Hi All, currently 1/2 way through building our new house at Shelly Beach, NSW. Have picked up some great ideas browsing this site and now have a question that I would really appreciate an opinion on if anyone is keen to offer.
Does anyone know ballpark what a builder pays for items such as tapware and kitchen appliances compared to retail prices ? e.g A shower head retails for $300. Would a builder pay 60% of this and then apply his margin ?
Reason Im asking is that we have had very little visibility of the pricing of our selecrions nad in some instances the upgrade is costing us more than we can just walk into Reece and purchase straight off the shelf.
I understand that different builders have different pricing based on volume etc.... just ballpark if anyone can share their experiences.
Builders trade price V's Retail price
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The builders get huge discounts on their standard items so the credit they give you to go towards the upgrade item is next to nothing. You can often buy the items at retail price at the same or even less than the builders upgrade price. It is certainly worth doing your research before selections. For things that you can change yourself after handover it can be worth not upgrading and doing it yourself. For example kitchen mixer taps are easy to change over yourself so that is one thing were we decided not to upgrade and instead after handover we will find our perfect tap, change it over and maybe we will sell the basic one included by the builder on ebay.
Hi, thanks for that . We have a meeting with our builder to discuss the pricing on the upgrades this afternoon. Should be interesting.
I dont at all begrudge the builder applying his margin on top of his price. It is a business and they are obviously in it to make money. However when this ends up at a point where their supplied price is greater than the undiscounted price that you can purchase items at a retail outlet then the way i see it either the builder is applying a greater margin than he is entitled to or he is really not buying things at that great a price.
I would have thought on face value that they pay 60-70% of retail, add 20% leaving their price to the client approx 15% or so lower than retail.
Anyway, see how we go this arvo.............
I dont at all begrudge the builder applying his margin on top of his price. It is a business and they are obviously in it to make money. However when this ends up at a point where their supplied price is greater than the undiscounted price that you can purchase items at a retail outlet then the way i see it either the builder is applying a greater margin than he is entitled to or he is really not buying things at that great a price.
I would have thought on face value that they pay 60-70% of retail, add 20% leaving their price to the client approx 15% or so lower than retail.
Anyway, see how we go this arvo.............
Hi, thanks for that . We have a meeting with our builder to discuss the pricing on the upgrades this afternoon. Should be interesting.
I dont at all begrudge the builder applying his margin on top of his price. It is a business and they are obviously in it to make money. However when this ends up at a point where their supplied price is greater than the undiscounted price that you can purchase items at a retail outlet then the way i see it either the builder is applying a greater margin than he is entitled to or he is really not buying things at that great a price.
I would have thought on face value that they pay 60-70% of retail, add 20% leaving their price to the client approx 15% or so lower than retail.
Anyway, see how we go this arvo.............
I dont at all begrudge the builder applying his margin on top of his price. It is a business and they are obviously in it to make money. However when this ends up at a point where their supplied price is greater than the undiscounted price that you can purchase items at a retail outlet then the way i see it either the builder is applying a greater margin than he is entitled to or he is really not buying things at that great a price.
I would have thought on face value that they pay 60-70% of retail, add 20% leaving their price to the client approx 15% or so lower than retail.
Anyway, see how we go this arvo.............
While I do agree with you, keep in mind that anything the builder purchases and installs is covered by their warranties/insurance etc
Hi, thanks for that . We have a meeting with our builder to discuss the pricing on the upgrades this afternoon. Should be interesting.
I dont at all begrudge the builder applying his margin on top of his price. It is a business and they are obviously in it to make money. However when this ends up at a point where their supplied price is greater than the undiscounted price that you can purchase items at a retail outlet then the way i see it either the builder is applying a greater margin than he is entitled to or he is really not buying things at that great a price.
I would have thought on face value that they pay 60-70% of retail, add 20% leaving their price to the client approx 15% or so lower than retail.
Anyway, see how we go this arvo.............
I dont at all begrudge the builder applying his margin on top of his price. It is a business and they are obviously in it to make money. However when this ends up at a point where their supplied price is greater than the undiscounted price that you can purchase items at a retail outlet then the way i see it either the builder is applying a greater margin than he is entitled to or he is really not buying things at that great a price.
I would have thought on face value that they pay 60-70% of retail, add 20% leaving their price to the client approx 15% or so lower than retail.
Anyway, see how we go this arvo.............
While I do agree with you, keep in mind that anything the builder purchases and installs is covered by their warranties/insurance etc
lisanne makes a very valuable and crucial point.
You really have no choice but to accept the prices quoted by the builder for your upgrades or as an alternative option, you can do you own upgrades after handover (if that is possible).
We chose many standard fittings (ie. taps, spouts, handles) which were a standard inclusion because the upgrade price quoted by our builder was a bit steep. We will upgrade these items ourselves after handover, because we can get them cheaper ourselves.
hi again. Yep you are all dead right. I had my meeting with my builder and discovered that they get great rates on the items they buy lots of so if you want somthing different you will be credited back a relatively small amount and then he potentially wont have the same level of pricing on the upgrade. For the most part we are just going to swallow it. Something would have to be massively cheaper for it to be worthwhile to supply it ourselves.As mentioned using the builders supplies enables those goods to be covered by the builders warranty. Which is pretty important.
I am thinking in retrospect that maybe my expectations were a little too high. It has been a learning experience but with best part being that I am now comfortable that all of the prices he is supplying me with and his margin are all above board.
I am thinking in retrospect that maybe my expectations were a little too high. It has been a learning experience but with best part being that I am now comfortable that all of the prices he is supplying me with and his margin are all above board.
The BIG builders pay about $300 per thousand for bricks, mere mortals like you and I pay $600 or more.
The other day I found out that a friend of ours got around 30% off for timber flooring materials thanks to his mate who has a trade account with the company. I was amazed! 30% is a lot of money. Makes me wonder how much trade discount on bricks etc really is.
I sell to builders every day - they get a 10% discount which is standard. Materials sold in job-lots get priced on a 'job-lot' - that would be the same whether its a builder or joe-blow off the street
Some builders do get bigger discount for loyalty etc in some areas though.
Some builders do get bigger discount for loyalty etc in some areas though.
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