What We Do
Two landlords walk into a branch.
The first spends half an hour utilising the latest sales, psychological, and interrogation techniques to get the branch manager down to the best possible price he can get.
The second then gets to the till. “I’m with LNPG” he says and flashes his membership card. And like magic, the price comes down well below what the first landlord could have imagined.
But it’s not magic – it’s the power of contract pricing.
And here’s how the sausage is made:
What is Contract Pricing?
Over the last ten years, LNPG members have spent in excess of 83 million pounds with national UK suppliers. It is with this joint effort that LNPG are able to negotiate fantastic contract pricing with our partners for the membership.
Contract pricing has historically always been a closed shop. And there are some conditions to our use of it – which is why you’ll need to sign up with us before we can share any prices first.
But before we can get into that, you’ll first need to know there are three pricing structures available in this country:
When you walk into a retail outlet (for example a DIY store) you pay the top price. Even if you are offered discounts, it remains by far the most expensive way to buy anything.
To make things worse, many products offered by retailers are of lower quality than trade products. In fact, some products are exclusive versions, only available to that retailer, which use lower quality parts to reduce cost and allow the retailer to compete on price competitively. These items are more prone to failure, may be harder to source parts for should they fail, and generally speaking, are not fit for the demands of the rental market.
Trade pricing is popular in the building materials market and is typically much more competitive than retail pricing. As tradespeople are likely to buy the same products regularly, and may be often buying some products in bulk, they are able to get better rates on their products.
We all think that we are excellent negotiators but even when large discounts are offered against trade prices, they will always be much higher than a contract price on a like-for-like basis.
Contract Pricing is the pricing structure that is agreed behind closed doors – and that’s part of why it’s the best in the market.
Large councils, housing associations, and major building contractors will go directly to the manufacturers to negotiate bulk discounts for their contracts – also known as contract support or, you guessed it, contract pricing.
Like we said, it’s not magic.
It’s not even new; this has been happening for decades.
But with LNPG, this contract pricing has been unlocked for individual private landlords too.
LNPG represents more than 5,000 landlords with a total of over 25,000 properties, giving private landlords a voice in the building materials industries, and negotiating preferential contract pricing on everything from plumbing, heating, and kitchens to paints, flooring, and even insurance.
As a member of LNPG, when you buy a product from our partners (such as Wolseley, Magnet, Johnstone’s, etc) the price you pay is a result of the negotiation between LNPG and the manufacturer – but the best thing is, this pricing stays the same whether you’re buying one or thousand products.
To find out how much you could save on your next refurb, sign up today.