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Floyd County, Iowa | Gene-
No different than mechanics that buy all their parts at NAPA, O'Reillys, etc. They get a discount on parts, as an incentive to buy all their parts there, and the customer pays the retail price to the mechanic. Also like the farmer that gets better volume discounts on inputs than the smaller operator- very common. An incentive to keep the contractor or mechanic coming in the door. Yes, good service is also required, but money talks.
The contractors use that "discount" to cover their non-productive time (looking at jobs and giving estimates, ordering, collecting and paying the materials bill on time, etc, as there is a lot of work that has to be done "off the clock"), and replacing consumables like saw blades, knife blades, chalk, misc things they use out of their rig.
The customer pays for that one way or the other- $30 per hour plus the discount, or $40 per hour and customer pays the bill.
And there is a similar system at the "M" place, too.
just sayin........ | |
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