Yeah, just act all big and bad, 'my other distributor is selling it for xx less than you', and they'll reduce the price immediately. This won't work for long...
You don't have to act big and bad, just tell ask them if they can do better. It does help to have a comparable - maybe what you used to pay. And you don't have to use them, but I made the suggestion because some folks may not realize you can get better pricing if you ask.
You're definitely right. I just had lunch with a rep from another company, and he was astonished what grimco was doing. Like, one customer who doesn't buy but maybe $1k worth of matthews paint in a year, is getting all of his paint delivered at a 3 or 4% markup. There's no money in that to afford gas, but they'll push hard on their new customer base until they don't feel they need to.
I am not saying to buy from Grimco, for those just entering the conversation, but to know what is possible with them. They can be a good source sometimes. That said, this strategy of buying up smaller supply companies likely ends with jacking up prices to pay for it (so essentially your customers buy the businesses for you) and then larger profits from a combination of market share and higher margins.
Their buying power is just stupid...and the manufacturers who kneel down are going to eventually realize the tail is wagging the dog. If they wanted, and sometimes they actually do, they can sell product for cheaper than I can buy it. But good luck learning about new products from them. Their sales talent has really suffered as the good sales people who once worked for the good companies Grimco purchased don't last long.
Trimming out talented people saves money too... lol. Out our way a lot of dealers try to get rid of their older mechanics to reduce salaries. They weed out the talent and then car dealers want you to service with them as sales don't make enough money. Greed and no long term vision