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Author Topic: Houses and debt bubbles etc  (Read 3931 times)

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pscocoa

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Houses and debt bubbles etc
« on: 12 November 2013, 15:44:27 »

Whilst my kitchen saga goes on I absolutely refuse to sign an agreement until I am ready and have got to the bottom of the high prices that appear to be the norm in the kitchen supply business. SWMBO is not being obeyed and this will not be installed by Christmas - which sends a better message to suppliers.

I really can understand why the price bubble exists and people get into debt because clearly these kitchen guys seem to be expecting that the money to pay them with is borrowed via personal loan or mortgage. People must just be getting the quotes doing a bit of cross checking (but not much) and then getting low interest funding to commit to a huge cost for a kitchen.

The game is to  discount the appliances but load the granite. Discount the granite and load the appliances. Most companies say they cannot do both - I am now talking sensibly to one who might do both.

One quote is £45k and I am targetting £20k with one supplier currently at £26k and one at £30k.

Language promulagted around is "the kitchen is the most expensive room in the house" - "most kitchens are £15 to £25k".

Our design has some specials so I am ok to spend a bit more but the whole process seems as though the kitchen suppliers are used to extracting alrge amounts of cash on the basis that it is the norm.

And before you weigh in on me - I am not going to lift a finger in any of the work - too busy and past it. I know some of you have done "great things on little money" - which was an oft used phrase by my late father.


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MR MISTER

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Re: Houses and debt bubbles etc
« Reply #1 on: 12 November 2013, 15:53:59 »

I used to be in the building trade. Drip feed them the money as the job progresses and keep an eye on every stage of the job. Let them know this will be the arrangement before they start. 20-25K is a fair old wodge of cash and they need to understand that you had to earn it and so will they.
I'm not sure if the job is quite big enough to warrant it but consider a contract between you, it saves any dispute once the job has started.
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Marks DTM Calib

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Re: Houses and debt bubbles etc
« Reply #2 on: 12 November 2013, 15:56:34 »

Are you not able to to do the sourcing (little overhead)?

E.g., source required units, sub con a fitter, spark, plumber, source the worktops and appliances?

My experience is that the cheapest place for applances and worktops is never a kitchen supplier and yet many still buy everything from them
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Rog

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Re: Houses and debt bubbles etc
« Reply #3 on: 12 November 2013, 15:58:38 »


One quote is £45k and I am targetting £20k with one supplier currently at £26k and one at £30k.

Language promulagted around is "the kitchen is the most expensive room in the house" - "most kitchens are £15 to £25k".


WOW ! Some of these numbers scare me crapless. I am hoping to buy a big old house that pretty much has no kitchen, just big room with a tiled floor an old Rayburn type cooker and nothing else, nothing.

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MR MISTER

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Re: Houses and debt bubbles etc
« Reply #4 on: 12 November 2013, 16:00:55 »


One quote is £45k and I am targetting £20k with one supplier currently at £26k and one at £30k.

Language promulagted around is "the kitchen is the most expensive room in the house" - "most kitchens are £15 to £25k".


WOW ! Some of these numbers scare me crapless. I am hoping to buy a big old house that pretty much has no kitchen, just big room with a tiled floor an old Rayburn type cooker and nothing else, nothing.
This sounds like a pretty high-end kitchen, Rog. You could get a small semi up here for that. ;D
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aaronjb

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Re: Houses and debt bubbles etc
« Reply #5 on: 12 November 2013, 16:02:14 »

And I thought it was expensive when my folks said they beat the supplier down from £12k to £6k.. ;D
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cleggy

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Re: Houses and debt bubbles etc
« Reply #6 on: 12 November 2013, 16:10:58 »


One quote is £45k and I am targetting £20k with one supplier currently at £26k and one at £30k.

Language promulagted around is "the kitchen is the most expensive room in the house" - "most kitchens are £15 to £25k".


WOW ! Some of these numbers scare me crapless. I am hoping to buy a big old house that pretty much has no kitchen, just big room with a tiled floor an old Rayburn type cooker and nothing else, nothing.
This sounds like a pretty high-end kitchen, Rog. You could get a small semi up here for that. ;D

A quid for a terrace in scouse land and nick the kitchen :y :D ;D ;D ;D ;D ;D ;D
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MR MISTER

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Re: Houses and debt bubbles etc
« Reply #7 on: 12 November 2013, 16:13:08 »


One quote is £45k and I am targetting £20k with one supplier currently at £26k and one at £30k.
T
Language promulagted around is "the kitchen is the most expensive room in the house" - "most kitchens are £15 to £25k".


WOW ! Some of these numbers scare me crapless. I am hoping to buy a big old house that pretty much has no kitchen, just big room with a tiled floor an old Rayburn type cooker and nothing else, nothing.
This sounds like a pretty high-end kitchen, Rog. You could get a small semi up here for that. ;D

A quid for a terrace in scouse land and nick the kitchen :y :D ;D ;D ;D ;D ;D ;D
When was the last time you had a small semi, Cleggy?   ;D
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pscocoa

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Re: Houses and debt bubbles etc
« Reply #8 on: 12 November 2013, 16:13:56 »

Are you not able to to do the sourcing (little overhead)?

E.g., source required units, sub con a fitter, spark, plumber, source the worktops and appliances?

My experience is that the cheapest place for applances and worktops is never a kitchen supplier and yet many still buy everything from them

This would be a classic way forward but tradesmen round here ain't cheap. I have some prices for some of the jobs but this is why I say you have to understand how the kitchen companies work. They sub out the civil works allegedly at cost and make their money on the cabinets. My idea is to get a contribution from their gross profit on the cabinets into my civil works.

One told me yesterday that 15% gross profit was no use to him as his bosses would be unhappy.
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I_want_an_Omega

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Re: Houses and debt bubbles etc
« Reply #9 on: 12 November 2013, 16:17:19 »

A similar activity happens with gas boilers - with BG charging mega amounts just to justify their stupid TV advertising.

I've probably mentioned this before, but the BG quote for my new boiler 2 years ago was well over £9k. I eventually got the job done by a good local guy for £2,600.

You are right about the finance though - they twisted it around to say that if I couldn't afford it then they had an easy finance package - or could offer £450 off the price if I signed within a week of the quote.
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Sir Tigger KC

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Re: Houses and debt bubbles etc
« Reply #10 on: 12 November 2013, 17:07:15 »

I worked for a kitchen company a few years ago as a 'Kitchen Designer Salesman' and the margins were huge!  ::)
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cem_devecioglu

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Re: Houses and debt bubbles etc
« Reply #11 on: 12 November 2013, 17:13:32 »

Whilst my kitchen saga goes on I absolutely refuse to sign an agreement until I am ready and have got to the bottom of the high prices that appear to be the norm in the kitchen supply business. SWMBO is not being obeyed and this will not be installed by Christmas - which sends a better message to suppliers.

I really can understand why the price bubble exists and people get into debt because clearly these kitchen guys seem to be expecting that the money to pay them with is borrowed via personal loan or mortgage. People must just be getting the quotes doing a bit of cross checking (but not much) and then getting low interest funding to commit to a huge cost for a kitchen.

The game is to  discount the appliances but load the granite. Discount the granite and load the appliances. Most companies say they cannot do both - I am now talking sensibly to one who might do both.

One quote is £45k and I am targetting £20k with one supplier currently at £26k and one at £30k.

Language promulagted around is "the kitchen is the most expensive room in the house" - "most kitchens are £15 to £25k".

Our design has some specials so I am ok to spend a bit more but the whole process seems as though the kitchen suppliers are used to extracting alrge amounts of cash on the basis that it is the norm.

And before you weigh in on me - I am not going to lift a finger in any of the work - too busy and past it. I know some of you have done "great things on little money" - which was an oft used phrase by my late father.

What ?  :o :o :o   people here buy homes with that money nearly ???

send an invitation or search for Turkish firms :y   dont know cargo costs but prices here are 1/5 or less if your kitchen is not enormous size..

mine cost around £4K including granite and all equipments..  ;D
« Last Edit: 12 November 2013, 17:16:46 by cem »
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cleggy

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Re: Houses and debt bubbles etc
« Reply #12 on: 12 November 2013, 17:16:09 »


One quote is £45k and I am targetting £20k with one supplier currently at £26k and one at £30k.
T
Language promulagted around is "the kitchen is the most expensive room in the house" - "most kitchens are £15 to £25k".


WOW ! Some of these numbers scare me crapless. I am hoping to buy a big old house that pretty much has no kitchen, just big room with a tiled floor an old Rayburn type cooker and nothing else, nothing.
This sounds like a pretty high-end kitchen, Rog. You could get a small semi up here for that. ;D

A quid for a terrace in scouse land and nick the kitchen :y :D ;D ;D ;D ;D ;D ;D
When was the last time you had a small semi, Cleggy?   ;D

I'll give you that one  ;D ;D ;D ;D ;D ;D ;D ;D ;D
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cleggy

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Re: Houses and debt bubbles etc
« Reply #13 on: 12 November 2013, 17:18:37 »

Are you not able to to do the sourcing (little overhead)?

E.g., source required units, sub con a fitter, spark, plumber, source the worktops and appliances?

My experience is that the cheapest place for applances and worktops is never a kitchen supplier and yet many still buy everything from them

This would be a classic way forward but tradesmen round here ain't cheap. I have some prices for some of the jobs but this is why I say you have to understand how the kitchen companies work. They sub out the civil works allegedly at cost and make their money on the cabinets. My idea is to get a contribution from their gross profit on the cabinets into my civil works.

One told me yesterday that 15% gross profit was no use to him as his bosses would be unhappy.

Fly some in from Poland :y
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pscocoa

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Re: Houses and debt bubbles etc
« Reply #14 on: 12 November 2013, 17:24:22 »

a plumber was working next door recently and his trainee under some sort of scheme was a Ghurka. Maybe this is the "new" Polish tradesperson
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