T Nation

Proposal for the supply of appliances- help needed.

I’m working at a major appliance store that is located in a very small town ( <10000). There is currently a construction project going on that will need to be out fitted with appliances. They will need ranges, microwaves, fridges and washer/dryers. As an upcoming business student (starting in May) I would like to take this as an opportunity to draw up a proposal for supplying all the appliances. This would be primarily for my own enjoyment and of course the experience. This project is somewhere in the neighborhood of 50 low income housing units, so the main concern when selecting the appliances will be cost. Our store does not do deliveries so arranging delivery with the construction company or possibly with the local company that we often contract our deliveries out to will need to be taken into consideration. Because we are the only national appliance store in town I believe that competitors will have a hard time beating us when both cost and proximity to the site are taken into consideration. Essentially I can have all the product shipped to our store which is within 10 blocks of the site, from there my thought is to have the local moving company take it the rest of the way. I estimate the total cost for this to be much less than purchasing appliances from the second closest store which is more than 50 miles away.

Some bullet point questions-

Lets say that a company is building a 100 unit apartment, where do they typically buy the appliances from? Do they go direct through the wholesaler or would they sometimes purchase through department stores? For many brands I don’t see how you could go through anyone other than the retailer. Example - Kenmore is a Sears brand, If you want Kenmore appliances you have to buy them from Sears.

What would the formatting look like for such a proposal? I’m somewhat competent with spreadsheets and plan to use them.

What areas should I cover? There are obvious ones like COST and DELIVERY but i’m also wondering about other things like trying to sell them on “buying local”, the ease of delivery with us vs competitors, variety of brands available etc, financing options etc.

I plan to draw up numerous options to include appliances at different price points, what should be some things to consider when doing this? take into consideration that these are low income homes.

I know that some of you might regard the success of this as little unlikely given my experience. In small towns like this though things are done MUCH differently. Most people have very little experience and deals like this are usually made sorta “on a whim” with very little planning and analysis. So, with that in mind i’m somewhat confident that any such pre-planned, well thought out analysis of the situation will be well received.

Please feel free to ask any questions, any and all help is greatly appreciated.

Thanks.

I can’t help you with your questions but I wish you luck. You say you’re a student of business so perhaps some of your profs or teachers would be able to help you with how to format your proposal and such?

Good initiative.
What kind of appliance stores doesn’t make deliveries? How am I supposed to get home a fridge in my Saturn?

[quote]tmay11 wrote:

Some bullet point questions-

Lets say that a company is building a 100 unit apartment, where do they typically buy the appliances from? Do they go direct through the wholesaler or would they sometimes purchase through department stores? For many brands I don’t see how you could go through anyone other than the retailer. Example - Kenmore is a Sears brand, If you want Kenmore appliances you have to buy them from Sears.

What would the formatting look like for such a proposal? I’m somewhat competent with spreadsheets and plan to use them.

What areas should I cover? There are obvious ones like COST and DELIVERY but i’m also wondering about other things like trying to sell them on “buying local”, the ease of delivery with us vs competitors, variety of brands available etc, financing options etc.

I plan to draw up numerous options to include appliances at different price points, what should be some things to consider when doing this? take into consideration that these are low income homes.

I know that some of you might regard the success of this as little unlikely given my experience. In small towns like this though things are done MUCH differently. Most people have very little experience and deals like this are usually made sorta “on a whim” with very little planning and analysis. So, with that in mind i’m somewhat confident that any such pre-planned, well thought out analysis of the situation will be well received.

Please feel free to ask any questions, any and all help is greatly appreciated.

Thanks. [/quote]

I work at Lowe’s selling appliances, so I feel I might be qualified to answer this.

First, most apartment complexes buy their appliances from whoever will give them the best price. For a large purchase, they will generally go to a couple of different appliance places, and get quotes. They will then try to play the stores against each other to get lower prices.

As for brand, you will probably have to go with something like Tappan or Frigidaire. A brand that is actually owned by another company, but they build cheaper appliances and slap a different name on the front.

As for a format, just make up an estimate that includes price per appliance, price per apartment, and a total price. Be sure to include model numbers. Also, with a complex that has 100+ units, you are going to probably be talking with a buyer.

As for other costs, don’t forget to include range cords (for electric ranges). Also, be sure to find out if the outlets they are installing for their ranges are going to be three or four prongs. Delivery is probably going to be necessary. Who the fuck wants to be responsible for moving in hundreds of appliances into a building? I know I sure don’t want to. Also, some of the appliances will get damaged in transit, and while moving into the building. I would order extras of each, just to cover this.

Usually apartment building don’t care about supporting their local economy, just getting the best price. As far as which brands, and different price points, generally low income housing is going to have cheap appliances. Low income tenants tend to destroy appliances, because they don’t care about the housing. This means that the apartment building is going to be replacing appliances every time somebody moves out, so be sure to cover future availability of appliances with the apartment complex.