"Discount club" for buying steel

[bigegg]

I remember someone discussed this a fair while ago, and it sort of died a death due to transport issues, but I think I may have a way around it.

After my very recent toe-dip into the world of quoting for a welding job, and seeing the disparity between "one-off" prices and account prices at stockholders - £22 down to a potential £3 for a 6m length of 8mm round bar!
I'm wondering whether or not a countrywide(or even county-wide) buying club might work - sort of on the same lines as costco, or a working men's club.
Basically, pay a membership fee, then the club buys in bulk the most common sizes of stock - say 1in, 2in angle, 1in and 2in square box, 1/2in square and round solid.
Members would then buy from the club at cost+small markup (to cover overheads) + delivery or collection.

Affiliated clubs could be set up around the country, cutting delivery costs, but each benefitting from a bulk discount.

What do you think?

 

[Welderpaul]

Can't see that working TBH. Surely you would need yards, handling equipment, wagons, people to co-ordinate etc...you are basically setting up a nationwide stockholder? A few quid to set that up.

Problem is, the lone man doesn't have the bargaining power a company does. Suppliers capitalise on this and charge stupid prices because they know all the other stockholders will. Companies buy a lot of steel and the tables are turned - the stockholders want the work off them and will fight for it. I'm looking at some prices here for 21T of beam and column - I know for a fact some who have priced are making almost nothing. Why bother?

Time is my big problem, or a lack of it, but I could buy the steel (talking about an artic load minimum) and sell it to 'someone' as stock, getting my heavily discounted rates. It can sit somewhere for people to buy bits at a discounted rate.
Dunno? Who wants to stump up that sort of cash though for stock just sitting there getting rusty.
I wouldn't want anything to do with the steel, just make a phone call to arrange delivery, and take a small %. Big savings to be had over 'the man off the street' prices, but a lot of steel to get through, especially if it is small stuff.

 

[cumbriasteve]

It would probably work to some effect in an area populated well with users of small quantity of steel, of course someone has to be prepared to give floor space to a stock of steel and be available for deliveries cutting and collections etc etc

Would not be of much interest where I live, we have a good supplier and I have no problem with prices even though I buy small amounts, my prices reflect the £3 a length you mention for round bar.

 

[Shox Dr]

You'd be better off (trying) to convince a supplier to open up a proforma account that "members" use to buy from.

No stock, No overheads. For the stockholder everyone in the "club" uses them and not the competition

 

[Lawnmowerboy]

Someone like IMS that has lots of branches would be good and work the same way as the volkszone deal still a massive company and the volkszone deal being a tiny percentage of their annual turnover but they are still prepared to do it.

 

[chunkolini]

Jut buy it from a big stockholder.
I was using Dyfedd steel when I was still full time in my old job. I bet I was paying more than TigPaul, but way less than from the supplier in town.
I was amazed that they would supply little old me.

 

[TechnicAl]

Couldnt you "invite" a steel stockholder to become a "member" in a sort of weldequip sort of way

I only know locals for mild steel but I know one for specials like Titanium and fancy Nickel Alloys.....that I suspect no-one on here wants

 

[Shox Dr]

Couldnt you "invite" a steel stockholder to become a "member" in a sort of weldequip sort of way

I only know locals for mild steel but I know one for specials like Titanium and fancy Nickel Alloys.....that I suspect no-one on here wants

Apart from the fact Weldquip don't offer any sort of member discount. Why that is, frankly baffles me!?

 

[lshigham]

Jut buy it from a big stockholder.
I was using Dyfedd steel when I was still full time in my old job. I bet I was paying more than TigPaul, but way less than from the supplier in town.
I was amazed that they would supply little old me.

Underwoods always have been robbing sods though!

 

[AndyStobbs]

I recently paid £55 for 2m of 100x10 304 stainless flat bar. Plus Vat. I had a quick look on the net at prices and had to phone back to make sure the quote was correct as it was half as much as online.
Does that sound a good price?

 

[madkayaker]

not sure if thats a good price as i have never got any however my local supplier always seams to be 50% of online metal shops.

 

[chunkolini]

Occasionally Underwoods have ok'ish prices, but are useful if somebody I know is in town.

 

[dannyp]

underwoods priceing is a joke, on the upside dyfedd rock up a couple of times a week ?

iirc underwoods now charge £60 to deliver gas as well :O

 

[Wedg1e]

Can't see that working TBH. Surely you would need yards, handling equipment, wagons, people to co-ordinate etc...you are basically setting up a nationwide stockholder? A few quid to set that up.

Problem is, the lone man doesn't have the bargaining power a company does. Suppliers capitalise on this and charge stupid prices because they know all the other stockholders will. Companies buy a lot of steel and the tables are turned - the stockholders want the work off them and will fight for it. I'm looking at some prices here for 21T of beam and column - I know for a fact some who have priced are making almost nothing. Why bother?

Time is my big problem, or a lack of it, but I could buy the steel (talking about an artic load minimum) and sell it to 'someone' as stock, getting my heavily discounted rates. It can sit somewhere for people to buy bits at a discounted rate.
Dunno? Who wants to stump up that sort of cash though for stock just sitting there getting rusty.
I wouldn't want anything to do with the steel, just make a phone call to arrange delivery, and take a small %. Big savings to be had over 'the man off the street' prices, but a lot of steel to get through, especially if it is small stuff.

I've often thought it'd be great if fabricators like yourself were approachable by the hobbyists, so that they/we/I could get small quantities/ offcuts etc. but am always put off asking as you assume that it'll turn into "Oh yeah, that's 4.275 square inches of M/S at £8657654 a tonne.... that'll be a thousand quid with the invoicing charge. Plus VAT" scenario... our local profile cutters have a skipload of lovely offcuts but (a) you can't go rummaging 'for H&S reasons' and (b) their pricing is not just 'a couple of quid in the tea fund' but properly costed and invoiced as described above.
I appreciate that a skipload of rusting M/S is still valuable, by the way

 

[Hitch]

I have said it plenty of times before... find a fairly small local fabrication firm, drop in now and then for a few offcuts, once they get to know you, chances are they will happily get a few lengths tagged onto their next delivery for you if they havn't got it in stock.
Okay, they will add their markup, but still probably less than Joe Public dropping into the likes of ASD for a length of 20mm box..... you probably won't get further than the office door, you cant cut it yourself in the yard, and they have a minimum charge, plus price per cut will probably be £5.
The kit that places like that have at their disposal costs a lot of money, if its cutting a bit of 20mm box into 3 so matey can fit it in his car, they arn't churning out 5t bundles of 150 box and columns for Mr Welderpaul...their markup is mostly done by weight, so the 'weight:time:effort' ratios are all wrong for making money out of one length of light box. There isn't any point doing it. Chances are the cutting will be more than the cost of the box section from larger stockholders.

We have a few people in now and then, sometimes if they are a bit indecisive, you can wander about with them looking at the racks for 15mins...
Eventually they decide to buy 200mm of 10mm rod and 300mm of 20x5 flat... actual material cost of about £1, but the 15 mins costs money, about £10 infact, so thats £11, for £1 of metal.
Now if someone came in and said, i need about 200mm of 10mm bar, and 300mm of 20x5 flat, pull out a metre long offcut of each, here you are, take the whole piece... thats likely to be a couple of quid in the coffee machine, its taken seconds. I appreciate not everywhere is like that though, hence the need to drop into a few for smaller bits.


For some of the newer members, you may/may not have seen this....http://www.mig-welding.co.uk/metal-suppliers.htm
Infact it could probably do with a few updates.

 

[dannyp]

as above.


we get quit a fe wpeople pop round for the odd random offcuts, it's not a bother as long as they know what they want and it's in sizes that actualy exist / get used