ITM pricing variation?

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tchart

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#289149 16-Aug-2021 12:19

Does anybody here buy timber from ITM?

My local ITM seems oddly expensive. For example if I check pricing for other ITM's online I can see a timerb post for ~$7 incl GST (1.8m H4 No2 Quarter Round).

My local ITM is ~$12 for the same thing.

Initially I thought this was perhaps a North vs South Island thing but the Masterton ITM has the same product for $7.45

Just seems a bit odd as I thought theyd be similar prices.

Bung

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#2760648 16-Aug-2021 12:49

Maybe ITM Masterton sell a lot more farm fence posts than your ITM. Try asking them. It's a franchise, I know our local branch lifted prices when it changed hands.

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SATTV

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#2760649 16-Aug-2021 12:51

Old stock vs new stock, there are massive price rises for wood as we know.

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tchart

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#2760687 16-Aug-2021 13:12

SATTV:

Old stock vs new stock, there are massive price rises for wood as we know.

John

Yeah I figured that may be it too. Oh well.

nickb800

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#2760689 16-Aug-2021 13:13

Some of the more trade oriented outlets (ITM, Carters, Placemakers) choose to list particularly rude retail prices.

I think their logic is that trade customers get special pricing, and since they aren't focused on retail customers it doesn't matter if they drive retail customers away - but nice if they get a fat margin every now and then for the hassle of selling to the public. IMHO Carters are the worst at this - some of their stuff can be priced 2-3x the retail price at other stores, even in things they would sell a relatively high volume of (e.g. wooden pegs, concrete nail gun charges).

Being a franchise, ITM can vary widely between branches - in some smaller towns they may serve as an old-fashioned general hardware store for all-comers (and choose to list sensible retail prices to meet this purpose), whereas in the cities they are often a more dedicated trade supplier as they can't/won't compete with Mitre10/Bunnings for retail customers.

tchart

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#2760695 16-Aug-2021 13:25

nickb800:

Some of the more trade oriented outlets (ITM, Carters, Placemakers) choose to list particularly rude retail prices.

I think their logic is that trade customers get special pricing, and since they aren't focused on retail customers it doesn't matter if they drive retail customers away - but nice if they get a fat margin every now and then for the hassle of selling to the public. IMHO Carters are the worst at this - some of their stuff can be priced 2-3x the retail price at other stores, even in things they would sell a relatively high volume of (e.g. wooden pegs, concrete nail gun charges).

Being a franchise, ITM can vary widely between branches - in some smaller towns they may serve as an old-fashioned general hardware store for all-comers (and choose to list sensible retail prices to meet this purpose), whereas in the cities they are often a more dedicated trade supplier as they can't/won't compete with Mitre10/Bunnings for retail customers.

Yes actually I shouldve mentioned this isnt a new thing. In the past few years I can buy something one week from one person and next weekend from aother person and the price will be different.

I hear you about not competing, this ITM is next door (they actually share a fence) to a Mitre 10 Mega. Some days I will have to get something from ITM (that Mite 10 dont stock) and then shoot next door to get the other supplies from Mitre 10. Its a bit sad as I'd rather support ITM but their pricing is all over the show so most times I dont bother asking for a price and only get what I cant source elsewhere.

RE Carters I hear ya, I used to work for Carter Holt Harvey and we got cost+GST at Carters. The savings were unbelieveable - especially on things like paint.

timmmay

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#2760721 16-Aug-2021 14:07

Trade discounts at M10 can be massive. I got a paintbrush set retail $20 for $5 this weekend. Not everything gets that much discount of course, but there is massive margin in some places.

mattwnz

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#2760725 16-Aug-2021 14:22

With building materials you can save heaps by shopping around.

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#2760754 16-Aug-2021 15:02

timmmay:
Trade discounts at M10 can be massive. I got a paintbrush set retail $20 for $5 this weekend. Not everything gets that much discount of course, but there is massive margin in some places.

That is massive!

nickb800

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#2760782 16-Aug-2021 16:08

Linux:
timmmay:

Trade discounts at M10 can be massive. I got a paintbrush set retail $20 for $5 this weekend. Not everything gets that much discount of course, but there is massive margin in some places.

That is massive!

To be fair, that is an extreme example though. I've spent about $30k across the main hardware chains over the past year as I extend my house and with Bunnings/Mitre10 I'm on a pretty decent discount tier (probably better than my spend deserves). I compare the discount value of each receipt to the GST value, and pretty much every receipt sits in the 10-20% range. Everyday low price type things which aren't discounted at all drag the discount down, 30-40% discount on timber drags it up.

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#2760786 16-Aug-2021 16:22

The supply chain for building products exists for servicing building related businesses. They are the large customers and get preferential pricing. If retail was a significant earner then it would be a bit more competitive.

dazhann

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#2760839 16-Aug-2021 18:08

I work for a one of the trade suppliers, our priority is our trade customers, who we are struggling to keep working. If we could ditch retail customers we would. We are already not selling kd timber to retail

mattwnz

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#2760843 16-Aug-2021 18:47

People do wonder why house construction and material prices are so high. Here is a story about problems in some markets inclduing materials here https://www.stuff.co.nz/business/opinion-analysis/125902195/supermarket-prices-politicians-have-dropped-the-ball NZ really need some decent competition, or the government needs to setup a kiwibuild system, where they have the buying power to bulk buy materials. . People should be able to build a fence or deck etc at a good price, and not have to use trades people who are already stretched, and are pricey. I have just purchased quite a bit of timber for building a fence. Got trade pricing, and didn't have any problems with supply, but the prices varied significantly.

Handle9

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#2760845 16-Aug-2021 18:52

mattwnz:

People do wonder why house construction and material prices are so high. We really need some decent competition. People should be able to build a fence or deck etc at a good price, and not have to use trades people who are already stretched, and are pricey. I have just purchased quite a bit of timber for building a fence. Got trade pricing, and didn't have any problems with supply, but the prices varied significantly.

Why would anyone want to come and compete in NZ? It's not an attractive market. There are far more attractive places to invest.

mattwnz

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#2760846 16-Aug-2021 18:53

Handle9:

mattwnz:

People do wonder why house construction and material prices are so high. We really need some decent competition. People should be able to build a fence or deck etc at a good price, and not have to use trades people who are already stretched, and are pricey. I have just purchased quite a bit of timber for building a fence. Got trade pricing, and didn't have any problems with supply, but the prices varied significantly.

Why would anyone want to come and compete in NZ? It's not an attractive market. There are far more attractive places to invest.

You are right. But similar to the mobile telco market, where there needs to be incentives for new entrants,

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#2760862 16-Aug-2021 19:32

A lot of places will give you trade prices if you're friendly, ask, and if you vaguely look the part.

Within the last year, I've gone into a plumbing supplies place, ITM, and a local fasteners place mentioning that I need a few extra bits for the job I'm on, and most of the time, they're happy to give me a huge discount off the listed price - on one occasion 70% off. It depends on the place.

The $8 high-vis from the warehouse and the cheap work boots also help, I suspect.

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