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A
program that offers generous cash discounts to
homeowners, while attracting
the most talented and
experienced professionals in
the industry. |
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In
August, 2008, the Renovation Co-op launched The
Contractor Subsidy Program, establishing a limited fund
that was initially supported by manufacturers, distributors and
retailers, along with a percentage of other revenues collected
by The Renovation Co-op.
The program's unique concept has now
become an integral part of our nationwide business model.
In the beginning, the subsidy program was designed to offer
assistance solely to those homeowners who had consolidated their
debts through The Canadian
Renovation Program, but where
they only had limited cash left over (from the mortgage
refinancing) to purchase needed renovations.
The subsidy program has since grown to accommodate all clients.
Discretionary amounts are drawn from this fund (which gets
depleted and replenished monthly) and used to credit
member-contractors when "quick-sale" cash discounts
are offered by the Co-op to homeowners (on a job-to-job basis).
These individual discounts are used as substantial sales
incentives, especially when we have to fill in gaps within our booking schedule, or to help our contractors stay within closer
geographical areas when necessary.
Example:
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General
Renovation Job |
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| Standard
Retail Price: |
$48,000 |
| Final
Price (Best Co-op Price): |
$40,000 |
| Discount
to client
(drawn from Subsidy
Funds): |
$
3,500 |
| Final
Sale Price: |
$36,500 |
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The contractor is later credited with the difference between the Best
Co-op Price (see about our pricing)
and the client's discounted contract price. By
preventing the contractor from continuously having
to lower the price out of his own pocket (which
always leads to lowering the quality of workmanship
and materials), The Contractor
Subsidy Fund helps our member-contractors maintain high standards, while keeping prices more
stabilized.
In addition to the cost-cutting benefit to clients, the program
helps to maintain a more stable work environment, which
attracts better-quality renovators and contractors
to The
Renovation Co-op.
Subsidy Amounts
Each funding request is reviewed on an
individual basis. Amounts can range from $200 to
$5,000+.
If approved, each subsidy amount is
based upon one or more of the following factors:
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Availability
of funds at the time of request. |
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| 2- |
Competitive
market for the type of work requested. |
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| 3- |
Booking
schedules of member-contractors who
perform
the same type and level of work at the time of
request. |
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For
further details call Operations at 416-367-8370
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