ GardenImprovements.com

Kirsty Blair said:
You are all right - just thinking of ways to get better prices. Have any of you done deals with your suppliers - if you use so much stuff you get extra % off your prices? I've just been looking at what I used last yr and scottish cobbles comes to about 20tonnes - I know it depends on trends/customers but based on what I'm buying I must be able to get stepped pricing. Will have to discuss with my suppliers.
Graeme @ BGS March 6, 2010 at 12:06pm

Not receommended unless it was a price too good to walk away from.

Check out http://www.landscapejuicenetwork.com/forum/topics/trade-discount-fr... And I will also be Emailing details of any specials and end of lines stock bargins.
Charles Langford March 7, 2010 at 5:19pm

I have looked into this in the past especially because as a contractor you seem to be at a competitive disadvanatage to a company who supplies and installs. I.e. a large garden centre who has there own hard landscaping team or a fencing supplier who has an internal resource to be able to erect the fencing make a greater mark up on the materials then a contractor ever will plus any surplus materials get rolled back into the retail side of the business which minimises waste.

I looked at getting 20 tonne loads of aggregates tipped at my yard but then realised I would need to buy a front loader to load them and at least a 7.5 tonne truck to ensure that I wasn't endlessly going back and forth in my LDV tipper. I decided on just having loose loads delivered to site and then ferry any surplus to my yard at the end of the job.

I think you have to be careful with what you do buy and ensure that is something that you can use as you can end up accumultaing a lot of junk.

I rent about 1000 square feet of secure storage and an external area of a similiar size for £250 pcm.