National Merchant Buying Society article in BDC

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SPECIALIST SUPPLIERS AND DISTRIBUT0RS: THE NMBS

MORE PURCHASING POWER The National Merchant Buying Society Ltd (NMBS) is a centralised buying society for independent builders, timber and hardware, plumbing and heating merchants

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MBS was formed in 1964 by a group of builders’ merchants in the north midlands. They joined together to form a small buying group to combine their purchases power, therefore get a better deal from the suppliers. The company started with about 16 members and since then this has grown to 65o members, with about 800 active accounts and two and a half thousand branches. The company is comprised of a central office and an external sales team, covering the UK. Regular communication is maintained with all NMBS members , who receive individual support and advice via phone. There are 3 sales people on the road all the time, 2 people in the office and 3 in the marketing team. Travelling round the country can be a very hard job and on a typical day 60 percent of the sales staffs’ time is taken up driving their cars. Visiting members is still an important part of the process, but since it is a National company there are a lot of miles to cover. With a need to become more efficient at contacting its members, the company has found new ways to keep intouch with its member ship. What people are looking at now is more regular contact and shorter conversations. To achieve this the company makes use of email and holds ‘Webinars‘ where customers meet with the NMBS through the internet. HELPING MEMBERS TO BE MORE COMPETITIVE The way the NMBS works, is that it does a deal with a known supplier, such as British Gypsum, this is a framework deal. A member will ring British Gypsum directly and state that it is an NMBS member and ask to place an order. The goods will then go to them direct, but the invoice will come to NMBS. At the end of the month NMBS will send the member an invoice along with a statement . The member will then pay NMBS and NMBS will pay the supplier and effectively get a bulk discount. So this is a method by which people can save a lot of money when wishing to purchase raw materials. What NMBS is doing is aggregating the purchasing

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power of lots of independent builder’s merchants and plumber’s merchants throughout the country, with the sole purpose of making this process competitive with the likes of Dewsons and other big companies. This is a similar situation to the corner shop versus the supermarket. NMBS improves the buying terms of its members so that they can become more competitive in the marketplace. EVERY MEMBER HAS EQUAL SHARES The company is owned by its members and every member has equal shares in NMBS, it is registered as a co-operative and any profit left after the overheads are covered goes back to the members. The main board of NMBS is made up of elected members, it has commodity committees where members that join on the buying committees to talk to suppliers and there are dedicated category managers who liase between members and suppliers to keep things running smoothly. The commodity commission acts as a steer for the NMBS in the case of which suppliers it should be talking to, gives advice on which product to select, whether the buying price is right and the kind of quantities to buy. They are at the coal- face, so to speak and feedback what they require and will sometimes become involved in negotiations. THE GREEN GUIDE The NMBS now has a Green Guide that goes out to all its members, that groups supply products into sustainable and renewable categories. Members can have an overprint of that green guide which goes out to their customers, explaining the what types of sustainable products are available. This is very important politically and when firms are doing any sort of build, customers will ask about the sustainable aspect of their work. The Green Guide has been developed to offer a showcase of environmentally friendly solutions for everyday construction needs. The members can make use of this when selling products to their customers, there is even an option to personalise the front cover.

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QUINN RADIATORS TRIUMPH WITH FORM AND FUNCTION FEATURE RADIATORS FIRST-CHOICE FOR DESIGN-SAVVY CONSUMERS WHILE a radiator is undoubtedly a functional device they have not traditionally been considered a design statement, or in many cases appealing to the eye. Not so with the current wave of Towel & Feature radiators from Quinn Radiators. The company has added a new and fresh twist to the industrial aesthetics of old school models with an eye-catching suite of products aimed at design-conscious consumers. Their contemporary presence makes them an interesting piece of furniture and a focal point for any room. When giving a room a makeover, consumers are now looking for functional products that ‘fit’ with their modern lifestyles and personal tastes. The cost of designer radiators has dropped considerably in recent years, making them a cost-effective alternative for

consumers to complete their home improvements in style in a shorter timeframe. “Continuous investment and research into radiator technologies will ensure that Quinn Radiators can continue to offer the market cutting edge designs and features. With the investment we have made in the latest technology at our manufacturing plant – the largest in the UK, we have the capacity to offer product from stock immediately or made to order within weeks,” says Danny Taylor, UK Sales Manager. Quinn’s signature Feature models include the Slieve and Adagio, both combining a cutting-edge contemporary look with unrivalled outputs. Superbly crafted and with a superior finish, these will stand out in any home. Other feature models include the Plaza – a beautifully

engineered tube on tube radiator, and the Forza – a high-performing Multi Column radiator which will complement both a traditional or contemporary finish. Towel models include the Pearl & Topaz, designed to put the finishing touches to any bathroom. These offer consumers the chance to opt for a stylish high-end bathroom radiator without having to compromise on quality or heat output. Within the Towel radiator range, select models can be fitted with an electrical element that allows consumers to use the radiator in the summer months when the central heating is switched off. In conclusion, according to Quinn Radiators, radiators can now be considered both a design statement and practical accessory taking pride of place in any room.

For more information on our Towel & Feature range, please visit www.quinn-radiators.com or telephone +44 (0)1633 657 271. You can also email us your queries at info@quinn-radiators.com.


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SPECIALIST SUPPLIERS AND DISTRIBUT0RS: THE NMBS

With supplies of natural resources dwindling there are constant reminders of the need to source alternative products, and ‘The Green Guide’ can help achieve this by exhibiting a collection of products from a range of suppliers. The sustainable ‘environmental’ goods sector is one of the fastest growing construction sectors in the UK. NMBS Marketing Communications Manager, Dean Hayward has said: ‘With many leading suppliers involved in the guide we feel that it should become a fundamental product listing for all of our members. It will enable them to join the ever growing environmentally friendly market of goods that is offered today and that is in ever increasing demand.’ THE GREEN DEAL The Energy Bill includes provision for a new “Green Deal” which will revolutionise the energy efficiency of British properties. Put simply, the Government is establishing a framework to enable private firms to offer consumers energy efficiency improvements to their homes, community spaces and businesses at no upfront cost, and recoup payments through a charge in instalments on the energy bill. The role of the Green Deal provider is to offer a Green Deal plan to customers, which enables them to finance work recommended by an accredited adviser and undertaken by an accredited installer. These functions might be done in-house by the provider, or shared amongst other organisations, but the customer’s contractual relationship is with provider. Under the Green Deal, bill payers will be able to get energy efficiency improvements without having to front up the cash. Instead, businesses will provide the capital, getting their money back via the energy bill. At the heart of the offer is a simple rule: estimated savings on bills will always equal or exceed the cost of the work. It’s a flexible framework, one that gives businesses and consumers the opportunity to make the energy efficiency improvements that best suit their situation.

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NMBS is looking to put a response forward to the Green Deal. This is intended to be an umbrella response, where the merchant can actually help sort out how the installers and the end user can get involved in what could be a very lucrative market. The Green Deal is a new government initiative designed to facilitate the retro-fitting of energy saving measures to millions of homes across the UK. The scheme is expected to trigger around £7bn of private sector investment, creating up to 250,000 jobs. It is designed to make the decision to install energy efficiency measures, an easy matter for all households across the UK. Private companies will be drafted in to finance the up-front cost of the installation and will recoup their cost through the savings made by the resulting reduction in household energy bills. A proportion of that saving will also be passed on to the house holder.

The finance of this work will be tied to the energy meter rather than the house holder, meaning that credit ratings will not be an issue when it comes to qualifying. The legislation required to allow this repayment method is expected to be put through with the Energy Security and Green Economy Bill, later this year and the Green Deal initiative to be made available in 2012. Any householder involved will have an energy assessment on their house and this will probably be done by those people who used to do the ‘HIPS’ packs. So their new role will be to do these energy assessments. Once the assessment is done, they go back to the householder and say: ’Look if you insulate your roof and your wall cavities then it will save you X amount. If you spend £200 it will save you £300.’ The householder will be presented with a long list of energy saving strategies for the house from

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SPECIALIST SUPPLIERS AND DISTRIBUT0RS: THE NMBS

which he may choose. After this, finance and the cost of the install, plus materials, will be calculated. The householder will then have to hire an accredited installer and materials will need to be sourced from a builders merchant. In theory the loan can be paid back through savings on the utility bills. The loan sits on the house and as such, will be passed onto the next occupant. The NMBS is trying to make sure that people, such as the independent plumber can actually get involved in this market, so that he does not loose out. The large energy companies will be putting together supply and fit packages together and there is a danger, that only the big installers will get involved in the Green Deal. This is a market that many independent contractors and merchants could miss out on. THE ISLE OF INDEPENDENCE NMBS only have independent members. The company wants to raise the profile of independents within the industry, because over the last 5 to 10 years the national have increased their market share to about 70 percent. The NMBS still feels that there is still a strong place for the independents because most builders and plumbers buy dependent on location, they do like good service, personal service and the ability to talk to the boss. He is usually an owner /manager that is very responsive in sourcing products and meeting special requests. Having lived in the local community for a long time, he is knowledgeable on the local community and stocks what the community needs. Ex-plumbers and builders will often come and work for an independent in their latter years and form a very service for the customer. An independent is not answerable to he city and can invest in a broader and deeper stock range than some of the nationals. It is happy to invest in that stock and does not have any external pressures. A big company will be constantly trying to rationalise stock levels because of the scale it is working on. There is no reason why an independent cannot

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PROPERTY & ESTATES: KNIGHT FRANK

SUPERGLASS UNVEILS NEW SALES TEAM AT A TIME when many other insulation manufacturers are pulling in their horns, the UK’s leading independent is sharpening theirs. Michael Beard, Sales and Marketing Director of Superglass Insulation Ltd, has announced a major expansion to his sales force that will enable the company to focus more on driving specifications from architects and specifiers while growing its share in the specialist insulation distributor market and maintaining its substantial presence in the builders’ merchant sector. The enhanced sales force comprises some faces new to Superglass and some longer-standing Superglass colleagues who are energized by the new direction the Stirling-based mineral wool company is taking. The newest recruits to Superglass are Alastair Heath, Peter Skidmore and Martin Wrigley as area sales managers (Midlands and North Wales, and southern England and South Wales) and northern demand generation manager respectively. Alastair joined Superglass from Saint-Gobain Isover where he had been an area manager, merchant representative and company sales analyst. With more than 30 years experience in the construction materials industry, Peter Skidmore has worked for a builders’ merchant, an insulation manufacturer and an insulation distributor. Martin Wrigley has worked in similar roles with British Gypsum Isover and more recently, an MDF and chipboard manufacturer. Just pipping them to the Superglass post are Martin Panes and Andrew MacDonnell, both

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Pictured from left to right, front to back: Laura Ralston, Chris Lewis, Tim Massey, Martin Wrigley, Alastair Heath, Peter Skidmore, Martin Panes, Michael Beard (sales and marketing director) and Andrew MacDonnell.

formerly of Saint-Gobain Isover. Andrew is demand generation manager for the Midlands and North Wales and Martin is Superglass’ national demand team manager. He has worked in the construction materials industry for more than 25 years.

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Longer-standing Superglass colleagues are Chris Lewis, area sales manager (Scotland and Northern England) and Tim Massey, national sales manager for the newly established Contracts Division of Superglass. Chris and Tim have been with the company for 13 and 16 years respectively. Chris has built up an excellent operational knowledge of the company having previously worked in the commercial department and Tim, who joined Superglass as area sales manager for the Midlands and North, has developed his role and been promoted to national contracts manager for the newly formed Superglass Contracts Division. Supporting these sales roles is Laura Ralston, marketing and product development manager. A marketing graduate, Laura first joined Superglass in 1997 and now, having worked in the technical and sales departments has recently embraced the marketing and product development role. She said: “We believe that our standing as an independent enables us to respond more quickly to changes within the market place, and despite the cuts to the education and healthcare sectors, our evidence is that we need to invest in these and the commercial sectors generally.” In addition to Laura, the sales team is supported by Ben Connelly, the new technical and marketing assistant, who is available to help with Building Regulations, U-values and product queries, and can be reached on the new Superglass technical hotline 0844 381 4022. www.superglass.co.uk

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SPECIALIST SUPPLIERS AND DISTRIBUT0RS: THE NMBS

compete successfully with a national in price. An independent can be more competitive because it does not have the head office overhead costs. Nationals will get involved in the volume business, like house building and put national deals in place and will be supported by the supplier. If you are looking at the jobbing builder and plumber, they will almost certainly get a better deal with an independent 9 times out of 10. CUSTOMER SUPPORT The NMBS helps members on new ventures through networking. If someone wanted to stock timber for the first time the NMBS would put them into contact with another person who already stocks timber and they would gladly take them into their premises and show them what sort of products they should have. It connects people together as they need it. To help further the NMBS has created a series of standard stock profiles so that new vendors will know the correct stock to have for the right business. THE I LOVE INDEPENDENCE CAMPAIGN In February 2011, NMBS launched a new campaign aimed at the professional tradesman entitled “I Love Independents”, with the new website available by visiting www.iloveindependents.co.uk. All tradesmen are urged to register with this new campaign in order to get the maximum benefit

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from it and ultimately show their support to the Independent Merchant. Independent Merchants are owner managed Builders, Timber, Hardware, Plumbing and Heating Merchants. The ’I Love Independents’ campaign aim is to promote the major benefits for the tradesmen to trade with Independent Merchants, these include: • Local Knowledge: Building Materials can be bought from local businesses that are able to support the end user by offering local decisions, for local problems, whilst having the knowledge to deliver national solutions. • The People: Independents are staffed by people in tune with the customer and they make a big difference. They have excellent product knowledge as well as understanding the local market and needs. • Stock: Independents hold a good stocking range and depth. This allows the end user to have the confidence that they can buy the product when they need it. • Competitive Offers: Most leading Independents are supported by NMBS, the UKs leading buying society for Independent Merchants. From this the Tradesman can be sure that their local Independent has the ability to source and deliver, competitively, all their building materials.

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NMBS:feature 2 20/03/2011 14:42 Page 87

THE MERCHANT DISTRIBUTOR STEARN ELECTRIC COMPANY

much of the country on a daily

Refrigeration, and Small

founded in 1924 have developed

basis.

Domestic Appliances. Stearn are

into the largest specialist

Stearn are major distributors

also the main U K distributor for

distributor of electrical goods

of heating, lighting, lamps &

to the wholesale and merchant

tubes, water heating and major

channels.

appliances with such well

Price Guide and there are

Stearn have 14 branches

the Sunhouse brand of heating. Stearn publish a quarterly

known brands as Dimplex,

bespoke catalogues available

strategically located covering

Creda, DeLonghi, Osram,

covering products like Lamps,

England, Scotland, Wales and

G E Lighting, Heatrae Sadia,

Wiring Accessories, Heating and

Ireland, all branches carrying

Santon, Redring, Zip, Hotpoint,

Commercial Supplies.

good stocks of electrical goods

Indesit, Beko, Belling, Zanussi

from a portfolio of over 170

plus many many more.

leading brands within the industry. All Stearn branches take responsibility for their own

Stearn deliver all orders at

Stearn are very proud of their ability to deliver small quantities quickly and set

competitive prices and have no

service levels that others can

minimum order requirement.

only aspire to.

In addition to the major

For more information please

stock levels, and have their

brands Stearn carry a concise

contact your local branch or

own telesales team to

range of products under the

telephone our Head Office on

maintain a focus on the local

Stirflow brand which is an

01635 556600. We would be

business community. They all

exclusive brand covering

delighted to arrange local

operate their own fleet of

product sectors including

contact to discuss your

delivery vehicles which cover

Desk Fans, Portable Heating,

electrical requirements.


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SPECIALIST SUPPLIERS AND DISTRIBUT0RS: THE NMBS

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SPECIALIST SUPPLIERS AND DISTRIBUT0RS: THE NMBS

FINDING LOCAL MERCHANTS Clients can search for their local Independent Merchant by downloading the Free ‘I Love Independents’ app. The Free download is available from the Apple App Store by searching ‘Independents Locator’, which can be used on the iPhone or iPad. The App is also available as a free download for Smart Phones by accessing the Android Market and searching ‘i-merchants’. The applications provide clear directions as well as a telephone number and website address. Alternatively clients can search for their local Independent Merchant by visiting www.iloveindepenents.co.uk and clicking on the find your local merchant tab. The search facility provides you with a map of local Independents, which includes address and contact details as well being able to get directions. GET INVOLVED WITH THE CAMPAIGN Professional Tradesman are urged to register their support on www.iloveindependents.co.uk, from registering their details they will receive regular communication for the ‘I Love Independents’ campaign. They can also enter the Free Prize Draw to Win a Nintendo Wii by nominating their local Independent in the Independent of the Year Competition. Dean Hayward, NMBS Marketing Communications Manager comments “NMBS have always been 100% committed to Independents, and the ‘I Love Independents’ campaign will enable us to promote the Independent Merchants even more to the Professional Tradesmen. We encourage the Professional Tradesman to register their support for the campaign and become a Fan on Facebook (www.facebook.com/iloveindependents), and follow us on Twitter (www.twitter.com/loveindependent).” Tel: 0116 253 0531 Web: www.nmbs.co.uk

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“NMBS HAVE ALWAYS BEEN 100% COMMITTED TO INDEPENDENTS, AND THE ‘I LOVE INDEPENDENTS’ CAMPAIGN WILL ENABLE US TO PROMOTE THE INDEPENDENT MERCHANTS EVEN MORE TO THE PROFESSIONAL TRADESMEN” DEAN HAYWARD MARKETING COMMUNICATIONS MANAGER BUILDING DESIGN AND CONSTRUCTION MAGAZINE

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