I am a hobbyist only, yet I still set myself up as a business at my hardwood supplier because of the 25% cheaper price I get on hardwood. But that's the only place I've done so. Many contractor discounts are less than that, and some places want to see any state lecenes you may have to hold to be a contractor. So I think it varies widely depending on where you live and what supplier policies exist with your chosen vendors.

 

Yes, it can be worth having business/jobber accounts. Availability and discounts depend on the business, requirements, and total spend per year. Get best jobber discounts on finishing supplies, and equipment. Lowest discounts on lumber, or from pure retail businesses (like Woodcraft/Rockler).

Some will not require a business account if you are consistent customer with high spend rates paying cash. I have cash jobber/contractor accounts with most finishing suppliers (SW, Mohawk, Benjamin Moore, PPG) as they require one to get discounts, and for their legal protection for proper use of solvents.
Some will not set up business account with best discounts; without a credit check (for net 30 payment terms) and sales tax exemption from local tax authority. BTW - should have a sales tax exemption certificate if you are selling your products. No reason to add local sales tax to materials cost for products you mfg and sell. Just remember to collect the sales tax on stuff you sell.

 

Supplier selection is very important and if you're spending enough to "graduate" from buying retail, it's definitely worth checking out. Besides possible discounts, you might also qualify for cheap or free delivery. It also opens the door to suppliers that only do business on a net/30 basis.

Over the years I've slowly replaced and consolidated suppliers. I'm looking for faster and cheaper delivery, reliable inventory and stable product lines. The end result is doing less business with retailers and more with commercial suppliers.

 

I think so. I keep a good feel relationship with my wood mongers. They keep track of what I buy and how much they charged me. If you haven’t figured it out yet everything thing from tallying the wood to bft costs are negotiable.
Even during the pandemic when lumber costs were high I was still able to get some good prices. With a little begging 🥺
Good Luck

 

Best way to get a wholesale discount is to ask them for it. Plus, you should use your "State sales tax exemption number" if your buying for resale. They'll normally give you a form to fill out to verify exemption statis..

The Lowes local store, the store manager will give me a 30% discount if I order my maple, oak or hickory boards through them by the bundle (no picking though it). Menards only will give me a contractors discount with tax exempt statis. I have not checked with the area UBS Store or Discount Lumber which is a wholesaler. But they have the best selection of Douglas Fir and Red Wood. I had one project that called for 16" & 18" boards. Discount Lumber had them in stock.

Wood Stock Hardwoods, a hardwood supplier/distributor that's in our area gives me wholesale pricing. With no minimum of purchase amount for the year. I filled out an account application, so it on their computer that I have a account with them. I marked the box with the payment method as cash or credit card only. Gave them a copy of my South Dakota Sales Tax Identification Number.

Ask for resale or wholesale discount statis.

 

If you can avoid it, don't get a resale number, IMO. A bunch of hassle, and penalties for late filing etc..
Not great for a small operator.

 

The resale number is worth the effort for anyone buying tens of thousands of dollars of materials. You just need to have a bookkeeping system in place and it helps to farm out the filing to an accountant. I feed QBO files to an accounting firm and they process income, sales and payroll taxes as needed. I'm actually closing the 2022 books tonight and that will take care of all my tax-related work for last year. Once 1099's come in and I hand those over, they'll be able to run my personal taxes too using the business data they already have.

 

Tax is a slippery slope. If you work through a designer, do you charge them sales tax, do you not/still pay tax on material? Install something (Real Property), do you charge sales tax, do you not pay tax on material? You make a piece of furniture, do you charge sales tax, pay tax on material? What about use tax? Are you still exempt? Do you have to pay that?
Laws are different everywhere and if you have ever had a sales tax audit you will think twice how you sort your tax business.

 

I file quarterly with the our state sales tax office. Your state will give you detailed instructions on collecting sales tax as well as the exemption rules. Best to follow them to avoid penalties. Some companies won't give you a wholesale discount if you don't have a state ID #.