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After being a subcontractor for many years I am starting to build some spec. homes.
I have been able to obtain trade discounts on materials such as carpet, tile, and plumbing fixtures.
I have found it is hard to get any sizable discounts on lumber, windows, doors, etc..
Does anybody have ideas on which materials should be obtained at a discount and if anybody knows of companies who sell direct to the builder.
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An observation....
A number of suppliers...protect their contractors.......Electricians / Plumbers / Mechanical...to name a few....
The supplier...allows for a markup on the materials...which helps the subcontractor..to make profit on both materials and labor.
You have to find..the suppliers...for your materials...one of the problems is...if you pay too little for bulk lumber...the quality of the materials is suspect...
The lumber suppliers do not seem..to carry forth as others in the industry....Perhaps because of the markups of the General Contractor...I have had some clients...upset...because they may be paying [ultimately] above retail...for their materials...
DN
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On the topic of suppliers protecting their contractors; I deal with both electrical and mechanical suppliers who have a seperate discount scale (meaning smaller) for builders like me, and their bread & butter tradesmen, but
i my chief supplier,
my local building supply, who I regularly do thousands of bucks worth of business with a week, will give my discount percentage to any homeowner who walks in who buys $100.00 worth cash or who wants to be their own G.C. When I complained about it I was told that they make more $$ "off the floor" than they do from their contractors. The only advantage is my free delivery,(but on stuff I need in a hurry I p/up anyway) and my monthly account!
And then their is Home Depot, whose prices seem to equal my
i net
discounted price from my supplier, regardless of amount spent, but are not as good as Electricians, and HVAC guys get from their suppliers.
I think it sucks.
b Caveat slimeball
*In my younger and dumber days,I was in the process of bidding some roofs for a homebuilder who claimed he builds 6-8 houses a year.He said he would supply all materials because he could get them cheaper than I could.(we use the same supplier)Now how does a guy who buys 6-8 roofs a year get them cheaper than guys who can buy more than that a month (or a week) ?It has been years and I still haven't figured that one out (and I still pay in advance on every order) Good Luck ,Stephen
*I am proud to say that I have a plumbers discount at a major plumbers supply company - the route I took to get it is another story. However, in today's market, you can do as well or better at the major home improvement stores. Yes, there are special items that are cheaper, but they are few and far between. And, yes, I am fairly certain, in a world of may prices, I do as well as anyone, but the Home Depots, etc are hard to beat. They just buy so much more than the average plumbing supply depot.Dennis
*Also, try W. W. Grainger. They have to tough to find stuff, and they ship UPS. As long as your credit as good, they will ship to any business. They are about 5-10% higher than the average plumber's discount, but they are faster on many items.
*Home depot is going to beat most comparative prices, but try to get an item that isn't on their stock list! Also, factor in the time, and sometimes it's bette to buy at your regular supplier. Lumber discounts are gotten by playing one yard against the other. Each project is another battle. For most contractors, service, and maybe financing becomes the most important factor. Price is, what price is! I always laugh when clients think you are getting a big builder's discount.I tend to stay away from the retail yards. Stick to the builder's yards, and you will see amuch higher grade of lumber. I also avoid places that sell labor. Why should I patronize my competition?Blue
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After being a subcontractor for many years I am starting to build some spec. homes.
I have been able to obtain trade discounts on materials such as carpet, tile, and plumbing fixtures.
I have found it is hard to get any sizable discounts on lumber, windows, doors, etc..
Does anybody have ideas on which materials should be obtained at a discount and if anybody knows of companies who sell direct to the builder.