Other remodelers, however, demand a bit more control over the process. For example, Marc Ridenour, president of Natural Breeze Remodeling in Lawrence, Kan., lets his subs pick up their supplies, “but we pretty much specify the materials we want them to install.”
These remodelers all agree that purchases of heating and cooling systems, rough plumbing, and electrical, are best left to subs because of their specialized product knowledge and because remodelers generally don’t realize any savings by buying these products themselves. The PROSALES survey, for example, found that 63.4 percent of the respondents involve subs to buy HVAC, nearly half involve subs that install security systems, and 37.8 percent let subs buy the garage doors they put in.
Roofers and drywall installers who work for Crane Builders in Nashville, Tenn., buy product “at their discretion,” says owner David Crane. And Murphy Bros. Contracting in Mamaroneck, N.Y., allows subs to buy tile, asphalt roofing, and Sheetrock. But slate-roof installers who had been using a local distributor now purchase slate through a manufacturer of Murphy’s choosing at a price—$700 per square—that’s considerably below the distributor’s $1,000 per square. “We’re saving money that we can pass along to our customers,” says production manager Michael Anechiarico.
In contrast, Jonathan McGrath Construction in Orlando, Fla., will sacrifice some margin to ensure that a job gets done flawlessly. While it buys the tile and carpet its subs install, it uses one supplier to handle the purchasing and installation of hardwood flooring. “That flooring is so expensive that it’s not worth the risk,” says co-owner Marion McGrath. “Our flooring guy is totally responsible for the quality of the product and the job. He’s the expert, so we’ll let him make a few more dollars.” Given the different levels of subcontractor involvement in remodelers’ purchasing activities, dealers that want to hold onto this business would be wise to keep track of who actually wields the specifier’s pen.
Growth Plans of Remodelers NUMBERS DO NOT ADD UP TO 100 PERCENT DUE TO ROUNDING AND NON-RESPONSES.
SOURCE: 2004 PROSALES REMODELING PURCHASING PANEL STUDY
