Short excerpt from a YouTube video (host: Mike Andes) discussing why a contractor purchased/started a building supply store to improve crew efficiency. The speaker explains they plan to buy materials wholesale and use the store to supply remodelers and prevent crew from leaving job sites to buy materials; retail sales hadn't started yet in this excerpt.
We had an issue with guys sitting at the store, and we still had to pay somebody to buy the materials. And then we have leftover materials that we have to deal with. Either return them or store them. So we go, okay, so if we're gonna move in here, let's go ahead and open up the building supply store and use that margin by buying wholesale to cover those guys buying and sort and dealing with materials.
How much of it. How much of it do you do where you sell? You're selling at retail.
At retail? Nothing yet.
Oh, nothing.
Okay, got it.
Nothing yet, but you're buying it wholesale.
So the. The. The whole point of the supply store would be to serve remodelers to be able to fill that gap and keep the guys out of the stores.
Instead of figuring out a whole business to fix that problem, should we just compensate the guys based upon efficiency so they get in and out of the store as fast as possible?
