Your contractor (possibly) is the one losing money.

Your contractor (possibly) is the one losing money.
by Bluntschli (2019-04-22 15:34:05)

In reply to: Explain contractor pricing to me posted by Bigclumber

The contractor has a right to make money on something he buys and resells. It's kind of ludicrous to sit on that money and risk being stiffed by the customer and NOT take that profit. (Maybe you paid him directly upfront for the materials in this situation, so he doesn't care. Maybe he got the slab for $1500 and is still making money.)

The bottom line is there's traditionally a chain of markup. The manufacturer obviously makes a profit over cost of goods sold, they usually only sell in bulk to a supplier/wholesaler, who usually only sells to a retailer. Some companies protect the supply chain, some don't care and manufacturers sell directly to retailers, suppliers sell directly to customers. And some suppliers take on both roles, but still protect the supply chain by selling at retail rates to customers and wholesale rates to contractors/retailers.

Doubt it

His cost is probably close to the 1500 you theoretically threw out. The supplier is probably pocketing 3-400 on it at that 1500. They just figure if some schmuck homeowner is coming in, might as well see what they can charge.

Sounds good to me *