Small Business Brief


Make More Money with Less Work: Why Building Contractors Benefit from Being Distributors

In today’s economic climate it is common for people to have an extra stream of income. People typically work to build on skills they already have and market their self as an expert.

If a person is already known in a field it is easier to build clientele and grow their income.

The construction industry can be very unpredictable. We saw this in 2008 when the economy took a downturn. Larger general contractors were able to survive the recession but smaller construction companies barely made it or closed.

If they had a back-up plan, more contractors could find success in running their own venture. One such plan involves becoming a product distributor.

Contractors know the industry and have first-hand experience with industry related products and equipment.

Want to learn more? Continue reading for more information on how being a distributor can increase your income.

They Have Direct Contact with the Consumer

General contractors have a competitive edge because they have direct contact with the consumer. They can recommend the products and give first-hand testimonials on why the product is their preferred option.

Unless the customer already has an idea of what brand they want, they will most likely trust the recommendation of the contractor. This makes distributor opportunities easy to obtain.

Contractors will need to work with brands to build partnerships. They can sell any product so don’t limit yourself to construction.

Being a Distributor Allows for Best Pricing

Distributors sell products to contractors at one price. The contractor often does a mark-up on cost in the estimate provided to the consumer. If the contractor is also the distributor he has more flexibility in pricing.

This can come in handy when competing bids are submitted for a job. Distributors work on commission so when it comes to competitive bidding they can lower the cost of supplies. It makes the bid more attractive and the contractor still makes money on the job and the products.

As a distributor, you can also get better pricing when you buy in quantity for future use.

The Contractor Can Work with Multiple Suppliers

A smart general contractor will find a way to work with multiple suppliers. For example, the operator of a roofing building can have a supplier that offers shingle roofing. When it comes to metal roofing they can work with a different supplier.

Since metal roofs are geared toward industrial buildings, it is not a conflict when dealing with residential customers.

General contractors that offer a wide range of services have additional opportunities to work with multiple suppliers. There are distributor opportunities in stucco, building materials, roofing, electrical, and plumbing supplies.

Is Being a Distributor Right for You?

If you think it is for you, do the research to learn more about products you can offer through your business. Being a distributor isn’t for everyone. Still, you should be considering options to bring in additional revenue to survive the slow months.

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