Any tricks for getting "contractor" discount on supplies?

Page 3 of 5  


You're particularly prone to presumption, not surpisingly.
You have my occupation wrong. But never mind that, you have my gender wrong, too.

Yeah yeah yeah, like I said.

Then you've established yourself as a worthwhile volume customer - on the order of a contractor. So, finally the answer to your subject question - looks like you're fine as long as you don't open your mouth too much.
Cheers, Banty
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
Jeffrey J. Kosowsky posted for all of us....

where the real contractors get a level 4. The smile is a snicker.
Oh, don't bother with an email, you are loser and I don't read loser mail.
--
Tekkie

Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
wrote in message

I know I Know I got to complex into the discount game being plaied in the hvac business and you would only understand what i was talking about if you were in the contracting business. Sorry
TURTLE
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
(Jeffrey

This is Turtle.
Earth to Jeffrey , If you think Home Depot is giving you a big discount on equipment such as HVAC stuff. I run a HVAC contracting business and sell at a 30% mark up on parts. Home Depot sells at a 50% mark up and if I sold at Home Depot's prices I would have to go up on prices by 20% higher. Whatever Home Depot sells for $1,000.00 -- I sell for $850.00 or so.
I see now that I step out here in a bunch that does not know what Wholesale prices really is. What the bunch here has been told by the internet hvac suppliers and Home Depot as a super discount wholesale pricing is a joke. What you can buy off the internet and pay shipping on the stuff with no warrenty , I sell for the same price or lower and warranty it with free labor for a year. What the bunch here calls a wholesale prices is what I call Retail prices.
If the public could buy at real wholesale prices. There would be no more hvac contractor and everybody who works on them would be just Do it yourselfers and if you had a real problem with the freon system to try to fix. You would just have to go buy a new one for all the real tech that could fix it would be in other businesses. Now look at Repair of refrigerators and freezers. The only ones left is Sears and sellers of the Refrigerators and freezers. If it gets outside the warrenty limits. It become too costly to repair because of the only ones that repair these freezers and refrigerators is the sellers of them and they have driven the price to the moon to repair them so you will want to buy a new one from them when the warrenty runs out. I'm the only one in town that knows how to really repair refrigerators and freezers but I only work for customers that I do their HVAC work for and just don't need the extra refrigerator business. The repair of refrigerators and freezers are far harder to do than HVAC work because of all the electronic controls on them now days. I think a refrigerator is hard to work on and a 20 ton rooftop Package unit is easy as hell to work on.
TURTLE
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

Earth to Turtle -- clearly you didn't bother to look at Home Depot's financial statements. While results for individual items may vary, Home Depot's gross margin according to their latest 10K filing is just shy of 32% (not 50%), giving them an operating margin of 10%. Considering that their buying power allows them to get better pricing than other supply houses let only the price that wholesalers sell to contractors like yourself, I find it hard to believe that your retail pricing is on average 20% better than Home Depot. Now that doesn't mean that there aren't individual items where you can beat Home Depot on price, just that I don't believe that you can buy from a local supply house, add your own markup and still sell parts on average 20% cheaper than Home Depot.

Great I will make a deal with you. When I need HVAC parts, why don't you sell them to me cheaper than my best Internet price and you can make even more profit than you do now since I won't ask you to install the part or warranty it.

This is a ridiculous statement. Contractors would be needed for installation and repair and would rightly price their labor to cover their overhead plus profit. Only a small fraction of the population in my neck of the woods would ever even think of doing a minor repair themselves let alone a major HVAC installation.
If anything, the clearer delineation between the true cost of parts vs. labor may lead to more work for contractors since consumers would have more faith that they are getting what they paid for.

A complete non-sequitur.
The decline of the repair business has more to do with the fact that the fast pace of innovation, the declining costs of production, the relative high cost of U.S. repair *labor* (not parts) and our overall throwaway mentatlity and newer-is-better culture encourage consumers to prefer buying a new one to repairing the old one.
In the market economy that I live in, consumers whether consciously or unconsciously on average make an economically (near) optimum decision that says it is not worth repairing the old.
In fact, the only time it often makes sense to repair is when you are a DIY since the major cost of repair is labor not parts. Which brings me back to the original point that efficient market economics calls for more transparently separating the costs of labor and materials so that consumers can make rational choices about how to spend their money.
Jeff
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
writes:

This is Turtle.
Huuuuummmmmm , Well Home Depot sells a 3 ton condenser only no labor for $1,121.00 . I buy it for $411.00 + [ 30% $123.00 ] = $534.00 X 2 = $1,068.00 my cost of condenser installed with labor included. Now do you see the profit margin of the HVAC industry is a different story than what you see on a 10K filing.
TURTLE
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

If you can buy, install, and profit for less than HomeDepot gross margin of 30%, then that is truly amazing!
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
writes:

This is Turtle.
Well to be more exact here. There is another discount system set up for discount / wholesale buyers that is rated in a scale of A to Z type buyers. I'm a G buyer and Home Depot is said to be a W buyer or could be a Z buyer. The W buyer will be a 11% more discount than me at a G buyer level. So Home Depot can buy close to 11% cheaper than I can.
The reason you see the higher prices from HD is they have a higher over head than I and have to account for them. This is why Home Depot, Sears, and Low's stores is getting their ass eat up by independent contractor and the customers don't check prices out at Independent contractor before buying. These store are tring to cut the over head down and now are hiring the cheapest independent contractor to install their equipment for them and they are having too many return calls to pay for by not installing the equipment right the first time. They do hire the cheapest or the Rookie of the year contractor to try to keep the overhead down to compete with the regular hvac contractor.
Now i love to bid against Sears because I alway bid about $1,000.00 cheaper than Sears on complete hvac systems. All sears does is get a Independent contractor to do the job and then stick a $1K on top for them as profit and handling the paperwork and selling the unit at the stores. I don't install for Sears because they wanted me to sign a agreement to not bid against them in my area. I would not sign because i think the public should have a choice of prices and dealers to choose from.
Now like I said before I walked off into a bunch of Non-Wholesale buy to try to explain the discount system.
2 cents more.
TURTLE
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

Ahhh... I didn't realize you were referring to Home Depot price of *installed* equipment. In that case, I agree with you entirely both on pricing and quality. Service and installation is a huge profit center for them and they higher the cheapest possible labor without too much regard for quality.
I was talking more about the price of components (for DIY jobs) where pricing is more transparent and competitive. In that case, I would find it hard to believe that you could provide parts and labor for the same price I could buy the part at Home Depot (assuming that you are using "equivalent" parts -- the quality of Home Depot parts is for another thread...)
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
I think what you're yearning for is a verifiable figure on the "parts + labor" portion of a bid. So if you know the fixtures you chose for your bathroom are models X, Y, and Z, and if you can find out what the contractors price is, you can eliminate any bids that show the materials cost higher than you've determined.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
On Wed, 03 Nov 2004 01:51:43 GMT, snipped-for-privacy@consult.pretender (Jeffrey J. Kosowsky) scribbled this interesting note:

Except that when doing a paint job on someone's home most of the cost is in labor. Now most people seem to think that just because a paint brush will fit in their hands that they are painters. Alas, such is not the case. It takes a bit of patience and knowledge to know how to properly prep a house for paint-two things most homeowners don't know about. Actually holding the brush is one of the less important things in the job!:~)
-- John Willis (Remove the Primes before e-mailing me)
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

Isn't that what I said? -- "major cost of repair is labor not parts"
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
On Wed, 03 Nov 2004 14:45:28 GMT, snipped-for-privacy@consult.pretender (Jeffrey J. Kosowsky) scribbled this interesting note:

But in that case what you are paying for is expertise.
I agree, a total price that is not deceptive in breaking down prices is best...which happens to be how we estimate and bid jobs.
For what it is worth, what I was saying above is the common, garden variety do-it-yourselfer is not qualified to hold a paint brush. I apologize if you missed the implication. -- John Willis (Remove the Primes before e-mailing me)
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
(Jeffrey

And if a contractor had to always walk around for 40 minutes with no customer service, wait in line while other stupid peoples questions get asked, wait for their checks to get cleared with the bank ( like at home depot ) and all that other bullshit, the contractor would be looking for someplace else pronto.
A contractor calls in advance, he knows exactly what he wants, the wholesaler either has it in stock or brings it in, and he puts it out on the dock--the contractor comes along, picks it up, signs papers and in ten minutes flat he is outa there, very little time being wasted on the whole deal by either party.
--

SVL



Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

According to your logic, sounds like the contractor should be willing to pay "extra" for this service relative to the DIY who is willing to wait.
Again, your argument has nothing to do with the fact that price competition and transparency is intensifying and thus driving down margins which in general leads to lower spreads between retail and wholesale pricing.
If a supplier believes he can make more profit by offering consumers discounts and pulling business from other suppliers or from big box retailers then he should do so.
Whether or not he has to offer different levels of service to his business vs. layman customers is a different story and is not directly related to relative pricing.
What I object to (and indeed what the market is inexorably eliminating) is the sense of entitlement that certain groups feel towards receiving preferential pricing which ends up resulting in consumers subsidizing the profits of contractors even when they choose to go it alone (this is analogous to the push by record labels to add a tax to the sale of all blank media even if you choose to use it for non-copyrighted materials).
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
On Tue, 2 Nov 2004 14:04:13 -0800, "PrecisionMachinisT"

Sounds like you have the same experiences I have at those places!
I like a certain brand of work jeans. I work in them. I can go to Wal-Mart and buy them for $19.00 and stand in line all day (seems like no matter what time of day you go into a Wal-Mart it is always dark when you emerge!:~) or I can go to a different store almost a close by and pay $21.00 a pair and be able to go in, find my jeans, wait perhaps for a clerk to wait on one person at the most, pay, and be out of there in under ten minutes.
Yep, we think alike when it comes to big box stores!:~)
-- John Willis (Remove the Primes before e-mailing me)
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
On Tue, 02 Nov 2004 18:36:15 GMT, snipped-for-privacy@consult.pretender (Jeffrey J. Kosowsky) wrote:

Without getting too personal, might I ask what you do for a living Jeffery?
DJ
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

Not that I have any objection to sharing the info, but what difference would that make? If you have a valid reason for knowing, then I would be happy to share that info with you.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
writes:

Your NOT a contractor then, should we ASSume ???
--

SVL



Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

Correct. Otherwise, presumably I would just show my magic badge and get my deserved discount :)
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

Related Threads

    HomeOwnersHub.com is a website for homeowners and building and maintenance pros. It is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.