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Trade discounts. How do they work?

4 replies

Yellownotblue · 19/02/2021 00:20

We’re gearing up to start an extension soon. Can anyone explain how trade discounts work? How can I check if my builders can offer discounts from our chosen suppliers (eg wood floors, tiles etc)? What is the typical discount and what sort of things get discounted? Are there discounts on glazing, doors, door hardware, lighting? Can we ensure these get passed on to us?

Thank you

OP posts:
Hollyhocksarenotmessy · 19/02/2021 10:18

Trade discount is essential a wholesale price for them. Same as any business buys its stock at one price, and sells to customers at a higher price, it's part of how they make a profit.

Look at the totals you are being quoted for supply and fit. The prices they pay for the materials aren't relevant.

Midlifephoenix · 21/02/2021 12:35

Trade discounts depend on the amount the tradesperson buys - can be 20% and up. You can register yourself for a discount at a few places, but you need to be buying a fair amount.
My tradesmen pass on the discount to me as I'm a repeat customer, they give me the invoice from the supplier and pay them myself. And I also do a lot of sourcing myself.
The whole point of retail though is that you, the end customer, pay it - if every one got a tradesman discount then how would the industry make enough money? When asking for quotes get a cost breakdown. Either you accept it, or source the materials yourself.

Yellownotblue · 22/02/2021 21:13

Thanks both, that’s helpful

OP posts:
Andthenanothercupoftea · 23/02/2021 07:16

With our builder (friend) we pay the suppliers directly as it helps keep him below the tax threshold.

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