How to Make Renovations Easier
A streamlined ordering process saves CAPgro Construction Management time and money.
To someone on the outside, it might seem like a little thing. But one wrong number on an invoice can cause all kinds of headaches for Jeffrey VanderVorst, CEO of CAPgro Construction Management.
Ease of ordering is key, but like any successful business, getting the best price for the best quality is also crucial.
As a member of The Home Depot Pro Xtra Program, CAPgro receives a 2 percent rebate on purchases through partnership with NAA. In 2015, CAPgro spent more than $2 million on appliance orders and received a rebate of approximately $47,000 from The Home Depot.
CAPgro provides pre-acquisition, construction and finance management services to multifamily-housing owners, handling the due-diligence process before an acquisition, hiring the general contractor and then managing the renovation and draw processes. The company is currently working on 44 projects, from Hawaii to New York, renovating anywhere from 5 to 20 units monthly at each site. Most renovated units will receive new appliances throughout.
To help make each renovation run smoothly and on budget, VanderVorst has been purchasing appliances exclusively from Home Depot since 2013. CAPgro orders its appliances through Home Depots Pro Direct Program, which offers manufacturer pricing along with delivery and dedicated support.
We have a single point of contact with Home Depot, which is a great benefit for CAPgro, VanderVorst says. Once she has placed the order, we can go online and check it immediately. Is the price right? Is the quantity right? Do they have the icemaker included? Is it going to be shipped, delivered and installed? All of that information can be reviewed on the invoice.
Before CAPgro started working with The Home Depot, CAPgros construction teams often did not receive everything they needed at the same time. The cords that go into the stove come separate, and we cant plug it in until we have the cord. VanderVorst says. Theyre a small item with a small cost, but unit completion is delayed when we do not receive them in the same delivery. And our clients cant lease the units until they are complete.
Locked in Lowest Price
Even though it can take up to two years to renovate all units in a multifamily property, VanderVorst is able to negotiate appliance prices at the beginning of the project that will last until the end of the renovation.
The average number of units in an apartment is approximately 250, VanderVorst explains. If a unit receives a full kitchen package plus the washer and dryer, it can be a large cost per unit for only the appliances. We have to negotiate the volume discount up front and lock in that price for the duration of the project to keep the budget intact.
VanderVorst can pass some of this savings on to his clients.
When our clients acquire a property, they view the interior and exterior work as a cost per unit, VanderVorst says. Saving money on the appliances will help decrease the cost per unit, which allows them to spend the money elsewhere, maybe on granite or other amenities."