General Contractors refusing to quote without them buying materials
Rental Property Investor 路 Member since 2023 路 5 posts 路 16 votes
General Contractors refusing to quote without them buying materials
Most Popular Reply
Bruce WoodruffPro Member
Contractor/Investor/Consultant 路 San Diego / Phoenix 路 Member since 2021 路 12k+ posts 路 15k+ votesAs a long-time Contractor I would never bid on a job where the customer wanted to provide materials themselves. Nothing but headaches....and it's just plain rude. You want to buy the products, but I bet you won't be there to meet the trucks, inspect the materials, unload them or see to their security until they are installed. Right?
You expect the GC to do all that for you for free correct? And then when there is a mistake in the order (because the customer never knows what the H they're doing) then it's a big delay which gets blamed on guess who? Yep, the GC....
@Svetlana Kazantseva if you want to save money (or use your CCs), then it's only fair to pay the GC the money it is costing them to do this your way....I would offer them 20% to start and see what they say. But you will lose any good GCs and end up with the new, inexperienced, unlicensed guys...it just ain't worth it....
132 Replies
- Investor 路 Kansas City, MO 路 Member since 2017 路 96 posts 路 82 votes3y
Svetlana,
I owe a handyman and remodeling company here is Kansas city and we let owners purchase materials all the time. Sometimes we go pick them up at the stores they purchased them from or sometimes owners have them delivered. I would love to know more about your project and the location and provide a bid. Feel free to send me an direct message and we can go from there. I have plenty of references i can pass along as well!
Jason
- Investor 路 Teaneck 路 Member since 2022 路 49 posts 路 29 votes3y
Quote from @Svetlana Kazantseva:
Hi all! We have a really hard time finding a general contractor for our repair project in a buy & hold SFH in Kansas City, MO. We hired a property manager after purchasing the house and both contractors they sent in are "skeptical about providing a quote if they cannot use their own materials". In their experience "it has lead to a lot of headaches and delays with the project". We are out of state investors and were going to stick to David Green's advise of getting quotes without the materials for fair comparison + being able to select the material we want, put it on our credit cards. Do you think it's reasonable for contractors to refuse a quote without materials? Should we keep looking?
It depends on the extent of the project. Do you have a scope of work? If more than one has refused that means most likely they can see is not worth thier time.
- Lender 路 Washington DC 路 Member since 2015 路 2k+ posts 路 2k+ votes3y
Your project, my guess, is small. Contractor wants to run his business his way, this is normal and reasonable. For example changing out a plumbing fixture sounds easy but once you open up an older house the parts might not fit or match the valves. Who then is going to drive back and forth to the Plumbing Supply or Home Depot to fix the mistake? Who will pay for the hours and who is packing up the wrong pieces to return them?
Your property manager should have someone they refer that they trust.
- Severna Park, MD 路 Member since 2013 路 7k+ posts 路 7k+ votes3y
@Svetlana Kazantseva I guess that you also bring your own steak to a restaurant ?
I am a contractor , Its a business , we are not labor providers , we provide a finished product . Yes we mark up materials , we mark up subs , we mark up the dumpster . We make money on every thing we do .
No real , licenced and experienced contractor will work like that , not gonna happen .
If you find some one that does , it will cost you more .
I get asked this questions once or twice a year by potential customers , and I tell them I will subtract the amount that I pay for materials , not what you pay . You get no warranty what so ever . If we run short or something is wrong , the whole crew will sit and wait at our hourly service rate until materials arrive . We dont pick up materials , we have them delivered .
- Investor 路 Kansas City, MO 路 Member since 2017 路 96 posts 路 82 votes3y
Matthew,
I'm sorry but I don't agree. I use customer provided materials all the time and even pick them up sometimes. I work for a lot of clients labor only. I also am a real legitimate contractor with hundreds of clients. Also I can't recall the last time I marked up on materials....I feel like I make enough when quoting a job on my labor that I don't feel like I need to nickle and dime my clients on materials. That's just me though....everyone does it different I suppose.
- 3yBruce WoodruffPro MemberContractor/Investor/Consultant 路 San Diego / Phoenix 路 Member since 2021 路 12k+ posts 路 15k+ votes
As a long-time Contractor I would never bid on a job where the customer wanted to provide materials themselves. Nothing but headaches....and it's just plain rude. You want to buy the products, but I bet you won't be there to meet the trucks, inspect the materials, unload them or see to their security until they are installed. Right?
You expect the GC to do all that for you for free correct? And then when there is a mistake in the order (because the customer never knows what the H they're doing) then it's a big delay which gets blamed on guess who? Yep, the GC....
@Svetlana Kazantseva if you want to save money (or use your CCs), then it's only fair to pay the GC the money it is costing them to do this your way....I would offer them 20% to start and see what they say. But you will lose any good GCs and end up with the new, inexperienced, unlicensed guys...it just ain't worth it....
- Contractor 路 AZ 路 Member since 2022 路 215 posts 路 185 votes3y
I agree 100% with @Matthew Paul and @Bruce Woodruff. I have allowed customers to provide their own materials and sometimes even bring on their own subs, and 100% of the time (yes, LITERALLY 100%) I end up working for free to fix their mistakes. I'll still occasionally let customers do this if I'm feeling nice, but now I let them know ahead of time (and have a clause in my contract) that if something goes awry with their materials and/or subs, it's on them to clean up the mess. I still expect my check on time and I get to say "I told you so" when I go to pick it up.
Bottom line, the contractor's statement... "skeptical about providing a quote if they cannot use their own materials". In their experience "it has lead to a lot of headaches and delays with the project"... is completely valid. I would argue that it shows they are a seasoned contractor and this isn't their first rodeo. Read between the lines... if you provide your own materials it will lead to a lot of headaches (i.e. increased $$$) and delays. Is that what you want?
- 3yTheresa HarrisPro MemberMember since 2019 路 15k+ posts 路 11k+ votes
Ask them for a quote broken down by labour and minor materials and another for major materials (eg flooring). They know what material works best. It doesn't mean you have no say, but ask them for options and when it comes to picking out colours...ask for enough lead time that you can go in, look at the options they provided and then pick the colour you want.
- 3yMichael SmytheBusiness MemberReal Estate Agent 路 Metro Detroit 路 Member since 2023 路 4k+ posts 路 3k+ votes
Sounds like they want to hide their markup on the materials!
Logical Property Management4.9446 Reviews - Severna Park, MD 路 Member since 2013 路 7k+ posts 路 7k+ votes3y
Quote from @Michael Smythe:
Sounds like they want to hide their markup on the materials!
Can you name a business that DOES NOT mark up materials and supplies ? ( and labor )
What I ( as a contractor ) pays for materials for a job is none of the customers business . I get volume discounts that I negotiated with my suppliers . The same with my subs . This is to my benefit , adds to my bottom line .
This is a classic case of tripping over dollars to pick up pennies .
I do not hire my subs based on price , its their qualifications and work .
When you have 1 or 2 houses as rentals , you are simply a residential customer . There is no special investor discount .
- Investor 路 Austin, TX 路 Member since 2021 路 9k+ posts 路 5k+ votes3y
Red flag. They are up charging on the material.
- Real Estate Broker 路 Minneapolis, MN 路 Member since 2011 路 5k+ posts 路 6k+ votes3y
@Svetlana Kazantseva to help elaborate on what @Bruce Woodruff so correctly replied, but some seem to still not get.
A GC "own's" the finished product. They don't want to own a problem which yes, that is exactly what happens dependent upon materials used. That's the first major issue for a PROFESSIONAL experienced GC. And yes, I am going to come out and say what Bruce and I both know, that those "GC's" who say hog-wash, they will use whatever materials, there just broadcasting how inexperienced they are because 100% of GC's come to land on this point that they, exclusively, supply materials, with experience accrued of the folly of doing it otherwise.
Say your doing a vinyl plank flooring job, that's what you hired me for, and you of course have expectations. But you want to order materials, so you order based on price because it all "looks the same" to you, so you go with the single cheapest product available and holly-cow, you paid only 0.99sqft, thinking ha-ha your really savvy because why would you get what looks the same at $2.85sqft.
But here is the thing, what you got ONLY looks the same, it's NOT the same.
What you got, is a MDF plank that has a vinyl veneer. And when we say we won't warranty it, at all, you blame us. Oh-ah why are we trying to "strong arm" into the more expensive stuff, oh-ah were trying to profiteer. No, were just informed. We know that garbage was cheapest, BECAUSE it's cheapest. It's NOT water proof, and it requires vapor under-layment AND padding, the other was integral and had all that. And, that it will last maybe a few years, because radiant humidity will swell the MDF, thus deforming and destroying the locks. And when that happens, you'll call us back saying we did a bad job and need to "repair" it, to which we will say it's not repairable because it's what the garbage you bought literally does. "Well why do they sell it if it's so bad", IDK, why'd you buy it? Why didn't you get informed first? Why didn't you simply listen to us?
And than as it's delivered we ask where the glue is? Or the self-leveler? Transition strips? base-shoe and you say "base-what?" and we say "SHOE" to which you say "what's that?" and we roll our eyes and say "see, this is exactly what I was talking about" and it's another 3 hours out of our lives to turn-n-burn because the crew is sitting stuck on stupid and were trying to find what we can to finish the job now.....
You hire a GC to be the "master" of managing the logistics. To than chop-out one of our leg's of logistics, leaves us hopping around trying to get it done on 1 leg. It's self defeating.
And I share all this as a person who built and ran GC business's and material supply company, I have seen the folly of home owner provided material's time and time again. A home owner never get's material order correct, ever.
And if D.G. said to do it that way, he's wrong, flat out. Being great at "a" thing does not intone a persons greatness at ALL things. And yes, I will take that bet any day that I have done at least 10X the reno's and project of D.G.. I bet Bruce has too. Lot's and lot's of GC's have, because we do multi jobs per week, every week, for years, decades on end.
If your hearing something from multi-GC's, you should listen.
- Real Estate Agent 路 Denver CO 路 Member since 2019 路 209 posts 路 332 votes3y
Oh wow, learning a lot on this thread. Great points of view that I never thought of. I was also in the camp of buy materials yourself for most of the reasons David Greene has highlighted.
I guess as long as I can use a credit card with the contractor for final payment of the materials it's all the same. My main reason for wanting to buy the materials yourself are the rewards/cash back. It's a real nice benefit on some of these projects. So far it's worked out as a few of my contractors place the orders with their distributors and then I call in for payment (@Svetlana Kazantseva - this might be a good compromise).
- Columbia, SC 路 Member since 2014 路 133 posts 路 190 votes3y
So I don't think it's black and white either - I did new windows in our primary home and our contractor measured and ordered the windows and then I called the supply house and gave them my card. He didn't want to front the money himself and I was happy to get the points. So he was in control from start to finish but we used our cash to buy everything (including flashing/caulk/other things he knew were needed). I've also given a contractor my Lowes card (we have known him forever and I fully trust him) for a week so he can buy whatever he needs to get the job done. I've also used guys and just written them a check for draws along the way but never purchased material. There's never a one size fits all for real estate/investing.
- 3yBruce WoodruffPro MemberContractor/Investor/Consultant 路 San Diego / Phoenix 路 Member since 2021 路 12k+ posts 路 15k+ votesWhat he said ^^^^
Quote from @James Hamling:
And than as it's delivered we ask where the glue is? Or the self-leveler? Transition strips? base-shoe and you say "base-what?" and we say "SHOE" to which you say "what's that?" and we roll our eyes and say "see, this is exactly what I was talking about" and it's another 3 hours out of our lives to turn-n-burn because the crew is sitting stuck on stupid and were trying to find what we can to finish the job now.....
You hire a GC to be the "master" of managing the logistics. To than chop-out one of our leg's of logistics, leaves us hopping around trying to get it done on 1 leg. It's self defeating.
And I share all this as a person who built and ran GC business's and material supply company, I have seen the folly of home owner provided material's time and time again. A home owner never get's material order correct, ever.
And if D.G. said to do it that way, he's wrong, flat out. Being great at "a" thing does not intone a persons greatness at ALL things. And yes, I will take that bet any day that I have done at least 10X the reno's and project of D.G.. I bet Bruce has too. Lot's and lot's of GC's have, because we do multi jobs per week, every week, for years, decades on end.
If your hearing something from multi-GC's, you should listen.
And to add to it (and meaning no disrespect to anyone) I got so weary of hearing the "I'm trying to get points on my Credit Card" thing...
I'm trying to run a big-time company here, and you hired me to do a $400,000 remodel on your home that has to come out 100% perfect - for both our sakes, and for my reputation.
Can you please just go get your Credit Card points somewhere else? Please? This is important..... - Real Estate Broker 路 Minneapolis, MN 路 Member since 2011 路 5k+ posts 路 6k+ votes3y
Quote from @Adam Odom:
So I don't think it's black and white either - I did new windows in our primary home and our contractor measured and ordered the windows and then I called the supply house and gave them my card. He didn't want to front the money himself and I was happy to get the points. So he was in control from start to finish but we used our cash to buy everything (including flashing/caulk/other things he knew were needed). I've also given a contractor my Lowes card (we have known him forever and I fully trust him) for a week so he can buy whatever he needs to get the job done. I've also used guys and just written them a check for draws along the way but never purchased material. There's never a one size fits all for real estate/investing.
Speaking specific to this, because I owned a window remodeling and distribution company.
When I would put in a window order, it was at the manufacturing plant itself, not Home Depot, not Lowes. If your materials are coming from H.D. or Lowes, your doing it wrong. And if that's where your "GC" shops, he's NOT a GC, he's an installer with a GC license. Very big difference.
A "REAL" GC, has vendor account's, manufacture account's, and negotiated product discounts based on volume. You can't make those payments, literally, it's not allowed.
When I went to buy a furnace, it was closed to the public. It required licenses to buy there, and vendor account, and EIN. Cabinets, same thing, I was direct with manufacturer. Paint, I bought from BEAR, no not buying BEAR paint at H.D. I bought through BEAR itself and H.D. serviced out account, my pricing was negotiated and specific to myself.
I'm not special in this regard, this is the standard of how it's done for professional GC's. NON-professional GC's get their stuff at H.D., Menards, Lowes's etc..
And yes, I did get some things at H.D. but even then, I had a corporate account, and received corporate pricing that came from corporate office. Again, volume based and negotiated discount. Some were minimal, 3-7%, some as much as 68%. I only saw 68% once, maybe was a type but I took it!
I spent literally millions per year, every year on materials. That's purchasing power, that leverages those accounts and discounts. Yes, we mark-up materials, but on our discount, not retail. And, we handle everything, are liable for everything. Sending someone to H.D. or Lowes with you card will never compete with what we can get, at the price we can get it. Nor will the product be the same. For example, when I buy Dewalt tools, they look like what you can get off the shelf, but there not, the gut's are different. I have metal drives vs plastic, the wrapper looks the same but content is whole different item. Same goes for everything, tools, windows, flooring etc..
- Real Estate Broker 路 Minneapolis, MN 路 Member since 2011 路 5k+ posts 路 6k+ votes3y
Quote from @Eliott Elias:
Red flag. They are up charging on the material.
where's the down vote button....
- 3yBruce WoodruffPro MemberContractor/Investor/Consultant 路 San Diego / Phoenix 路 Member since 2021 路 12k+ posts 路 15k+ votes
Quote from @Michael Smythe:
Sounds like they want to hide their markup on the materials!
Quote from @Eliott Elias
Red Flag. They are up charging on the material.
Really guys? Seriously? OMG, a business is adding a markup to their product? Stop the presses because that's never happened before, right...? 馃ぃ
Lol, after many years in business a good GC will build up so many valuable relationships with Vendors, Supply Houses and Subs that they can't even be counted. I ordered so much lumber (For framing) from one local lumber house that not only did I get large discounts but I got free pencils (OMG) and free tickets to local NFL/MLB games, which I rarely used, I would pass these on to my Subs to further cement our relationships. This is how the Construction business works, people....!
What shocks me the most is how Realtors and Investors can be so f'ing clueless about this. It's different for a small investor or first time homeowner, but c'mon guys.....
Yes, I got discounts on almost everything from almost every Supplier or Vendor. Did I always mark up the price to the customer? No I didn't. Sometimes it was the right thing to do, sometimes it wasn't. And it depended on the customer a lot too.... :-)
Often times there was enough profit in the mark-up on the Sub's pricing that I could show the customer that they were getting materials at my price, a big discount. Everybody is happy!
Let me bottom-line this for you newbies out there - you should be happy that your Contractor is marking up materials and you should even encourage it. You want a good company to make a good profit on your job and be around in the future for more work or if there is a defect on your job that needs correcting in the future. Right?
- 3yBruce WoodruffPro MemberContractor/Investor/Consultant 路 San Diego / Phoenix 路 Member since 2021 路 12k+ posts 路 15k+ votes
Quote from @James Hamling:
Quote from @Adam Odom:
So I don't think it's black and white either - I did new windows in our primary home and our contractor measured and ordered the windows and then I called the supply house and gave them my card. He didn't want to front the money himself and I was happy to get the points. So he was in control from start to finish but we used our cash to buy everything (including flashing/caulk/other things he knew were needed). I've also given a contractor my Lowes card (we have known him forever and I fully trust him) for a week so he can buy whatever he needs to get the job done. I've also used guys and just written them a check for draws along the way but never purchased material. There's never a one size fits all for real estate/investing.
Speaking specific to this, because I owned a window remodeling and distribution company.
When I would put in a window order, it was at the manufacturing plant itself, not Home Depot, not Lowes. If your materials are coming from H.D. or Lowes, your doing it wrong. And if that's where your "GC" shops, he's NOT a GC, he's an installer with a GC license. Very big difference.
A "REAL" GC, has vendor account's, manufacture account's, and negotiated product discounts based on volume. You can't make those payments, literally, it's not allowed.
When I went to buy a furnace, it was closed to the public. It required licenses to buy there, and vendor account, and EIN. Cabinets, same thing, I was direct with manufacturer. Paint, I bought from BEAR, no not buying BEAR paint at H.D. I bought through BEAR itself and H.D. serviced out account, my pricing was negotiated and specific to myself.
I'm not special in this regard, this is the standard of how it's done for professional GC's. NON-professional GC's get their stuff at H.D., Menards, Lowes's etc..
And yes, I did get some things at H.D. but even then, I had a corporate account, and received corporate pricing that came from corporate office. Again, volume based and negotiated discount. Some were minimal, 3-7%, some as much as 68%. I only saw 68% once, maybe was a type but I took it!
I spent literally millions per year, every year on materials. That's purchasing power, that leverages those accounts and discounts. Yes, we mark-up materials, but on our discount, not retail. And, we handle everything, are liable for everything. Sending someone to H.D. or Lowes with you card will never compete with what we can get, at the price we can get it. Nor will the product be the same. For example, when I buy Dewalt tools, they look like what you can get off the shelf, but there not, the gut's are different. I have metal drives vs plastic, the wrapper looks the same but content is whole different item. Same goes for everything, tools, windows, flooring etc..
Thank you James, you get it..... :-) I thought people knew this, but...? A REAL General Contractor gets very special treatment and they should, Even at lowly Home Depot every order over $2000 goes back to corporate in Atlanta for review, where they will knock off 5-25%. Although yes, you would occasionally get a free product. And yes, we had a window and door vendor that supplied a product from different manufacturers. Their Rep would come out and measure after rough, not take the measurements from the plans or even my measurements. Why? Because they were a quality supplier and cared about the product. This way of doing business is about as high-quality as it gets and must be completely foreign to those replying on here. Y'all should try it sometime...
- Member since 2023 路 2 posts 路 1 vote3y
Quote from @Matthew Paul:
Quote from @Michael Smythe:
Sounds like they want to hide their markup on the materials!
Can you name a business that DOES NOT mark up materials and supplies ? ( and labor )
What I ( as a contractor ) pays for materials for a job is none of the customers business . I get volume discounts that I negotiated with my suppliers . The same with my subs . This is to my benefit , adds to my bottom line .
This is a classic case of tripping over dollars to pick up pennies .
I do not hire my subs based on price , its their qualifications and work .
When you have 1 or 2 houses as rentals , you are simply a residential customer . There is no special investor discount .
- Member since 2023 路 2 posts 路 1 vote3y
It is my business as well, as an owner, and I am looking for my best deal and to protect my interest. Since I pay, I chose who and how, not the other way arround. My money, my rules.
- Columbia, SC 路 Member since 2014 路 133 posts 路 190 votes3yAgain, context, nothing is black and white. My contractor used my Lowes card for a roughly $2,000 renovation on a currently owned rental. Not a million dollar addition, not a new build. To say a contractor isn't legit because he gets stuff at Lowes is a little exaggerated.
Quote from @James Hamling:
Quote from @Adam Odom:
So I don't think it's black and white either - I did new windows in our primary home and our contractor measured and ordered the windows and then I called the supply house and gave them my card. He didn't want to front the money himself and I was happy to get the points. So he was in control from start to finish but we used our cash to buy everything (including flashing/caulk/other things he knew were needed). I've also given a contractor my Lowes card (we have known him forever and I fully trust him) for a week so he can buy whatever he needs to get the job done. I've also used guys and just written them a check for draws along the way but never purchased material. There's never a one size fits all for real estate/investing.
Speaking specific to this, because I owned a window remodeling and distribution company.
When I would put in a window order, it was at the manufacturing plant itself, not Home Depot, not Lowes. If your materials are coming from H.D. or Lowes, your doing it wrong. And if that's where your "GC" shops, he's NOT a GC, he's an installer with a GC license. Very big difference.
A "REAL" GC, has vendor account's, manufacture account's, and negotiated product discounts based on volume. You can't make those payments, literally, it's not allowed.
When I went to buy a furnace, it was closed to the public. It required licenses to buy there, and vendor account, and EIN. Cabinets, same thing, I was direct with manufacturer. Paint, I bought from BEAR, no not buying BEAR paint at H.D. I bought through BEAR itself and H.D. serviced out account, my pricing was negotiated and specific to myself.
I'm not special in this regard, this is the standard of how it's done for professional GC's. NON-professional GC's get their stuff at H.D., Menards, Lowes's etc..
And yes, I did get some things at H.D. but even then, I had a corporate account, and received corporate pricing that came from corporate office. Again, volume based and negotiated discount. Some were minimal, 3-7%, some as much as 68%. I only saw 68% once, maybe was a type but I took it!
I spent literally millions per year, every year on materials. That's purchasing power, that leverages those accounts and discounts. Yes, we mark-up materials, but on our discount, not retail. And, we handle everything, are liable for everything. Sending someone to H.D. or Lowes with you card will never compete with what we can get, at the price we can get it. Nor will the product be the same. For example, when I buy Dewalt tools, they look like what you can get off the shelf, but there not, the gut's are different. I have metal drives vs plastic, the wrapper looks the same but content is whole different item. Same goes for everything, tools, windows, flooring etc..
- Severna Park, MD 路 Member since 2013 路 7k+ posts 路 7k+ votes3y
Quote from @Viorel Verka:
It is my business as well, as an owner, and I am looking for my best deal and to protect my interest. Since I pay, I chose who and how, not the other way arround. My money, my rules.
No , its not your rules . General contractors supply you with their contract that you , the customer sign . The contract is the rules . I am on 40 years as a contractor , big jobs , small jobs and everything in between . Its my contract or nothing . Depending on the job that contract can be 40 plus pages . It covers almost everything .
- Real Estate Broker 路 Minneapolis, MN 路 Member since 2011 路 5k+ posts 路 6k+ votes3y
Quote from @Adam Odom:
Again, context, nothing is black and white. My contractor used my Lowes card for a roughly $2,000 renovation on a currently owned rental. Not a million dollar addition, not a new build. To say a contractor isn't legit because he gets stuff at Lowes is a little exaggerated.Quote from @James Hamling:
Quote from @Adam Odom:
So I don't think it's black and white either - I did new windows in our primary home and our contractor measured and ordered the windows and then I called the supply house and gave them my card. He didn't want to front the money himself and I was happy to get the points. So he was in control from start to finish but we used our cash to buy everything (including flashing/caulk/other things he knew were needed). I've also given a contractor my Lowes card (we have known him forever and I fully trust him) for a week so he can buy whatever he needs to get the job done. I've also used guys and just written them a check for draws along the way but never purchased material. There's never a one size fits all for real estate/investing.
Speaking specific to this, because I owned a window remodeling and distribution company.
When I would put in a window order, it was at the manufacturing plant itself, not Home Depot, not Lowes. If your materials are coming from H.D. or Lowes, your doing it wrong. And if that's where your "GC" shops, he's NOT a GC, he's an installer with a GC license. Very big difference.
A "REAL" GC, has vendor account's, manufacture account's, and negotiated product discounts based on volume. You can't make those payments, literally, it's not allowed.
When I went to buy a furnace, it was closed to the public. It required licenses to buy there, and vendor account, and EIN. Cabinets, same thing, I was direct with manufacturer. Paint, I bought from BEAR, no not buying BEAR paint at H.D. I bought through BEAR itself and H.D. serviced out account, my pricing was negotiated and specific to myself.
I'm not special in this regard, this is the standard of how it's done for professional GC's. NON-professional GC's get their stuff at H.D., Menards, Lowes's etc..
And yes, I did get some things at H.D. but even then, I had a corporate account, and received corporate pricing that came from corporate office. Again, volume based and negotiated discount. Some were minimal, 3-7%, some as much as 68%. I only saw 68% once, maybe was a type but I took it!
I spent literally millions per year, every year on materials. That's purchasing power, that leverages those accounts and discounts. Yes, we mark-up materials, but on our discount, not retail. And, we handle everything, are liable for everything. Sending someone to H.D. or Lowes with you card will never compete with what we can get, at the price we can get it. Nor will the product be the same. For example, when I buy Dewalt tools, they look like what you can get off the shelf, but there not, the gut's are different. I have metal drives vs plastic, the wrapper looks the same but content is whole different item. Same goes for everything, tools, windows, flooring etc..
Uh-huh, keep telling yourself that "it's different this time"....
Know what my #1 purchase was serviced by Home Depot, paint. I was not aware that paint is exclusive to "million dollar addition". Apparently I'm the fool because I thought paint was kind of the most used item, especially for rentals.
And as I said before, corporate account with volume based discounts. And on paint, they can be big, really big with enough volume.
And on that front, to answer an item before it comes up. No, a GC's volume discount is NOT :owed" to any 1 customer of GC, that is the GC's. Call it a "reward" for being good enough to have that volume. So yes, some can convey some or all of it, I did, but it's NOT owed, ever, and means nothing if they don't, it's GC's choice, they earned it.
And let me clarify on your "GC": He's NOT a LEGIT GC, he is a sub, an installer, who happens to have a GC license. ESPECIALLY because of how tiny the job size. Your just declaring he's a Handy-Man.
Sure, the license says General Contractor, trust me in our eyes, in the industry, by the world of GC's your NOT a GC until you are a LEGIT GC, as in running a BUSINESS, with systems, process's, staff etc.. If your out swinging the hammer day-2-day no, your not considered a LEGIT GC. And not a 1 of us LEGIT GC's will run around to pickup items you ordered, for among many reasons, were too dang busy running the circus; checking on jobs, designing job's, meeting with inspectors, running a project schedule, trouble shooting, meeting with suppliers, negotiating contracts, holding sub's accountable, vet'ing sub's, hiring, firing, all the everything that goes into making your project build possible that you don't see. The reality of how things get built. It ain't all swinging a hammer.
- Severna Park, MD 路 Member since 2013 路 7k+ posts 路 7k+ votes3y
Quote from @Eliott Elias:
Red flag. They are up charging on the material.
Of course contractors mark up materials ... When you rehab a house and sell it dont you mark it up as much as you can ? When you rent a house dont you make a profit ?
No different than being a contractor .
Profit is not a dirty word
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