Should you buy loacl? or out of state?

by Dave Stewart of Mc Neilly Steel Corp ( 24-May-2011 )

Sometimes people are lured into buying out of state, primarily because some suppliers don’t charge California state tax. Usually the state caches up with the consumer but not the seller because they are not required to pay because they are NOT in our state. Depending on the size of the building it could add up to thousands of dollars.

A California based company has to add this in by law, consequently the cost seems higher how ever the tax will be paid and you can prove it in your paper work.

However there are huge advantages to buying local, not just in state, but as close to your location as possible. Here is why, usually credit terms are easier. For example, lower money down and payment spread out over the construction period.

Usually out of state suppliers need to be paid in full before delivery, because they can’t come to you.

Then the next great thing about local supplier is once you have delivery the local supplier will check to make sure that everything is there, and can handle it directly with the factory, and you still have recourse (you still owe a balance) where as if you were dealing out of state, paid in full supplier….well you get the point. It’s you against them with no leverage.

Another thing to watch out for in one of the tricks that out of state, high pressure sale gimmick, is telling clients that they just happen to have a building (close to the size your inquiring about) that a customer failed to take delivery, and it’s just sitting in the yard and the boss says blow it out and get rid of it. And of course they tell you that is first come first serve and could be gone tomorrow. Creating urgency for you to buy now….And if you do, later they come to you and tell you that it was just the building no framed openings, no doors, no accessories, all these things need to be added and guess what now you have to pay more, and if you try to cancel your stuck because the terms and condition say no refunds on deposits. Your forced, paying more or lose your deposit.

So be careful, and you can always call us.

Dave Stewart

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Mc Neilly Steel Corp

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