In the competitive world of custom home building, cost efficiency is a key component to success. And as a member of CBUSA, the strategic use of multiple suppliers – rather than just a few – can lead to significant savings.
Let’s take a closer look at the benefits of using CBUSA brand partners and how enrolling with 10 or more could add tens of thousands of dollars to your bottom line.
What are the benefits of using CBUSA brand partners over other suppliers?
As a home builder, the choice of suppliers can significantly influence the success and profitability of your projects. CBUSA brand partners and vendors offer unique advantages that non-CBUSA suppliers can’t match.
Here are five reasons why you should prioritize using CBUSA suppliers to maximize your benefits and cost savings.
1. Exclusive discounts and pricing
- Negotiated rates: CBUSA has negotiated special rates with its suppliers, leveraging the collective buying power of its members. These rates are typically more competitive than what individual builders could secure on their own.
- Volume-based discounts: The combined purchasing volume of all CBUSA members often results in discounts that non-CBUSA suppliers cannot offer. This translates into significant cost savings on materials and services.
2. Rebate programs
- Incentive rebates: CBUSA vendors frequently offer rebate programs that provide financial returns based on the annual spending of members. These rebates can add up to substantial savings over time.
- Consistency: With CBUSA brand partners, members have a clear understanding of rebate structures and can plan their purchases to maximize these incentives. Non-CBUSA vendors offer less predictable or less generous rebate programs.
3. Quality assurance and reliability
- Vetted brand partners: CBUSA vendors undergo a rigorous vetting process to ensure they meet high standards of quality, reliability and resources. This reduces the risk of subpar materials or inconsistent customer service.
- Proven track record: Brands that partner with CBUSA have a proven history of working successfully with other CBUSA members, ensuring they understand the specific needs and standards of custom home builders.
4. Streamlined operations
- Simplified procurement: Working with CBUSA brand partners means dealing with a streamlined procurement process designed to be efficient and user-friendly for members. This can save time and reduce administrative burdens.
- Consolidated billing: Many CBUSA suppliers offer consolidated billing options, simplifying the financial management of multiple purchases and projects.
5. Enhanced support and service
- Dedicated support teams: CBUSA brand partners often provide dedicated support teams for members, ensuring quick resolution of issues and personalized service.
- Training and resources: The brand partners CBUSA works with also offer additional resources, such as training programs and product knowledge sessions, to help members make informed decisions and get the most out of their purchases.
How do rebate amounts compare when using 10 brand partners vs. just a few?
To illustrate the financial impact of using more CBUSA suppliers, let’s consider a hypothetical scenario involving two builders: Builder A, who uses only two suppliers, and Builder B, who engages with 10 suppliers.
Builder A: Using two CBUSA brand partners
- Vendor 1: $100,000 spend, 4% discount (over previous supplier), 2% rebate
- Vendor 2: $100,000 spend, 4% discount (over previous supplier), 2% rebate
Total savings calculation:
- Discounts: ($100,000 x 0.04) + ($100,000 x 0.04) = $8,000
- Rebates: ($100,000 x 0.02) + ($100,000 x 0.02) = $4,000
- Total savings: $12,000
Builder B: Using 10 CBUSA brand partners
- Average spend per brand partner is $100,000, 4% discount (over previous supplier), 2% rebate
Total savings calculation:
- Discounts: 10 x ($100,000 x 0.04) = $40,000
- Rebates: 10 x ($100,000 x 0.02) = $20,000
- Total savings: $60,000
After comparing, it’s clear that Builder B, who engages with more CBUSA brand partners, achieves significantly greater savings – $60,000 compared to Builder A’s $12,000.
Please note: These are hypothetical numbers based on annual spend for a builder who’s completing 15 or more home builders per year.
As a CBUSA member, you have the opportunity to maximize your savings and enhance your operational efficiency by leveraging more brand partners. The benefits of increased discounts, competitive pricing, quality assurance and streamlined processes far outweigh any pain points that come with transitioning from your current vendors.’
Want to enroll in more brand partner programs to increase savings?
You can enroll in with any of our brand partners at any time by logging in to your CBUSA Member Portal and going to Contracts Central.
If you need help switching vendors or want to compare your current pricing with the pricing and rebate savings of CBUSA partners, reach out to your regional manager. You can find your regional manager’s contact information on the home page of your Member Portal.
Ready to join CBUSA and take advantage of these financial benefit? Send us an inquiry today.
