Who gets better pricing: you or contractor

Question

I want to put together a booklet for future flips specifying exactly what I want in certain rooms, to really systematize things for contractors/installers.

However, I tend to hesitate to call my own selections or provide my own materials, because I always wonder if the contractor is getting a really great deal with a supplier. For example, do they get a way better price from a flooring supplier than I do at Home Depot?

It seems margins are so suppressed, there is no way they are getting a much better price than at Home Depot or Lowe’s.

Thoughts?

Will Barnard · Answer

The answer to your original question is it depends. It depends on the contacts and purchasing power of the contractor and that of you. In most cases, a contractor will have higher or better purchasing power and as such, better discounts, but then he or she will likely mark that up. Many contractors will not do jobs where all materials are supplied by customer as some problems can exist with that set up. Some will but you have to question how much savings are you actually getting after factoring in the time and effort it takes you to shop, process the order and schedule delivery of materials. Your time may very well be better spent finding more deals, finding more money, or buyers, or whatever you do that makes you the most money.

Bill Kramer · Answer

@William Wright

Standardizing your houses is a huge win for efficiency. I push all my clients to do it.

The only downfall, is manufacturer love to change model #'s regularly for the exact same product.

Example: you want ceiling fans in all bedrooms. Instead of listing the model number, use the name of the product like: hugger 52" brushed nickel ceiling fan.

And make notes that say: all finishes brushed nickel when possible.

Now your contractor knows what to buy.

By standardizing everything you can exercise buying in bulk. Same fixtures go in all houses, so why not buy bulk when an opportunity arise.

This also gets the contractor on the same page as you much faster. By job 2 he knows what to get, vs having to bug you with small decisions and petty details.

Max T. · Answer

@Amber Gonion

Not a contractor but I signed up for the contractor account at Sherwin Williams. 50% off everything no questioned asked.

They even let me buy paint for an older woman trying to fix up her house. She gave me the cash and I paid through my account. Felt good being able to save her some real money.

Amber Gonion · Answer

@William Wright using Home Depot we get a 22% discount on paint using different programs. We do property management/acquisitions for clients and do rehabs for both so we spend a bunch.  We also get cash back, 11% matching discounts and others.

So if you do little volume yes the contractor will have a better rate.

Nick Rutkowski · Answer

@William Wright

I find the contractors who don’t profit off of the materials. I make the contractors give me a material list and I buy my own materials too. I like meeting the owners of my local supply stores. I get better deals but I also get to know who else is in my industry.

Matthew Paul · Answer

Oh yes as contractors we get a MUCH better price from our suppliers , when you spend a lot of money ( $30K a month plus ) you get  discounts , fishing trips , vacations .  And you get an even better break when you cut a check on the spot .

William Wright · Answer

@Will Fraser

Thanks for the feedback, Will. I would agree. Hard to really get the price down unless you become a full fledged retailer. Thanks, man!

Will Fraser · Answer

Hey @William Wright!  In my experience the contractors are getting nominal discounts that are available to anyone who does repeat business or plays by the businesses rules.  There are a number of local suppliers who inflate their prices and give discounts to contractors, but in the end this is a mental trojan horse game.

I think over the long haul using Lowes or HD's "pro" programs coupled with discounts from their CCs or gift cards (from a site like Raise or CardCash) will lead to the lowest costs for a given project comparing apples to apples.