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Lowe's
United States,
Michigan
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Lowes Sub
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Mar 30, 2015
Lowe's payment to SubContractors
I have been a Lowes sub for more than 10 years. Lowes gets paid up front from a customer who has agreed to the product and detail (installation) price. This money could be in Lowes hands for months. While an order can be screwed up because of the manufacture's fault (of the item to be installed), the sub does not get paid until the job is complete, period.
So a sub can go on site and install (say a kitchen job - cabinets). Say Schuler has not included some key pieces or included pieces that are incorrect (according the detail). This screw up could have been because the employee in Lowes put the wrong information into the computer when the order was placed. The contractor who has completed 95% of the installation job (and could have taken one and a half weeks to complete 95%) does not get paid until the proper product comes in (which could take weeks) and is installed. The customer then signs off on the job and the contractor can wait another two weeks before being paid by Lowes! That is the way Lowes operates.
Lowes is oblivious to the financial woes that their subcontractor go through and frankly, they do not care. They have the customer's money and they will keep it until they have run out of excuses to pay their subcontractors.
Now, not only do they make money on the products to be installed, they add about 30% on top of the labor price that the sub has estimated. So if the contractor's price to install said product is $200; the customer is charged $260 (+30%). Lowes makes money off the backs of the subcontractors they treat like 2nd class citizens.
So when you buy something from Lowes to be installed, you might want to get your own reputable subcontractor so he can get paid, you will pay less, and he will be able to put food on his table for his family!!!!
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