MATTHEW F. GOODWIN
No Problem Builders
I like telling my clients that when they go into one of my suggested sales centers, they will be given my price. However, I pass my dealer discounts on to them. I want them to see the prices I'm paying for their goods.
Clients appreciate this transparency and it helps them make decisions. I just charge a percentage on the total costs at the end of the job. This way, I'm not charging them twice. When clients choose a contractor, they make a decision based on trust. In a small, conservative market like ours, trust and reputation are everything. I certainly don't want to “discount” that.
We often ask for better pricing from our suppliers or manufacturers. If we have a large order, we will attempt to get a volume discount, which could be a reduction of 5% to 10%. If it is an item we are using for the first time or it is a new product, we ask for a guinea pig discount.
We have a showroom with product displays, so our multiplier is better than standard on cabinets, countertops, flooring, and tile. This usually equates to an extra 2% to 8% discount, which, especially on large cabinet orders, can add up. We also offer a fast payment or a prepayment for a reduced price for both suppliers and subs.
For the most part, I do not ask for discounts. I make a statement to all my subs and dealers that I trust I am getting the best deal possible since we pay them fast and they do not have to ever worry about our credit. We have a fabulous credit rating, so we would only hope we are getting the best in return.