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.”