How Do You Deal With Materials?

xCableguy

We do remodels, mostly kitchen, bath and addtions. After we sign a contract with a customer we give them a form to put their materials on (type of flooring, sink, toilet, etc). They are provided a budget for each item. When they return the form we hunt the materials down and use their arrival for a start date on the project and purchase them.
When we were doing a couple jobs at a time this wasn't a big deal but now we're up to 7-8 jobs at a time and we spend alot of time purchasing materials.
I have a few ideas on how to stream line this but thought I'd throw it out to you guys and get some advice on how you deal with materials.

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xCableguy

BuiltByMAC

Cool, whacha got? Always looking to learn a new way...

Mac

dlcj

We give the h.o. a list and let them get the materials. Go to work when they get there. It works for us but then again were not in as much a hurry and most you guys.

mdshunk

Why don't you also get them the Time/Life Home Improvement books too, then just collect your check at the end of the job? Seriously, I think you're doing the wrong thing there. Unless the homeowner wants to supply something particular themselves, it should always be up to the contractor to source the material and see that it gets on site. This just helps head off a whole laundry list of possible problems.

dlcj

yeah i know hardly anybody does that. I have friends who build in Birmingham and they say they dont know how we get away with it and wish they could do it sometimes. Yes there are problems from time to time with getting things on time but it all works out in the end and we make good money. My partner (dad) really dont want to get any bigger ( more red tape and paper work) so ill continue this way till he quits. However ,we do provide the materials on small jobs like pourchs an decks.

OCRS

Ya but you're losin' the markup on all that material.

Tao_Rider

Whoever is handling the design with the customer should produce a P. O. for the materials they select. Sending the Customer shopping unsupervised can be dangerous! Mike

dlcj

The other guys who bidded on our jobs with markup, lost the job

fourcornerhome

Touche!

OCRS

If I wanted, I could get every job I quoted. Markup is an integral part of any quote, for me anyway. There's an expression around here "you're leaving money on the table" maybe not with this particular customer. Have you considered that it's not that the other guys lost the job due to markup, but rather you go it because you're the only one cutting his profit?

dlcj

I handle the design, make a list of what they need, they get estamates at the lumber yards and such. and they get the materials where they want too. I dont care what they pay for them. We put them together. Almost no overhead, lower tax bracket, less paperwork, lower accountant fee in april. Im not saying its the best way, just has worked for us the last 25 years.

dlcj

Have you considered that it's not that the other guys lost the job due to markup, but rather you go it because you're the only one cutting his profit?[/QUOTE]

Yep, but cut profit is better than no profit.

OCRS

True enough. When work is slow, we'll all do what we have to.

Halo

I am small time compared to most here (semi-retired), but I also allow and in some cases foster the customer fetching thier own materials. Many of my clients simply want to be involved and recognize the savings on my time alone. It depends on the situation, but I rarely mark-up materials.

Dan_Watson

Problem with customers getting their own materials is what do you do if it is damaged or broken? Charge more to come back again? Wait around for them to go exchange it? I tried it on one job bc the biotch of a HO was so afraid I would mark everything up way to high that she bought her own materials, and they were first locked in her sons car so we went to lunch came back and they found the keys...the toilet box was smashed, and the fill was cracked. The vanity was the wrong size and had drawers that hit the valves...We stayed until 10:30 so they could go exchange everything, And I lost money that day...NOT WORTH IT!

Tscarborough

If the HO buys from a list you provide, that is one thing. If you install crap the HO decided to buy, it is quite another.

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It ain't Rocket Science unless you are building rockets.

Tscarborough

To the original question. Find a good design center and work with them so that you don't have to search for crap the HO wants, they do. It is also possible with a good design center to get soup to nuts on fittings, flooring, finishes, and cabinetry.

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It ain't Rocket Science unless you are building rockets.

dlcj

I guess it just works better for small time outfits like mine and Halo's. It probably also makes a diffence that 99% of my work has been in the same small town and we allready knew most of out customers before the job came to be. For us even if the ho buys the wrong thing or something is broken they have time to exchange it cuz just 2 of us will still have plenty to do in the mean time.

BattleRidge

I used to have homeowners just pay for the materials over the phone with a credit card back when I was 18 just because I couldn't afford anything anyway, but after a while I noticed that since most of my work was beginning to be more word of mouth, that they weren't getting other bids so I went up like 20 percent and started to do a 15%mark up on my materials, not even the slightest change in business.. You would think in such a small town they wouldn't get many bids from others if they know you.

mahlere

a contractor provides a total project, material and labor, for a contracted price...

a tradesman provides labor to install someone else's material...whether it be a contractors material or a customers material, someone else provides the material.

if you prefer to operate as a tradesman, that is fine...but don't confuse yourself with a contractor...