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kingnus
03-10-2009, 04:30 PM
I am taking bids to remodel 2 bathrooms and the kitchen. Any thing the contractors supply, they double the price. LIke the bathtub cost $300 at a box store and they charge $600 , is this common pratice in other areas of the country? I would think a 30% markup would be normal. Hate to get cabinets thru them, cabinets at the box store costing $10,000 will end up costing us $20,000.
Jim

statjunk
03-10-2009, 04:58 PM
That is sort of common practice. I think a lot of times they do this because if they have to return to work on an already installed item they want to have some extra worked into the mix. There are also acquisition costs and such.

Don't know what else to tell ya. Your best bet is to get comparable bids.

Tom

GabeS
03-11-2009, 08:17 AM
You supply the material and get a price just on labor. This will of course require you to do more management work on the remodel and take some responsibility for the materials you bring to the jobsite. But will cost you a lot less. The contractor should also agree to give you advice on material choices.

jadnashua
03-11-2009, 09:26 AM
The hassle is this: you buy something, when the contractor tries to install it he finds out that it is chipped, broken, or defective, or there are parts missing. So, now he has a lot of time trying to find a replacement, or you do. If he bought it, and found it was defective AFTER installation, he'd end up paying to remove and replace it again after you find a new one. If you bought it, all of that time and cost would be on your shoulders. think of it sort of like insurance...you have a fixed cost to install. You might have to ship it back then wait for a replacement, he would generally be able to go to his supplier and pick up a new one, or have one in his own stock.

Acting as your own general contractor, you take these risks...you could buy your cabinets from the big box store, get them to the worksite, store them until needed, ensuring they don't get damaged in the meantime, then get him or coordinate with anohter contractor to install...one-stop shopping is easier, and you pay for it.

Most retailers end up doubling the price to cover labor, insurance, stockroom, medical, taxes, etc...ever wonder why you can buy a shirt for 50% or more off? It's marked up a lot from the physical item cost, but when you add in overhead, they may only make 5% or so.

jimbo
03-11-2009, 11:10 AM
Every contractor has a business model which they follow. They must mark up material, because they have to front the money for it ( time value of the cash) store it, deliver it to the jobsite, AND warranty it.

Now, a 100% markup on an item which he will just order and pickup seems high. 100% on supplies which he carries around at all times on the truck to avoid excessive TIME charges for making trips to the store...more appropriate.

kingnus
03-11-2009, 12:28 PM
Thanks to all, THe tub is in stock at a box store , so contractor is charging 100% to travel 3/4 of a mile to pick it up. Does seem a bit high.
Jim

statjunk
03-11-2009, 01:52 PM
Re-read Jim's post.

Tom