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In
August, 2008, the Renovation Co-op launched The
Contractor Subsidy Program,
establishing a limited fund initially supported by manufacturers, distributors and
retailers, along with a percentage of other Co-op revenues.
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 mortgage refinancing)
to purchase a specific renovation project.
Since that time, the subsidy program has expanded to accommodate
all clients, (regardless of whether mortgage financing is
involved or not.)
Here's how
it works...
Once a Best Co-op Price
(see Pricing)
has been determined, a further cash discount may be offered
directly through the Co-op itself. If the client accepts the
final discounted price, the member-contractor who performs the
work receives a subsidy (credit) equal to the discount, which is
drawn directly out of the fund.
The client pays the contractor the discounted price, but it's not the
contractor who has to pay for the discount. Instead, the
contractor is "subsidized" for the discounted amount
through the fund.
Where
does the money come from?
In
addition to the ongoing fees collected from its members, The
Renovation Co-op generates other monthly revenues through the
leasing of its proprietary renovation management systems, along
with other related projects.
Out of every dollar from these revenues, a set percentage goes
directly into the Contractor Subsidy Fund. The fund is depleted
and replenished on a month-to-month basis, and is used to help
maintain an even flow of contractor bookings through the
offering of substantial price reductions (as required).
Example:
|
General
Renovation Job |
|
|
|
| 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 |
|
|
|
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 a lower quality of workmanship
and materials), The Contractor
Subsidy Fund helps maintain high standards throughout
our organization, while keeping prices more
stabilized.
In addition to the obvious benefit to homeowners, the program
also helps to maintain a 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. If approved, the amount is
based on one or more of the following factors:
|
|
| 1- |
Availability
of funds at the time of request |
|
|
| 2- |
Competitive
market for the type of work requested |
|
|
| 3- |
Booking
schedules of those member-contractors who
perform
the same type and level of work at the time of
request. |
Subsidy
Fund credits can range from $500
to $8,000+
For
further details call Operations at 416-367-8370
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