12% contractor fees on appliances in new home?? (dishwasher, Lowes, microwave)
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My contractor is saying he will charge us a 12% fee for any appliance we ask him to put into our new home. This seems ridiculous to me, but maybe I am wrong? We were wanting him to take care of all new appliances so we could roll the cost of them into the loan - but at 12% that doesn't seem a very good idea!
Any thoughts? Is this something anyone else has heard of?
My contractor is saying he will charge us a 12% fee for any appliance we ask him to put into our new home. This seems ridiculous to me, but maybe I am wrong? We were wanting him to take care of all new appliances so we could roll the cost of them into the loan - but at 12% that doesn't seem a very good idea!
Any thoughts? Is this something anyone else has heard of?
Well, most places you buy appliances from can install at no additional charge, so you might consider that. Anyone doing extra work is going to add their margin on top of it, so I'm not surprised they want to charge you, unless it was agreed upon before hand that there would be no charge for installation. So in the contract were any of the appliances supposed to be installed as part of the base cost?
I won't pay 12% for it myself really. Most contrators I know actually get thier appliancnes at discounts and make their money on that and installation.I know the one that did my kitchen got them at a much lower cost that I could and charged me the same.
Well, most places you buy appliances from can install at no additional charge, so you might consider that. Anyone doing extra work is going to add their margin on top of it, so I'm not surprised they want to charge you, unless it was agreed upon before hand that there would be no charge for installation. So in the contract were any of the appliances supposed to be installed as part of the base cost?
We haven't signed the contract yet, which is why I'm asking now Hoping to sign by next week.
I could understand the fee on things that actually have to be installed, like the wood stove and dishwasher. I just don't get why we should pay the fee on things like a refrigerator when all you do is plug it in?
I won't pay 12% for it myself really. Most contrators I know actually get thier appliancnes at discounts and make their money on that and installation.I know the one that did my kitchen got them at a much lower cost that I could and charged me the same.
We haven't signed the contract yet, which is why I'm asking now Hoping to sign by next week.
I could understand the fee on things that actually have to be installed, like the wood stove and dishwasher. I just don't get why we should pay the fee on things like a refrigerator when all you do is plug it in?
Just a simple F/F? No ice maker? No water dispenser or extra light features? I only ask because if the F/F does have these features and the water line isn't running to the area, then that needs to be installed. Many of the 'free' install ads we all see do not include anything other than replacing like appliance with like appliances. If there's a new component, then it's extra. Just be careful what you ask for!
I agree, though, that it's hard to take that extra bite out of your pocket. My contractor charged 15% for a dishwasher purchase & install. He had to purchase it, pick it up, deliver, and install where there was no previous DW. The DW was $300, and install was $150. Then, after the fact he told me he had to add a 15% overhead/profit charge to it (he's been telling me that a lot lately... but that's another topic entirely!).
If it's simply a roll in FF, no haul away of old appliance, then can you add in the cost of purchase only, no install and do it yourself? Would he be willing to make consessions for that item only and waive the 12% O/P? Otherwise, a 10%-20% profit margin for contractors is about the norm these days (no, I'm not a contractor).
Just a simple F/F? No ice maker? No water dispenser or extra light features? I only ask because if the F/F does have these features and the water line isn't running to the area, then that needs to be installed. Many of the 'free' install ads we all see do not include anything other than replacing like appliance with like appliances. If there's a new component, then it's extra. Just be careful what you ask for!
I agree, though, that it's hard to take that extra bite out of your pocket. My contractor charged 15% for a dishwasher purchase & install. He had to purchase it, pick it up, deliver, and install where there was no previous DW. The DW was $300, and install was $150. Then, after the fact he told me he had to add a 15% overhead/profit charge to it (he's been telling me that a lot lately... but that's another topic entirely!).
If it's simply a roll in FF, no haul away of old appliance, then can you add in the cost of purchase only, no install and do it yourself? Would he be willing to make consessions for that item only and waive the 12% O/P? Otherwise, a 10%-20% profit margin for contractors is about the norm these days (no, I'm not a contractor).
Hope this helps!
Your post is very helpful, thanks
We have emailed him this morning to negoiate the 12% down and/or at least eliminating it on the stove, washer and fridge.
If the price of the appliance itself is reasonable, as that it's not full MSRP but what you can readily purchase at retail yourself, then 12% is fair. Time isn't free, and the fact that your contractor does need to spend some time in purchasing, delivery, installation, etc. means that they ought to be compensated for that time too.
Run the numbers to see what the real dollar amount would be ... to say it costs $50 to install an OTR microwave sounds quite reasonable, but if it's a $250 microwave, then that meant installation was 20%!
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