why fastenal, why!

[toolstools]

Why is fastenal so expensive? I now company's have accounts set up with them, but why the Mark up? Example-i was looking for ratchet wrenches a few weeks ago. Priced gearwrench for 50 bucks for a 7 piece set at TSC. went to fastenal, EXACT same set and packaging, 130, ON SALE. Normally 150.THREE times TSC or anyone else for that fact. Why!?!

 

[tjmonsen5]

the tool trucks are the same way. i believe its for convenience more than anything. Ease of warranty and service. They price gearwrench double what sears does.

 

[03protege]

With Fastanall and Grainger, who have large corporations solely using them to acquire their tools, they will charge the max amount simply because large enough companies will pay that price. If a large company needs 20 sets of Gearwrench they are not going to send an employee to 4 different TSC to collect all the needed sets, they will just place one order and have prompt delivery to their business.

 

[firebox40dash5]

With Fastanall and Grainger, who have large corporations solely using them to acquire their tools, they will charge the max amount simply because large enough companies will pay that price. If a large company needs 20 sets of Gearwrench they are not going to send an employee to 4 different TSC to collect all the needed sets, they will just place one order and have prompt delivery to their business.

Yep, and I don't think they care much if they (Fastenal anyway, not Grainger) ever sell one tool from the store itself. I know the one I used to frequent, the clearance stuff was STILL more than the local hardware store for most stuff. I'm not even comparing them to a big box, that's a local place that charges close to retail.

They make up for it on hardware, though. I love me some nice, cheap(ish) Fastenal hardware, when I need more than a little.

 

[elevator joe]

Do you suppose the big companies get kick backs after they buy x- amount of product ?.

 

[byoungblood]

Having ordered through a corporate Grainger account before, the prices most businesses get are usually 25-30% off their retail.

When I've walked up to the counter at the one in Memphis, I've never paid their full retail without even having to ask. Sometimes it just depends on who you are dealing with.

 

[benny42]

Do you suppose the big companies get kick backs after they buy x- amount of product ?.

Yes, some big accounts do. Walgreens facilities management pays the catalog price on a national account on the local level and gets a rebate at the corporate level. The stores pay, and corporate gets the kick-back.

 

[fivespdcat]

Do you suppose the big companies get kick backs after they buy x- amount of product ?.

Not really a kick back, but at both Fastenal and Grainger you have a built in discount depending on what company you are and how much you buy. Lt me just say that our Fastenal discount is significant.

 

[tater]

Having ordered through a corporate Grainger account before, the prices most businesses get are usually 25-30% off their retail.

When I've walked up to the counter at the one in Memphis, I've never paid their full retail without even having to ask. Sometimes it just depends on who you are dealing with.

You from memphis? I always wanted to go to grainger and see what all they had

 

[neophyte]

Fastenal's main business is supplying fasteners, and doing inventory management, not supplying tools. The tools are there for convenience for some manager or inventory clerk in charge of buying fasteners and consumables. Some of these managers don't want to deal with the hassles of ordering from multiple retailers if they don't have to. Others probably rightly or wrongly believe that their time is more valuable than the difference in cost. I did see a comment on another board from someone who said they were once a manager at Fastenal that the corporate headquarters required individual stores to make 50% profit on the total gross of sales per location. Most tool sellers seem charge far less than that if selling at average street price.

 

[volaredon]

yeah fastenal seems to be doing their share of ******* me off lately too

 

[joe_padavano]

The reality is that companies like Fastenal, Grainger, MSC, McMaster Carr, et al, primarily serve commercial entities where total price matters. Total price includes not only the cost of the items but the cost of the labor to find them. Doesn't pay to save a few bucks on a tool if you have to pay an employee $20 to search for the lower price plus mileage to go and buy them. The other reality is that commercial companies either pass these costs on to their customers or if the tools are capital equipment the IRS let's you depreciate the cost. Again, there's no benefit to hunting down a lower price if it takes time.

 

[bgarrett]

One reason that Fastenal and Granger charge high prices to very large corporations is because of all the paperwork and the time it takes to get paid. It usually takes months to get paid and thats when everything works right. We often had to do all the paperwork a second time because it got 'lost'. If you had to wait for months to get paid, you would want full price too.