Everyone loves saving money…us included. It becomes even more important when you’re in an industry where there are tiers of suppliers and price is scrutinized at every level. Finding a way to reduce costs will keep you competitive and a part of someone’s supply chain.
In most applications, the gasket tends to be less of a cost driver than other parts, but it doesn’t get any less scrutiny. Everything adds up when you’re trying to stay competitive and it doesn’t matter how big or small your piece of the puzzle is. We get calls all the time from our customers asking how they can save money. Continue reading to to see how you can try to reduce the price of your gasket material.
Reducing The Price
1. Are there price breaks or volume discounts
Ask if your supplier sells their material in a tiered system. If you’ve always bought the exact quantity of gasket material needed, maybe you’re paying more per sheet or coil than you should be. If you can move into a higher tier, you’ll sometimes get a much better price. The savings can then be passed along to your customers.
2. Figure out how to use more of the material
Now that you are buying more material to get that price break, you have two options. One is that you just enjoy the freedom of not buying as many times throughout the year. The other option, and how you’ll use more material, is to shop the gasket material around for other applications. You might just shoot your usage through the roof, and then possibly get an even better discount!
3. Is there a less expensive material that will work
Unless a particular material is on the specification, there may be an alternate material that will still meet your requirements. This may drive some additional testing to qualify it, but in the long run, if there is an economy version or a similar material at a lower price point that works, you’re going to have one happy customer.
4. Ask what else can be done about the price
As a gasket materials supplier, we look for every opportunity to pass along savings to our customers. If you have a particular material that is a pain point for a particular customer, talk to your supplier. If we are aware of the issue, we can look for opportunities to do something about it. Every once in awhile, we can work with our suppliers to explore volume and pricing issues that may help you in the long run. You don’t know if you don’t ask.
The Bottom Line
Price can be a difficult issue to work through. By fostering a strong relationship with your suppliers, you’ll be able to have these conversations. A good supplier recognizes when they have a strong relationship with their customer, and does everything they can to make the partnership as successful as possible. Sometimes a straight price reduction isn’t possible, but there are ways to purchase a gasket material that meets your requirements at a better price than what you are currently paying.
Metal Tech has passed savings along to customers twice this year – one with the restructuring of a coil discount that helps more of our customers save money, and the other was a price decrease that we were able to make after working with one of our suppliers to reduce costs. We are always working for you!