I was just wondering what the markup on building products is? I ordered through a timer floor layer who will be laying the product, 100sq m of engineered timber flooring and I see the same product from the same company -14mm thick is $55 per sqm. on special to the public. (here on TM) Presumably a builder can get it even cheaper? I was charged $95per sqm which is shocking markup if this is correct. I know, caveat emptor, but this is my first trip into home renos and I feel stung. His laying costs are reasonable. I had to pay up front for the product. What come back do I have?
clangie,
Sep 20, 5:01pm
probably no comeback if you signed a contract etc, as an example-the building company i used to work for got 41% discount on some grades of timber. but i know he charged the client shelf price so made a heap on material. i used to feel sorry for the 80yr old man who goes to m10 and had to pay full price for a piece of timber. other people i know charged the price they paid-after their discount- plus 10% for admin so they still made a wee profit and the client saved a good amount aswell also dont assume the builder gets a good discount on that flooring, as another example the firm i worked at only saved 5-10% on plumbing stuff at m10 as its not really their trade, whereas a plumber would probly save 40-50% for the same thing from the merchant
sally63,
Sep 20, 8:08pm
I did not sign a contract but assumed, stupidly, I would get the 20mm thickness product which is superior at $75 per sq m compared with $55 per sqm for the 14mm lengths. Lesson? I should have purchased the product myself and just payed the floor layer to lay it?The price they paid plus 10% for admin seems fair enough to me.40% on top of market price does not. It is my first foray into renovations and I am down several thousand dollars already. I have to do better but am not sure how one deals with this as a more mature single person. I obviously have 'stupid' written across my forehead,lol
budgel,
Sep 20, 8:27pm
Different building materials have different markups. When I was building I could get a very good discount from retail on framing timber, less on finishing timber and only about 10% on Gib for example. Sally63, it appears that the flooring guy's price was acceptable until you saw a better price later. Remember that a special is by definition not a regular price. The positive thing you can take from this experience is that you wont get caught again! All the best for your new floor!
sally63,
Sep 20, 8:56pm
Yes Budgel you are correct. I did not have a clue as to how much it was retail until I saw later, then I felt stung. I think I feel most stung in that I was given an inferior product at 14 mm thickness when I assumed ( never assume!) it would be 20mm. The flooring guy is also a family member, albeit slightly distant, so I assumed a degree of trust. Thank you for your kind comments. I will be much more circumspect in the future and go over everything with a fine tooth comb!
loud_37,
Sep 20, 11:35pm
You may find in some cases the install price may increase if they don't supply the product, so you end up paying the same over the whole job.
stevo2,
Sep 21, 1:03am
And dont forget, if they supply the product, its up to them to put any issues right under the Consumer Guarantees Act. If you supply it, they are only liable for their labour content (if that).
sally63,
Sep 21, 1:31am
Thanks for that loud and steve
elect70,
Sep 21, 4:25am
Mark up on car parts is nearly 100% i just brought a some from uk cost for parts was $267 retail .Same parts from Nz agent quoted $ 475 BUT the cost of freight has skyrocketed , the smallest parcel costs $28 to get it from Uk & freight costs for my parts was NZ103 Inc GST onthe goods & freight
androth2,
Sep 21, 4:36am
Just look at supermarkets ,they never sell at below their buying price ,so specials from them are just lower profit
pauldw,
Sep 21, 6:41am
Or the supermarket is not dropping its margin. The supplier is dropping the price to the supermarket to get its product out there.
dymo27,
Sep 21, 7:08am
Usually the supermarket dictates the price they are going to sell at and the supplier drops the price based on that which is at a loss to the supplier, the supermarket retains most of it's margin including charging for shelf space and location as well as gondola ends (those products heaped at the end of aisles) which are bloody expensive. I did work for a well known retailer and I can tell you that the mark up on clothes, bedding and the like is a minimum 100%, usually, much much more.
socram,
Sep 22, 4:09am
#12 has it. Good post.
Donkey's years ago I was part of a two man team renovating old UK terraced houses. We weren't too impressed when we found that the trade prices at the plumbing wholesaler, were in fact more expensive than at one of then then new superstores.
Car electrical stuff has a massive mark up at retail.
marte,
Sep 22, 12:49pm
Actually they do, it's called a 'Loss leader' & is intended to get people in thru the door so they buy other stuff & that's where the supermarket makes its profit. Loss leading alcohol is quite popular, although probably morally wrong.
xs1100,
Sep 28, 2:38am
why does it matter, other wise his labour would of gone up if you supplied the gear. the job is the job if your happy move on
onl_148,
Sep 25, 3:56am
Yes "loss leaders" are not usually products that you would normally go to the supermarket to buy this product type only. you may just pop into a supermarket to get say bread or milk but may be not a packet of weetbix. this item on special will also be near the back of the supermarket so you have to walk past a lot of stuff, on sale for their normal price, to get to it. I'm yet to find a supermarket that stocks the bread and milk anywhere near the front of the store.
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