So, I’m starting a small business making widgets. I use at least 40 hooks in the making of them, and I’m constantly running low. Right now, I order from a website (more expensive but lots available) or buy at a local Big Box home improvment store (quite a bit cheaper, but limited to what’s in stock.)
Should I approach them about bulk orders? Is that what goes on at the Contractor’s Desk? Does it matter that my items weigh .2 ounces and can be fit in a backpack? Do I need a TIN? Do I get fabulous discounts?
I don’t know why I’m so bashful about this, but I am for some reason. I think it’s because I’m intimidated by my potential success/failure and going to The Desk is one way to cement it.
I admit that I have never done this at a big box store.
Years ago I struck a barter deal with some friends. At the time I was freelancing in stage lighting and production and had some electrical experience. A friend owned a store and wanted to swap out the light switches for dimmers. I told him I would do it for some store credit and we struck a a deal.
I went to my local hardware store to pick up 10 or so wallbox dimmers. At some point I mentioned to the guy behind the counter that I was buying these for some work I was doing for someone else.
Everthing changed at that point, I was then shown a whole range of products that hadn’t been displayed on the shelves and given much better pricing, almost half the price of the dimmers that had been displayed on the shelves.
They were really nice once they found I was a contractor of sorts and I didn’t even have to ask for the special treatment.
At Lowes and Home Depot there is no inherent discount from using the contractors desk. Some independent places offer discounts to contractors though they are often based on your total yearly purchases.
A contractors desk is more of a service convenience. Contractor using the desks have a contact at the store that is looking to make sure their needs are met and it is easier for them to quickly get in and out.
Some contractors desks require a Tax ID Number some don’t.
The easiest way to find out if the contractor desk will be helpful to you is to walk up and ask. ‘What can your desk do for me’ Contractors desks are interested in having as many people signed up for their services as possible. Associates working the desks pay is often reflected by their total sales. They’ll give you a sales pitch and you can say ya or nay.
Things a contractors desk can do for you:
Builders can send over plans for say a house. The contractors desk can do an estimate on materials that will be needed and provide a price.
They can have orders pulled and ready for you when you arrive.
They can process sales over the phone and allow any of your people to pick stuff up.
They can allow your people to purchase things on your credit if you desire.
They can anticipate you needs and ensure they keep items you use in stock.
They can work with you on ordering things not normally in stock.
They can make sure you are informed on bargains or sales that concern your trade.
I ALWAYS ask for a discount at Lowes or Home Depot for large bulk purchases. The competition is fierce and they will almost always come up with something. Just ask em!
Also, if you are serious about it and are actually running a business, you can get a reseller’s license and then you don’t have to pay tax on the parts you use to manufacture your widgets because presumably you will be charging tax on the finished product.
At this stage of your business (before you become a billionaire tycoon), the easiest solution may be to go to your big box store and make a special order. They will have no problem asking their vendor for a larger shipment of whatever you want since they know it is already sold. Likewise, they will also special order items that they may not normally stock. Thus you get the lower price and the greater selection. They may ask you to pay upfront, but that’s what an internet vendor would do anyway.
The contractors desk at Home Depot or Lowes exists to win work away from older lumberyards, so it really is aimed at larger contractors.
The contractors want to be able to just give a list of lumber to someone, and get a free quote for a good price. Then they give a delivery date, and the lumber shows up. And they want someone to call when the order is wrong, which is always. They spend enough that they get an advocate who does part of their job for them.
Generally it’s worth providing these services because contractors buy kitchens, baths, and windows, which have the highest markups. Lumber has the lowest markups, and sometimes big builders will be getting it for cost.
I own a small business and whenever possible I try to cut out the middleman, don’t be afraid to do so you may be pleasantly surprised .
After all you may be small but to them you are still a customer and if the answer is no what have you lost.
Good luck with your venture.
Another option that may be open to you is that most stores will let you order directly from their website for delivery to their store. Handy when you need to get 50 sponge sharpeners from Mal-Wart and they only stock 6 at a time.
Order and pay for it online. Pick it up at the store and don’t pay shipping.
Or order online shipped to your door and you might not have to pay tax.
