DIYbanter - View Single Post - Any tricks for getting "contractor" discount on supplies?

writes:
J. Kosowsky) wrote:

Finally, from a "moral" viewpoint, I have always thought it to be
borderline sleazy that contractors make an additional *hidden* margin
by marking up the price of materials. I am happy to pay a fair and
competitive hourly labor rate and to pay a delivery charge on
materials,

I have doubts about this. From your words and tone, I don't think
you are happy to pay full value for anything ...

Not sure how you judge this. I am willing to pay market price adjusted
up or down for the quality of the work and any other side benefits or
deficiencies (e.g., faster job, better reputation, warrantee)

Still, I can't understand why you're so concerned about how much
profit I make. Your concern should be the quality of the work, the
quality of the materials and *the cost to you*.

I could care less how much profit you make. I care only that when I
buy something as a DIY that I don't pay a marked up price that bears
no relationship to the actual cost and margin of supplying the product
(as evidenced by someone else getting the same part for significantly less)

but I fail to see why a contractor should make an
additional hidden profit by marking up materials due to the old "cozy"
relationship between suppliers and contractors.

Here's why: I renovate your bathroom. A month later, there's a
problem with the bathtub ... a hairline crack. You call me to say
what do we do?

I supplied the tub and the plumber ... and marked both up by my
standard 25%. Which means the tub cost you 5% more than you could
buy it for at retail ... and plumber cost you about $15 an hour LESS
than you could hire one at from the phone book.
Since I was the supplier, I pay to have the tile surround removed,
the tub removed and replaced, and new tile work for the surround.

OR --- You supplied the tub which you bought to save my markup.
It's your problem, not mine.

You should follow the thread more closely because you have
misinterpreted my point thoroughly.
First, I have said repeatedly that I am talking about buying parts for
my own DIY repair so your situation of warrantying work is not
relevant.

Second, even if I would hire someone else to do the work, I want to
have materials represent materials cost and labor represent labor
cost. If labor profit is built into the cost of materials then why
bother even giving me separate parts and labor costs? Also, if there
is a problem after the job then I would have assumed that the cost of
replacing the materials would be borne by the supplier (and calculated
into his margins) while the cost of redoing the labor would be built
into the price you charge for labor.

I now use the Internet
all the time to challenge contractors on marked-up materials pricing
thereby avoiding being gouged and getting a better sense of my labor
vs. materials cost.

I don't know what your experience with this approach has been ... and
I suspect that no matter what it has been, you would claim it's been
great.

I can tell you what your experience would be he no serious pro
would even look at your project.

That has not been my experience.

In fact, this is no different from the uproar over
hospitals marking up the price of Tylenol (beyond the cost of goods
and administration) or government contractors marking up the cost of
toilet seats.

Actually, both cases have led to corrections in pricing.

If you can't see the difference, then you've got a real problem.
Maybe you can find a shrink who gives discounts.

Ken