please help--what is typical kd/gc markup on granite?

14 years ago

We chose our stone, jet mist, which I understand is a fairly mid priced stone. We got quotes from 2 fabricators, through our KD/GC, which were both in the ballpark of 11K (for about 95 square feet of counter/island). Then, we got a third quote ourselves, and came out to be in the neighborhood of 8K.

A 3K difference seems insane to me! I understand that the lowest price granite fabricator is not necessarily the best choice, but how do I know whether the other 2 fabricators came in much higher, or whether they came in close to the third and our KD is just marking up like crazy?!?

I am afraid we are being taken advantage of. I'd really love any guidance on this. We are not under contract to go through the KD, but both fabricators that we want to use came through him. How else can I find a good fabricator?

Featured Answer

ofealia

14 years ago

Another option:

When we send in a request for quote - we get a price from the fabricator at cost - we add 20% for the customer's price.

If the customer went directly to the fabricator, they would get essentially the same price as I quoted them.

So, basically, the fabricator gives us a discount which allows us to charge the customer the same price in the end.

The benefit of going through us, is that we will be at the jobsite during template, to make sure that everything is covered, we'll answer questions about overhangs, make sure seams are in good places, make sure the appliances are all there. We will meet the customer at the Granite Yard the next day and go over laying the template on the granite, make sure pieces match up, etc. Then we're at the house during installation - make sure seams are good, it's cleaned up, and everything is done correctly.

I guess what I'm saying is that not all KD/GC's are out to gouge you with markups... saying that, we do work with a fabricator which might be more expensive than others you may get quotes from - but that's because we can trust they aren't using lesser grade granite, we are confident that if there's even the smallest defect, they'll come fix it, and they're pleasant to work with.

lol..I sound like I'm trying to sell us - but really I think this is a good program =)

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Comments (17)

pence
14 years ago
My guess is that the KD/GC isn't marking it up 3K because if they are better fabricators, their price is going to be more anyway. i don't know how much more... Also, maybe your third guy never bought jet mist before and actually quoted you a lower priced granite, not knowing that jet mist is is a mid priced granite. did you pick out slabs at a wholesaler and are they all bidding on the same slabs? Just details to think about...
veronica15
14 years ago
The same thing happened to me. The highest bid was through my KD. I got independent bids and am going with one of them. Get at least 3. Good Luck.
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eastcoastmom
14 years ago
You may be correct that the KD or GC's fabricator is raising the price on you. When I was referred to the recommended fabricator, the rep refused to even send me the quote directly, since there is often a markup done by the GC. And yes, depending on the GC that can be by as much as you've indicated. This is not uncommon, especially with your more high end GCs, but you should be made aware of it - check the rest of your contract and/or ask directly. In our case, we had a deal with the GC that nothing from a certain point forward would be marked up additionally, but the vendors were still too nervous to deal with us directly.

On the other hand, it's possible that the discrepancy is to do with the price charged by the fabricator. Big difference in quality here from what I've seen and you often ( but not always) get what you pay for. Pay attention to things like seams - ask to see a typical one. I've been to places that can do less than 1/16 inch on the seams and others who will tell you that is impossible. Also, better quality places will not accept inferior slabs.

One way to get the names of recommended granite places is to see who other reputable KDs in your area recommend. Since I'd talked to several before choosing one, I had an idea of the names that keep coming up. Also - check the Better Business Bureau. One place around me that does tons of advertising and has low prices has lots of complaints, too.
msgreatdeals
14 years ago
I'm sure the KD or GC is raising the price. If you can pick your own, your better off. I was quoted $6500 for 85 square feet of Home Depot Stonemark.It would have been $1700 less if I did not want Ogee finish. I don't think I will use them but this is just to give you an idea of pricing. $11,000 seems really high...$116. a square foot.
dasistgut
14 years ago
I'm paying a 20% premium over the lowest bid to go with the fabricator my cabinet installer recommended. I suspect a portion will go back to the cabinet installer, but he did such an awesome job that I value the unqualified recommendation he gave the fabricator. They have worked many projects together. Having endured remodeling disasters in the past, I don't mind paying more knowing we'll get a quality installation.
ebse
Original Author
14 years ago
Thanks, everybody, for the responses!

Our kd/gc has an excellent reputation around here, albeit a reputation for being high cost. That said, I didn't mind paying extra for high quality cabinets and installation, as well as structural work, but I DO mind paying such a high premium for granite because I just don't see that we need the extra layer of protection.

KD/GC's response was, "if anything happens, I will be the bottom line to take care of it." But, shouldn't that be the fabricator's responsibility?

We are getting a few more quotes (on the same slabs) independently. That way, I feel like I'll be comparing apples to apples.
eastcoastmom
14 years ago
If your KD said that to you, then the price is almost certainly getting marked up. In my case, although they claim they are giving me the same price as they would give him, I'm not really sure that's the case. In any case, I have no hesitation about finding a reputable fabricator on my own. For one thing - it gives me a lot more options - different fabricators get their supply from different distributors and you might be able to find that perfect slab that you are looking for. The kitchen designer obviously prefers to do it the other way - not only for the revenue, but they are concerned that all the options and/or any glitches may slow you down and they won't get paid in full as quickly. Not what they want.
live_wire_oak
14 years ago
Many tales abound on here of budget fabricators and the poor jobs they do. It's worth the extra 10% to have your KD not only give you a quality recommendation, but to also liason with the granite fabricators to ensure that the job is scheduled and templated correctly. You are not paying the markup for "nothing". You are receiving a service for that money. Otherwise, it's completely up to you to choose your fabricator, your stone, your template, do your scheduling, and chase down the fabrictor if there are any issues and hope they resolve them. If you're comfortable doing all of those labors and don't wish any input from your KD for any of that, including color or design help for the counters, then by all means save the 10% and GC that portion yourself.
ebse
Original Author
14 years ago
I would agree that the kd/gc's services are of value. What I'm really wondering is HOW valuable. In our case, he quoted us a price based on an aribtrary selection of granite that came out to be a certain price. At this point, I just feel like he was going to charge us that price regardless of the stone we chose... so long as we chose a lower cost stone. I just think that a markup of 40-50%, if that is the case, is not in proportion with the added value (for the granite portion of the job). At the end of the day, we did the bulk of the leg work, as far as researching fabricators, locating the stone, viewing the stone, researching the stone, etc. etc.
veronica15
14 years ago
I had the same experience at eastcoastmom. My KD recommended a granite fabricator. I went to the stoneyard and picked out the granite. I faxed the paperwork to the fabricator. When I called to see if the bid was ready she said she faxed it to the KD. It really bugged me. There was no reason she couldn't have faxed it to me. I got the bid and since I had nothing to compare it to I got three other independent bids from established companies. THey were all lower. I have no intention of using the fabricator that my kd sent me to. I figure he just lost the job for that company. I don't like games and it really put a bad taste in my mouth.
sue_ct
14 years ago
Mine told me flat out he marks up 30%, and he charged less than most. But if I went through him, he would oversee the entire process, schedule the install and be there to supervise and make sure everything was done correctly during the install. He might end up going through his insurance if anything went wrong. I ended up going with Zodiac, which he doesn't do, so it was a non issue in the end.

Sue
ebse
Original Author
14 years ago
Our experience was similar too. The whole process was cloaked and we couldn't seem to get a straight answer, until the bids came in. I guess the reason why the fabricator wouldn't give you the quote is because the kd doesn't want you (us) to know his markup. The kd probably sends lots of business to the fabricator, who doesn't want to get blacklisted.

It makes sense, I guess, but I don't see the need for a middle man for this particular portion of the kitchen.

Shouldn't a good fabricator be licensed and insured? I suspect that if they did any damage or there were problems, the fabricator should be responsible for his own work.

I'm with veronica15. I don't like game playing either and some love has definitely been lost b/w me and kd.
caryscott
14 years ago
If it were 10% then I probably would let it go for the reasons lwo offers but at 30%+ I would look elsewhere. Lots of bad stories about reputable fabricators around as well so you really should be involved and informed whichever way you go.
ebse
Original Author
14 years ago
caryscott,

My thoughts exactly!

Thanks again for all the feedback.
eastcoastmom
14 years ago
ofealia, Since I'm working with a builder, every place has said they are will give me the contractor's price.

I have to agree with all those who say they don't like the games. It took us a LONG... time( to realize from the confusing way the contract was written that there was actually a 30% upcharge on EVERYthing, cabinets, appliances etc. This after being led to believe that profit was a separate line item. The rationale is that the builder is responsible should something go wrong with one of these items and is taking that risk on your behalf should there be delays, a need to redo something or whatever. I can understand that, and understand it is typical practice for design build guys to get this amount - I just would like it to be something they let you know in a more upfront way.
kompy
14 years ago
My store works just like what Ofealia said above. Our fabricators give us a discount to bring them sales. Customers are not paying any more than if they went direct to our fabricator. There are some fly by night top shops that can probably undercut us by a few hundred dollars and that's always going to be around. But we have found that most of our clients see the value of using us and spending a tad more.

If a client has a lot of square footage....I will decrease the markup. On average, if I make a profit of somewhere between $400-$800 (depending on size of kitchen), that is what I shoot for to help cover time, sample and display expenses and liability issues. As a dealer, we have lots of displays and samples to keep up with...and that costs money.

If your KD/GC is marking your granite up more than 25 or 30%, then ask them to come down. It doesn't hurt to ask.

please help--what is typical kd/gc markup on granite?

ofealia

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