Construction materials as a business. How to open a hardware store? Selection of equipment and purchase of goods
In the current economic conditions opening idea own business is becoming more and more popular. The whole point is that a personal enterprise opens whole line benefits that were previously unavailable. At the same time, you should not hope that your own business is devoid of any difficulties and unpleasant moments. From the very beginning, you need to understand that in order to achieve any positive results it will be necessary to put in a lot of effort. Today, trade in building materials is almost the most popular business idea.
Relevance
The demand for construction products is quite high among domestic consumers. It's all about enough big number people are making repairs in their houses, apartments or country houses. That is why they often turn to the building materials retail trade for help. On the other hand, there are individuals or legal entities who are engaged in large construction projects. Given the large volumes, representatives of the second group can be found in the wholesale trade of building materials.
Buy or create from scratch
People who decide to start trading building materials quite often have the following question: should I buy a ready-made hardware store Or is it better to create it yourself from the very beginning? Although both options have their advantages and disadvantages, buying already ready-made business is considered more profitable solution this issue, since in this case it will be possible to assess the profitability and profitability of this particular store in a certain territory. Thus, it is believed that buying a ready-made store and re-registering it in your name is correct solution. In addition, experts say that the costs of both purchasing and creating a store are approximately the same. For those who have decided to start their business from scratch, it would be useful to remind you that you need to register entity for trade in building materials. An LLC can be called whatever you like. The main thing is that this name does not repel potential clients.
Types of construction stores
Fortunately, for the common consumer, the number of places where you can purchase building materials various types, is now very big. The entire set of retail outlets for building materials can be divided into the following groups based on the range of products offered and sales area:
- small shops with an area of up to 100 sq. m with an assortment of about 200 items;
- large stores (construction supermarkets) with a total area of about 200 sq. m, offering their customers 5-15 thousand product items;
- warehouse stores with an area of up to 2500 sq. m. and a trade assortment of up to 1000 articles.
At this stage, you should immediately determine what type of store you are going to open. Here it is very important to assess as accurately as possible own strength and existing demand to avoid possible financial problems in the future. For example, if you have a dream of opening a construction supermarket, but in an area where there is no strong consumer demand for construction products, then it is better to abandon this dream. It is much more profitable to open a small hardware store to balance supply and demand.
Space for a hardware store
This is how we smoothly approached the next important aspect in opening our own building materials trading business. The location of your store is one of the most important factors affecting its profitability. Naturally, the location of the outlet will directly depend on its type. However, the most universal is considered to be the one located next to new buildings or close to a busy transport route. It is this location, as well as convenient access roads, that guarantee the store a decent flow of potential customers in advance.
It is also worth noting that it is not advisable to make a store building materials in a residential building. In this case, problems may arise with the fire service regarding the sale of flammable substances.
If you decide to open a warehouse store, then it would be useful to equip it with access by rail to be able to transport large loads in different ways.
In general, as for the choice itself best place, here we need to find a compromise between good location and rent. The fact is that landlords also understand the importance of the location of the store, and the cost of rent increases proportionally with the improvement of this very location.
Appearance
Once you have found a suitable location and premises for your store, you should start decorating it. Appearance It is worth paying special attention, since it is on this page that visitors will make the first conclusions about your business. So, the store should be attractive in in a general sense and have the right signage from a marketing point of view. In addition, do not forget about the need for parking, which is also very important for your future clients.
Internal view
There should be a favorable atmosphere inside your store so that customers want to stay there and come back again. First of all, you need to make sure that internal view matched the outside. Here you need to use the same color scheme, The same design techniques, identical fonts and the like.
- good lighting;
- large areas;
- easy access to goods;
- clear prices;
- product signs;
- grouping of goods by affiliation;
- favorable temperature.
These were the most General requirements. When running your own business for a long time, independently determine a number of other requirements that will be special for you.
Another important aspect when designing a store is correct location goods. The most important thing here is to put in the foreground those products that you consider the best selling, that is, promising building materials for trade at a particular moment. For example, if you know that a strong hurricane recently passed through, then materials for roofing and glazing repairs will be promising products.
Range
Which one is the best main element hardware store? This is an assortment. In a store that sells building materials, it must be very large. Most the best option, when you can offer your buyer almost everything: from a nail to a dish sponge.
It is also very important to provide products from different price groups. For example, if you are selling imported timber at a crazy price, it would be quite reasonable to also have a cheaper alternative.
In addition, do not forget that the store must keep up with the times. Firstly, you need to constantly monitor the replenishment of the assortment with various new products, and secondly, in the summer, focus on one product, in the winter - on another.
Other Important Points
In addition to all of the above, there are a number of other points that can be decisive when the question arises about the profitability of your building materials store. First of all, this concerns advertising. If you want to get a decent flow of customers from the first days of work, you should not skimp on funds to promote a new business.
The next aspect is the careful selection of personnel. Particular attention should be paid to how this very staff will serve customers. Any manifestations of rudeness or rudeness towards customers must be stopped immediately.
Another point that can attract more buyers is the provision of additional services. For example, delivery of purchased products or the presence of construction teams who could assemble, install, and repair what was purchased. This could be an additional advantage of the new store in the eyes of target audience.
The final point is taxation. Trade in construction materials, like any other type commercial activities, is subject to taxes. This point needs to be taken into account from the very beginning, when running your own business is just an idea in your head.
Conclusion
This article mentioned the main points that you should pay attention to when starting your own building materials trading business. Naturally, this list is far from complete, but careful consideration of each of these points at an early stage will greatly facilitate starting a business. Don't be afraid to take risks, then everything will work out!
The production of building materials in Russia demonstrates sustainable development. In the country's manufacturing industry, this area occupies the fourth or fifth position, sharing it with light industry, but behind mechanical engineering, electric power, and the food industry.
However, fluctuations in demand for building materials are subject to the same factors that affect GDP growth rates. Recent years have been characterized by a negative trend - a slowdown in its growth. After the “takeoff” of GDP growth dynamics in 2011 (4.3%), the rate of its increase began to decline in 2012 (3.5%), and in 2013 this trend intensified (1.7%). The slowdown in development has a corresponding impact on the sale of building materials in general.
Building materials stores are part of the construction infrastructure
The question of how to open a building materials store is very relevant, because small miscalculations are fraught with large costs. The challenges of the economic crisis are forcing businessmen in this industry to more clearly build their relationships with suppliers, pragmatically analyze consumption and more carefully check their market strategy with the market situation.
On the other hand, the desire of people to improve their living conditions, build new trade and industrial buildings for various businesses forever. Therefore, entrepreneurship in the form of a building materials store continues to be promising. Although it should be recognized that the profitability of this direction of trade is not the highest among alternative ones. Its effectiveness is largely determined by well-placed management that corresponds to the business plan.
What should you worry about before opening a hardware store? What factors determine how much it will be profitable business? Answering these questions, we can identify several positions, the proper execution of which contributes to commercial success: the location of the store, the features of the premises, the level of cooperation with suppliers, the degree of advertising support for the goods supplied, the qualifications of the personnel and, finally, general level organization of work.
A well-balanced business plan for a building materials store plays an important role in the efficiency of selling construction materials. What kind of retail outlet is it advisable to open? Let's figure it out. According to statistics, there are about one and a half thousand hardware stores in Moscow. Among them, four standard forms can be distinguished. But about that we'll talk later. Let's start with the question of where the store should be located.
Space for a building materials store
The most important organizational factor influencing the success of the sale of building materials is the convenience of shipping goods to customers who arrive in their own vehicles, including freight ones. (As you yourself understand, a building materials store is not a bakery: you can’t carry away a purchase in a string bag while whistling.)
The above is most critical for construction supermarkets. However, it cannot be said that mini-stores are insensitive to the convenience of shipment. Possible customer visits will be maximized if your building materials business is universal and located near major transport routes, the store has convenient entrances and a well-planned parking lot - a loading area for customer cars.
Having found a good place, we will decide on the type of room.
Premises for a building materials store and its equipment
The premises for a building materials store should be selected carefully. Its layout should be convenient for service and sales. It is desirable that the condition of the building does not require overhaul. Mandatory requirements should be the absence of dampness, good ventilation, and illumination.
It should not only be inexpensive retail store equipment for a building materials store. The “rule of the genre” is economical repairs. It is preferable for the store premises to be neatly decorated with modern, inexpensive building materials. $10 per square meter walls covered with painted plasterboard are normal. It is better to use the saved funds in the main activity; they will be useful for purchasing goods from suppliers.
Work with providers
Trade in construction materials is fueled by a wide range of supplies. Where to start formulating principles of interaction? Smart tactics on the part of the store are important here.
To fully stock the materials used in construction, a supermarket must cooperate with 90-150 suppliers. Moreover, they are all vitally interested in 100% prepayment. However, the entrepreneur (store owner) “breaks” their intransigence, gradually convincing them to work with him for implementation.
This activity involves a two-step combination. To begin with, the entrepreneur seeks to purchase goods at a discount or with deferred payment. Then, clearly and unswervingly following the partnership principles, it agrees to receive construction materials for sale.
There is simply no other way. You won’t work for long with 100% prepayment with all suppliers. In addition, the latter, realizing the sustainability of the construction materials store as their partner, are also interested in the efficiency of its finances. In a word, compromises are possible here.
Mini stores
Mini stores occupy an area of up to 100 m2. In their sales area, up to 20 items of goods are presented, the total number of articles is up to 200. Among them there are often highly specialized ones. For example, wallpaper or selling ceramic tiles. Even large entrepreneurs who are new to this business, not wanting to risk big money, begin to gradually pour their capital into the industry, having first “trained” in a mini-store and trained a core staff for the future supermarket. Therefore, the relevant question is how to open a building materials store from scratch.
Trading is one of the most common business options for beginning entrepreneurs. Experts note that every tenth person, when asked what type of business he considers the most promising, answers – sale of building materials.
There is a rational grain in this, because each of us at least once in our lives bought materials for construction and repair: drywall, tiles, laminate, all kinds of fasteners, etc.
Moreover, the general fuss makes us think that the vast majority of stores of this profile still bring a decent profit. Is it really? Let's look at the nuances of organizing a business in building materials.
Classification of building materials stores
Today, both large chain stores and private traders in markets sell this type of product. Depending on the scale of the business, points are conventionally divided into the following types:
- Pavilions with an area of 60-70 sq. m. The assortment is represented by 15-20 items of goods with a narrow range of applications (plumbing, floor coverings, Decoration Materials).
- Full-fledged stores with an area of 120-170 sq. m. More products are sold here (50-70 items) with the number of articles up to 4 thousand.
- Large stores with retail space(700-1200 sq. m) and warehouse(1500-2000 sq. m). The range of such stores reaches 20 thousand items.
- Hangar premises. As a rule, such stores do not have any decoration; they are more reminiscent of an indoor market.
Choosing a location for a building materials store
Without describing trivial phrases, we can give a recommendation to start from your financial capabilities. For example, to open a small store with an area of 80-100 sq. we will have to spend at least 10 thousand dollars. Practice shows that such a business format is not profitable in modern realities. The maximum that it can cover is staff salaries. It turns out that there is no point in attracting investment in such a project, and if you have your own money, it is better to invest it in something more profitable.
If we consider opening a building materials store with an area of 200-250 sq. m, you will have to spend about 50 thousand dollars. Project of 1000 sq. m requires an initial investment of 300 thousand dollars, monthly profitability after deducting all expenses is 4-5 thousand dollars.
This is the most profitable option for building a business. As a rule, in such stores a person can buy everything necessary for repairs. Here you can build a competent system of discounts and organize delivery.
The most promising place to open a building materials store is near busy roads and near construction sites.
You should not consider options on the ground floor of a residential building. Sale of a number of goods ( paint and varnish products) is prohibited in residential buildings.
Another important question: should you rent or buy a space? Practitioners argue that you can try the option of renting with subsequent purchase if the business fails. Buying premises is not the most rational option, because if problems arise with the business, another problem will probably arise - the sale of working capital.
Do not miss:
Product suppliers
To offer the client a sufficient range of goods, you need to cooperate with 50-100 suppliers. As a rule, large manufacturers of building materials are reluctant to accept options involving deferment or transfer of goods for sale. At the beginning, it is unlikely that you will be able to take more than 30% of the goods for sale; as the business develops, the volume can increase to 60%.
It is quite difficult for a novice entrepreneur to guess with inventory. Large chains purchase goods for storage, the quantity of which is 2-3 times higher than the monthly turnover. This policy allows us to service orders from large clients. If inventory will be less, supply disruptions may occur.
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. Immediately he outlined in general outline his activities and offered to join. I didn’t immediately decide to take such a step, but the idea sank into my soul.
At first I started joining this business in free time– in the evenings I posted advertisements 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, for winter month not bad,” 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 long.
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 have found such a company in the catalog 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 from them construction waste. 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?
