Costs for Variations Compared with Retail Price
One area of annoyance for home buyers is when they want to vary something and the variation price is much more than the difference between retail prices.
For Example
An example is the builders standard oven may be $700 at your local discount store while the oven you want is $1100.
When you ask for a variation you may be quoted an extra $700 or more.
Even if you buy the oven and supply it to the builder he may only offer a cost reduction of $400 rather than the $700 you expected!
Why?
What’s the reason for the extra $300 over the retail price difference? . . . . . . .Well its not always the builder ripping you off.
A big builder is possibly buying over 100, or more of the same type of oven so he may be able to buy them direct from the manufacturer for less than $500.
When it comes to buying the different oven the builder is only buying one so he might be unable to get much if any discount.
The difference in price to the builder is thus around $600. Even if you buy the oven the builder only saves $500.
They may also have extra costs due to
- Organising and administration of a single purchase,
- Installation costs because the different oven may not build into the kitchen cupboards as easily as the builders standard oven.
I hope this helps you understand that some ‘additional’ costs can sometimes be justified.