Hey Stephen –
I found out how the storm chasers are able to operate at the prices they charge besides exploiting Mexican labor and dodging payroll taxes.
They blow into town and promise to buy “X” amount of a certain brand of shingle at the distributor’s cost. The distributor agrees to this because it puts them into a better discount bracket on the “backend” as they call it. Apparently, everybody pays the same distributor price. But, the larger the quantity sold, the larger the backend rebate. So, by taking the storm chaser’s business at their current cost, they get a $10/sq rebate. So they make $10/sq on the storm chaser’s purchases and they make another $10/sq on our purchases. So, basically, besides loosing business to these bastards, we’re also subsidising them.
Edited 5/29/2008 5:16 pm ET by seeyou
Replies
bump
I don't know about that--sounds plausible.
i know a different way.
one of the guys working for me now---tells me he went down to north carolina /Tennesee 8-10 years ago after a storm.-- his "boss" walks into a Home Depot and says" I am with FEMA-I need to set up an account pronto"
Bingo---Home Depot gives him instant credit
Boss' crew is supposed to be totally rehabbing houses----runs up 30K tabs/house at Home Depot x many house---then SKIPS, LOL
he later went to jail
( I am down to working 13 hours a day/6 days a week--from 14 hours a day 7 days a week.)
I will work this another 6 weeks or so----and then at long last i will resume my transistion into semi-retirement.
I worked on pricing what i hope will be one of my first semi-retiremnt projects yesterday( remove existing collapsing 8/12 hip roof from 20x33 carriage house--, re-frame and re-roof
stephen
I don't know about that--sounds plausible.
I got it from a dissgruntled sales rep who has seen all his commissions go down the drain. I was using $10/sq as an example - I don't know the real figures. I've noticed that the stormers are almost all using OC's. Normally, OC's were a few cents higher per sq than everything else.
I've heard of a couple of the chasers skipping town owing a lot of money. One supplier told me of an $80k dine and dash. Sorta PO'd me. I've bought there for 15 years and I'm not sure what my credit limit is, but I bet they'd say something before I ran it up to $80K suddenly. http://grantlogan.net/
But you all knew that. I detailed it extensively in my blog.
Grant, LOL.
got a letter from my supplier on friday telling me my credit limmit had been raised to $xx,####.which is funny--because I currently have TWICE that in outstanding charges at that one supplier for the month of MAY.
nothing nefarious planned---- i just have been doing job after job after job after job and i pay the whole balance off each month.
In fact-- in april I easily exceeded my "new, raised limmit of $xx,####" as well.I imagine the office people see my recent charges as well out of line with my previous monthly charges--and get nervous
but the counter people keep on selling to me-----despite the limmit.
frankly-- i don't like to see that tab running that high either.
stephen