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Politics : Ask Michael Burke

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To: Knighty Tin who wrote (88676)1/20/2001 1:12:28 PM
From: Bill/WA  Read Replies (2) of 132070
 
Michael,

Home Depot: my opinion (been a gen. contractor for 28 yrs - in FL & WA).

HD is a lumber/hardware store as opposed to 'just lumber'. In south FL a number of hardware/lumber stores closed down that couldn't compete with HD's selection (electrical, plumbing, tools, etc.) not particularly lumber.
This is handy for the home repair contractor & weekend warriors (one stop shopping).

However, when I was 'building houses', especially in the $400k-$800k range, I would deal with the independent 'lumber stores'. <Call your salesman - tell him what you need - and its delivered ASAP.> Cull through and set the crooked aside and they'd come pick it up on the next delivery. Need a special Glu Lam beam - no problem. Their volume was in lumber only - some even put out signs - Contractor Sales Only. It wasn't worth their time or personnel to deal with the public.

Lumber is low profit margin as opposed to paneling, trim, etc. HD basically pays the same price for lumber as a large independent lumber store - nothing to do with futures, as they still have to buy from GeorgiaPacific, LouisanaPacific, etc. I built two houses for GP managers (and still good friends<G>). Their prices to HD and the large independents were the same

I believe HD has put more hardware stores out of business than independent lumber stores. Basically, its variety & volume.

JMHO
Bill/WA
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