Bid Floor – A Rehabbers Best Friend
Bid Floor, this may seem like a strange or new term but it isn't. If you rehab houses or you buy and hold houses that need repair then I'm sure you're operating each project on a budget and your budget needs to be adhered to tightly. If either one is the case then you need to pay close attention to what the Bid Floor is all about.
The Bid Floor is a term I first heard at my local Home Depot. I went to order supplies for a rehab and the sales person informed me that I was purchasing over $2500 worth of material so I could save money if I let them submit everything to the Bid Floor. Bid Floor, I said "what the heck is that"?
How this Bid Floor thing works on their end, I'm not all the way sure but I'll sum it up like this; They contact who they get their products from and based on the amount of products you are purchasing from that manufactuor they will give you a discount off of the normal retail price. If you use the same or similar products on all the properties you perform work on then its easy to save money buying your products in this manner as apposed to paying the retail sticker price. You save each time and in the long run because any time you have extra products left you can use it to start your next project.
Here is what I suggest you do just so you can see how much you actually save. Make a list of all the products you would use in each project. Go to Home Depot, Lowes or Menards and get the retail sticker price of each item and add the price up per project. Now the first time you're ready to do repairs to a property submit your list to the Bid Floor and see the difference in the savings.