Supplying tiles as well as fixing

[Dirrty]

I have jsut started talking to a few tile outlets, relationship building, and want to supply tiles to customers where I can. When I am negotiating discounts from the shops do you think that 35% off stock tiles and say 30% off specials is too ambitious? Has anybody managed that? I am not ready to ask them yet, I got a bit more sucking up to do first lol, but when I do I dont want to appear greedy, on the other hand I dont want to sell myself short :thinking2:

 

[Fekin]

I don't offer to supply and fit, main reason is I wouldn't want to be hicking my turnover up so much and end up hitting the V.A.T threshold.

 

[TheWrightTiler]

i supply and fit or fit only and if supplying then cash up front for them, they pay full retail for them, i get 30% from my local guy and give them back 15% discount so 450 worth of tiles punter gets 67 quid back and i get 68 for delivering lol so that way you dont break the vat threshhold

 

[Fekin]

I've done that a few times too.

 

[Dirrty]

I don't offer to supply and fit, main reason is I wouldn't want to be hicking my turnover up so much and end up hitting the V.A.T threshold.

I get the customer to buy the tiles direct from the shop at retail minus say 5%, so they are happy. Then I get the shop to either rebate me or credit my account with the difference between that and my trade discount ( then you can get supplies or use your credit to buy tiles for a customer you are supplying ). Either way the cost of the actual tiles doesnt go on your turnover, so no vat problems. I used to do this a lot in another business I had. Also you can play with what actually goes through your books. of course in my case I naturally declare to HMRC all cash transactions as I am an honest citizen lol

 

[enduro]

My local tile shop gives me some forms with my account number on, and i fill out the customers name and address and they give the shop the form, who then gives me free adhesive if they buy tiles. Works very well for me.

 

[GatesheadCol]

I tend not to supply them unless its a granny or something that really cant get them, like the other guys say, you have to watch your turnover.

If you buy the tiles and then charge the money to the customer that is your turnover, so you can soon end up over the VAT threshold, all you need is a few of these nice jobs with tiles that are £90 a M2.

What I do is this.

Its taken a while but I now have 2 shops dealing like this. At first I used to either write 'Full trade discount on my cards or go with the customer when they bought the tiles and give full discount'. Been doing this for a while so one day I said to the manager 'OK you can see im bringing my customers in and theyre getting full discount, how about we split the discount and I write lets say 15% on my card, now heres the good bit before I even got to finish the manager said if you did that then we would give the customer the 15% discount and the rest from the full trade discount we would add up for you to use on addy and materials.

it works like this, say the customer buys 500 quid wortyh of tiles, and they get 15% discount (£75) but the tile slips the other 10% of the full trade discount on your account (£50). the next time you go to the shop for your addy it costs you nowt, and heres the magical part, you still charge the customer trade price for it.

And these were the managers words not mine 'everybody wins in this situation.

Mind it does work better in the smaller chains rather than the bigger ones. I cant do this at topps for example.

give it a go, can save and earn you a fortune for nowt, imagine getting £150 for materials that have cost you nowt
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Sorry Dirrty you werent that clear in your original post, you didnt say you did it that way, sory for the long wonded reply lol your already doing that :lol:

 

[Dirrty]

Yeh thats it Col, you explained it much better than I did....... I cant help it though, I get all over excited when its my profit I am talking about lol

 

[enduro]

Also if you get a customer who wont pay...you still have to pay the tile shop if you supply the tiles.

 

[GatesheadCol]

another good point Enduro!!

 

[Dirrty]

Also if you get a customer who wont pay...you still have to pay the tile shop if you supply the tiles.

This is true Enduro....but if you work it the way Col and I do they pay the shop direct so non payment is never a problem