Big Player Enters CBS Building Supplies Tent
Talk about a marquee signing – Combined Building
Supplies Co-Operative (CBS) has a deal with PlaceMakers and
its “tent is now full” when it comes to partnerships
with national general building merchandise suppliers.
The old and the new, the big player PlaceMakers and the fast-growing newcomer CBS, have agreed to work together in the residential construction industry.
CBS’ nationwide deal with PlaceMakers, gives the co-op formed in April 2018 a second general building merchandise supplier, alongside Bunnings.
CBS chairman Carl Taylor said the PlaceMakers deal would add to the sustainability of the residential housing industry. Most of the co-op’s members are small to mid-sized firms.
Access to a wider range of building industry suppliers gives CBS more buying power. In return for a one-off membership share subscription of $1000 (to become a shareholder in CBS), co-op members get access to trade prices which are usually available only to larger, group home build firms.
The more co-op members spend with CBS suppliers, the more they receive back in an end-of-year rebate.
The co-op has nearly 250 members and wants 1000 by the end of the year. Nailing a nationwide deal with Placemakers would help no end, Taylor said.
“We’re growing nicely; this will allow us to turbo charge.
Taylor said the agreement tied a loop for the co-op, as it had always aimed to have two suppliers in the general building merchandise supplier category. “We’ve always stated our aim for two suppliers in our long-term objectives, right from when we wrote the marketing plan. Shareholders want choice – you can’t be a one-trick pony so for current and potential shareholders. Having both Bunnings and PlaceMakers is like having the dream team.”
The co-op would not seek any more general merchandise suppliers. “We want no more general merchandise suppliers, our tent is now full,” Taylor said.
A co-op member, Home Trends director Peter de Gouw, said the partnership with the PlaceMakers brand and its auxiliary suppliers was a keystone addition to the CBS arsenal.
“The PlaceMakers offer that has been negotiated means substantially more value to our members, myself included, from anything that we have been able to achieve individually. This means material costs will be improved in line with the big players in the game, resulting in our business either being more competitive or improving margins, he said.
Big items and bulk purchases will still be on a ‘quoted basis’ through CBS’ assigned Placemakers reps and will also reflect true pricing competitiveness. “I fully support this exciting opportunity and in turn look forward to that end of year rebate,” he said.
PlaceMakers GM National Sales & Manufacturing, Blake Bibbie, said: “As New Zealand’s largest and leading building trade merchant, PlaceMakers is delighted to have partnered with CBS Co-operative to supply and support their trade members with our value offer, expertise and service. All of which we measure and report on to enable us to provide the best customer experience.”