Thread: Borg?
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RonB
 
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I have read a lot of grumbling about the giants coming in and running the
small lumber yards out of business. I don't see much evidence of that
happening in south central Kansas. What little hardwood they sell is well
above local hardwood dealers.



Even more telling is their dealing with contractors. I built one of the
first homes in a development that has since added about 80 houses. On the
very few occasions that I have seen a big-box delivery out here (I am home
during the day) they are dropping off appliances. The lumber and other
materials are being delivered by local lumber yards - many are from smaller
area towns.



When we built we decided to buy lighting from Lowe's because their prices
were much better than the local lighting houses. Our contractor was a
little hesitant because he didn't know much about their quality. We did the
legwork on getting his account set up, bought the lights ourselves, and he
ended up being very pleased with the quality we selected. BUT - getting him
a contractor's account with Lowe's was absolutely ridiculous. Their
contractor rep was one of the rudest people I have dealt with and he even
told a couple of outright lies. If they treat contractors the way they
treated us it is no wonder they don't deliver into developments. I still
own Lowe's stock but I deal with the locals or big orange more these days.



My son is a superintendent with a heavy construction company. They told
Lowe's to pound sand about a year ago because they were impossible to deal
with. Their payment terms and penalties do not fit most business cycles -
except theirs.



Bottom line - this should be good business for the smaller guys. You can
compete if you treat customers and contractors like customers.