Why ‘Cheap’ May Cost You More

Choosing your suppliers based on price could be costing you more in the long run, argues Sternfenster’s Sales and Marketing Director Nathan Court. We talk to him to find out why.

Price, says Nathan Court, Sternfenster’s Sales and Marketing Director, is key when choosing your supplier, because it is the first step to quoting competitively and building in a worthwhile margin.

But to ignore all other important elements of supply could cost more in the long run, thanks to loss of reputation and missed opportunities.

“Agreeing acceptable pricing and terms is an important first step,” Nathan says. “Getting the pricing structure right, factoring in any discounts for volume and establishing fair payment terms should form part of the basis of the relationship you have with your supplier. But it shouldn’t be the only defining factor of your relationship.”

“Every supplier has its own range of products and services, and they are all going to benefit your business in different ways. Bear in mind that one supplier may be the cheapest because they offer no other support, or they are at risk of going out of business, which is clearly not in your favour.”

Nathan said a recent insolvency report found that more than 200 companies a month on average have exited the industry this year alone.

Meanwhile, the family business Sternfenster has a sound financial footing and ploughs profits back into the business rather than paying dividends to private investors.

“And making sure the product range is designed for your target customer base is an important consideration,” he says, “as is the reputation of that supplier and the systems they use.”

“At Sternfenster, we know that as a supplier of doors and windows, there is much more we can offer in terms of sales support and customer service. As part of our 50-year celebrations this year, we’ve spent a lot of time talking to customers, finding out what they most appreciate in a supplier, and one of the things that is repeated time and again is ‘being easy to do business with’.”

Launched this month [October 2024] is the latest version of the trade fabricator’s EasyAdmin system. Now called EasyAdmin+, customers can place an order online, which will automatically be programmed into Sternfenster’s manufacturing software and ready for production without having to re-enter data, or re-confirm details.

“Even at its most basic level, EasyAdmin+ puts our customers in control of their product ordering and supply,” Nathan says. “This is alongside other features such as managing the lead process, chasing outstanding quotes, and easily arranging surveys, installations and service calls.” “This immediately makes our customers more efficient and helps them to create new opportunities. It is definitely a case of working smarter, not harder.”

“Our new revamped online-based quoting package is linked directly to our customers’ data and price book. This not only make quoting more professional and quicker, but the chances of errors are vastly reduced. Plus, customers have full oversight of their profit and loss, so there is no chance of underquoting for work and losing margin.” 

Sternfenster has also been working on the next phase of its ‘Easy Sales’, which promises a true step change in fenestration selling software, Nathan says.

“We are really excited to be bringing this to market early next year. These are exciting times, so watch this space.”

Nathan points out that EasyAdmin+ – while helping to create a complete end-to-end digital journey from lead and quote through to delivery and installation – is very much a support function and doesn’t replace the investment the company has made in other areas of the business.

“Sternfenster is currently working towards our Platinum Investors in People award, and all our colleagues are laser-focused on providing industry-leading customer service and support,” he says. “As a result, we are currently recording complete on-time and in full (COTIF) deliveries of 96+%.”

“And it’s worth remembering that we offer a five-day lead time on many of our most popular products.”

Nathan concedes that winning work in a difficult trading environment requires a close eye on cost, but this only forms part of a business’s opportunity for profit.

“It’s not in our interest to go toe-to-toe with fabricators selling on price alone, and contributing to that race to the bottom,” Nathan says. “We would prefer to maintain healthy profit margins that we can invest in our support infrastructure, and be that supplier who is easy to do business with.”

For more information, visit www.sternfenster.com, email sales@sternfenster.co.uk, or call 01522 512525. Alternatively, join the conversation on LinkedIn.