Hi...
I’m working with a contractor and an interior decorator on an apartment remodel. My understanding is that the majors like Lixil, Panasonic etc. have list prices, but that contractors and architects get a discount of perhaps 20% or more. Takara Standard being an exception as they do little discounting. Is it also the case that the contractor might get a kickback I won’t know about for bringing business to a particular maker and not to another? If so this might influence their recommendations.
I wonder if the situation is different for the higher end furniture shops. Will a interior designer favor certain shops over others because they get some kind of side payment for bringing them business? I’m wondering if some shops will be ignored or their products disparaged because of a lack of connection with the designer.
Thanks!
Do contractors and interior designers get discounts and kickbacks?
Re: Do contractors and interior designers get discounts and kickbacks?
I will reply to my own post as it might be useful information for those considering using a contractor/architect or interior director. I have been told that the amount of discount from the list price can vary depending on the company, the level of their product line you choose and the relationship your contractor has with the company. I will share what happened for me.
I bought a Panasonic L Class kitchen and the price my contractor got was 38% cheaper than the list price I was quoted at the showroom. I bought a unit bath, a vanity and toilet from Takara Standard and my contractor got a 10% discount. This lower % was expected as I had been told that Takara Standard starts with low prices and so allows smaller discounts.
With the interior decorator I bought some things from places like Actus and Bo Concept. The salesperson at Actus told me that interior decoraters usually get between 10%-20% discounts. She is probably not supposed to tell me that kind of thing and other salespeople have said they don't know. In the end my interior decorator got a 5% discount. I don't know if that means she pocketed some percent for her self or if that salesperson didn't know what she was talking about. My decorator insisted she never gets %10-20, so I will take her word for that.
To conclude if you are interested in doing business with Panasonic, Lixil, Takara Standard etc. I think it is to your advantage to have an architect or contractor buy for you. It doesn't appear that having an interior decorator buy furniture for you is so advantageous.
I bought a Panasonic L Class kitchen and the price my contractor got was 38% cheaper than the list price I was quoted at the showroom. I bought a unit bath, a vanity and toilet from Takara Standard and my contractor got a 10% discount. This lower % was expected as I had been told that Takara Standard starts with low prices and so allows smaller discounts.
With the interior decorator I bought some things from places like Actus and Bo Concept. The salesperson at Actus told me that interior decoraters usually get between 10%-20% discounts. She is probably not supposed to tell me that kind of thing and other salespeople have said they don't know. In the end my interior decorator got a 5% discount. I don't know if that means she pocketed some percent for her self or if that salesperson didn't know what she was talking about. My decorator insisted she never gets %10-20, so I will take her word for that.
To conclude if you are interested in doing business with Panasonic, Lixil, Takara Standard etc. I think it is to your advantage to have an architect or contractor buy for you. It doesn't appear that having an interior decorator buy furniture for you is so advantageous.