Supply House Times logo Supply House Times
search
cart
facebook instagram twitter linkedin youtube
  • Sign In
  • Create Account
  • Sign Out
  • My Account
Supply House Times logo Supply House Times
  • NEWS
    • ASA NEWS
    • Company News
  • PRODUCTS
    • Interactive Spotlights
  • COLUMNS
    • Natalie Forster: From the Editor
    • Alicia Branham: Marketing Matters
    • Brad Williams: Succession Planning
    • Melissa Rasico: Luxury Plumbing Lounge
    • Letter from ASA President
    • Guest Columnists
    • Safety Columnists
  • MARKETS
    • Codes & Legislation
    • Heating & Cooling
    • Industrial PVF
    • Plumbing
    • Radiant & Hydronics
    • Solar Thermal | Geothermal
    • Technology
    • Women in Industry
  • BATH & KITCHEN PRO
    • Bath & Kitchen News
    • Bath & Kitchen Products
  • SPECIAL EDITIONS
    • B.I.G. Book Directory
    • Premier 150
    • Rep Locator Directory
  • MEDIA
    • Podcasts
    • Videos
    • eBooks
    • Webinars
  • RESOURCES
    • Radiant Comfort Report
    • Industry Calendar
    • Industry Links
    • Custom Content & Marketing Services
    • Market Research
    • Supply House Times Store
  • EMAG
    • EMAGAZINE
    • ARCHIVE ISSUES
    • CONTACT
    • ADVERTISE
  • SIGN UP!
Columnists

Editorial: Why Contractors Buy The Way They Do

By Jim Olsztynski
July 1, 2004
Wholesalers have more influence on their purchases than commonly thought.



Contractors are buying from fewer wholesalers than they did in the early 1990s. The simplest explanation is there are fewer wholesalers around due to consolidation, although it may also be that contractors have figured out the same thing many wholesalers have in recent years. That is, while it's good to open lines of credit with multiple companies for the sake of special orders, and in case a major supplier relationship turns sour, you get better bang for the buck consolidating purchases.

PM magazine's “National Profile of Purchasing Trends in the Plumbing Industry” study completed late last year found that only 4% of plumbing and mechanical contractors typically purchased from a single wholesaler in a month's time. That's about the same as the 3% who answered the same way to a similar study performed by PM in 1992. But from there the results diverge significantly.

Some 56% in the latest survey said they bought from two or three wholesalers, compared with only 36% in 1992. In 1992, 40% of respondents said they patronized four to six wholesalers, compared with only 30% in last year's survey. Those who said they bought from more than six supply houses in a month's time dropped from 21% in 1992 to 10% in 2003. Clearly, wanderlust is on the wane.

That which remains is driven mainly by “Product Availability,“ listed by 89% of respondents as a reason for patronizing multiple supply houses. It's a sign that most contractors are quite fussy about their favorite brands.

And yet, responses to another survey question give lie to the notion that wholesalers are mere order takers at the mercy of contractor preferences. Our research department (PM is published by the same company as SUPPLY HOUSE TIMES) asked contractors: “How often is your brand selection influenced by wholesalers who offer special services …?”

Only 8% said “Never.” “Sometimes” was the answer given by 48% of respondents, 39% said “Often” and 5% said they were “Always” influenced in their brand selection by the wholesaler. (I bet every wholesaler reading this wonders who these star-struck patrons might be!)

The second most commonly cited reason for patronizing any given wholesaler was “Location” (74%). I suspect it was mostly service contractors responding this way. It stands to reason they aren't going to drive across town to pick up some item needed for an emergency repair. This also explains in part why precisely half of our survey respondents said they made some plumbing purchases from home centers. Much has been made of the big boxes' push for contractor business, but it appears that few plumbing contractors use them for more than fill-in items.

A most telling reason is revealed by two similar questions asked in the PM survey: “How often do wholesalers have the product you need in stock?” - and the same question repeated with “home centers” substituted for “wholesalers.” The responses:

-- “Always” - Wholesalers, 7%; Home Centers, 2%.

-- “Often” - Wholesalers, 84%; Home Centers, 43%.

-- “Sometimes” - Wholesalers, 9%; Home Centers, 47%.

-- “Never” - Wholesalers, 0%; Home Centers, 8%.

So there you have it. In the most important category of “Product Availability,” contractors rate PHCP wholesalers miles ahead of the big box competition.

Nor do the big boxes come close to competing with wholesalers in brand influence. When asked, “How often is your brand selection influenced by home centers that offer special services?”, a whopping two-thirds of contractors answered “Never.” Remember, only 8% said that about wholesalers. Only 7% said their brand selection was “Often” influenced by home centers, compared with 39% who said that about wholesalers.

Ah, but what of that supposedly all-important category of “Price”?

Some 64% of survey respondents cited it as a reason for doing business with a given supply house. Yet, only 47% of contractors cited it as a reason to do business at a home center.

There is, however, one category in which the big boxes outshine PHCP wholesalers. Ranking fourth in response to the question of why contractors purchase from home centers was an “Other” category. The most commonly cited open-ended explanation in that category was “Hours of operation.” More than 11% of respondents to this inquiry took the trouble to write in that they purchased from home centers due to extended hours of operation, i.e., open nights and weekends.

The full 59-page study, “National Profile of Purchasing Trends in the Plumbing Industry,” can be purchased for $295. Go to our Web site, www.supplyht.com, and click on the link titled “Exclusive Industry Research.”

Share This Story

Looking for a reprint of this article?
From high-res PDFs to custom plaques, order your copy today!

Jim is the former editor of Supply House Times.

Recommended Content

JOIN TODAY
to unlock your recommendations.

Already have an account? Sign In

  • Stock financial index show successful investment on property business and construction industry with graph and chart for presentation and report background.

    2025 predictions: Twelve trends supply houses should know

    As 2024 ends, I’ll review last year’s predictions and...
    Plumbing
    By: Brad Williams
  • Background of aerial view of Industrial container port part of shipping in nighttime with a blue overlay.

    2025 Next Gen ALL-STARS: Top 20 Under 40 PHCP-PVF Professionals

    The future of the PHCP-PVF industry is being shaped by a...
    Market Sectors
    By: Natalie Forster
  • Premier 150: The top PHCP-PVF Distributors of 2026

    Premier 150: The Top PHCP-PVF Distributors of 2026

    Combined revenue across this year’s Premier 150 once...
    Plumbing
    By: Natalie Forster
Manage My Account
  • eMagazine
  • Newsletters
  • Manage My Preferences
  • Online Registration
  • Subscription Customer Service

More Videos

Popular Stories

Rob Micklus, Chris DellaSala, John McKeown and Bob DellaSala

2026 Manufacturers Rep of the Year: Keystone Sales & Associates

Price Increase Image

PHCP-PVF Price Increases: June 2026

Best Sales Rep Just Retired

Your Best Sales Rep Just Retired. Now What?

2026 Premier Rankings

Events

December 30, 2030

Webinar Sponsorship Information

For webinar sponsorship information, visit www.bnpevents.com/webinars or email webinars@bnpmedia.com.

View All Submit An Event

Poll

Identifying Daily Time Loss Areas for Your Team

Where does your team lose the most time each day?
View Results Poll Archive

Products

The Water Came To A Stop

The Water Came To A Stop

See More Products

Download the FREE 2025 Water Conservation, Quality & Safety eBook

Download the Fifth annual Bath & Kitchen Pro eBook

Related Articles

  • Editorial...Why The "Middleman" Hangs Around

    See More
  • EDITORIAL: Why Two Covers?

    See More
  • Olsztynski Editorial: A New Way Of Doing Business

    See More
×

Stay in the know on the latest PHCP-PVF industry trends.

Get tailored content delivered your way.

JOIN TODAY!
  • RESOURCES
    • Advertise
    • Contact Us
    • Directories
    • Store
    • Want More
    • Plumbing & Mechanical
  • SIGN UP TODAY
    • Create Account
    • eMagazine
    • Newsletter
    • Customer Service
    • Manage Preferences
  • SERVICES
    • Marketing Services
    • Reprints
    • Market Research
    • List Rental
    • Survey/Respondent Access
  • STAY CONNECTED
    • LinkedIn
    • Facebook
    • Instagram
    • YouTube
    • X (Twitter)
  • PRIVACY
    • PRIVACY POLICY
    • TERMS & CONDITIONS
    • DO NOT SELL MY PERSONAL INFORMATION
    • PRIVACY REQUEST
    • ACCESSIBILITY

Copyright ©2026. All Rights Reserved BNP Media, Inc. and BNP Media II, LLC.

Design, CMS, Hosting & Web Development :: ePublishing