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This came up before, and I was pretty much alone in wondering if it was possible to use a mark-up on materials as part of the job price any more.
When we had the house renovated, it drove me mad that the trades all made a huge profit on things they supplied. There was often little or no time input to ordering, and with their supplier accounts, and us paying up-front, they were sitting on the money for weeks as well.
I think it's more transparent to charge the client for the work you do. I wonder if it's better to have a fee for the design/plant list, a fee for collection and delivery, and the plants at cost? The problem is that it's so simple now to look prices up online, and many trade suppliers now offer discounts to retail as well.
I guess the other thing to explain is that you're selecting the plants as well as supplying them. If the client goes direct, there is no warranty, and any extra costs will have to be passed on, such as things not arriving on time, or being wrong.
Hi Fran
Here's the post Paul refers: http://www.landscapejuicenetwork.com/forum/topics/i-d-like-to-see-t...
It's worth a read as it will hold some of the answers you're looking for.
You should NOT pass on your discount. You are in business to make money and you should do so. If clients are getting plants delivered for free at the cost they'd pay at the garden centre then they are still better off.
I would not detail who supplies my materials as it is MY business, and to the client I am the supplier. Comparisons to asking Tesco who supplies their cornflake boxes, how much they pay for them and then asking for them at that price...
I serve a price list at the begining for all common plants and invoice accordingly at my retail price. The trade price I aquire plants at is strictly not for customers eyes, and if they ask I politely decline to dislose. On occasion people have pushed me and I let them ring the nurseries I use.
They are good and never disclose trade price - largely because they have none, they apply a discount to each trade acount and the % is unique to each business - the more you buy the bigger the discount. If I found a supplier had told a member of the public the trade price Id simply change suppliers.
That said I also like dans point - a customer has no right to know your supplier if their intention is to beat your margin out of you.
For the sake of those occasional customers who want to go direct, after initially asking you to do it,I'd let them and I'd just charge labour only. The labour would total the standard labour plus the margin you would have received had you purchased by trade and the time you put into planning the scheme. Or they can plant them all themselves!
Paul McNulty said:
except they've spent up years building up a good working relationship with that merchant to get a decent trade discount, and when there is a problem they know they can pick up a phone and the supplier will get the problem sorted so the project is not delayed. I spend a good few hours a week on the phone sorting out supplies for our landscaping projects and further time in the office measuring up and sorting materials lists. No effort?
Should a customer ask me how much discount I receive I would not tell them, I work hard to make a profit and these discounts are part of that. If I source from a supplier and there is a problem then 99% of the time they will replace/exchange the plant. This is part of the price the customer pays.
My main supplier is very professional and, as another post states here, offers unique discounts to each business dependant on spend.
If a regular customer insists on supplying their own plants then I charge my customers an hourly rate and happily plant the plants, if I have to collect them, as has happened, then that is also charged.
I have yet to come across a run of the mill garden centre who will supply Jo Public individual plants at a discounted rate better than they do to a genuine horticultural business. If the customer wants to pay these prices then he/she should build the relationship, spend the money, source the supplier and make the effort themselves.
Sorry to rant on but this makes me very cross. If a customers wants me to plan, source, supply, collect, and plant with out some form of recompense then they have the wrong feller. I don't make a massive or greedy margin but if I spend time and effort I expect payment.
Have you not charged for the plant list within the plan?
Dan Frazer Gardening said:
tell them you are happy for them to buy your own / but you will not guarantee the planting .
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