by Diana L. Martin
Everybody knows that the big box office supply stores offer better pricing and better deals than an independent dealer, right? I’m not telling you something you don’t already know. Independent dealers are usually small, family owned businesses that simply can’t compete with the major chain stores and they have a small, local client base.
Wait…………..what?
This is a common misconception and it couldn’t be further from the truth. In today’s article, I’d like to examine the Top Three Myths About Office Supplies and help you make smart buying decisions by clearing up some of these incorrect ideas.
Myth #1
Big box buying power is definitely one of the top three myths. Customers believe that the big chain stores buy products for a considerably cheaper price due to their size and that they can sell for cheaper prices as a result. The truth is that independent dealers belong to large buying associations that allow them to purchase goods at the same price that the big box stores pay and buy direct from the manufacturers just like the big box dealers do. Independent dealers match or beat the pricing of the big box dealers every day - and may offer more personal services and perks that aren’t available at the chain stores. And they can ship all over the country, to all your locations, just like the big box dealers can.
Here’s one example. (Lest I draw the ire of the big box stores, I have photo evidence of my claim.) The screen shots below were taken on Sunday, September 20, 2020 and the item is Pres-a-ply labels, # 30600. Look carefully at the pricing.
OEX Office Express $ 7.99
Staples $15.73
Office Depot $18.19
No, OEX’s price is not missing a digit. Our price is half the price of Staples and a little more than half of Office Depot/Office Max. We couldn’t do that if we had a higher cost of goods than the big box stores.
Myth #2
Sending my employee to Costco, Sam’s Club, Staples and Office Depot/Office Max to pick up the best deals at each location saves my company money.
I’ve discussed this in previous blogs and I have to step up on my soapbox again because I haven’t convinced some of you yet.
Time is money people! You have to pay your employee to go to all those stores. Multiply that employee’s hourly wage by the amount of time they spend on that trip and add that money to your purchase order because that is part of your cost of goods. Employees don’t work for free. Do that calculation for each trip you send them on. Now do the same for the receiving clerks, the inventory clerks, the receptionist, you, the accounting clerk and anybody else that is involved in this purchase.
You may say “Well, the vendors will deliver it for free, so there’s no extra cost.”
WRONG AGAIN.
If it’s delivered, somebody still has to receive it and check it in. Somebody has to put it away. Somebody has to verify the invoice against the confirmation and somebody has to pay the bill. Somebody has to do that for each and every order you place with each and every vendor. Your company has to pay all those somebodies.
Now listen carefully. No supplier will be the lowest price on every item you want to buy. Period.
When you make all your purchases with a single supplier in a category, that supplier is more likely to give you better pricing than they would give to someone who cherry picks them. The more volume you give, the better perks you get. You’ll have leverage to ask for special deals, like a volume discount for a large purchase or early morning delivery in an urgent situation. You’ll have an account manager assigned to you who will get to know you and be there to help and give you recommendations to improve your bottom line. And with a single-source delivery, you don’t have the additional trip costs - it’s one delivery, one check-in and one invoice.
Myth #3
Using generic or remanufactured toners in my printer will void my warranty.
This is a good one. It’s been around for a long time and I still hear it from our customers frequently. Again, it couldn’t be further from the truth.
The Magnuson-Moss Warranty Improvement Act from 1975 states:
“(c) Prohibition on conditions for written or implied warranty; waiver by Commission
No warrantor of a consumer product may condition his written or implied warranty of such product on the consumer's using, in connection with such product, any article or service (other than article or service provided without charge under the terms of the warranty) which is identified by brand, trade, or corporate name; except that the prohibition of this subsection may be waived by the Commission if—
(1) the warrantor satisfies the Commission that the warranted product will function properly only if the article or service so identified is used in connection with the warranted product, and
(2) the Commission finds that such a waiver is in the public interest.”
(Source: http://uscode.house.gov)
1975 - that’s when this protection was enacted and printer manufacturers are still, 45 years later, trying to bully you and scam you. Very simply, that paragraph says it is ILLEGAL for any printer manufacturer to void their warranty because you used a brand of toner or ink other than theirs in their printer. Compatible and remanufactured toners and inks can save you and your company a lot of money. You are free to use them at any time.
We’re here to help. If you have a burning question that you would like answered, let us know! We’re happy to answer any questions you have.