discounts at building suppliers

[Bill]

Hi

 

we  were asked to open an account at Le conte for the builder to obtain  building supplies..

 

am I right in saying there  will be a discount handed to the builder by the Builders merchant ?

 

In my case its Le Conte..  Does  any one know for sure ??   Contractually obliged to pass those discounts back to us.. thats all.  

 

 

rgds

 

Bill

[YCCMB]

Surely, if you are the one opening the account, you are the one who should be able to ask the Builders' merchant whether or not this will entitle you to any discount? It's doubtful anyone can tell you for sure what terms a particular supplier has offered to a particular builder.

[Anton Redman]

First reaction was that a builder who has not sorted out his own trade accounts sets more redlights flashing than a deep fried Mars bar. He or she may be on a tax regieme such as AE which makes it better for the client to buy and pay for the materials. However you will not be able to offset the bills against CGT unless the builder invoices you. You will also pay TVA/VAT at 19.6% for the materials,versus 7.6% depending on the type of work.

Unlike the UK where applying for planning permision normally generates a trade account and a fair chunk of discount. French Builders Merchents seem to operate relatively low rebates driven from money spent each month. I have never been close enough to a BM and had a sufficient large/fast job going to qualify so advice in aneecdotal.

[Gardian]

I can't speak for your builder's merchant, but when we had some work done down here a few years back, there was indeed a discount applied by our local firm. It was actually a sort-of 'trade' price, which amounted to about 10% I seem to remember.

The builder was known to them and the arrangement (all totally verbal, but it worked fine) was that he simply signed for the material and the invoice was sent to us monthly. Thus no scope for any dodgy practice: furthermore our builder was happy from a cashflow point of view.

Maybe you could try them with that?

[Anton Redman]

Trade price in the UK drops you by anything up to 60% depending on the item.

One scope for dodgy practise add a couple of extra bags of cement or beams to each order etc. Sorry I learnt to count the cards and pour the gin at my mother's knee.

[Bill]

all of those and more I suspect.. but  wondering if anyone has experience of le conte..

 

 

 

o happy days in belle france..

 

 

[Anton Redman]

Le Conte without a town or post code pulls nothing as a builders merchants in France

[YCCMB]

It does, actually. Periers and Saint Lo.  I am not sure, OP, why you don't just add enough detail about the whereabouts of your builders merchant to save me or others having to trawl the internet like Miss Marple to find information. [:D]

[Chancer]

I know that my merchant has a arrangement with a couple of artisans, those who have recently switched to AE, whereby their customers open an account and artisan is authorised to book materials to it, the customer gets between 5 and 10% off the prix publique and the rest of the discount is given to the artisan as a retrocommission, in fact they artisan will often tell them how much to charge the customer, this being a higher than the prix publique.

There is also a lot of material that doesnt seem to make it from the merchants to the site, very weak concrete mixes, insulation not being placed behind the placo etc.

[BIG MAC]

Dunno if it helps but at the beginning of my DIY Year (March ish) I send an exel doc across to my local merchants and get them all to price a schedule...(They are usually reluctant to price metal work, copper, cable and reinforcement) the rest though is usually ok. so heavy side sand, gravel, hydraulic lime, chaux, cement, concrete blocks, insulation, timber (various sizes) plasterboard, deliveries etc.

I average the lot and the Merchant with the most favourable average gets my custom that year. I simply take a printed copy of their Devis with me and smile wryly at Les Anglais paying through the nose....Or indeed a French Artisan who took the hump until he was availed of 'Mr Eccossaise has an arrangement'

Horses for courses..

[Anton Redman]

The above makes sense to me but I have never operated on that scale

[Val_2]

We had several accounts with suppliers and for each one, had to produce a Kbis from the Chambre de Metiers to proove the business was legit and other documents. Its not normal for a client to have to open an account for a trademan and it makes me think he cannot open one off his own back perhaps through a bad history of non payment or not having the correct paperwork in the first place. The idea is that the artisan opens the account in his business name and he is the only one to receive the prix artisan, the prix public being on any devis from the suppliers which is what he would charge his client. Worked for us but unless you ask you won't know especially with times being hard at the moment for both suppliers and artisans. We were a TVA reg business, I have no idea about AE status.

[Bill]

[quote user="Anton Redman"]Le Conte without a town or post code pulls nothing as a builders merchants in France[/quote]

 

ETS  Le Conte SAS  St Lo other divisions are  called  catena extra  toutefaire..   

 

rgds

 

[Bill]

thanks one and all,  just  thinking there is some sort of payback going on , and there shouldnt be under the arrangements we had.. thats all..

 

 

from the sound of what u are saying , it s highly likely..

 

rgds

Bill

[Val_2]

Catena are a franchise business, our local one is now Mr.Bricolage owned by previously Catena and registered under a different company name like you have mentioned. They are hardly what I would call a builder's merchants and certainly a lot more expensive than you can source for quantities from Point P etc.

[Anton Redman]

Just wanted to make sure you had understood both parts of

the tax question :

The  extra costs of

TVA on materials versus using a fully TVA registered builder is not significant

versus working with a builder you know and like. Assumung €10,000 pre TVA it is

‘only’ €1,200.

The real sting in the tail comes when, perhaps die to

changed circumstances you have to sell.

Original net cost say                   50,000

Labour inc TVA          

                 10,000

Materials inc TVA                        22,000

Net proceeds              

               75,000

Apparent loss             

                 7,000

Profit for French CGT                15,000

because the materials are not allowed

Tax  and French NI Payable         5,175

There is taper relief which reduces the tax by 2% for the

sixth year of ownership reaching 100% at 30 years

[BIG MAC]

Just to be clear..my negotiations are all tax inclusive. I get a proper invoice etc. It's down to a spplier customer relationship...I don't mess them around and I pay in the folding ...do not underestimate the value of cash is my experience. Hard €uros are attractive to a supplier when the little companies are going to the wall owing him money. I would suggest that an anuual spend of even as low as €5,000 will get them talking to you.