Retail markup for carpet

9 years ago

last modified: 9 years ago

I am bartering services with a carpet store. They are supposed to sell me the materials (carpet, pad and whatever else is needed) at their cost and provide the installation for free.

They told me what the regular price is for materials and labor then they deducted 40% from the total, this is what they say their cost-installation is. I don't feel like they are being forthright. I don't know about carpet but for most retail products there is a 50% markup or more. So I feel like I should be getting 50% off the materials plus an additional discount for the installation. They way the presented it their markup on materials is less than 40% since the installation is part of the 40%.

I'm hoping someone who is familiar with the carpet industry can tell me if they think this store is being honest. The thing I am giving them in exchange has a value greater than what I am receiving (this doesn't usually happen but long story) so if they are even breaking even on the job I am being cheated. They should break even on materials and come out of pocket on the installation.

Any advice please? If this is sensitive information that you don't want to post for the public to see please private message me.

TIA

Featured Answer

User

9 years ago

last modified: 9 years ago

40% would be a high margin on carpet. 20-30% is more the standard. There is zero money in carpet anymore since hard surfaces took over. Most stores sell it as a one stop shop convenience factor for those also purchasing hard flooring.

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Comments (8)

PRO
Carpet One Columbia
9 years ago
The best way to verify the material cost is for the dealer to present you with the invoice or price list they receive from the manufacturer/distributor. This would prove the value of the trade and help you feel more at ease. They should be willing to deal with an open hand, especially if the value of your service exceeds the value of theirs.
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weedyacres
9 years ago
A couple other ideas to verify if you can't ask them directly (which I would have no problem asking them to show an invoice as Carpet One suggests).

Go to another flooring store and ask them to price carpet only (say you're doing the install yourself). You need to pick a product similar to the one your barter partner is providing. Compare this to the barter partner's claimed cost.

Ask the other flooring store what their installation price per square foot is. Compare this to the price that your barter partner subtracted.

Big box stores will give you a breakdown on materials and labor, so they'd be a good go-to alternative.
uscpsycho
Original Author
9 years ago
It just occurred to me that Carpet One Columbia might be able to help me out here since it's a Carpet One store in Los Angeles that I'm working with.

Would you be willing to privately share your cost with me on this one product?
User
9 years ago
Cost for the same exact product will vary widely across the US due to transportation costs from the mill, COL, and volume buying power for larger selling stores. A carpet store close to the GA mills who is a major seller will pay half what someone all the way across the country that only sells carpet a couple of times a month. It will be a red apples to green apples comparison, even if they come from the same tree. Then there is the labor variance, which can be more than double in cost difference.
PRO
Carpet One Columbia
9 years ago
My cost would have no correlation to their cost. Ask them to give you a copy of the invoice or price list from the manufacturer or distributor. It is really okay to ask for it and I have no doubt they would provide that to you. That is the only way to know.
Torrey B
8 years ago
For future reference most retail items don't have a generic 50% markup. The markup a retailer charges will vary due to a great number of factors.
James Foulk
4 years ago
Theres a big marke up on flooring carpet especially.. and ive been done floors for about 28 years ..theres never free installation.. and it has everything to do with mark up the carpet and pad that tou have to select from are t.op grade ..they raise the price and give you a discount.. technically would they just did is have you by their high-end carpet at its regular price..

Next flooring project that comes up..give me a call ill take care of ya .. .i handle the sales and installation progress of the projet cutting out the middle man .. and im not a greedy corperation.. .. its simple.. i sell my materials at my cost .. that in return lands me the contract (usaly). .. then i make the labor.. and to be honest with ya thats usaly the greater bill out of the 2 .

Addictive Creations Flooring llc

717.979.8816

James Foulk Jr