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Am I Entitled to My Contractor's or Designer's Trade Discount?
Wed 13 Jun 2007 - 15:58
Am I Entitled to My Contractor's or Designer's Trade Discount?
By Michael Castleman
It is well known that contractors and designers may receive a trade discount on the materials they purchase. The actual percentage can vary based on the product, the volume of business given to an individual retail store, and the volume of the order. Some designers will pass along the discount and off set their income by the hourly rate charged to the client. Contractors may also offer some of their savings to clients as well, however, it is important to both to establish these terms in advance with their client.
There are pros and cons associated with each approach and a savvy consumer needs to appreciate the business model of these professionals so that each can walk away satisfied with the deal. Many customers often inquire, "Do I get an additional discount if I am working with a (contractor/designer). As a retailer or vendor, trade discounts are not considered entitlements for the trade or the consumer. The discount is used as a method to drive loyalty, repeat purchases, and reward the trade professional for being, essentially, an additional lead channel. Some retailers will require minimum levels of volume purchases before a trade professional will be eligible for a discount and increasing discount levels will be provided based on increased volume.
The pros of your designer or contractor passing along the discount directly seems obvious, as the consumer can directly see the savings benefit on the material cost. However, you will be paying elsewhere. If you are approaching a relationship with a contractor or designer based on the discount that they can provide to you, you also need an appreciation that the trade professional needs to make a certain amount of income to survive. Every business requires a certain level of margin to manage their ongoing expenses. For some business models, 10% is enough to be profitable and deliver good service. For other business models, 80% margin may be necessary. It is important for the consumer not to envy the discount if a trade professional does not pass this along, as this is frankly, a component of their overall income. And as that old adage goes, you get what you pay for.
LuxeTile is THE trade source for all stone, tile, glass, and ceramics products that are the highest quality in the market.
Michael Castleman is a long time design professional.
Visit http://www.luxetile.com and sign up for the newsletter to receive their advice and specials.
Article Source: http://EzineArticles.com/?expert=Michael_Castleman
http://EzineArticles.com/?Am-I-Entitled-to-My-Contractors-or-Designers-Trade-Discount?&id=600634
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