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Topic: Ordering Speciality Chemicals  (Read 2732 times)

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Offline Guitarmaniac86

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Ordering Speciality Chemicals
« on: June 29, 2016, 02:28:06 PM »
I require some help.

I am enquiring about purchasing a very niche compound from a small chemical supplier and they have asked me a dollar amount I am willing to pay. I do not actually want to give them a price so I gave them the reference price per kg for the item that I found.

How do you play this game and win? I want a fair price but I cant actually find a decent price. Since its so niche, and I am making a one off purchase, I am not above spending $1000 or more for it, but I don't want to tell the supplier that. So I went with the reference price per kilo.

If the supplier comes back with an offer, can I counter it? Could I annoy the supplier and put them off selling to me? I will be purchasing through my institution so I need a price and lead time, but the supplier wont give me a price until I play my hand...
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Offline Corribus

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Re: Ordering Speciality Chemicals
« Reply #1 on: June 30, 2016, 09:38:21 AM »
I don't think this has anything to do with chemicals per se - it's just the art of haggling! I think the first part is to identify what is a fair market price based on research, and then identify the most you're willing to pay. Then start the negotiation at what you'd love to get away with, probably about 10-15 percent below your identified fair market price. If they come back with a high offer, use your research to support your fair market price, and come back at that. You should be able to approach a compromise point eventually, which should be under your "most I'll pay" level.
What men are poets who can speak of Jupiter if he were like a man, but if he is an immense spinning sphere of methane and ammonia must be silent?  - Richard P. Feynman

Offline DrCMS

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Re: Ordering Speciality Chemicals
« Reply #2 on: June 30, 2016, 05:52:44 PM »
I'm not sure I understand your question/problem.

You say you have asked supplier A for a chemical.  Supplier A has then asked you how much money you have to spend  and in reply you have given supplier A a price/kg. 

Where did this price come from? 
How much of this chemical do you want and how much would that cost at this price? 
Does your institution have an account with supplier A?


Offline Guitarmaniac86

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Re: Ordering Speciality Chemicals
« Reply #3 on: July 01, 2016, 06:53:31 AM »
I'm not sure I understand your question/problem.

You say you have asked supplier A for a chemical.  Supplier A has then asked you how much money you have to spend  and in reply you have given supplier A a price/kg. 

Where did this price come from? 
How much of this chemical do you want and how much would that cost at this price? 
Does your institution have an account with supplier A?

Hi DrCMS thank you for the reply. The price came from a refernece buyers guide online. I wanted 1 g so at the guide price, $16 but that is way too low. I low balled at $160 but was told the chemical was out of stock. So I guess $160 was too low for them. No the institution does not have an account with the supplier.

I was asked by my supers to get prices and lead times. I guess I have to go find another supplier.
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Offline DrCMS

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Re: Ordering Speciality Chemicals
« Reply #4 on: July 04, 2016, 10:44:39 AM »
Two things to think about.

1) Even if they have it in stock they may have a minimum order value; the company I work for does and $160 is way below our minimum order.
2) If they do not have stock and need to make a batch how far do you think $160 will go to cover the man time and the raw material bill?  For a simple lab prep taking a couple of man days I'd be looking to bill you say £1500/$2000 + raw material costs.

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