What discount do the trades usually get on supplies

I thought this would be a good discussion to have.

What discounts do trades generally get on supplies compared to say, hardware store retail prices. I realise there is a range, and it depends on the volume of purchase.

I’m just trying to get an idea of whether it’s worth sourcing these products myself, or just getting the trades to source it.

Timber Frames and Trusses= x%(I realise there is a range)
Concrete(bulk for slabs)=
Steel reo for slab=
Gyprock=
Electrical Supplies=
Plumbing Supplies=
Bricks=
Insulation=
General Timber Moulding Doors Skirts etc=
Colourond roofing gutter etc=

Anyone in the know on this? Do you know if the volume builders generally get much more than the trades?

Thanks.

I'm not absolutely certain of the discount, but I've worked for several large builders and over the years have been quoted trade price for myself on a few appliances, as well as some sinks and plumbing fixtures. Every one of quotes was more expensive for trade price, compared to specials at a retail outlet

Just a quick tip - it kind of sounds like you might be owner building so if that is indeed the case then you might get more of a response in the owner builder forum.

Timber Frames and Trusses= x%(I realise there is a range) Carpenter doesn't orgainse this the builder does
Concrete(bulk for slabs)= Concreter usually gets this much cheaper than any one else because they buy heaps. However the issues is they have been known to put a large markup on the stuff when you go into extra concrete.

Steel reo for slab= Sometimes you can get it cheaper depends where the guy buys it from but it wouldnt be for than a few dollars less per sheet.


Gyprock= This stuff is only aroudn 3.50 per square meter. How much cheaper can you really get it.
Electrical Supplies= Yeah if you look hard enough. Electrictions only go to one shop. It may not be the cheapest.
Plumbing Supplies= Actual pipes etc leave it to the plumber. However fitting wise if you savey and no what to look for you can get some good quality imports.

Bricks= Builder organise this. In fact the bricklayer usually just turns up. You need to make sure he has everything.
Insulation= Depends on what you want.
General Timber Moulding Doors Skirts etc= again carpenters dont buy this stuff.
Colourond roofing gutter etc= Not sure. Usually just best to leave it up to the installer just in case you run short.

Thanks for all your comments, and particularly BStar for going through each of them.

I guess it leads me to my next question. How much cheaper do the builders generally source things like bricks, frames trusses, mouldings etc

This has always puzzled me why the average Joe who walks through the door with cash in his hand gets slugged top dollar, when the builder who admittedly deals in much greater quantities and puts things 'on the slate,' gets discount.

Then when things get tight and the retailer has to chase the builder for late payment or misses out if he goes bust, the little bloke still fronts up with his cash, to get slugged again.

If you are an owner builder you may get a slight discount, but you will be competing with the big boys.

Volume always seems to win... unfortunately for the OB. However in this day and age, with online sales, I can't see why you should pay much more than builder prices for any product, particularly if it is a simple transaction with the OB doing all the hard yards in terms of providing the specs they need for the product. profit is profit regardless of the source...I know i'll be bargaining hard when I OB.....

with some supplies I believe large volume builders get kickbacks per job as well

i guess you can call me an OB, however i have appointed a builder to oversee, co-ordinate and procure as well.

Invariably I have been able to get a lot of things much cheaper than him using contacts that I have.

• Volume (as somebody mentioned above) and
• customer-come-back.

An Owner Builder's purchase is "one off". If a seller gives a discount to the builder, the builder is more likely to "go back" to that seller.

That's exactly my point though. In this day and age, you can find out roughly what the builder pays for a product. So even with a builder price, you know that the supplier is profiting. Use that as your baseline. So assuming there is competition in the industry, I can't see why the supplier won't offer an OB or one off purchaser a builder price, if
a) it still brings in a profit
b)they know that the OB is savvy enough to push the issue, (or will source it somewhere else if the right price is not met).

but you will never find out what the "kick back" aka rebate is which is a way of protecting the real identity of a "builders"price

fair call..

However, the point of my original post was to break this down. There must be a few in the know without a vested interest in the status quo

when I was going through interior design phase, the designer said she can get quotes "cheaper" than anyone else so she proceeded to get quotes for doors, flooring, tiles, and a few other bits and pieces. All the while she knew I was an owner builder. Before she released the quotes to me she wanted me to sign a document to say something along the lines that should I decide to return any of the items mentioned that she would be entitled to keep a 15% builders margin. I was quite furious and refused as she knew I was going to do my own procurement and I thus crossed out that clause and signed the document and then she released the quotes. The prices she had were outrageously expensive. I was able to source the same spec of each item at up to half the price she quoted me through other suppliers. What i found interesting was that the suppliers she used refused to requote or change the prices for an OB - they justification was that i was a "one off" client whereas she gives them a lot of business and they were not willing to jeapordize that relationship. Well, I have done several developments over the years so I am hardly "one-off" and lucky I have enough contacts to get around such issues.

Moral of the story: the industry generally looks after the industry

It is a given that whatever industry you work in you get dood prices, or perks. Bankers get cheap loans, computer guys, bargain computer stuff etc etc. Builders get a trade price because they are repeat business.
The mark up they put on is also to order, carry the cost on account, pick up, deliver etc., which is not as minor as it sounds.
OB' can always find cheaper prices if they are prepared to do the legwork and shop around for bargains. Builders won't 'shop around', they will go to a standard supplier, hence wholesalers wanting to keep them. I have sourced heaps of bargains by going to Fwles auctions, getting display stock etc but there have been times that picking it up (ie. paks of 5mtr timber) have been a trial and at those times understand why it is easier to just pay someone to buy and supply Oh to win tattslotto.
My OH is a tradie but I have still sourced most things, and cheaper than he would have. He does get a better price on things like cabinetry, slate etc. A
Auctions are GREAT for good deals

With regard to builders getting good discounts it will mainly be the large well known builders you get big discounts and incentives to use there products. The smaller builders don't usually spend enough time in negotiating pricing. When I ob I was able to source many things cheaper. However labor is one thing that can be harder to get good pricing on.

People seem to forget that as an owner builder you are still buying things in bulk. Whether its floor tiles or timber. You will be buying a lot. People seem to forgot this.

the real benifit of a trade account for the diy is convinience, i have one at bunnies while the discount is rubish i can assign each invoice to a different job so i can figure out what goes where, i get time to pay for it and at the end of the month i get one summary. At the moment we are renovating 3 places the amount of those small receipts is floating around in my car was getting stupid.

I'm a builder, trade account means a line of credit for us, the standard are 5% off the retail price. You can normally find things cheaper online, which we always do. I also negotiate with the seller reps to get better prices when buying quantities.


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Most tradies get around 5-10% discount it all depends on the quantises purchased over time and that has bearing on the amount of discount achieved by the trade.

If I was you I would be putting on my tradie clothes and work boots and walking in to suppliers and asking for trade price usually 5 - 10% at a minimum. Tell them you are a new builder in the area and happy to pay cash for this first supply. You'll probably do as we'll as any other trade person could buy for. The motto is to shop around and know your base prices.