"what if I supply the material"

[ishium 80439]

I know this has been covered before but I just wanted to relate a call that I just received. Guy wanted a FPE changed out/ upgraded to 200A. About the first question he asks is about suppling the material because he doesn't want to pay the mark up. I explained how every service change is different and that along with the material we order specifically for that job there are always the little things that we take off of the truck and how if the order is wrong it is our responibilty to make it right, not his and that while there is mark up on the material I'm not sending my kids to college on it etc etc etc. Again his response was to tell me that he knows what he can get the stuff at Depot for. Long story short he told me he would call me back. Anyone want to place bets on the odds of me ever hearing from him again?

 

[billsnuff]

run forest run

run forest run

he supplies low end stuff, you do the work, and he calls and blames you for every little hiccup........no pay for call back.........RUN

 

[tkb]

And instead of money for the labor, how about a couple of hot dogs and a soda for your work? :grin:

 

[petersonra]

Make him a list of what you want. Charge him for the time it takes to make the list, and the time it takes to check to make sure he actually got the right parts in the right quantity.

 

[augie47]

. Anyone want to place bets on the odds of me ever hearing from him again?

If you are lucky, he won't.

 

[growler]

I know this has been covered before but I just wanted to relate a call that I just received. Guy wanted a FPE changed out/ upgraded to 200A. About the first question he asks is about suppling the material because he doesn't want to pay the mark up.

When they start out like that I normally ask if they have gotten any other quotes on the job. If they say yes and it's around 3 grand I'll go take a look at it and see if I wish to make a better offer. If they say Joe down the street is willing to do the job for $1500 then I just wish them the best of luck and have a nice day. Can't compete with that.

There are two reasons for a customer to want to supply materials. The first is that they have been quoted a really high price and assume much of it is materials mark up and the second is they are just cheap don't want to pay much for materials or labor.

The main information to get is how much they are willing to spend for a completed job, don't beat around the bush just ask them up front how much they are willing to spend and this will let you know if they are worth dealing with. I have had customer quote budget prices that would make you laugh and others that are not that far off ( those you may be able to deal with ).

 

[Jljohnson]

I simply tell them "no problem" and allow them to supply the material. Then I return to the shop, run my estimate, put mark-up omn MATERIALS and labor as normal, then back out the material COST. I turn in my quote to the customer and if he calls and books the job, terrific, If not Oh well.

 

[James@CHA]

It all comes down to human nature, doesnt matter what business you are in.

As a nation of consumers, we are always looking for the best deal. Why would someone want to pay more for the same item they can purchase themselves? In the customer's mind this is illogical.

If a customer finds out that a given piece of uquipment is sold at the local hardware store for $100.00, and then a contractor tells him he will have to pay $150 for that same item if he provides it, you are already in a losing situation.

I think contractors have encountered this issue since the dawn of time, and will continue to have this issue forever.

 

[tkb]

Would this same guy bring his own bacon and eggs to the diner and ask them to cook them and only chagre the labor?

Would the same guy bring his own auto parts to the mechanic for his car repairs?

 

[steelersman]

And instead of money for the labor, how about a couple of hot dogs and a soda for your work? :grin:

HA HA HA LMAO!!

 

[petersonra]

The bottom line is that now that people have access to the big box stores, they have a pretty good idea just what stuff really costs. The idea you can make a 25% - 100% markup on common stuff may be coming to an end. You may end up having to raise your hourly rates to make up the difference.

Its one thing to charge $2 for an outlet cover that you paid 15 cents for, if you carted it around in your van, so you don't have to go to the store int he middle of a job. People can understand that. Its harder to understand the need for a huge markup for parts you had delivered from the supply house.

 

[electricmanscott]

The bottom line is that now that people have access to the big box stores, they have a pretty good idea just what stuff really costs. The idea you can make a 25% - 100% markup on common stuff may be coming to an end. .

Nonsense.

Do these morons think that Home depot sells the stuff to them at cost?

 

[480sparky]

I typically don't have a problem if someone wants to supply the material. But I always charge a higher hourly rate, and calculate the hours needed as longer than if I was installing my stuff.

The higher rate is to make up for time lost because they bought the wrong stuff. The extra hours is to cover the material I need to buy to cover the stuff they don't think of.

For instance, I'm sure we all use pretty much the same thing for roughing in a standard 6" can in a dwelling. Can, plate, hanger bars, j-box & whip all in one packages right from the supply house. Then the trim & bulb shows up at trim. But a typical HO will go do the Big Blue or Big Orange store and buy a can, trim & bulb in a box for $10. It does not have the hanger bars, j-box or whip.

I cases like this, I don't tell them how many hours it'll take for the job. I just shoot 'em a price. They can take it or leave it. Usually they'll find some unlicensed hack, but on occasion they'll bite and I make pretty good money for my time.

 

[steelersman]

I typically don't have a problem if someone wants to supply the material. But I always charge a higher hourly rate, and calculate the hours needed as longer than if I was installing my stuff.

The higher rate is to make up for time lost because they bought the wrong stuff. The extra hours is to cover the material I need to buy to cover the stuff they don't think of.

For instance, I'm sure we all use pretty much the same thing for roughing in a standard 6" can in a dwelling. Can, plate, hanger bars, j-box & whip all in one packages right from the supply house. Then the trim & bulb shows up at trim. But a typical HO will go do the Big Blue or Big Orange store and buy a can, trim & bulb in a box for $10. It does not have the hanger bars, j-box or whip.

I cases like this, I don't tell them how many hours it'll take for the job. I just shoot 'em a price. They can take it or leave it. Usually they'll find some unlicensed hack, but on occasion they'll bite and I make pretty good money for my time.

Home Sleepo now has contractor packs of 6 inch halo cans that come with the trim and of course the joist hangers already installed. 6 pack or them for $58. Basically $10 per light minus the bulb. Slammin deal!

 

[TOOL_5150]

Would the same guy bring his own auto parts to the mechanic for his car repairs?

I have done that, but they were aftermarket parts. So, I guess thats different:grin:

~Matt

 

[kkwong]

And instead of money for the labor, how about a couple of hot dogs and a soda for your work? :grin:

Only if it is a hot link or polish!

Seriously...I've seen a couple of different answers and these are in writing: 1) If customer supplies materials and they are not the correct type, spec (whatever) the customer agrees to pay for the correct materials plus a nominal charge for expedited delivery, if applicable.

2) By supplying the materials the customer agrees to absorb all costs of removal if necessary and will not hold the contractor liable if the materials are deemed: 1. Inadequate for the installation or 2. Noncompliant. The customer also agrees to pay any service charges for expediting materials.

 

[LarryFine]

I must be a lucky dog, but I did a 7800sq.ft. house a few years ago, and the customer either supplied materials or reimbursed me for a few things. He was diligent about having everything I asked for on site the next day.

The job was a dream for me, and he later told me not only were we the only trade on the job that passed any inspection on the first call, we passed every one on the first call. We worked together on on design and layout.

We also did all of the phone, networking, cable, speaker, etc., wiring, as well as wiring for remote control and automation. He got a custom-wired house, we enjoyed the work, and I'd do it again for the right customer.


Added: You absolutely should price the work with a premium for customer-supplied materials. You have to cover loss of mark-up profit, time waiting for materials, any labor involved with wrong/damaged/defective supplies, etc.

 

[electricalperson]

only time i find people that want to supply there own material is when they want a discount. its like bringing bottles of oil to the gas station and asking them to use that to change the oil in your car with so its cheaper

 

[bpk]

I have done a few jobs like this and with not haveing the right material and a higher hourly rate to take the place of markup the jobs ended up costing them more, but they were still happy because they thought they saved money. Sometimes trying to be cheap will cost you more in the end, and there are people that will never figure that out.

 

[petersonra]

Nonsense.

Do these morons think that Home depot sells the stuff to them at cost?

No. But they understand that HD is selling to them at about the same price the supply house is selling to you.

They look at you as a conduit from the supply house. They don't see that you acting as middleman brings a whole lot of added value to the picture.