Does Anyone Buy Supplies Wholesale (in Bulk) ?
I was wondering if you guys think it makes sense to buy materials wholesale (in quantity) and if any of the serious rehabbers are doing it that way? I am talking about materials such as paint, carpet, tile, 2x4 lumber, doors, toilets, etc... Seems like it would get you a little discount off the supplies but more importantly eliminate the hassle of going to Home Depot every time you need something, trying to get their attention if you need help, standing in line, etc...
On the other hand, you have to have a place to store all that stuff and put up a large amount of cash up front for the materials. What do y'all think?
One problem you may run into, other than storage, is cost allocation. You need to be able to tie the cost of the installed item to a particular job for tax purposes, and if don't have a receipt, or if you have to go back several months to find a receipt, it may be a problem.
Unless your buying in serious bulk, dont bother. Let Home Depot pay for the storage. I would definitely recommend over buying supplies for each property though, so you dont have the problem of needing to run to the HD all the time. Of course now you risk supplies being stolen at the house your working on. At the end of each project return what you didnt use and what you dont plan on using your next deal.
What I prefer to do is this. Before the actual work begins, I put together a list of all the major things I will need for the project. About 6 months ago, the Home Depot in my area started having contractor appreciation day. They have had 3 such events in the past 6 months. I give them my list of items, stock and special order items and allow them to price the list. On these appreciation days, they offer an additional 10% discount on that day only. So, I pay for the items that I will be going to use for the current project. Then, I either pick them up or have them delivered as I need them. This way, I don't have to store numerous items, they do it for me. And I am able to take advantage of the extra 10% discount. The problem with buying in bulk is that if you must store them until you intend to use them, things like 2x4's get to be pretty twisted and bowed over time if not stored properly. With items like doors, you run the risk of damage while they are being stored and probably moved around. So to me, this doesn't make sense. I'm sure everyone has their way of operating, but for me, this works out best.
Dave
Hey,
Something make sense to buy in bulk for two reasons: price and convenience. Nails, screws, hinges, cabinet handles, plumbing connections, etc get cheap as you buy bulk. And they do not take up that much room.
Trying to buy 2x4, drywall or carpet in bulk would be stupid.
I rarely see anything that you can buy in bulk that will be cheaper that goes into a rehab. If you are talking about buying a box of light switch covers instead of one at a time, I don't consider that in bulk, but of course that is common sense. I would consider buying a pallet of light switch covers would be buying in bulk. I would rather let the store warehouse the stuff for me and know it is always available than become a warehouse myself.
Not sure about your area, but where I'm from you can sign up for a contractors account at Home Depot which gives you a certain percentage off if you spend a certain amount each year. If Home Depot doesn't have it in your area, there's bound to be another company--probably cash-and-carry--that you can deal with buying wholesale but spread out throughout the year.
In building materials, such as lumber, plywood, sheet rock, etc, the standard quantity you have to purchase in order to get a substancial discount (30% discount or so) is a semi load. In smaller items, it may be a pallet load. There is just not enough price spread between wholesale and retail to allow you to purchase these quantities, store the materials, suffer shrinkages due to waste and theft, etc., to make it worthwhile.
I would suggest you visit the smaller discount-type building material dealers and become a frequent customer to them.
They will often surprise you that they are far less epensive than Home Depot in roofing and kitchen and bath items and competitive on the rest of your needs. And you usually get on a first-name basis with management and get emergency deliveries if you really need them.
It really works. Try it. 8-)