peter d
Senior Member
- Location
- New England
The contractor buys from a supply house that market it up 100 to 200% or even much more on small items,
I don't know where you got that information from but it's not correct. The only items in a supply house that get marked up that much are showroom light fixtures. Not the $5 jelly jar or mushroom light builder's specials but the really nice stuff that people like to put in their McMansions. Commodity items like pipe and wire typically are marked up 0-5% while most typical items that an electrician buys are marked up anywhere from 5-20%. Dimmers are one of the most profitable items sold with a markup of around 30-40%.
At any rate, suppliers are in a fiercely competitive battle with each other and if a supplier would start marking things up 100-200% he might as well change the name of his store to "True Value Hardware." I have some authority on this because I worked for a supplier for a time. The branch I worked for made money on volume, not high markup.