ᐅ Tile sampling – significant price differences

Created on: 1 Oct 2013 12:18
Y
ypg
Hello,

Yesterday, we visited a tile showroom again.
We had actually already selected and sampled our tiles earlier this year near our construction company (Hanover).
This was the first time we spoke with our tiler, who advised us to also check out two of his preferred stores near us (Hamburg). We did that.

We didn’t find THE tile that really impressed us (except for the prices ), but one tile was among them that we had already chosen before for the bathroom (same manufacturer, same design).
Here, however, it was priced at a whopping 25% more.

Now for the question: how can such a large price difference be possible? Is this due to a Hamburg surcharge?

Or is it more likely that the tiler perhaps gets a bigger discount when the tiles are more expensive and thus makes more profit if we buy from a more expensive bathroom supplier?

Have you experienced anything similar?
Musketier1 Oct 2013 14:46
We also visited a tile showroom recommended by our construction company.
Additionally, we went to another tile showroom where we felt the prices tended to be somewhat lower.
Since we did not find exactly the same tiles in both showrooms, I can’t specify the percentage difference.
However, I suspect that any difference of up to 10% would have been hard to notice. So I assume there is a larger markup involved.

We then agreed with our construction company that we could select tiles at the more affordable showroom.
Also, I had the impression that there might still be room for negotiation. I’m just not sure whether I should negotiate myself, or if it would be better for the tiler, or maybe both of us.
K
klblb
1 Oct 2013 15:16
These are the specific features and lack of transparency of the three-stage sales process. The end customer is not supposed to understand it, just pay.

To get a favorable final price, you will need to request bids or obtain offers for the SAME service. For example, tile type x, fully installed in your bathroom with floor plan y and special requirements z. You should not compare this to prices from a tile showroom without installation, waste material, other supplies, travel costs, etc.
Y
ypg
1 Oct 2013 17:25
ypg schrieb:
25% is 25%... of whatever, in this case €34 (about $37) for one and €44 (about $48) for the other... a 25% difference between different suppliers (not online retailers, not hardware stores) is significant! In my opinion.
Justifier schrieb:
Actually, it’s closer to 30% more, but whatever...

...the numbers have been rounded now... I prefer not to exaggerate
Musketier schrieb:
We also visited a tile showroom that our builder recommended.
We also went to another tile showroom where it seemed to be somewhat cheaper.
Since they didn't have identical tiles at both showrooms, I can’t say exactly what the percentage difference was.
But I suspect we wouldn't have noticed a difference of up to 10%. So I assume the price increase is larger.

We then agreed with our builder that we could select tiles at the cheaper showroom.
Also, I felt there might still be room to negotiate. I'm just not sure whether I should negotiate, or the tiler, or both.
klblb schrieb:
These are the particularities and lack of transparency of the three-tier distribution system. The end customer is not supposed to see through it, just pay.

To get a favorable final price, you will have to tender or request quotes for EXACTLY the same service. So tile type x, fully installed in your bathroom with floorplan y and special requests z. You must not compare this to prices from a tile showroom without installation, wastage, other materials, travel costs, etc.

We are building a turnkey home. We don’t tender. We only select samples and pay any extra costs if needed.
Jaydee schrieb:
From what I know, wholesalers or retailers have fixed prices for end customers, and the tiler may receive a discount on these prices.

For example, our tiler (a friend) gets about 3% discount from a wholesaler and possibly volume discounts. He can pass this on to us or not.

I can well imagine tiles in Hamburg (or here in Munich) have different prices than in some small town, simply due to different rents and labor costs.

Whether that accounts for 25%, I don’t know...
Perlenmann schrieb:
If anything, the surcharge is 30%. But here it’s only about €10 (about $11), which I don’t consider excessive.

For sure, your tiler probably has a “relationship” with them; otherwise, why would he recommend them? It’s give and take.

But I still don’t understand the background of your question! Do you want to negotiate because he’s receiving money or a discount? Why don’t you simply get the tiles where it’s cheaper?

About the mentioned 3% discount... I once renovated a bathroom myself (years ago), and a friend passed along his “personal discount” on sanitary fixtures of around 30%!!! That’s when I realized that the final price for the end user is quite different from what the tradesman actually pays... The higher the final price, the higher the profit margin for both, which of course remains hidden from the homeowner. But that was long ago, when things worked differently.

I don’t want to negotiate. I’m happy for him to earn something if that’s the usual practice.
Ultimately, the price-performance ratio of our tiles matters to me. And with the cheaper option, it’s fine.
At prices over €40 (about $44), I would probably hesitate...

Only if the builder in Hannover names 2-3 showrooms, will I select samples there.
The cheaper tiles come from what seems to be a family-owned business (small and reliable).

The tiler only referred to our building location to explain that we can select there... I hope at least that he is not sourcing the tiles from the expensive supplier; otherwise, I could have just selected a more expensive tile from the cheaper showroom.

I just wanted confirmation that the tradesman gets different conditions.

Most likely, in my example, Hamburg’s higher rents are simply added to the product price.
B
Bauexperte
2 Oct 2013 11:40
Hello Yvonne,
ypg schrieb:

I just wanted to confirm whether the tradesperson gets different conditions.

Probably, in my example, Hamburg applies different rents which are then added to the product!
Labor costs in the northern regions differ from those in Bavaria; within the city of Hamburg, they are higher than in Harsefeld or Tostedt. The material price is usually standardized nationwide for the tradesperson, tiered according to the quantity ordered.

Of course, the tradesperson receives different conditions than you; as mentioned, this also depends on the volume they order throughout the year. This purchasing advantage combined with the calculated hourly labor rate ensures that their business remains financially stable in the coming years. Otherwise, how else could they be held liable during the warranty period?

If internet prices are compared with tradesperson prices here, that comparison is misleading for the reasons stated above.

Regards, Bauexperte
Y
ypg
2 Oct 2013 12:26
Bauexperte schrieb:

When internet prices are compared to craftsman prices here, the comparison is misleading for the reasons mentioned above.
Regards, Bauexperte

Online prices are completely out of the question.

For me, tradespeople are still those who are on site, hopefully doing their work well, but are comparatively limited in time by the general contractors.
If you take some time with them on the construction site, you learn quite a bit through conversation.
I also gladly give in to their extra requests... they are still cheaper than the general contractor.

The plumbing comparisons at Reuter and similar are also misleading: if I wanted to order my bathtub there, I would have to add quite a few pipes and adapters, not to mention the bathtub brackets. Altogether, it is no longer that cheap – and where is the warranty supposed to come from?
P
poiuertz111
9 Jan 2014 12:28
I also find it steep! I think it’s also about "connections" here!