Decorating Magazines

I have found really nice high end faucets on ebay for half of the price.

You should take a peak!

adios - what magazines are you looking at?  I'm curious because I need to go buy some to get some ideas!!!!!!

Right now Kitchen Makeovers and Renovation Style.  If I were you Mckylie, I would hit model homes in your area.  Look at Phoenix Home and Gardens as well.  I hope this helps!

Well, it could be a few things, actually. For sure there are alternative ways of getting things- such as eBay. Then there are the people you purchase from. Thats why people use deisgners, even if they cant afford to have them as the designer on the project- people can still use them as a purchasing agent. Designers get it at their cost, then markup a product- but for less than retail/public showroom price, which is what you would otherwise be charged without the designer. For example- My price for that faucet was $300 and retail is $650. I markup percent, so your price from me would be $360. So you can buy from me at $360 or from retail at $650, if its even offered at retail.

 

Its odd that they would list the designer's price in a magazine. Maybe they hunted for a deal, but even so, usually the price in a magazine is close to the stated or suggested retail price of that item from the manufacturer. 

 

Some manufacturers dont give a suggested price, since they dont sell retail. They sell "to the trade" only and let the designers/contractors/architects mark it up at will. Some designers pass on their trade discount (which is, in a lot of cases, not only illegal but unethical), but most mark it up anywhere from -0 percent. Markup covers overhead, time spent placing orders, following up and tracking that order, dealing with the paperwork and taxes, and the free-market markup that is involved in retailing/reselling goods when you a business gets them at cost.

 

I would call up the company and ask about the price. Maybe its a typo or misinformation.

 

they automatically erased the numbers i had in my post...hummmm....

Why is it illegal to sell it at their cost?

I've bought some very nice high end faucets/vanities on ebay as well.  I just didn't want my house to look like everyone else's.

 

Ask around at work.  I bet quite a few of your coworkers have used designers to help stage or get a home ready to sell.  Get a name and I think that designer would help you out.  Especially since you are in a business that could help drive clients through their door.

try overstock.com. the prices can be amazing (1000 thread count queen size sheets for $40!). a lot of times it is last year's model, but do you really know anyone who would look at your faucet and say, "that's a 2007 Kohler, not a a 2008!"

Because when you have a sellers permit as a business, you are supposed to be REselling/REtailing to the public, not REwholesaling to the public. If a designer "passes on" their wholesale price (and I mean, truly passes it on with zero markup) it undercuts the wholesaler and disrupts the whole entire business model of wholesalers, vendors, suppliers, etc. There is a reason that wholesale prices are not for the public- for protection of smaller manufacturing companies, for protection of their methods of distribution, etc. I have heard it fall under the umbrella of price discrimination, but I don't know enough to technically expound upon how it fits in there.

 

When people balk at markups, I always wonder why. In a design contract, it explicitly states the markup the designer uses (or, at least, it should be stated). But when we walk into Nordstrom to buy a pair of pants we don't think twice about their markup. We don't expect them to give it to us at their cost from the manufacturer. Same with goods a designer purchases and buys- but a designers markup is never as much as retail! I don't see how people complain about it. Not that you are complaining, but Im just talking here! =)

 

Also, its unethical since it undercuts other deisgners, and also goes into the lawful act and responsibility of reselling goods as stated above. To me, its a can of worms to get into the loop holes (which I'm sure abound!). I run my business by the book- it helps me sleep better at night! haha!

 

 

 

 

Having been in the retail design business I don't understand what you J Steinberg Design is saying about all of the rules and regulations.  Maybe they only apply in AZ.  I can resell any product I buy at any price I want as long as the manufacturer or wholesaler and I do not have a specific agreement tp tje contrary.  Undercutting designers has never been an issue.  Some designers charge a flat percentage on a job based on the amount of furniture and accessories the client buys and some charge by the hour.  There are also design firms that will do both - hourly for the design and then a percentage for the product they provide to their clients.  Many designers actually will buy at discount houses and then sell at top dollar to unsuspecting clients.  I've been working with designers for over 25 years.  

I am fully aware of the many, many different methods and ways desigers charge. Since you are not in the interior design field, I don't expect you to quite understand that charging *no* markup is HIGHLY looked down on in the profession. I'm glad you have been working with designers for 25 years, thank you! You are a realtor that *gets* it!

Oh yeah, I forgot. It IS illegal to pass on the discount- at least here in CA it is. The State Board of Equalization can take away your resellers permit if you are caught doing that. You are right, maybe it is different in each state- but CA is all I know. It IS true you can sell at any price you want, but it would be absolutley in bad taste and very unethical to take a client for a ride, so to speak. Also, in CA, our markups are required to be outlined in the contract- which both parties sign with a sound mind. A client will not be taken, and even if it was totally lawful to do so, I would never do that. Its just bad business.

You may also be looking at a picture of a faucet in an upgraded finish and they are showing you the base price. For instance, most fixtures in chrome are much chepaer than satin nickel or copper tone. They advertise it at the lower price to get your interest, then you find out there are price upgrades for the special colors/finishes.

in MA it is not illegal to pass on the discount as long as you are charging and paying state tax, I believe.

Is is definitely not illegal to pass on your wholesale price in California. I've confirmed this with the BOE several times. As long as you are charging sales tax appropriately for goods and services, it is up to you to decide how much to mark up the purchases you make on behalf of your clients.

There is certainly much debate as to whether making no-markup purchases is a sound business decision, and I have heard people make ethical arguments for and against, but it is not illegal.

To hear information from the source, contact the BOE directly: http://www.boe.ca.gov/info/contact.htm