So today we will be proceeding to part 2 of the Chains vs Independents and discussing the pros and con's of using independents over the chains, so let's take a look.
Independents pros
* The personal touch - The independents have this because there small and usually have the owner on site, they offer a service that feels like your business really does mean something to them, a close community of staff and every sale matters, If they can't compete on price they will pull out the service card.
* Company policy's - All chains have company policy's and sometimes they get in the way of offering good service or galvanising the professional bond between customer and company, My work place (which is a national chain) wont let a customer run home to get his card if he has forgot it one morning when he wanted to buy goods, it doesn't matter if he has given over £100,000 the previous year and has £100 worth of goods on his truck and we have known him for years, its a rule that can't be broken and if he does try to take off it would be classed as theft, Independents have policy's but can rely on a bit of common sense to bend rules on occasion, i know they wouldn't let someone unknown take the goods with the promise they will come back to pay but if they know a long standing customer is good for it whats the harm.
* Company credit card - I'm going out on a limb here as i don't 100% know that this is a universal rule through all independents but the two I've worked for and a supplier took on this system, it basically means whatever you need it can be bought, if it's on amazon it can be brought in, ebay? no problem! Chinese dog curling practise kit from Chinese dog curling .com? as long as they take credit card it's yours! The system they take on is that basically they pay for it and then book it to your account, the only down side to this is that your paying over the odds as they buy in at whatever price it's selling for and add a percentage on.
* Reliable - It's written in stone as every sale matters to the independents, there around to make money and keep afloat, that means when they promise something they will move heaven and earth to deliver, it's simply really because if they let you down or waste your time you move on but unlike chains where another branch in the area can pick up the slack they are on there own, they have one shot and there aware of this.
* Understanding - Tough times have hit all some more than others and chains have the system of don't pay, no goods on credit accounts. It's kind of understandable but what if you needed to finish off a job so you could pay your merchant? try explaining this to a national chain, the person you speak to in branch may understand but unfortunately it's not his decision to make but the independents have the common sense factor, they may be reluctant to do so but at least they will take all factors into account before making a decision.
* Management - They are still grounded even if they hold a management position and on most occasions there the owner, they see the benefits of knowing there customers and being involved with all aspects, they come into work not just for the same pay day month after month, the two independents i worked for left there respected management roles with other national chains and started up there own because they saw huge gaping holes in service and the system they worked with, they prey on the chains because they know there weaknesses and it's easy to manoeuvre a small independent merchant to attack those weaknesses, in terms of size and bringing in new directions it's easier to spin round a tiny power boat than a cruise ship.
* Buying options - They have the ability to buy from who they want, they don't have huge contracts tying them down to just one particular supplier, if you need a cheaper option on a particular item then it's something your independents can offer, huge contracts are often struck between leading merchants and suppliers so suppliers are "sole" suppliers, they may have an excellent deal when buying from said supplier but what if there is a product that does the same job from a different supplier that's a lot cheaper?
* Product range - There a bit more in touch I've found with items that sell well, chains have there products broken up into categories of fast to slow moving lines nationally but it's different for every area, your independents tailor there business to bring in stock that sells well in your area.
* Trading on everything - They trade on everything you see from shop floor to the yard, it's not a case of overcharging on shop items because head office have put restrictions on price reductions, they are trading on all items which is a huge plus when you want to really give customers a great deal on the WHOLE order.
* Staff Levels - They are in touch with how there branch runs, its not a case of "they will cope" because boss's aren't aware of how stretched staff are, so even though they have staff busy there aware of the staff they need to run the operation.
Independents cons
* Buying power - Unfortunately this is a big weakness for the independents, they could claw back some of the gap between the chains buying power by joining a buying group like LIMA but they will never be able to compete when the chains when they want to win the quote.
* Resources - Independents don't have the resources of the chains, advertising, marketing, bulk deals struck with suppliers, trade days, celebrity appearance's, the list is endless when it comes to how a chain can get there name out there and the independents who are local can really only rely on local advertising, maybe the local newspaper or a radio advert but there both pricey avenues to get the name out there.
* Stability - If an independent does make it in a local market and are a pillar in a good community of builders then the chances are eventually one of the chains will buy them out, it's a typical ploy of the chains and the reason that they spread so quickly, some of the branches are greenfield and are brand new but a lot of them are previous companies that have been bought out. Some independents will have the business plan to cause a thorn in the side of big chains to a point of getting bought out, a risky bet when your public records are there for anyone to see on the net.
* Fighting there corner - If a chain moves into the area they have to have an extremely loyal customer base who have money to burn, well that's none existent now a days, money is money and if anyone can save they will, it's not a malicious statement towards customers, if someone offered me a much cheaper deal i wouldn't need to think twice about switching to save my money, it's my money that i take home, chains when they move into an area are a wrecking crew, they have done there homework on there competitors and will sell high moving items like cement, blocks, aggregates, timber close to cost to get there customer base up, what chance do independents have when a chain is offering there customers to save thousands within a year?
To summarise the two posts it's all down to the independent or chain your comfortable using, a chain may come into the area but it doesn't guarantee the same service that your independent offers, yes you may get a great deal with the chain but if they let you down on service any savings go out the window with the delay on getting your goods, if a chain does offer great deals when they move into the area that wont last, I'm bias towards the independents because they still have the integrity and care more than chains ever will about your business but unfortunately they can only offer service and with how things are at the moment great service and a slightly more expensive price gets beat by average service and a great temporary price.
My advice to you all is give them both a chance and if possible use both, if your independent goes under your left with the chain and if the chain is standing alone at the end your pocket will suffer.
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