Trade Discount - how I use it - Tile Advice

[Leatherface]

Chaps
here's a tip that some may find helpful, some here may do this already.

When I quote a job I always ask the customer if they have bought their tiles ( as we all probably do ) If they have not, I suggest that they have a look in one or two tile shops that I recommend. I offer to let them have my FULL Trade Discount.
I get anything between 20% and 37.5% depending which shop.
There are a few reasons I offer this :

The customer thinks that they are going to save some money - everyone likes to save money, don't they. Once they have chosen their tiles I then tell them how much discount they will get. Usually I do not send quote until they have chosen. I look at how much they have saved and add back a precentage of this onto my usual price. It's a bit of kidology really, they still think they are getting a good deal. They pay for the tiles direct & I still make some extra pound notes.
This method also reduces the likelyhood of being pushed into the VAT threshold, which is quite easy to do, in theory if you supply tiles for most jobs. Your turnover will be high, but your profit will be not a great deal more than if you use my method.
Also if you get a non - payer, you don't loose out on the cost of the tiles as well.

This method works really well for me as most tilers I know do not give away all their discount, this is an advantage for me when competing for work. I can still afford to charge more per sq m. Just wondered what anyone else did ?

 

[Dan]

That's a good tip there mate. Well done!

I used to go halves with the customer on the saving on tiles and then give then give them a quote for my work at my rate (tile/job dependent). Again, it falls into the category of competition and we used to get 70-80% word-of-mouth where we were pretty much guaranteed to get the job so we wouldn't even mention the discount on the tiles. We'd tell them to pick them and get a price and we'll pick them up for them. Then we'd pay and charge the customer the full price in most cases to be honest.

Another way i've seen done is for the tiler to send the customer in the shop, the cusomter pick the tiles and pay for them, the tiler goes in the shop and gets a refund at retail and then buys them at trade (dodgy shops required for this). Then give the customer a quote for the labour, knocking a bit off as you've made some on the tiles. That way Mrs Smith still gets to brag about spending £800 on tiles but will always say to her friend "but the tiler I used was rubbish hot and gave us a really good price". As they do.

 

[Leatherface]

Good advice also
Cheers

 

[Concept PHT]

I use the first method - and still they ask how much for cash?!?! lol

 

[Leatherface]

Ha Ha

had one just the other day - customer wanted 18 metres of quartz tiles - RRP £120 PER METRE - I offered him 37% off- big saving. I priced at £48.00 per metre to fix.
He asked if I could do it any cheaper. I said no chance. He accepted my price in the end.
What a cheek :happy:

 

[brian c]

keep these tips coming leatherface,excellent m8.:wink_smile:

 

[BrhTiling]

Ha Ha

had one just the other day - customer wanted 18 metres of quartz tiles - RRP £120 PER METRE - I offered him 37% off- big saving. I priced at £48.00 per metre to fix.
He asked if I could do it any cheaper. I said no chance. He accepted my price in the end.
What a cheek :happy:

Interesting take on things..... I can't believe the customer still wanted money knocked off after getting nearly 40% of his tiles!

I think people always like to feel they are getting something for nothing, so offtering a big discount on the tiles/adhesive/sundries and then upping your labour costs slightly is a good way of doing it................. especially if you are one of these people that is good at selling themselves above the competition, people don't mind paying for good work as much as they do paying a retailer imo...

umm, that doesn't make much sense, never mind!