Explaining The Contractor Discount at Home Depot
It’s a common question: do contractors get a discount when they shop at Home Depot? After all, it seems reasonable to believe that contractors likely spend a lot of cash at stores such as the mega-chain, so they certainly get a discount, right?
Well, yes and no. Technically speaking, they don’t get a discount just for being contractors. Remember that this might sound unfortunate or unfair, but Home Depot is a business. Their sole purpose is to make money and as much of it as possible to ensure that their bottom line is as healthy as possible.
That being said, contractors aren’t exactly lumped in with the rest of the customer base when using Home Depot. So, how do contractors save money using the giant chain? Here’s how: the Volume Pricing Program.
Home Depot’s Volume Pricing Program
The Volume Pricing Program (VPP) is a way for contractors or individuals to save money when making large volume orders. The way it works is actually pretty simple, too. Make up your shopping list and present it at the Pro Desk at the nearest Home Depot. The Pro associates will then get you the lowest possible price on orders of at least $1,500.
Considering just how much money a contractor spends on supplies in a given year, a lot of savings can add up over time. When your contractor business saves money on supplies, that means there is that much more money available to win more contractor leads.
Perhaps the best thing about this for contractors is that, in addition to these savings, they have access to the massive amount of supplies that are available through Home Depot. This can be essential when trying to fill a big order or working on a bigger job.
Contractors have likely all been there before a huge job comes in, and you find yourself scrambling to not only assemble the team but to get all the necessary supplies in hand so that you can begin the job in a timely manner. This can be stressful for any contractor, especially when you have difficulty gathering those supplies.
Thanks to the Home Depot VPP, the entire process is easy, and you can even assemble your shopping list online to save additional time. Planning ahead has never been easier than it is when using the VPP because it means savings for your business and instant availability of the supplies that are essential to getting the job done quickly and quickly.
Other Savings Opportunities at Home Depot
Another great thing about the Volume Pricing Program is that there are bulk pricing-eligible products where you can save even more money when getting the essential supplies that your business needs. There are few feelings quite as good as saving a substantial amount of money when purchasing the materials you needed for the job anyway. It quite literally is a “two birds with one stone” scenario.
Of course, contractors can only see these savings when they consistently use the VPP. Using it once or twice might save a little money on projects your company undertakes, but the savings can add up with extended use.
And as is the case with any small business, there is never enough money, and being able to reallocate funds to job bids or other essentials can go a long way toward the overall health of your business.
There are also a few things to know. When you speak to the contractor’s desk, you submit your order to them. From there, the Pro will submit the order to the corporate office to get a price quote, and within a few hours, you will be offered a price that is somewhere in the neighborhood of 8-12% below the retail cost of that order would normally be.
Getting The Best Discount
What they don’t tell you is that there is room for negotiation. You can always negotiate for a steeper discount, and the general rule of thumb is never to take less than the 12% mentioned previously. Depending on your order, you can get it down a little further – in the 17-20% neighborhood if you are lucky.
Remember that the higher-margin items you order will generally get a better overall discount than lower-margin items. If you buy something that retails at $100 but earns the company very high margins, you might get a larger discount on the order.
On the whole, the Volume Purchase Program is a potentially beneficial one for contractor businesses of all sizes. If you are a smaller contractor, consistently having access to essential supplies and getting them at a discount price can mean the difference between an additional bid or two. Those can add up before you know it, making a significant difference in your bottom line.
For those contractors that run with a bit larger budget, those savings can also make a substantial impact if you are purchasing materials on a regular basis. For a business of any size, savings on materials needed are massive. Just as big as being able to reallocate funds into other areas of the business. This gives your business greater versatility and the ability to strengthen areas that may have been weaker.
Signing up for the Volume Pricing Program can be a game-changer for contractors everywhere. With a relatively short turnaround time and the potential for serious savings, it makes for a very smart idea for any contractor out there. Make the best use of every dollar by saving on bulk orders and being as prepared as you possibly can be when lining up a new or big job.
The Volume Pricing Program has changed the way that smaller contractors do business and made the entire process far easier and more cost-effective.