Safety First With Industrial Equipment and Supplies

Plumbing Equipment Distribution Basics For Retailers And Plumbers

18 July 2023

Lucille Palmer

Plumbing equipment distribution is integral to the larger supply chain, keeping a multi-billion dollar industry rolling. According to industry researcher IBIS World, the market size of the plumbing industry exceeded $130 billion in 2022. While consumers and plumbing professionals are the end users of individual parts and equipment, they rely on easy access to goods on demand. To fill the need, wholesale distributors supply brick-and-mortar retail stores and online retailers with high-quality goods at fair rates for resale. 

Pricing from distributors

Wholesalers in any industry, including plumbing, are generally dealing in large quantities of supplies and equipment. With bulk buying and selling, they can broker competitive deals with manufacturers of consumer plumbing supplies and professional plumbing equipment. These savings are partially passed on to subsequent buyers, such as physical and web stores. Stores then add preferred retail markups to the products to support overhead and generate profits.

Plumbing equipment distribution for plumbers

Wholesale distributors may also directly supply large plumbing repair and installation businesses that find it beneficial to buy parts and supplies in bulk for repair jobs. For example, a plumbing company with several offices across a state or a multi-state region may have several hundred or more plumbers and assistants in the field daily. When they are completing a job and need a part, having an inventory for them to select from increases efficiency and also helps reduce the cost of parts for a job. These savings can either be passed on to the consumer or the full retail price of a part can be added to the bill for extra revenue.

Considerations when buying directly from a distributor

Bulk orders are the preference for wholesale distributors, and many will only accept purchases at a certain quantity or dollar level. By limiting access, the wholesaler can move products at a truly impactful level and move on to the next acquisition. When retailers purchase directly from a wholesaler, they are not required to pay sales tax as they are not the end buyer of a product. However, a wholesaler may still assess certain fees, including storage costs for holding goods pending pickup or for delivery outside an allotted time frame.

While some stores and websites promote wholesale prices or deals straight from a distributor, many of these are actually transactions involving a retail storefront. While they may offer lower prices or bulk discounts, they are not generally at the distributor level.

Contact a company like Specialized Plumbing Parts Supply to learn more.

Share

Search