“We've beaten each other to death in this industry to get the lowest price without recognizing that the lowest price isn't always the best value,” says Kirk Alter, director of the PHCC Educational Foundation's management courses, who will moderate the discussion. Alter is also associate professor in Purdue University's Department of Building Construction Management and president of Fast Management Inc.
The drive for the lowest price, Alter says, has led the industry in plenty of “I win, you lose” behavior. Contractors may have to spend more in inventory since they're afraid their wholesalers won't have what they need just when they need it. Wholesalers don't think contractors manage their purchases properly - and are surprised when material has to be back-ordered. Meanwhile, manufacturers consider both wholesalers and contractors as technologically unsophisticated. And above all, all three have to deal with the cries for the lowest price in town.