Proud to be an independent merchant

As part of NMBS’s Year of the Independent Builders’ Merchant, it is celebrating the success stories and strong relationships created between independent merchants, suppliers and local trades. NMBS has reached out to its members and suppliers to get their opinions about why they are proud to be part of the independent merchanring sector.

Earlier this year, NMBS carried out a survey among its 1,250 independent merchant members and found that 48% of respondents thought that personalised customer service was the number one unique selling point that truly sets independents apart from the big national merchants.

Local knowledge and tailored customer service are the jewels within independent businesses. Understanding of local building types, local product knowledge and the personal relationships that independents can build with customers ensure they go above and beyond for all customers and pass this tradition on to the next generation of young merchants.

Garry Bryce, director at Lothian DIY explained: “As an independent builders merchant, we take immense pride in serving our local community. Our deep understanding of their construction needs allows us to provide tailored solutions that larger, impersonal suppliers often struggle to match. Being rooted in the heart of the community means we can swiftly adapt to changing demands, whether it’s sourcing specific materials or offering expert advice.”

Steven Morrison, director at Lothian DIY added: “When a customer walks through our doors, they’re not just another transaction – they’re a neighbour, a fellow builder, and a partner in the development of our community. That sense of connection drives us to go the extra mile, ensuring that every project, big or small, receives the attention it deserves.”

Paul Bence, managing director at The Bence Group commented: “As a business, we want to look at what our customers and local community need the most and learn from this, not just focus on what we want to sell. We make sure we know our clients well through our area sales managers who can have personal conversations with our customers and find solutions to any challenges. By working with NMBS, we have access to a wide range of suppliers, who allow us to quickly and easily find products that our customers need and add them to our product offering.”

The barriers to a competitive edge

The survey found that 68% of respondents saw product costs and profit margins were the main barriers to getting a competitive edge over larger merchant businesses.

To overcome this challenge, NMBS provides support services to boost business growth among its merchant members and to help them achieve optimum operational efficiency. This includes helping members access market-leading suppliers to ensure they obtain favourable rebate terms on a wide array of construction products.

Rebates also help increase profit margins for members. They earned an average of 3.84% on turnover transacted via NMBS in 2023. Independent merchant members also earned over £2.5 million in exhibition rebates from purchases made during the 2023 NMBS Exhibition alone.

Independent merchants are believed by most tradespeople in the UK to provide the best understanding of their business needs and requirements, according to research by On The Tools. But this also means a continuous need to train up new entrants. Independent merchants support apprentices to learn the local product demand and understand how to provide the highest level of tailored customer service possible, and this issue was raised by many respondents to the survey.

Dean Hayward, head of sales and marketing at NMBS, said: “Apprenticeships are critical to helping bridge the skills shortages that continue to be a serious challenge for our industry. By supporting independent merchants who are teaching apprentices the practice of high-quality customer care and local industry knowledge, we can help grow our sector.”

The benefits of NMBS membership

Half of survey respondents said that NMBS provided them with easier access to suppliers. It allows merchants to easily find products and trusted suppliers that meet their customers’ requirements. By working through NMBS, merchants can also maintain one invoicing process, rather than having to deal with individual invoices for each supplier, which can be a very time-consuming process to keep on top of.

Sam Warburton, retail operations manager at FFX stated: “NMBS gives us flexibility. We have been a member for around 10 years. NMBS allows us to have instant access to the widest range of products that we and our customers could wish for. We never want to tell our customers that we can’t meet their requirements and being a part of NMBS means we can easily source products by taking away the hassle of extensive supplier research.”

This relationship also benefits suppliers looking to work with the independent sector as well. Jo Shepherd, sales and marketing director at Worcester Bosch explained: “We would certainly recommend other companies becoming NMBS suppliers as well. It opens new gateways to independent merchants and enhances customer-to-merchant relationships. At Worcester Bosch, we have been able to establish and develop new relationships and connect to those we hadn’t previously.”

NMBS is the largest buying society in the UK for independents merchants, supporting more than 1,250 independents across 5,000 plus branches, covering the full range of independent builders, plumbing and heating, hardware, tool and timber merchants. It promotes access to brand-leading suppliers, exclusive discounts and rebates, e-invoicing and reduced administration costs, and a range of events and marketing support.

Find out more about becoming an independent merchant members with NMBS here.