Originally Posted by Clarkm
Originally Posted by Oldman3
When I started remodeling the house, I went to the closest building supply store and talked to the manager. Told him that if we could reach an agreement on a discount, I would buy all the materials from him, if he had them or could get them.



We had dinner at some people's house. Our kids played. The wife's talked, and I was stuck talking to the guy, a heart surgeon who seemed too smart to talk to me. His parents were at Auschwitz. He was handsome.... then we talked about his remodelling. He said he was paying cost plus. I asked how the materials were priced. I said that a lumberyard may have a walk in price to the public, a lower discount price to contractors, and a higher official retail price [double the contractor price] that might show up on his invoice. The doctor who had been making me look so stupid a few minutes earlier stared at me like a deer looking into the headlights.

True "cost plus" like honest contractors do is THEIR cost of materials and their labor costs for paying their help. The PLUS is then added to that as the contractor's fee/profit.
I provide receipts for all material I purchase, which shows what I paid for it including my veteran's discount. Then I add my fee.