When suppliers miss deadlines, raise prices, or ship bad products, make them cover their own mistakes. One contractor requires suppliers to refund customers directly or issue credits, keeping the financial burden off the contractor's books.
How do you deal with suppliers? Because we have a lot of problems with manufacturers. Sometimes they fall behind in the promised lead time. Sometimes there's a pricing kind of discrepancies and quality issues. What strategies do you use to manage those relationships?
We have them pay for their own mistakes. That's our arrangement that we have with them, you know, going into it. God knows we all fall on our own sword enough times, right, with the homeowner, and we got to make good on that. But with us, the arrangements we make with all of our suppliers going into it is, you know, if they mess things up, I don't want to be writing a settlement check to a homeowner on behalf of my, my supplier because of their mistakes. So we make those arrangements initially just to partner with them with that fundamental understanding.
So if you issue like a refund or credit to a client, your suppliers pay for it?
That's correct.
