Remodelers and design-oriented pros got a new e-commerce source today when Houzz unveiled a program that gives discounts and shopping credits to pros who buy from Houzz online and refer customers to the website's store.

The Houzz Trade Program has several parts:

  • It gives pros discounts of up to half off the retail price on roughly 200,000 products in the Houzz Marketplace today, with plans to add to-the-trade prices for many more of the store's 8 million products.
  • If a pro buys any product that doesn't have a trade price, Houzz will enter a credit in the pro's account worth 3% of the price.
  • Pros can get a credit worth up to 10% of the retail price of a product if they directly put that product into an "idea book," add the client as a collaborator, and the client ends up buying the product.
  • If the pro gives the client a referral code and the client ends up going online on their own to buy a product, the pro gets a 5% credit and the customer gets 5% knocked off the product's retail price.

"If your business model includes buying products on behalf of clients, this will enable you to buy more profitably," Liza Hausman, vice president of industry marketing, said in a June 5 interview.

The Houzz store has been in business for about three years and is mainly about interior design and kitchen/bath products as opposed to framing materials and exteior products. In addition, all orders placed on the Houzz store require immediate payment, and there's a shipping charge for orders worth less than $49.

Sample of dashboard for Houzz's trade program Sample of dashboard for Houzz's trade program

Pros get a page to watch their credits accumulate and to buy products. Any contractor in Houzz's Pro+ program automatically is enrolled, and remodelers in groups such as NAHB, ASID, NARI, and NKBA can become eligible by appying and giving their organization's membership number. All others must provide documents showing they have a pro business in order to get the trade pricing.

Houzz today has roughly 1.5 million pros of all types using its site; of those, more than half are remodelers or builders, Hausman estimated.. Houzz gets roughly 40 million unique users each month.