--- title: Contractors Are You Sure You Are Working With The Right Vendors? description: Choosing the wrong building product vendors may cost you and your construction business lots of wasted time, money and valuable referrals image: https://www.shawnmccadden.com/hs-fs/file-43759628-jpg/images/supply_and_demand-wr.jpg --- [![the design builders blog](https://www.shawnmccadden.com/hs-fs/file-1968953853-jpg/images/ShawnMccadden-DBblog-header.jpg "the design builders blog")](https://www.shawnmccadden.com/) [![Subscribe to the Design/Builders Blog](https://no-cache.hubspot.com/cta/default/81069/62868785-47fb-4751-8ade-e9392edbbdd1.png)](https://cta-redirect.hubspot.com/cta/redirect/81069/62868785-47fb-4751-8ade-e9392edbbdd1) # The Design Builder's Blog ## [Contractors Are You Sure You Are Working With The Right Vendors?](https://www.shawnmccadden.com/the-design-builders-blog/bid/91259/Contractors-Are-You-Sure-You-Are-Working-With-The-Right-Vendors) Posted by [Shawn McCadden](https://www.shawnmccadden.com/the-design-builders-blog/author/shawn-mccadden) on Sun, May 19,2013 @ 11:02 AM - [Tweet](https://twitter.com/share) ## **The Marketplace is Improving; Are You Sure You Are Working With The Right Vendors?** **![Building product supply and demand](https://www.shawnmccadden.com/hs-fs/file-43759628-jpg/images/supply_and_demand-wr.jpg?width=259&height=172&name=supply_and_demand-wr.jpg)** **The marketplace seems to be picking up for contractors.**  Many are reporting increased leads and sales.  With increased demand for the products contractors need to build their projects **we will definitely see supply and demand challenges with local lumberyards**, the big boxes and specialty product vendors.  This supply and demand challenge is one of the reasons many in the construction industry are predicting as much as a **25% increase in cost on many building products**.  Although contractors need to be aware of these increases as they price their projects, I suggest they also need to make sure the **vendors and suppliers they purchase their materials and products from will be prepared for the increased demand.** If you are a **contractor who has been buying on price** from vendors who have been selling on low price to get your business, **you might want to think twice**.   If that vendor has a good business, low or no debt and is **using efficient business systems and technology to keep their costs low, you may be OK.**  But if your vendor has very high debt, has cut back on staffing, equipment and service, just so they could sell at low prices, their business **may not be prepared for a surge in sales as the economy improves.** ** ** ### **Choosing and keeping the right building product dealers for your business** **and your customers** **Here are some things to think about regarding the vendors you are currently using.**  This same list can also help you decide which vendor or vendors you should work with going forward:   ### **The risks of low price** **Selling on low price typically puts any business on a path to failure.**  Sure, it may seem to help things at first when money gets tight.  However, unless they can ramp up their businesses, and do so before the market place improves, they will be **forced to play a game of keep up and catch up as their customers’ needs and demands for products and service increases. **  Working with a low price vendor might seem attractive, but can you be confident they will have what you need when you needed it?   If they require a deposit on special order items, **are you confident they will still be in business** by the time you expect delivery of what you ordered?   What will your customers think of you and your business if their **project start date gets delayed and or the completion date gets extended** because you can’t get what you need from your vendors to **keep their project and your business on schedule?** ** ** ### **Summary** ![Low price LBM dealers](https://www.shawnmccadden.com/hs-fs/file-43762437-jpg/images/paying_low_price-wr1.jpg?width=180&height=120&name=paying_low_price-wr1.jpg)   Choosing the wrong vendors by saving a few bucks on materials may cost you and your construction business **lots of wasted time, money and the valuable referrals** your business has enjoyed from what used to be happy customers.  **I highly recommend you choose your vendors wisely!** ** ** ** ** Topics: [New Business Realities](https://www.shawnmccadden.com/the-design-builders-blog/topic/new-business-realities), [Working with Vendors](https://www.shawnmccadden.com/the-design-builders-blog/topic/working-with-vendors), [LBM Related Topics](https://www.shawnmccadden.com/the-design-builders-blog/topic/lbm-related-topics), [LBM Dealer Topics](https://www.shawnmccadden.com/the-design-builders-blog/topic/lbm-dealer-topics), [Business Growth](https://www.shawnmccadden.com/the-design-builders-blog/topic/business-growth), [Production 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