# Direct Buy



## BreyerConstruct (May 22, 2006)

Man, I saw your name & thought maybe you could buy shingles as well as cabinets! LOL

~Matt


----------



## Ed the Roofer (Dec 12, 2006)

From what I've read, they probably would tell you that, if thats what it would take, just to get you into the "Torture Chamber" sales pitch office.

Ed


----------



## ultimatetouch (May 27, 2006)

Mike Finley said:


> Had somebody call me today about a project, after they described what they wanted, a full master bathroom remodel it sounded pretty good, then she dropped the Direct Buy bomb on me letting me know that they would be purchasing everything themselves from them and were looking for somebody to install it all.
> 
> I passed on making an appointment with them telling her we weren't interested in only supplying labor, that we needed to be more involved with what we were going to be installing. Part of my reluctance was I felt the fun was being sucked out of the project and part of me just felt like anybody going her route probably was going to be way too concerned with pinching pennies. The whole thing just sounded like it would end up being more trouble than it was worth.
> 
> Anybody ever run into customers using Direct Buy? What is your take on this situation or what has your experience been?



I would of ran it anyway Mike. You never know. Maybe they are going to buy a lot of stuff and they sucked into the direct buy thing.


----------



## ultimatetouch (May 27, 2006)

bob the builder said:


> It just never really seems to work out. Do they sit down and figure out what they need, or do we need to figure it out for them. From my experience you end up with a bit of material you don't need and none of what you actually need. It is no question a red flag. I went to an estimate for a attic conversion and all the materials were piled up in the work area. 2x4's were to short. Insulation was not thick enough. The sub floor was 7/16 o.s.b. for tile underlayment. What exactly am I going to do with 25 lbs. of hand nails? On top of that he mentioned how much work it was to haul all that up there...
> 
> Bob


Im confused...by being a member of direct buy you can get 2x4s and nails...thats crazy.


----------



## ultimatetouch (May 27, 2006)

Bob Kovacs said:


> I think you guys are taking the wrong approach here.
> 
> Instead of blowing the customer off, price the job as if you were furnishing and installing everything, add your markups for OH&P, and then just deduct the material costs from the equation. You're then making the same amount as you would if you supplied everything, but without having to chase the parts and pieces yourself. If you use the PROOF system to apply your overhead and profit, this is a very simple exercise- you'll just have to guesstimate the material costs and toss a markup on that amount for profit.
> 
> ...


I was thinking something along those lines..If dealing with someones shi* is going to be a pain than charge them for it.


----------



## Fence & Deck (Jan 23, 2006)

I get this occaisionally. Someone says they can get the lumber better or cheaper than me. (I buy a million a year in material, they buy $3000, and they can get it cheaper!) 
I do the same thing: we are not a labour only company.
I almost always convert the client over. I ask the following questions:
who pays for our time if:
-we're short material
-some of the material is unusable
-the supplier ships the wrong stuff
-the shipment is late and we're on site 4 hours waiting
-I miscalculate (yes, it does happen)
What happens if we use material they supplied, but it doesn't look good, or is substandard: do we use it anyway, or wait until they get more.
-Who supplies the nails, screws, clips, concrete, saddles, lads, etc.
-do they pay us if we use any of our own stuff?

On the other hand, we're doing a big deck right now which includes lighting, stone work and that sort of thing. I gave the customer an "allowance" and I'm meeting him at the supplier. Anything over that allowance he pays for as an extra, and I still have my markup on the base allowance, plus an agreed on 15% ove the extra. 
I do it that way on a reno when they hve to pick fixtures, cabinets, etc.


----------



## wolffhomerepair (Jan 27, 2006)

Just to throw in a spin on this. I am on the local Direct Buy Contractor list. The members call me when they have a project. I have done several so far and no issues. For example I did 7 windows and a french door for a HO. She ordered the units from my dimensions (which were only given after the acceptance of the estimate). I included all the other materials in my bid. Most of the people I have worked with have been relistic on what the will order from Direct Buy. It is not worth the time or effort to order small stuff. Also my local one has a project coordinator who assists the HO with the whole process.


----------

