Many of us have found ourselves pinching pennies these days. Whether it’s digging coins out of the couch cushions, collecting coupons or using a budgeting spreadsheet, our personal finance strategies are getting a glow-up.
But what about our business finance strategies? For home builders navigating unprecedented economic, labor and material trends, having reliable money-saving skills is key.
So, let’s talk money. One of those many cost-saving tools comes in the form of home builder rebates. We’ll guide you through the basics of rebates, explain why builders should be using rebate programs and give you a few tips to help you save even more money on the job.
What is a rebate?
A rebate is a tool used by manufacturers to promote their products by offering an incentive to buyers. Rebates reimburse a customer for part of the purchase price following the sale, rather than at the time of sale, like a standard coupon or discount.
In the construction world, this looks like manufacturers offering rebates on building materials, large appliances, HVAC units or plumbing fixtures.
By being strategic about purchasing from manufacturers that offer rebates, builders can save valuable money on items they would already be purchasing.
Going a step further, rebate programs are a way for manufacturers to reward builders for using their products exclusively (or almost exclusively).
Not only does a builder get the incentive of a rebate on a high-ticket item, but these programs also allow construction companies to collect hundreds or thousands of dollars more per build.
Why should home builders use rebate programs?
The savings alone should be an indicator it’s time for home builders to start using rebate programs in their businesses. However, it can be a large undertaking to manage sales and payments from multiple manufacturers.
Rebate management services and group buying programs like CBUSA can help reduce the labor involved in rebate programs. These programs find, estimate and save the best rebate incentives and work with your suppliers to build lasting relationships and rewards.
Overall, rebates can put cold, hard cash right back into your business – especially if you’re ready to invest in the time or support needed to participate in these programs.
Do rebates help when building on a budget?
When construction teams are building on a budget (as many are in this time of increased inflation), every dollar saved matters. Client satisfaction goes up, your bottom line benefits and you’ll be able to count on important industry relationships with manufacturers and trades.
Although upfront costs will be the same, rebates allow builders to collect later and put funds back into the budget in other places. Perhaps you’ve saved on an HVAC system and can now offer your clients an add-on service or select a more expensive tile for a bathroom.
Whether that money goes back into the budget or helps bolster your business, using rebates is a strategic move that gives you more financial freedom.
How do manufacturers benefit from home builder rebates?
Rebate programs are a great tool for builders and manufacturers alike. Manufacturers get the benefit of brand exclusivity and awareness, and builders get rewarded for their allegiance to certain products.
Rebate programs also drive market share. Since rebates are different from traditional discounts, competitors aren’t as likely to lower prices to stay relevant in a competing market. Therefore, manufacturers can maintain comparable market prices while still rewarding loyal customers after their purchases.
Group purchasing programs are a great way to solidify rebate deals with brand partners without the hassle of continuous management. CBUSA is a network of top residential home builders who connect through group purchasing and a shared buying strategy to propel their businesses forward.
Apply to join CBUSA today to join other top builders in saving and networking.