ENCO Free Shipping/Discount Code of the Month!

I too fell victim the other day. Sent a blistering letter. After the discount, the items were still more than Enco list prices. This must be part of a larger plan. Maybe they are in a plan with Grainger? Something is up in their playbook IMO.

Most of Grainger's customers are businesses who write off their purchases. Grainger's happy because they're making more $ and the customer is happy writing it off. When I heard MSC bought Enco I knew their prices would be high and I'd never shop with them. I can't get over their prices. $650 for a Phase II+ BXA qctp set? Uuuh, yeah..... suuuure.
 
Why would the customer be happy writing it off? They still need to earn the money to buy it in the first place, its not like they can print the stuff! The tax savings if any won't make up the difference.
Gouging is gouging.

It's not what you earn, it's what you keep that matters. This applies to business as well as personal life.
 
I would suspect that many companies use vendors like McMaster Carr, Grainger, and MSC from convenience. At a company that I worked for some fifteen years ago, we would write up a request for purchase and send it down to Purchasing. The go-to supplier for machine tooling was MSC, because the purchasing agent was familiar with their product offerings, the product line was fairly complete, and the sales rep was really nice when he stopped by. The same was true with raw materials and McMaster Carr.

ISO 9000 throws another monkey wrench into the mix. Most Quality Systems require using approved vendors. The last company that I worked for, a global Fortune 500 company) discouraged setting up a new vendor, stating it cost the company $500 to set up a new vendor. If we wanted to order something from an unapproved vendor, we either had to put the order through an approved third party who would order for us for a healthy surcharge or put the order through on a company credit card and take the heat when we had to justify the credit card bill. (Fortunately, my supervisor was understanding and shouldered this burden for us).

Companies like those mentioned rely on this strategy to ensure customer loyalty and numbness to high prices.
 
I should add, in favor of MSC and McMaster Carr, that I have always found their service to be exemplary. An order placed by the end of the business day would be delivered by 10:00AM the next day. The job shops that I worked with would add tooling costs to the bill so cost for them was a wash. Having the tooling at their doorstep by the time they had the job setup complete was a valuable plus. Another reason for their loyalty.
 
As a small business owner Enco has been my go to vendor for cutting tools and other small tooling. I'll be looking for a new vendor that supplies at least the same quality or better for at least similar prices. I am going to miss the convenience of the ordering system and fast shipping. I had a meeting with a M.A.Ford tooling rep yesterday, it turns out their pricing is more or less equivalent to Enco on many things, and there is a local stocking distributor.

Those tax write-offs are a myth, you still have to pay for the parts/tooling and then get to deduct a percentage of the cost. Sometimes you get to pass the tooling cost through to the customer, but if you have a fixed bid, and make a mistake in figuring the tooling then you eat the cost.

When I'm looking for repair or shop maintenance items I always spend the time to try to find the best value. For instance, when looking for the conversion parts for my mill, I spent the time to find a better deal than McMaster. I saved about $200 for the same hardware. That's a lot of cheeseburgers.;)
 
Most of Grainger's customers are businesses who write off their purchases. Grainger's happy because they're making more $ and the customer is happy writing it off. When I heard MSC bought Enco I knew their prices would be high and I'd never shop with them. I can't get over their prices. $650 for a Phase II+ BXA qctp set? Uuuh, yeah..... suuuure.

The utility I worked for bought a lot at Grainger, they got a tremendous discount due to their purchasing power....not because of a write off, which in reality is an operational cost that lowers the company's profit.

We as employees were allowed to use the name and shipping address of the utility to make private purchases, pay and pick them up at the store. By significant, sometimes 50% or more off retail price. It made Grainger my go to store for everything.

What MSC has done is ruin a perfectly good discount tool supplier for the small shop/hobbyist. The so called discounts MSC has sent me were no deal at all. I will not deal with MSC after the one-year guarantee price match for products I purchased at ENCO this last year. They have done nothing to earn my business and they probably don't care.
 
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I just got a voicemail from MSC welcoming me to their company. Keep in my this is the same account I've had with them since 1989.

Anyway he said I get 30% off and free shipping on orders of $49 or more. I also get the same pricing on items I bought from Enco.
Wants me to call back to discuss my "new" (27 year old) account with him.

I'm still thinking about that. On one hand I want to tell him how people here have been treated and the general resentment there is here towards MSC. On the other hand I'm not sure what good it would do if any. I know his hands are tied and he's just doing his job.

So, I'm posting here to see what suggestions you have for my conversation with him if I decide to call. I know what to tell him do with it, but again that probably wouldn't accomplish much. Might make me feel good to get it off my chest though.

So, should I call and if so what "productive " things I can discuss with him?
 
I just got a separate email saying free shipping everyday on orders over $49. No promo code necessary.

First email like that I have seen from them.
 
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