Who knows what’s best for you?

Who knows your company best, you or your vendors? Believe it or not, some vendors think they do, especially ones who have been doing business with your company for a while. However, those that think they know your company best usually don’t. That’s why some tooling vendors try to sell you what they want, rather than what you need.

Don’t get me wrong. I like the vendors I deal with. I am always open to suggestions. However, I keep a close eye on costs, as do most machinists and managers. To accomplish that, shops should be careful who they buy from, be skeptical about certain high-priced tools, and expect vendors to listen to what they ask for when bidding out equipment they need to buy.

For example, all distributors can supply whatever you need, from any manufacturer, but there is usually a price to pay. Distributors primarily work with certain manufacturers. By promoting and selling more of one manufacturer’s product line, they get a better discount and generate a higher margin. In turn, distributors can pass those savings onto end users. The manufacturers that a distributor typically doesn’t represent, however, will give that distributor a standard discount.

I typically work with two cutting tool distributors. Using both allows me a choice of products at competitive prices.

Regarding high-priced cutting tools, consider the following story. A vendor ran tests of two cutting tools at a facility where I worked. The tests were successful, according to the vendor and operator, because the tools reduced cycle time by 3 minutes per part.

When I saw how much the tools cost—$4,000 total—I almost fell over! The productivity gain might justify the cost if we were running 500 parts a day, but we were running 50 per month. The time required to recoup that investment would have been too long, and the tools were only suitable for that part. When I suggested finding a simpler, less-costly solution, the senior salesman said he knew better—a big mistake.