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The Independent Wholesaler Advantage | Price and Value

Kitchen, Bath, Plumbing and Heating Experts

The Independent Wholesaler Advantage | Price and Value

“Price is what you pay, value is what you get.” 

– Benjamin Graham

Price and value. Terms so ubiquitous they are often used synonymously.  It’s often said you pay for what you get. But what if you don’t really know what you’re getting?  Is price then a fair representation of value? I briefly touched on the topic of Big Box retail strategy when I mentioned they rely on price and product awareness.  Low prices from prominent brands like Delta, Moen, and Kohler entice the consumer to spend their money in their respective locations.  Massive buying power enables Big Box corporations to exert an undue amount of influence on the manufacturers to produce product specifically designed to meet a target price point; often well below the prices found at independent wholesalers.  So what exactly does this mean?

Mark Wagner of The Cabinet Shop explains:

Some time ago we did a product comparison between two seemly similar faucets made by Delta.  To the consumer, the most obvious difference was the dramatically cheaper price for the Big Box faucet.  But upon closer examination, you truly do get what you pay for.  The retail faucet’s construction quality was far below that of our wholesale equivalent; plastic in place of metal, valves that were designed to be unserviceable.

An argument can be made that a person might find this fair in light of the price disparity between the two competing models; maybe they don’t care about the quality and serviceability? That’s fine if the consumer decides their “value” is in saving money upfront. But as Mark Wagner explained in the video above, seeking warranty recourse with a retail location is next to impossible and usually requires completely replacing the entire faucet; not just replacing an easily serviceable part. This means the customer then has to pay a plumber to return to the house (at approx. $100 per hour) to replace the defective retail model.

The value the consumer derives from the less expensive purchase is more than offset when the inevitable repair comes along. Industry professionals like Mark Wagner understand the value in dealing with a company like Central Plumbing and Heating – superior quality and service. A company like Central Plumbing and Heating offers the product and support where customers, and professionals, can find true long-term value.

~ Mark Sennett