A new idea for a plumbers merchant, I think.

[cr0ft]

Hi folks,

I'm purposefully not mentioning my website here as I don't want to be done for advertising but I would like some honest feedback on this idea.

I've run a plumbing company of my own for a few years now and one thing that has always annoyed me is that I get the same prices at merchants whether I buy on credit or with cash.

I'm looking at starting up a merchant with the following (fairly radical) ideas: -

1.) Payments would be by BACS or cash only. No credit/debit cards or credit accounts would be accepted. In return prices would be lower than the merchants can offer at present.

2.) Local pickup only (for larger items) or shipping for smaller items - fittings etc. Once volumes increase sending larger items (pipe/cylinders) by courier becomes possible.

3.) Reward points which equates to actual cashback in December, just in time for Christmas. The more you use us the more you would get, basically a thanks for supporting us.

Effectively it would be the Asda of plumbers merchants - no frills but cheap prices. This said, the aim would be to provide top-quality UK products, not cheap Chinese stuff!

Feel free to be as brutally honest as you want, better to find out what people think now rather than once we've started it up!

 

[Plumbstar Tom]

my opinion is you would not be able to get the prices the the big boys get as you wont be buying enough items to get a low price

add to that UK only products and your prices will be much higher

IMHO

 

[cr0ft]

I would have agreed with you before I started looking into it but the reality is that there's actually not much difference in price from the manufacturer between say a 1 ton order of copper and 10 tons. When you buy is far more important. Also, by keeping overheads down (i.e. operating it over the internet and without credit accounts) you can save more than this difference in costs.

If it was achievable what would you think of it as an idea?

 

[Plumbstar Tom]

I struggle to think it is achievable, would need to see a proper business plan tbh

you have the fact that you will be combating loyalty customers have with their merchants

you dont have a brand at all (or a small one)

would you want to do the reward points thing or just a no thrills low prices sort of thing?

what do you have set up in the way of premises/storage as well?