Why You Should Re-evaluate Your Supplier Agreements Each Year

Many tradies stick with the same suppliers for years out of habit or convenience. However, material costs fluctuate frequently, and your current supplier may no longer offer the most competitive pricing for your specific volume of work. Taking an hour every twelve months to compare your current rates against other local suppliers can lead to significant cost savings on your upcoming projects.

When auditing your agreements, look closely at your trade discount levels and credit terms. Sometimes a supplier will increase their baseline prices while keeping your 'discount' the same, effectively eating into your margins. Always ask for a price review and compare your invoices against standard market rates to ensure you aren't paying a premium for loyalty.

Consider the hidden costs of delivery and turnaround times when evaluating these relationships. A slightly higher price for materials might be worth it if the supplier offers reliable, on-site delivery that saves your team three hours of wasted travel time per week. Factor in these logistics to see if your current partnership is actually saving you money in the long run.

Finally, don't be afraid to leverage your annual project volume when talking to your account managers. If your business has grown significantly, you have more negotiating power to demand better payment terms or deeper discounts. Keeping these relationships professional but transactional ensures you remain profitable in a competitive market.