The MaxEquity buying group negotiates with manufacturers and retailers to provide rebates to remodelers based on their purchases. President Bob Sayre is a remodeler who decided to do something about the difficulty contractors have in competing with big box chains.
“Our purpose is to lower material costs for members so they can be more competitive with the new threat of installed sales,” Sayre says.
The Massapequa, N.Y., company has more than 5,000 members across the nation. Members don't pay fees to join — they just agree to purchase from the group's vendors. Products include siding, windows, cabinetry, paint, lumber, and electrical supplies. The group also asks members to recommend smaller local vendors in their 60 markets.
Sayre and vice president Fred Greenwald negotiate the rebate percentage with the vendor — usually between 2% and 4%. The contractor buys from the vendor using their usual account number. MaxEquity submits member account numbers to the vendor and the vendor sends the group the total rebate on a quarterly basis. MaxEquity distributes 70% of the amount to members and uses the other 30% for administration and marketing. “More members mean greater and deeper rebates,” Sayre says. For more information, visit www.maxequityinc.com.