The
MaxEquity buying group negotiates with
manufacturers and retailers to provide
rebates to remodelers based on their
purchases. President Bob Sayre is a
remodeler who decided to do something about
the difficulty contractors have in competing
with big box chains.
“Our
purpose is to lower material costs for
members so they can be more competitive with
the new threat of installed sales,” Sayre
says.
The
Massapequa, N.Y., company has more than
5,000 members across the nation. Members
don't pay fees to join — they just agree to
purchase from the group's vendors. Products
include siding, windows, cabinetry, paint,
lumber, and electrical supplies. The group
also asks members to recommend smaller local
vendors in their 60 markets.
Sayre and
vice president Fred Greenwald negotiate the
rebate percentage with the vendor — usually
between 2% and 4%. The contractor buys from
the vendor using their usual account number.
MaxEquity submits member account numbers to
the vendor and the vendor sends the group
the total rebate on a quarterly basis.
MaxEquity distributes 70% of the amount to
members and uses the other 30% for
administration and marketing. “More members
mean greater and deeper rebates,” Sayre
says. For more information, visit
www.maxequityllc.com.
