Please tell me your methods and rational for dealing with the purchase of major appliances.

1. Do they fall under the same GC% markup as your materials or Sub Trades do?

2. Who’s name is on the receipt? If yours, how do you pass on the Warranty? My understanding is that appliances are warranted for a period for the original owner. Are you considered a reseller? If so, do you have to submit an itemized receipt/ unit?

3. Do you ever allow the client to purchase the appliances themselves? If so, do you then require them to accept the delivery? Do you accept delivery of their purchases and then charge for this – separate from the installation charge?

I am constantly being asked by Clients, who have gone to the Appliance Store or the Big Boxes and know the cost of the appliances, if they can purchase the appliances themselves. Invariably they don’t want to pay my percentage or for my accepting the appliance from the curbside delivery. “Isn’t that a part of installation?†This is already after I have submitted an installation figure.

Currently I require that they purchase the appliances through me. This way I control the delivery schedule, accept delivery, manage the proper manpower required and deal with the store directly if there is a problem – missing parts or damage. After the punch list is completed I will assist troubleshooting for the first year.

I put the Client’s name on the store receipt. The Client benefits from my lower cost of purchase but receives an upcharge (my %, which covers the above) bringing the cost of the unit to about 5% higher than their original cost – even from HD. Frequently, when they find out how much cheaper I can get it they want to share in the discount. I think they are getting a great/ fair deal.

Yeah, I could hide the % cost somewhere else in the contract but I feel that leads to the slippery slope of playing games with the contract.

So, how do you handle these types of purchases? Any thoughts?

F.