I don’t know how many of you buy stuff at places that are HWI (Hardware Wholesalers Incorporated) retailers. But if you do business with any of them they have a code on their price stickers that might interest you.
The letters of “BLACK HORSE” correspond to letters that are printed on their merchandise tabs that indicate how much the store pays for the item. Each letter represents a number, like this:
B L A C K H O R S E
0 1 2 3 4 5 6 7 8 9
For instance – Last night I stopped by a store that sells HWI stuff. I needed a router bit and didn’t want to wait for one by mail order. The price on the router bit was $41.95. Under the price was the code: LEOC. That meant the store actually paid $19.63 for the bit. That’s one hell of a markup.
Fortunately the manager is a heck of a nice guy, so he did some figuring and charged me a lot less than the sticker price for the bit.
Just thought some of you would find the information useful…
I don’t know what’s wrong with my television set. I was getting C-Span and the Home Shopping Network on the same station. Yesterday I bought a congressman.
Replies
I am constantly being amazed & educated at BT! Where else would I learn that? Only sorry that there isn't one of those stores around here...
(I am not being sarcastic...what's the emoticon for straight truth?)
Many if not most retail stores have a code like that. I had never heard BLACK HORSE, but am aware of some establishments that use so-called FANCY codes. That is, the alpha code is FANCY STORE. Works the same way as BLACK HORSE.
Boss,
MSRP is a good thing if you can work the system.
I have some freinds and relatives in retail, one who owns a floor covering store, one who has a very large commercial / highend residential tile business, one who owns a Summer Kitchen franchise, and a great freind who works for Loews and is their millwork specialist. It is very common for many stores to have a 100% mark-up.
As a businessman, with undersanding of insurance, employees and their benefits packages, the cost of doing business to include real estate, taxes, utilities, marketing, losses, etc. I understand how a 100% mark-up is necessary.
MSRP is very typically a 100% mark-up or more from wholesale pricing. It is a good thing, and allows savy businessmen to increase their profit whle still passing along a discount to clients. The businessman must learn how to work the system.
As a builder, I sometimes receive a 30 - 40% discount. I have inquired with manufacturers regarding volume purchasing. If I had a showroom. I can receive a 50 - 70% discount off of typical retail if I have showroom space. I am sure that with the kind of volume large warehouse stores receive that their discounts are sometimes significantly higher.
Exemplory pricing from personal experience is as follows:
Armstrong Flooring with 1000 SF of showroom space yields pricing from the manufacturer that is 50% or more off MSRP retail. If I mark-up 100%, I am at or sometimes below MSRP. There are specials runs of products that are eligiable for higher discounts. Armstorng told me that with a 1000 SF of showroom, they will set up free displays that are refreshed on a constant basis.
Being a builder, Dal Tile quoted a contractor discount price of $2.65 per SF for quarry tile to be used in a commerical kitchen in our Church. My cousin who owns the aforementioned large tile business, has several showrooms and a large installation operation bought the tile through his account for $1.15 per SF. I passed the savings on the the Church, but could have marked it up 100% and still been under contractor pricing and well under MSRP.
I am a member of Pro Source. Pro Source is a showroom that is open to me 24/7. I have an account and a credit card type key that opens the door and turns on the lights to the showroom 24/7. I receive a 30 - 40% discount off of the MSRP automatically. The MSRP is shown in the showroom. Special purchases are sometime intitled to special discounts. I bought some tile for a whole house 3300 SF of 20" x 20". The MSRP was $2.65 and I bought the tile for $1.09. If I marked up $1.09 100% to $2.18, I could still offer the client 45% discount off MSRP.
I have an account with http://www.build.com and regularly receive 30 - 40% off MSRP for light fixtures, plumbing fixtures and hardware. Special incentives or "thanks for doing business" discounts can increase the normal discount. I can offer the client a 15 - 20% discount off MSRP and still make money for my procurement efforts.
I do not know about the store you mentioned, but typically contractors / builders can receive 10 -20% discounts in big box stores with just a question to the manager.
They ALSO USE.
HARD TO GUESS
1234 56 78900
I was a purchasing agent in a now gone Lumber yard in PA as a teen. Programmed MANY a price sticker for Myself and friends..LOL
edit: that was a HWI supplied store, buyt we also created our own codes that ended with a 'T' ( it was TRIANGLE Lumber Co) that would throw off the suppliers that would inventory my shelves, and tell me what I was low stock on, like Glidden paint would inventory, and also peruse our mark-up on say Varathane..and make 'notes' that we had a higher mark up on Glidden, and more over stock..or vice versa, and adjust OUR costs to reflect our habits of mark up.
So we had 'instore' codes that the sales reps cannot decipher..esp the sharks from certain BIG TICKET sale items, with a lot of face time in advertising..I used Glidden as an example only.
Spheramid Enterprises Architectural Woodworks
I have irriatable Vowel syndrome.
Edited 12/28/2006 10:23 am ET by Sphere