How to sell building materials. Selection of equipment and purchase of goods. How to open a hardware store: working with suppliers
Our reader Vlad Petrov sent us his story about how he developed a wholesale business related to the sale of building materials and soil. We pass the microphone to him.
The story began in 2013. I was constantly thinking of all sorts of business ideas, even though I was working in a factory at the time. Apparently, Robert Kiyosaki's books had a very strong influence on me. I wasn't going to give up, I tried various projects, but all this was not serious, I quickly got bored, and I again switched to searching for a new “secret of success.”
These ideas sat in my head, from time to time I discussed them with various acquaintances. My next idea was to start decorating the premises - hire craftsmen and take orders. Although, I have never dealt with this area - I just thought that this idea was understandable, which means it was easier to implement.
And then one day I met my friend, whom I had not seen for several months. We talked about this and that, and I suggested that he start this kind of business. He told me that he himself doesn’t really understand this process and doesn’t want to get involved with it. But instead, he suggested that I go into cargo transportation, something that he does himself.
I knew that he was carrying some kind of soil, but I never asked him what it was. He immediately outlined his activities and invited us to join. I didn’t immediately decide to take such a step, but the idea sank into my soul.
At first, I started connecting to this business in my free time - in the evenings I posted ads on the Internet on free boards and called construction companies from DoubleGis.
Certainly, big money with this approach it could not come - in order to earn money properly, you need to be properly immersed in activity. Therefore, after some time, I again plunged into the factory routine, abandoned the search for clients and worked as usual.
I read the correct words in a couple of books from different business coaches: until a person desperately needs to earn money, he will not lift a finger. I don’t know how it is for anyone, but this was just my case.
I still couldn’t find a girl with whom I would like to build a serious relationship - I met people left and right - on the street, in parks and general companies, but it didn’t work out, even if you cracked. But one fine day I finally found such a girl and was about to get married.
But the salary at the factory would definitely not be enough to provide for a family. So I called my friend and asked if his offer was still valid. He said yes. Thus began a new stage in my life.
We started working in the winter, every day I came to the apartment that my friend was renting, they called clients, placed advertisements, sometimes, overcoming fear, I went to construction sites, talked with foremen, and contacted suppliers.
The first two months, of course, were a bit difficult - there were a lot of calls, there was little use, I, as a rule, heard the same thing - “call back in the spring” or “send a commercial offer by mail.”
Well, this was not a reason to give up - I set a goal to work here for at least six months so that I could talk about something. And I really didn’t want to go back to the factory.
Closer to February, the situation began to improve - the first, thin stream of clients began to flow. I have already earned money for February 26 thousand rubles- more than at the factory. “Well, not bad for the winter month,” I thought. Eh, I wish I knew what would happen in March...
March turned out to be hot - applications poured in like from a cornucopia - people responded to my commercial offers, called through advertisements, some even bought something on the spot - during my first call to them.
When at the end of March I calculated how much I earned, the figure turned out to be interesting - 111 thousand. 7 times more than at the factory - not bad, right?
Of course, not all months were so successful, but still, on average, my income increased 4 times compared to last year - and this is just the beginning. It was a pleasant feeling when I negotiated for a long time, agreed on the price with everyone, and at the end, cars with sand were flying to the construction site all day.
Analyzing my year of work in such a business, I came to the conclusion that the main method of recruiting a customer base is cold calling. The competition in such a business is not bad, so directors of companies and suppliers rarely sit down on the phone and look for who will bring them crushed stone - there is already a queue of companies ready to transport materials to them.
Tours of construction sites are also very useful - I once went to a construction site and asked the foreman for the number of the deputy director of the development company. They mainly rent out premises and rarely build, so I would not find such a company in a catalog of construction companies. And for this site alone, we brought them about 1,500 tons of sand and crushed stone, and removed 1,000 cubic meters of soil and construction waste from them. Therefore, detours cannot be neglected.
However, advertisements also cannot be discounted - not only are there private traders who bring in more than 5,000 rubles from one transaction, but construction companies still sometimes call. This happens when they need some scarce product - used road slabs or soil, or when the object is located far outside the city, and the range of prices for delivery to that address can be very large - it makes sense to compare suppliers.
So, based on the advertisements, I found 3 large clients; one was supplied with about 800 tons of sand and crushed stone over the course of a year, and a couple more were supplied with soil and crushed stone. Therefore, use all the working methods of finding clients and don’t discount anything.
Not long ago, a thought occurred to me - why not help others and help people earn the same money as me?
The immutable truth is that a person must live somewhere, which means that housing construction will never stop. And housing is deteriorating, which means it needs to be repaired from time to time. In my entrance, only one of the new movers is doing repairs. The elevator is put out of service by transporting building materials. I'm going out to landing, and here are bags of cement, some cans and sheets of plywood or something else. Understanding people have long understood that the sale of building materials is a popular business.
However, for Lately I often hear buyers' dissatisfaction with low-quality building materials. Who does it depend on? Clearly from the sellers. I think that people’s demands for the quality of building materials will only continue to increase. Do you think those who have been selling building materials for a long time are ready to improve the quality? I personally doubt it. Since they are already accustomed to high margins, and reduce their profits due to delivery quality materials they are unlikely to be.
Here is a niche you can safely enter. I won’t say that the niche is simple, but it is in demand with a new approach. Times are changing, but people in this niche are in no hurry to change their views. You can start this business without investment by acting as an intermediary between customers and suppliers. Swipe detailed analysis building materials market. If you seriously intend to enter this market, then one way or another you need to do it. Make a list of all building materials manufacturers in your area, as well as all sellers. I am sure that you will find shortcomings in both.
In our city, for example, bricks are transported from other cities, despite the fact that there is more than one brick factory in the city. Does this fact mean anything? Likewise, in your region there will be a not very high-quality supplier who can be replaced by a supplier from another region. The main thing is to find and negotiate prices. By gradually studying the needs of the market, you will have a complete picture of where and what to buy and at what prices you can sell. Profit can also be calculated in advance.
Now directly sale of building materials as a process. I don’t know how this process is organized in your region, but my observations in our market speak of purely passive sales. The vast majority of sellers place advertisements in newspapers and sit by the phone waiting for a call with an order. Do you think we can use this moment? It's definitely possible! You should move on to active sales. Several agents are needed who would analyze the allocated area for repairs or construction and immediately offer building materials with delivery.
It is worth noting that in cities there are teams of construction workers who are engaged in... As a rule, suppliers have a direct connection with foremen and interest them with bonuses for orders. Explore this opportunity in your area. Your trump card is the quality of building materials. Don't forget about this when talking with the foreman. And these details should be explained to customers. And if you can somehow prove the higher quality of your materials, then that will make all the difference.
Along with agents, it is imperative to create an online store for building materials, since society is moving towards computerization. The sooner you start, the sooner you will get results. Combining work “in the field” and on the Internet will yield results.
To increase profits you can combine production of building materials and sale of building materials. For example, you can produce or paving slabs, and take all other items from suppliers. In any case, you will provide customers with building materials with delivery across the entire list.
An additional feature in your business selling building materials can be the sale of used building materials. To include this topic in your business, you will need a constantly updated database of buildings subject to demolition in your region. A team of “destroyers” is recruited and all recyclable building materials are collected from destroyed buildings. Floor slabs are especially in demand.
My friend, who is directly involved in construction, once had a database of all hangar buildings in the region. At any moment he was ready to dismantle these hangars, move them and build them again at the specified location. He offered a good price for these used hangars. It seems that his margin was not small.
At some point in your development, your sale of building materials will require the creation of a storage area.
Do not forget that this activity is regulated by section 14 of the Rules for the sale of certain goods (Resolution No. 55 of January 19, 1998 of the Government of the Russian Federation). This section concerns the specifics of selling building materials.
This is where it is indicated how to sort the goods, how to sort and check for completeness, and then store them. By adhering to the provisions of this resolution, you will save yourself from problems.
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In this material:
A reliable business plan for a hardware store plays a big role for a beginning entrepreneur today, since such an undertaking, with the proper approach, will bring a solid profit.
Selling building materials is a relevant and promising idea for business
Implementation building materials carried out today on any scale: small stores sell exclusively at retail or engage in direct one-time deliveries, while large specialized retail chains carry out wholesale sales of a wide range of building materials. The relevance of such a business idea as a building materials store is still due today to the fact that this type of product is in constant demand among the population, and the supply market is often unable to satisfy demand with the range or quality of products. The prospect of such a business and the success of its implementation in practice depends on many factors, however, in the vast majority of cases it turns out to be favorable.
Project summary, goals and objectives
A hardware store today will find its client in any area of a noisy metropolis or a small provincial town. There is no doubt about the ever-increasing demand for building materials, especially when it comes to a wide range of quality products available at prices that are attractive to customers.
The main goal of the business plan is to organize a small hardware store that consistently generates a decent profit, with the prospect of further development and increased income. Selection issues will be examined suitable place and premises for setting up a store selling construction materials, necessary equipment and qualified personnel, as well as issues of market analysis of construction products and advertising methods for such businesses.
List of goods and services of a hardware store
The success of the entire trading enterprise is due, for the most part, to the range of construction products sold, as well as the quality of the goods, the level of service and the cost of materials and services.
Approximate range of building materials:
- most popular types construction tools, including power tools;
- floor coverings;
- input and interior doors, completed and various materials, as well as plastic and glass doors;
- plumbing equipment: shower cabins, hydroboxes, bathtubs, sinks and toilets, as well as a variety of plumbing accessories;
- all types of wallpaper and others finishing materials, wallpaper glue, various dry mixtures, as well as cement and sand;
- paints and varnishes for all types of construction and repair work, as well as all the tools necessary for these purposes;
- wall and floor tiles and tile adhesive;
- popular roofing materials, such as slate and metal tiles;
- inventory for gardening work, furniture for dacha plots and private households;
- electrical equipment and lighting devices.
Such a list, of course, is not closed and final, but serves as an approximate range of building materials necessary for retail and wholesale sales, which should be presented in the windows of construction stores. In addition, the number of satisfied customers will only increase if the staff of your retail outlet provides additional services: delivery of goods, installation of purchased construction products, construction and repair work, albeit for an additional fee.
Market and industry analysis
Before you start drawing up such a business plan and organizing such a business as a whole, you should analyze the market for proposals and the target industry in your city and region in order to understand the level of competition that you will have to face and draw conclusions about the feasibility of the entire enterprise. It is necessary to study suppliers and all possibilities of cooperation with them or manufacturers directly, identify weaknesses in the presented range of goods in this category, identify consumer demand and pricing policy in this area.
Such careful analysis and preparation will help us avoid making mistakes in the future and approach the matter with maximum awareness.
Business organization
Registration, taxation
This activity does not necessarily imply obtaining any additional permits or certificates. However, to implement it you will have to establish a limited liability company or register as an individual entrepreneur without education legal entity. To properly set up such a business from scratch, you will need a standard package of documents.
To open one small building materials store ideal option will be registration as an individual entrepreneur.
Selection of premises and requirements for it
Store space optimization Selection right place location plays important role Therefore, this stage should be approached with due care and prudence.
The success of the entire enterprise is largely determined by the successful choice of location of the retail outlet. The main parameters to be studied in this matter will be:
- room area;
- presence/absence of parking;
- pedestrian flow, location in a residential or business area;
- close proximity of competitors.
Sleeping areas, safely removed from major competitors, will be an ideal location for you.
In the vast majority of cases the best option To open a retail outlet selling building materials, you will need to rent a premises. Construction or purchase of premises for a store is not recommended at first due to a number of factors, including the lack of guarantees that the business will continue to operate in general or in a given area.
Profitability is largely determined by the area of the rented premises, which for this type of business should not be less than 100 square meters, which, with the proper approach, will provide you with the prospect of accommodating a wide range of construction products. It is necessary to be puzzled by the selection of square or rectangular room, which will provide maximum efficient use usable store space for convenient placement of display cases and counters.
In addition, it is necessary to select a room with high ceilings for convenient transportation and placement of large construction goods and materials. Premises for a hardware store must be equipped with two exits so that customers do not have to witness the process of loading/unloading goods, as well as separate room It is recommended to equip it as a warehouse for goods.
It is noteworthy that premises for hardware stores do not require expensive repairs, but must only comply with standard sanitary and hygienic standards and fire safety.
Equipment
The interior of such a retail outlet is quite simple and unpretentious. First of all, you should think about lighting and the competent and accessible arrangement of all display cases and shelving.
In particular, simplicity concerns warehouse. The final interior of the trade exhibition area and warehouse should be moderately minimalist, spacious, dry, well lit and ventilated. These are practically all the mandatory requirements for premises of this kind, so you should not be bothered by expensive European-quality renovations.
The basis for the functioning of such a building materials store will be a self-service scheme, so for a room of 100-200 square meters it will be enough to install two or three cash registers. In this case inner space The store should be competently and conveniently divided into zones with displays of construction products of the same category in each zone on display windows, counters and racks. This way, you will make it easier for your customers to search and select the construction products they are interested in.
In addition to wall panels, shelving and counters, as well as cash register, security and fire protection systems, you will need baskets and carts on wheels; cargo carts will be especially popular, without which it is difficult to imagine even small hardware stores today.
Search for suppliers of goods and formation of assortment
An economical option for searching for suppliers of construction products is the Internet, however, with all the advantages of this method, a personal meeting allows you to discuss all the conditions for future cooperation and clarify the nuances. Wholesale bases in your city and region – the best place to search for suppliers of construction products. At the same time, it is with the help of the Internet that you can agree on cooperation with suppliers from other cities, regions and even states, which will significantly expand your range of goods and become an excellent bonus in the competition.
After cooperation with suppliers has been established, one should be puzzled by the need to form an initial product range and, as practice shows, in this matter it is worth counting on at least half a million rubles of initial capital investment. You will find out the practical demand for this or that construction product presented on the shelves of your store directly at the very beginning of your activity.
Staff
Personnel selection is an extremely important point and in many cases directly affects the successful operation of a retail outlet. For a small building materials store with an area of 100 square meters, the optimal option would be four sales assistants working in shifts, two or three cashiers and a director.
Consultants must have an excellent understanding not only of the product range presented, but also of construction terminology, new techniques and methods for performing construction and repair work, then they will be able to help any client of your store decide on the choice of construction products in each specific case, which will have a great impact on your reputation and the popularity of your outlet.
Based on the specifics of trade, the work schedule of a building materials store should include weekends. In the vast majority of cases, this schedule is based on a 12-hour workday, so you need to provide shift work for all staff. During working hours, the store must have at least two sales assistants and one cashier, and you can take on the responsibilities of director and accountant in the first stages of the outlet’s activities.
Advertising and Marketing
Clients in the vast majority of cases are average male retail buyers, so the advertising campaign must have an effective impact primarily on this category of the population. Separately, it is worth highlighting the construction and installation teams with whom it would be practical to enter into separate contracts with invoicing for delivered goods and practice a system of promotions and discounts.
The modern popularity of such business causes serious competition in the field retail construction products. An advertising campaign, in this regard, must be clearly thought out and cover various aspects.
The website of your hardware store on the Internet and public pages in popular in social networks will only have a positive impact on the growth and development of the business.
Financial plan
Investments and maintenance costs
We will need initial investments to register a business, select and rent premises for hardware store, redecorating and installation of the necessary equipment, personnel selection, establishing relationships with suppliers and forming a starting range. As practice shows, to open a small retail store for building materials, the initial investment should be estimated at 1,200,000 - 1,500,000 rubles. To this amount should also be added the cost of a small initial advertising campaign.
Among the costs of running a store, one can distinguish fixed and variable costs. Constant payments need to include payment for utilities, rent for premises, regular payments advertising services, wages for staff and deductions related to wages, as well as tax payments. The main share of variable costs for maintaining a store will be the regular replenishment of the assortment of goods in the warehouse and in the store, depending on the level of consumer demand, as well as the delivery of new goods.
Income and profit calculation, profitability
According to statistics, the average bill, despite the difference in assortment, store location and purchasing power, ranges from 3 to 5 thousand rubles. With a monthly flow of clients of 400-600 people, we have from 1,000,000 to 1,500,000 rubles in monthly revenue. Subtracting from this amount the monthly costs of maintaining the store, wages and tax payments, we still arrive at a consistently good income from sales. In this case, we can count on a low payback period for the project, and the profitability of such a retail outlet will be about 30 percent, directly dependent on the size of the markup on the goods presented.
Possible risks
Like any business activity, opening a retail outlet for building materials entails many risks. The following examples can be highlighted:
- dishonesty of suppliers and increased prices for purchased construction products;
- lack of demand among the population for specific goods or the entire assortment, caused by poor choice of location or inflated cost of goods;
- standard property risks, as well as the influence of more developed and successful competitors;
- increased rent, difficulties in recruiting qualified personnel and paying workers, deterioration of the reputation of the retail outlet, and so on.
In general, this type entrepreneurial activity, despite its current ubiquity and high competition, can bring its owner a good and stable income, despite the unpretentiousness of such a business in comparison with similar projects.
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The building materials market today is rapidly developing both in megacities and small towns. This is primarily due to the fact that the number of enterprises is increasing and new residential areas are being formed. In addition, people periodically make repairs in houses and apartments, which requires a considerable amount of different materials.
To successfully sell such products, they must be different. high quality. Despite the great competition in this area, the sale of building materials as a business can bring stable profits for a long time.
How to open a hardware store?
Before opening a building materials store, you need to understand some of the features of this business. An entrepreneur first needs to decide on the concept of a retail outlet - will it be highly specialized or with a large product range.
In the first case, homogeneous products are placed in the store (for example, paints and varnishes, linoleum and laminate, as well as tiles). You can open your own store selling wallpaper and related products, which are no less in demand on the market. The advantage of this format of a retail outlet is the low cost of renting space, since a small store is suitable for work. If a novice entrepreneur is faced with the question of how to open a hardware store from scratch with minimum costs, you should opt for a small pavilion. On an area up to 100 m? you can arrange products and not invest money in the purchase of expensive equipment. As a rule, the assortment of a construction store (highly specialized) consists of several dozen items.
Standard stores require up to 200 m?. They usually have up to 50 in stock. various types building materials. Large points of sale of building materials can occupy an area of 300-400 m2. Here you can find about 100 product items. If a businessman wants to organize a supermarket, he will have to find a store with an area of 500 square meters or more. Such pavilions must have:
- own warehouses;
- transport for loading and delivery of building materials;
- trading floors, service rooms for staff.
Entrepreneurs who want to organize a business in building materials should be aware of its features. First of all, it is recommended to highlight high level competition. In every locality there is a significant number of small shops, building materials depots and supermarkets, where a huge range of goods is presented. For this reason, you should initially consider the competitive advantages of your enterprise, which will allow you to differ from other outlets.
It doesn’t hurt to analyze the prices of various products from competitors so that in the future you can decide on the cost of your products. It is optimal to set them a few percent lower than in other stores.
Business registration
Businessmen who decide to organize a building materials store, open a paintball club or a production facility must register their business. You can register an individual entrepreneur or a limited liability company. To do this, you need to visit the Federal Tax Service at your place of residence and provide documents (for individual entrepreneurs):
- application for opening an enterprise;
- original and copy of passport, TIN;
- check for payment of state duty (800 rubles).
If you plan to open an LLC, you will need to attach the Charter of the enterprise to the papers. But in this case you will have to pay a state duty in the amount of 4 thousand rubles and have authorized capital organizations from 10 thousand rubles.
In addition, you need to indicate OKVED codes, for which you should select 46.73 “Wholesale trade in building materials, timber and sanitary equipment” or 46.74 “Retail trade in building materials not included in other groups.” You also need to choose a taxation system. For small and medium-sized stores, the simplified tax system is suitable. To start trading, you will have to obtain permits from Rospotrebnadzor and the fire inspectorate. It is mandatory to register the enterprise with the Pension Fund and the Medical Insurance Fund.
Selection of premises
The success of an enterprise largely depends on the choice of location for a building materials store. In most cities, neighborhoods are being built, so it is advisable to locate a store near them so that people can buy goods close to home.
You should not consider options for renting premises in the city center, since the cost is too high. In addition, it is quite difficult to find a place for a store whose area will be over 100 m2. In addition, for the trade pavilion it is necessary to provide convenient access and organize the possibility of loading materials into vehicles.
In remote areas, you can rent suitable premises at a reasonable price, but you should remember that not all people will want to travel far for building materials and pay a lot of money for their delivery. Residential areas are well suited for a store. When choosing a location for a trade pavilion, you should pay attention to ensure that there are no competitors nearby.
Inside the store, heating and ventilation systems, electrical networks and plumbing must work. It wouldn’t hurt to divide the area into zones:
- trading floor;
- cash register;
- warehouse;
- service room for staff;
- bathroom.
Important: In a hardware store you can avoid expensive repairs, which will save on costs. If you plan to sell luxury plumbing fixtures, tiles or exclusive wallpaper to financial clients, you need to take care of the appropriate interior.
Redecorating a store with an area of 100 square meters or more will cost approximately 50 thousand rubles. You will also have to purchase:
- equipment for installing a ventilation system – 130 thousand rubles;
- racks, pallets – 25 thousand rubles;
- plumbing, furniture for staff - 30 thousand rubles;
- computer equipment – 30 thousand rubles;
- equipping the sales area – 50 thousand rubles.
Thus, one-time costs at this stage will amount to 315 thousand rubles. In addition, you should know that it is better to rent a room for at least 6 months. Metal shelving can be purchased used, which will minimize costs.
Formation of assortment
It is important for an entrepreneur to decide on the product range. It will directly depend on the chosen enterprise format. If you plan to sell flooring, you should choose several types of linoleum, parquet boards, laminate, baseboards, corners and other related materials. In wallpaper stores, such items as dry types of glue, rollers, trays, baguettes, cornices, scissors, corners, etc. are in great demand. For a department store, you need to choose the most popular items. This:
- various types of cement;
- dry mixtures for exterior and interior finishing work;
- mounting grids, spatulas, corners;
- Building tools;
- sheet foam, plasterboard, lining;
- fasteners;
- PVC panels, chipboard, MDF, plywood and much more.
The store should have both cheap and expensive products designed for different categories of citizens. Since in construction business The competition is very high; beginners are recommended to first open a highly specialized pavilion.
Advice: An entrepreneur can earn extra money from cargo transportation. To do this, it is necessary to offer goods delivery services to customers.
Search for product suppliers
Suppliers of building materials can be large warehouses and hypermarkets, as well as manufacturers (foreign and domestic). Their choice largely depends on the type of store. If a businessman decides to specialize in the sale of expensive building materials, it is worth looking for suppliers of European products. Stores aimed at buyers with average and low income levels may have Russian and Chinese goods in their assortment. It is quite difficult to find a supplier who will agree to provide products for sale and then receive money from their sale. Nevertheless, large players offer their partners enough good prices, which allows you to earn almost a 50% markup.
Recruiting staff
Which employees to attract to the building materials store for full-fledged work? First of all, you will need a trade pavilion administrator who is able to resolve production issues with suppliers, monitor the assortment and inventory, as well as find large buyers (at first, these responsibilities can be performed by the business owner himself in order to save on salary costs). You should also invite sales consultants, a loader and an accountant to your staff.
In order for the store to function with maximum efficiency, it is necessary to organize its work seven days a week. For these purposes, it is enough to invite 4 sellers who will work in shifts. It is advisable that these be men, since many buyers believe that they are the ones who have a better understanding of the specifics of building materials. An approximate store staff might look like this:
- manager (administrator) – 28 thousand rubles;
- sales consultant (4 people) – 80 thousand rubles;
- loader (2 people) – 24 thousand rubles;
- cleaning lady – 7 thousand rubles;
- accountant – 10 thousand rubles.
Total - salary expenses will amount to 149 thousand rubles. The cleaner can clean the place at the beginning of the working day and after lunch. If you plan to open a small store, it is enough to hire two salespeople.
Advertising for a hardware store
To attract a large number of customers to a building materials store, you will need to create marketing plan. It is better to entrust this task to professionals and contact an advertising agency. Specialists will develop effective promotion strategies and apply networking tools, which will allow the young enterprise to develop successfully. Let's look at some ways to attract your target audience.
Even before the store opens, it is recommended to use life-size puppets - trained people will distribute flyers and leaflets to the population, which will quickly disseminate information and attract customers. Customers also love the opening ceremonies of various stores. It would not be superfluous to hold promotions and competitions with prizes in the form of discounts and bonuses. This will allow you to get regular customers from the very first days. In addition, you need to use:
- advertisements in the media, city newspapers, and radio;
- posting information on billboards;
- advertising in public transport;
- posting advertisements in the area where the store will be located.
Taking into account the production of an external sign, holding an opening event and creating promotional materials, the cost of an advertising campaign will vary within 100 thousand rubles. In the future, you will have to spend about 25 thousand rubles monthly to attract buyers.
Advice: the products of building materials stores are needed by teams providing repair work services, real estate specialists (who, for example, buy “killed” apartments, renovate them and sell them at a higher price) and installation organizations. You need to get along with them business connections and offer profitable terms cooperation (prices, delivery of materials) so that they subsequently become regular customers.
Business plan - sale of building materials
How to write a business plan for a store selling building materials? It allows you to find out how much money is needed to open a retail outlet, calculate the amount of monthly mandatory expenses and the profitability of the enterprise. Capital investments in the project will be:
- business registration – 0.8 thousand rubles (for individual entrepreneurs);
- repair and equipment of the store - 315 thousand rubles;
- rent (for 6 months) – 420 thousand rubles;
- purchase of the first batch of goods – 200 thousand rubles;
- advertising campaign – 100 thousand rubles;
- other expenses – 30 thousand rubles.
As a result, the starting investment is 1.067 million rubles. Also, the business plan for a hardware store should include a calculation of regular costs. These include:
- staff salary – 149 thousand rubles;
- payment of utilities – 15 thousand rubles;
- conducting an advertising campaign – 25 thousand rubles;
- taxes – 30 thousand rubles;
- production costs - 20 thousand rubles.
The amount of expenses is 244 thousand rubles. In the calculation, we did not include the cost of purchasing goods for the store, since the amounts can vary greatly depending on the concept of the store, quantity regular customers and other factors. As practice shows, the daily revenue of an average well-promoted store can reach 30 thousand rubles. With daily work, the monthly turnover will be within 900 thousand rubles. To find out the net profit of an enterprise, you need to subtract the amount of mandatory costs from its turnover, you get 656 thousand rubles. Under such conditions, investments in a store will pay off after 4-6 months of operation.
Is it possible to organize the sale of building materials via the Internet?
The Internet allows every person to effectively develop a business. Organizing the sale of building materials is quite simple, for which you need to create a website for the enterprise. This will allow:
- attract many target buyers;
- do not pay money for renting a shopping pavilion;
- do not limit yourself to working only in your region;
- offer customers a wide range of products;
- do not maintain a large staff of workers.
To organize a business through the Global Network, it is recommended to entrust the creation of an online store to a web studio or freelancers. The cost of a full-fledged portal with many functions varies between 30 thousand rubles. To promote a website, you need to turn to the services of SEO optimizers, who can bring it to the top positions of search engines for certain queries in a relatively short period of time.
The site makes it easy to sell products throughout Russia and abroad. But for this you will need to organize delivery of products. This can be done using the appropriate services. It is imperative to create groups on social networks. Users need to be provided with interesting, unique content on the use of various types of building materials. This will attract target audience and achieve large sales volumes.
Will give a good result contextual advertising. This tool will help you get a large number of buyers ready to purchase the product. It is better to entrust store promotion to an experienced marketer. Website promotion services will cost approximately 15 thousand rubles. Another 5 thousand rubles must be paid monthly to support the advertising campaign.
To summarize, we note that opening a building materials store is a promising type of commercial activity. Such products are always in great consumer demand, bring good profits and have long term suitability. At proper organization By starting your own business, you can quickly return your investment and achieve a stable income.
The demand for building materials is stable and no changes are expected in this segment. With proper organization of trade, making the right choice suppliers, location, selection of assortment, the store will bring good profits.
Trade in construction materials is booming. The constant demand for building materials makes the business of selling them promising, despite the increase in supply (see “”).
Trade in construction materials is carried out on different levels: they are sold by large specialized construction supermarkets, medium-sized stores, stalls in bazaars and other crowded places. Conventionally, retail outlets with this specialization can be divided into four groups:
- Small shops or pavilions with an area of up to 100 square meters. m, assortment – 10-20 positions.
- Stores of 150-200 sq. m area, partially renovated. The assortment of such stores includes 40-70 items and can offer 1,000-2,000 varieties of goods.
- Large stores (500-1,000 sq. m.) with good design and a goods warehouse (200-2,000 sq. m.). The assortment of such stores includes 70-100 product items and 10,000-15,000 articles
- Warehouse stores with a total area of 2,500 sq. m. From 15 to 30 product groups and 200-1,000 items in the assortment. Sometimes such stores have a “show room” where samples of the products offered are displayed.
According to the scale of trade, profits can range from hundreds to tens of thousands of dollars per month. Sellers note the high profitability of this business and the opportunity, if done correctly, to make a very good profit.
Economic feasibility of business
The profit of a building materials store depends on trade turnover, and the businessman will have to decide the main question: what kind of store he would like to see and what he can count on in reality.
The starting capital for a building materials store is about $10-15 thousand for every 100 square meters. m area. According to market experts and store owners, operating small stores is not economically feasible.
For example, the monthly turnover of a 100-meter store is $6,000-7,000 with an average markup of 25%. After settlements with suppliers, the entrepreneur has $1,500-2,000, of which he still needs to pay taxes, salary, etc. Thus, there is simply no net profit left.
Costs of a store with an area of 200 sq. m, subject to advance payment for the goods, will require $50-60 thousand. The monthly turnover of such a store will be 25-30 thousand dollars, and the net profit will be $1,500-2,000. A store with an area of 1,000 sq. m. m will provide 300 thousand dollars of turnover. Monthly turnover with proper advertising promotion will be about 100 thousand dollars, net profit - at least $5,000.
Permits for opening
The first step in organizing a store will be state registration the chosen economic and legal form of the enterprise. In most cases, one of two options is chosen - LLC or Individual Entrepreneur. Individual entrepreneur is more suitable for a small store with a single owner. For a larger business with several founders, it is more correct to register an LLC.
You can choose a taxation system depending on local legislation specific to a particular region. The most convenient would be UTII (single tax on imputed income), which is typical for retail trade enterprises in most Russian regions.
In the absence of UTII, the simplified tax system (simplified taxation system) is most acceptable. Goskomstat must provide notification of the assignment of an OKVED code to your enterprise.
To open a store you will need permits:
- Local city administration.
- Chamber of Commerce.
- Sanitary and epidemiological stations.
- Fire inspection.
- State traffic inspectorates (for parking approval).
Choosing a store location
The criteria for choosing a location for a store are standard with some specifics:
- Proximity to transport routes and human flows.
- New building areas.
- Large construction market.
- Proximity of shops of related types, but not duplicating.
- Urban industrial zone with minimal rental prices.
- Non-residential property (otherwise the fire department will not allow rental).
- Mandatory free parking in front of the store.
- Convenient automobile (for a large store - railway) entrances.
- Compliance with SES and fire protection requirements.
Of course, it is preferable to have your own premises. But, in the absence of one, a rented one will do. When negotiating the terms of the lease, ask whether it is possible to buy the premises over time. If business is going well, this is a very convenient way to buy out retail space.
Store equipment
Commercial equipment for a hardware store includes the following items:
- Single-sided shelving with wall mounting.
- Double-sided shelving for placement in the sales area.
- Glass display cabinets for small-sized goods.
- Showcase counters for certain departments.
- Trading networks for certain types of goods.
- Fasteners for placing goods on the wall.
- Packing table.
- Cash register (possibly several.
- Trolleys and baskets for customers.
Product range
The store’s assortment should be formed taking into account:
- The retail space of the store.
- Availability of certain product groups in competitors' stores.
- The needs of the local market demand.
In any case, the assortment should be as diverse as possible. The modern buyer has the opportunity to choose a store, so it is impossible to lag behind competitors in any case. Additional feature If there is a shortage of space, sales from catalogs made to order can increase trade turnover.
Typical product groups for a hardware store
Varnishes and paints. The group will include paints for all types of work, impregnations, primers, varnishes, coatings for various materials.
Wallpaper of the widest possible range: paper, fabric, silk-screen printing, paintable, with the possibility of painting in the future, colored, plain. The group will also include the entire range of wallpaper glue. Dry building mixtures, sand and cement.
Tiles, imported and domestic, floor, wall, various sizes and textures. Tile adhesive, grout, everything for cutting, leveling and laying tiles.
Plumbing: showers, baths, sinks, toilets. Various accessories for plumbing: taps, corrugations, pipes, faucets, shower stands, etc. Shelves, mirrors, bathroom furniture, hangers, soap dishes, etc. are also required.
Flooring: board, parquet, carpet, laminate, linoleum, cork and bamboo. Roofing materials: metal tiles, slate, etc. Doors: entrance, interior, plastic, glass, wood, MDF. Elite and inexpensive.
Electrical equipment: chandeliers, lamps, lamps, LEDs, wires, switches, extension cords, etc. Construction tools will include rollers, brushes, spatulas, etc. This group will also include power tools: drills, hammer drills, grinders, grinders, jigsaws, etc. If there is free space, you can offer gardening tools and country furniture.
Selection of suppliers
You should not limit yourself to suppliers located in your city - deliveries from neighboring cities are often more profitable, and the supplier often bears transportation costs for large volumes of deliveries.
You should use the Internet to select suppliers. The most convenient are suppliers who provide the goods (or part of it) for sale with subsequent payment or some deferment of payment.
Store staff
Store employees must be well versed in the assortment and be ready to advise the client on any issue. Each department should have at least one consultant who is well versed in the department's product group.
The manager may be experienced specialist, who knows this area well. The assortment, relationships with suppliers, and management of store personnel depend on the manager. In addition to sales consultants, you will need cashiers, warehouse managers, cleaners, and loaders.
The number of employees is determined by the size of the store. It is better to build remuneration on the principles of incentives: salary and bonus, depending on the quantity sold and the quality of work.
Economics of a building materials store
The amount of initial investment in a business depends on the size of the store. According to reviews from entrepreneurs who have experience in organizing stores of this profile, for a retail area of 100 sq. m accounts for about 300-400 thousand rubles of investment.
As noted earlier, it makes sense to open a small store only if the trade margin is significantly higher than 30% and the possibility of supplying goods for sale. In this case, the size of the rent for the premises is also important: it should be minimal for sufficient profitability.
Let us present some economic data on the organization and operation of a store with an area of about 200 square meters. m.
- Total opening costs from 1,500 thousand rubles.
- Of these, working capital is 700 thousand rubles.
- The store's monthly turnover is 900 thousand rubles.
- Net profit 60 thousand rubles.
- Payback period is 25 months.
Promotion of a building materials store
This type of business is highly competitive, so advertising promotion of activities must be carefully thought out.
By the time the store opens, an advertising campaign should be carried out in local media. Advertising posters and banners on city streets should not only announce the opening date of the store, but also carry information about its advantages, discounts, product range, etc.
The store must have a website on the Internet. Don’t skimp on a bright, informative website that reflects all aspects of the store’s work. Regular updating of the site is a must.
Cooperation with repair and construction organizations and individual teams is very effective. It makes sense to develop a special discount system for them to stimulate the attraction of new customers.
