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ForumForumDiscussionsDiscussionsSyndicate Opera...Syndicate Opera...Level of discounts obtained recentlyLevel of discounts obtained recently
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 12/10/2011 19:04
 

The Dunham Oil Syndicate has been going for 4 years and with 400 members each quarterly order is around 170 drops/130,000 litres. Typically I have saved 5-8p per litre over an individual ordering 500 litres on the same day. However, orders placed in June and September showed savings of only 3p and 2.5p. I feel that suppliers are trying to discourage syndicates- a lot of work for us but with scant reward for the members. In Norfolk there are a decreasing number of suppliers with several 'companies' actually all part of one larger one which further narrows negotiation.

I would be interested in hearing experiences of others on this matter.

Sheila

s.hussey55@btinternet.com

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 29/10/2011 14:07
 

Hello Sheila,

It is an interesting point you raise and I think that this will be the way forward from now if my theory is correct.

Of late I have been obtaining very good deals from Total Butler (TB) which no other supplier could come close to as I believe TB were just looking for volume over profit as they were being taken over by DCC Energy from Ron Tec.

All subject to contract, etc., TB are now looking at their profit margin; therefore the playing field is once again levelled such that all suppliers have a better chance in winning our business.

The actual savings will fluctuate depending on several factors at the time; do they want the business?; does the supplier already have stock purchased at a higher price that they must sell at an equally high price to ensure their profit margin?

I am in the process of trying to get more syndicates involved with sharing their knowledge and this Forum that Richard has set up is great but under used I feel. Perhaps this can change...

Kind regards

Steve (Merton Oil Buying Group)

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 31/10/2011 23:29
 

I agree with Sheila that discounts seem to be harder to achieve at the moment. I did notice some while ago that discounts seemed to get harder in a period of rapid oil price rises. I did wonder if the suppliers were already squeezing their margins at such a time.

I allowed my summer order to build to 270,000 litres. On balance I think the suppliers found it too big to swallow and I didn't feel we got a great discount. More recently I split a large order over four consecutive days. That worked reasonably. The four went to three different suppliers, I worked harder on the negotiation and we achieved a better discount than in the summer. I think the sweet spot for order size is about 50,000 to 100,000 litres.


Cheers,

Richard
Agile software mentor, trainer, and developer; part time Oil Syndicate manager!
www.dynamisys.co.uk
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