Wholesale of building materials as a business. Idea: wholesale business selling building materials. Where is the best place to sell?

In any locality in Russia there is and will always be a need for the construction of facilities for various purposes. And over time they deteriorate and require repairs. This means that we cannot do without construction and finishing materials in our lives. Hence the conclusion - the sale of such goods is a popular and profitable business.

Reconomica Today I will share with you, dear readers, the experience of a successful entrepreneur who combined the production of building materials with the sale of not only his own, but also similar products from other companies.

The main tool for the development of this business was the organization of an office to receive orders from consumers for similar goods. You will learn about the positive and negative aspects, the benefits received and the prospects of the specified business.

Greetings. My name is Mark. I am 37 years old. I'm from Astrakhan. Now I am selling tiles, tiles, decorative mosaics and many other related products for construction, renovation and interior decoration.

I don’t have a store, but an office for receiving orders. Trade turnover ranges from one and a half to two million rubles per month, from March to November inclusive.

Sales begin with the onset of the construction season and until its end. I’ll briefly tell you how I came to this type of activity.

My first steps in the construction business

It all started with the production of paving slabs; I organized this business in 2014.

Production of paving slabs.

Things weren't going well with production. There was only enough money to rent premises, pay staff and pay taxes.

At first I worked with virtually no profit. There were orders constantly, but it was almost impossible to make money on them.

There was a need to increase production volumes and reach serious clients. This step required huge investments in production. There were no such opportunities.

Choosing the direction of further development of the business

The further path of business development was vague. It was necessary to either urgently decide something or stop business activities.

How the idea came

An acquaintance of mine worked at that time in a managerial position in a manufacturing company that specialized in the manufacture of bricks and concrete products. He suggested ways for further development.

Finding ways to promote your business

I thought that production was built first, and then the goods produced were sold, and the business flourished. Maybe this happens on paper, in fantastic business plans, but not in reality. First, you need to trade someone else’s goods and replenish your customer base, and when stable demand arises, you can open your own production if it is profitable.

Opening without market knowledge and experience is a path to failure.

Proof of this is the many small businesses that opened and closed, accumulating large debts.

First mistakes

I was like that too. I read an amateurish business plan on some social network. Everything seemed easy and simple. But in fact, he had almost said goodbye to the invested money and was ready to sell his car to pay off the accumulated debts.

Business is a science and a way of life. This craft can be mastered. The main thing is to set the goal correctly and find a short path to it.

Initially I wanted to try something I was unfamiliar with. Business does not tolerate amateurism. Especially in the manufacturing sector. It took a long and difficult time to get out of the current situation. It’s very good that there was an experienced person who told me what to do next.

Stages of opening and developing a sales office

Choosing a retail location and its purpose

Even if there is no one to sit there, the sales office should be in order to:

• receive clients;
• present products;
• conclude contracts.

Conditions for renting premises

There was free space on the territory where I rented the production workshop. Its area was 150 m², the rental cost was 15 thousand rubles. per month, without utilities. The total amount of payments was approximately 18 thousand rubles. per month. I reluctantly took this step.

Equipping the office with everything you need

For full-fledged trading you will need:

• furniture;
• racks;
• computer;
• Printer;
• various stationery items.

I spent 70 thousand rubles on furnishings and equipment for the office.

The furniture was the cheapest. The printer was also included in this price; the computer had to be brought from home. The retail space was large, but there were no other options.

Setting up a full-fledged office is expensive.

Later, the space of this office became insufficient.

Methods for displaying products on the sales floor

The first thing I did was exhibit my products. Since there was a lot of space, I laid out the paving slabs in all sorts of ways. He combined two and even four different colors of tiles of the same model, which could be laid in different color schemes.

Showing samples of paving slabs is a necessary sales attribute.

Thus, I could not show my products in a workshop environment.

Expansion of the range of building materials

So I became a representative of a mini-factory for the production of building materials.

In the sales area, he displayed the bricks they had made, and placed catalogs of the rest of the products, which, due to their large dimensions, could not be placed in the office.

Display of samples of bricks and other products in the sales office.

I placed samples of floor slabs and foundation blocks near the gates of my workshop.

Product promotion activities

The next question concerned information support for trade - marketing.

The office was located on the roadway. The administration allowed advertising banners to be placed on the building. I made two banners measuring 1 by 4 meters to hang on different sides of the building. Their cost was 8 thousand rubles.

And they also made a remote stand, which was located in front of the entrance to the building. Its price was 2 thousand rubles.

From 4 thousand to 7 thousand rubles were spent on promoting products in Avito, newspapers, making leaflets and business cards. per month.

How to make money selling construction products from third-party companies

As a result of the increased demand for their products and the inability to satisfy the needs of consumers with the available production capacities, it was necessary to urgently make some decision.

Reasons for turning to other manufacturers

There was no money to expand production, and I didn’t really want to increase it.

In the warm season, it was still possible to pay rent, but in winter, when there are almost no orders and the production premises need to be heated, the cost of rent was significantly more affordable.

The solution was to negotiate the sale of tiles from other manufacturers .

My advantages when choosing a partner

In the modern market, the problem of any manufacturer is the sale of products. In such an environment, with fierce competition, manufacturers who do not have their own sales channels become hostage to sellers.

If I have a good client, then the company provides a minimum wholesale price for the products.

A commodity producer always has a need for funds - these are debts on wages, rent, debts for supplied raw materials, or a person simply has a loan from a bank.

The manufacturer is always happy to sell, even with minimal markup on the product. I took advantage of this situation.

Very often he earned more from sales than the manufacturer.

Positive changes in business provide impetus for further growth

When organizing any business, constant movement forward is necessary. Otherwise - stagnation.

Significant progress in trade after the conclusion of the partnership agreement

Finding a manufacturer to collaborate with turned out to be easy. An agreement was signed with him. The list of products presented far exceeded my product output. A quarter of the room was occupied by an exhibition of their products.

I started searching for suppliers who could provide exhibition samples, stands, catalogs and other promotional products for free.

Finding new ways to increase sales

And a certain style of work in such auctions also emerged. It was necessary for the manufacturer or wholesaler whose products I represent to release the goods from the warehouse at the sales price in their office.

Not everyone agreed to such cooperation, but still there were entrepreneurs who wanted to expand. They also had conditions - if I represent their assortment, then I no longer work with anyone.

Samples of reinforced concrete products in an open area.

Optimization of retail space

The trading floor began to fill with samples of various goods. Then he divided the trading zones. On the production site he placed the largest specimens - reinforced concrete products.

Roofing samples.

They were joined by samples of timber, roofing, mesh, metal products - everything related to construction.

Samples of rolled metal.

I divided the office space into three parts - an office and two halls. The first hall served to display products for construction and landscaping, the second hall presented materials for finishing rooms and bathrooms.

Sales area with samples of finishing materials.

I filled empty spaces in the trading floors with goods that fit the theme. For example, the sales floor was replenished with two stands - one with LED lighting, the second representing manufacturers of swimming pools for personal plots, saunas, and baths.

Temporary setbacks are inevitable

Not all positions were profitable. Some goods or services were never sold. For example, I have never accepted an order to make a pool or fountain. Mosaics for bathrooms sold very poorly and took up a lot of space, but bright and beautiful stands with such samples had a positive influence on buyers.

Not everything is on sale, but some products create a good atmosphere on the sales floor.

How much does trade in construction materials bring?

I’ll tell you briefly about the profit received from the sale of construction and finishing materials.

Amounts of allowances for goods

I marked up the goods sold by 10 to 30%. The highest markup is for paving slabs and building materials.

Tiles, porcelain tiles, tiles and countertops made of natural stone also work well. The average markup was 20%.

What does income depend on?

If the turnover passing through my office amounted to 1 million rubles, then I have approximately 200 thousand rubles left in profit.

From there, taxes, deductions, rent, advertising expenses and the salary of the seller and accountant are deducted.

Half of this amount remains. If at the height of the season you manage to sell 2–3 million rubles, then the costs are the same, and the profit increases. I wrote my turnover above. It’s not difficult to calculate how much the business brings me in net.

But don’t forget that January and February are months with almost no revenue. However, money must be paid for rent, and employees of the enterprise must be paid wages. And for this you need to work hard during the busy season.

My trading method

Some, after reading the article, may think that I am an ordinary speculator, and buyers do not receive anything when purchasing goods through my sales office. If that were the case, then customers wouldn't come here.

Consulting customers on products

I made a point of advising consumers regarding the characteristics of the building materials they purchased. In addition, he did not accept low-quality goods for sale.

Consumers did not need to run after sellers and beg for illiterate advice about the product I was selling, since I knew everything and could answer clients’ questions.

Application of the software

He also mastered computer 3D modeling, and made room renovation projects for free, calculating the materials used.

For example, the program calculated the quantity of tiles for a bathroom accurately, and customers did not have to purchase extra material, such as tiles and glue.

Design service

My salesperson also provided design services and helped buyers decide on colors, sizes, and finishing options.

It's very hard work.

An impeccable reputation of a businessman is an important component of a successful business.

Another advantage is reputation. In three years of work I have not let anyone down, so wholesale consumers have established business relationships with me.

It would seem that construction companies can go to manufacturing plants themselves and purchase goods in large quantities.

But, apparently, there are problems that prevent such actions.

When words do not differ from deeds, this is a reputation that also pays off.

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How to build sales of building materials online

Despite the difficult macroeconomic situation, the market for online sales of building materials in Russia is growing. Moreover, this is not happening in spite of, but rather due to the crisis, which forced large manufacturers to look for new opportunities to sell their products. This conclusion was reached by the participants of the round table “The Internet at the service of sales. Effective strategies for online trading of construction materials." At the same time, according to experts, manufacturers of building materials should not rush into the Internet headlong.

Sales are growing at major retailers

In general, the online sales market in Russia is not that large in volume: approximately 2.5-3% of the turnover of goods in Russia. It is not surprising that, according to the commercial director of the online publication East West Digital News: Vlada Shirobokova, there is an increase in almost all major parameters. Sales in rubles, units and number of orders are growing.

At the same time, the regions are growing faster than both capitals. This is explained precisely by the fact that in Moscow and St. Petersburg the online retail market is more saturated and the competition is tougher. Another trend: up to 50-60% of orders come from mobile phones and tablets.

Large players show the best growth - due to the fact that they have the main traffic and built relationships with clients. In general, about 600 players are involved in online retail in Russia, but only three to five of them can be called truly large.

In general, Russia in this sense is only at the very beginning of its journey. In this segment, we have only 3.5 purchases per capita per year. China is the leader in the global online retail market, the United States is in second place, followed by Britain and France.

“The fact that we are not among the leaders is actually a positive phenomenon,” says Vlad Shirobokov. — Regardless of any disturbances in our economy, we have room to grow.

By the way, according to the head of the industrial sales department of Yandex Sergei Timokhin, DIY niche ( do it yourself — (English) do it yourself - a chain of stores for construction and repair — Ed.) stands out from the general background of online sales.

“In general, the number of requests for the DIY segment is increasing year by year,” says Sergey Timokhin. — This is clearly a positive trend. Compared to electronics and fashion, where interest is declining today, in DIY the number of searches per user is increasing.

How much does it cost to build a website?

Today, in the building materials market, many large companies are trying to find new opportunities to market their brands. One of these channels is the Internet. It would seem that you launched a website, set up a set of order servicing operations (fulfillment), and everything will be fine. But it was not there…

According to the director of Internet commerce "Leroy Merlin" Nikolai Kozak, there are some serious problems here that you will definitely have to face. The first of them is the degree of readiness of your own team for such an innovation.

“I would recommend that you start structural transformations in the company,” the expert advises. — Because employees who work in “brick and mortar” stores will start to panic: they say, the Internet is taking away our sales, soon we will all be fired, etc.

The head of IT solutions in business at Saint-Gobain also agrees with Nikolai Kozak. Olga Kuznetsova.

“When there is a marketing department for a group of products, which has its own strategy and vision, then when building online sales, everyone needs to be listened to, everyone needs to be given a place on the site,” the specialist shares his experience. — Why is our banner in last place, why is our picture different, etc.? As strange as it may sound, it is very difficult to negotiate with your colleagues. Any cross-functional communications, when several departments are involved in the process, is a separate dissertation...

The second challenge is logistics. What is good for a retail network is completely unsuitable for the Internet. This is a completely different story, requiring huge investments and a different approach.

Well, the third “nightmare” is IT systems, which you will have to get to know in detail.

“You have to learn what launching digital platforms is, what the ID of a product, client, order is,” warns Nikolai Kozak. — And you will also have to understand what 24/7 support is and how scary it is when your website, which hundreds of thousands of customers “land” on every day, suddenly crashes, and you need to do something about it urgently...

According to the specialist, for online sales to be successful, a company that has decided to go online will have to recruit a team of “very amazing people” at a basic level who, on the one hand, know the client and retail well, and on the other hand, look forward and are ready to master new sales mechanisms.

There is another problem - relationships with offline distributors. For example, some experts say that launching online sales is not a matter of one year. The manufacturer must clearly build relationships between online retailers and offline distributors, and understand how these two channels will interact in the same territory.

If we sum up all these “buts”, then the launch of such an Internet platform, according to experts, will cost the manufacturer approximately 10 million rubles.

How profitable is it to sell online?

You also need to be aware that online sales are not a panacea, but only one of the sales channels. Firstly, the price of a product on a brand website is often higher than that of distributors. Since this price is the result of negotiations between the Incom Director and line directors, partners and rivals within the company. After all, if a distributor sells one brand, then you can’t afford that on the website.

Secondly, not the entire line of products can be sold via the network. Head of the central department for marketing and sales of the KNAUF CIS group Alexey Zimin, for example, that there are goods that are better and more convenient to sell only through distributors: they will give the client all the necessary advice on the spot and show how to work with them.

However, online sales also have undoubted advantages. According to Olga Kuznetsova, when buying goods online from a manufacturer, people believe that they will receive a quality product.

“Someone wants to buy online because they get the necessary information,” the expert shares his experience. — It seems to him that the manufacturer will provide the most reliable, high-quality information about the product or solution.

Mostly private owners are looking for construction materials on the Internet, since it is more convenient to control cash flow. For the most part, these are people who are unlikely to do the repairs themselves, but participate in decision-making. In addition, as a rule, foremen and foremen search for goods on the Internet.

Where is the best place to sell?

If a manufacturer decides to go online on its own, then, according to experts, it is better to start in Moscow or St. Petersburg. Here the market is established and it is much easier to find performers for the same fulfillment. In the capitals you can hone your experience in direct sales and interaction with customers. But we should not forget about the regions.

“The regions are our future,” emphasizes Nikolai Kozak. — At one time, the country implemented an excellent program “Internet in every school” for laying fiber-optic communications. As a result, Internet penetration in the regions has increased significantly.

Nikolai Kozak recommends starting expansion into the constituent entities of the federation from Yekaterinburg, and then connecting Novosibirsk and other regions with million-plus cities.

“There are models that can be calculated, they are quite simple,” continues the specialist. — This is the traffic on your website, the average salary in the region, the number of universities and online stores. As a result, an average increase of about 20% per year can be achieved.

If not yourself, then who?

However, it is not at all necessary to open your own website: you can also use existing DIY networks to sell the most popular brands. The largest of them are Leroy Merlin, whose ratio of online sales to the company’s total turnover in the retail segment reaches 7%, Home Décor – up to 7.3%. This series also includes such well-known networks as OBI, Castorama, K-Rauta.

Petrovich and OTTO Group deserve special mention. Here, online sales reach 80%, since they simply do not have brick-and-mortar stores where offline customers could come.

These companies are constantly improving their service, investing heavily in the development of digital strategies, expanding their sales geography, and focusing on comprehensive solutions.

However, it is worth recalling that such networks are not interested in promoting brands, so working with them cannot be limited to simply giving them goods for sale. You need to be ready for joint planning, shelf modeling, conducting research on customer preferences, up to the creation of a special brand specifically for online sales.

Be that as it may, the market situation is constantly changing. There are currently trends towards consolidation. According to Vlad Shirobokov, out of a hundred incom players, 19 are present in the DIY market in one way or another. But in a year there will be 10 or 15 of them.

“If in 2010, when a user typed the query “shop,” some specific brands were found there only in 10% of cases, then in 2015 this figure had already reached about 46%,” says Sergey Timokhin. “This means that many users have an association and that a specific product group is associated with a specific store.

According to the expert, today, in terms of coverage of user demand, sites that expand the range of their product groups win. However, there are still only a few stores in Russia that can satisfy all the client’s needs.

“The future belongs to stores that can provide the user with a single solution, that is, the entire set of what he needs for repairs or construction,” the specialist believes.

As you can see, any manufacturer of building materials needs to engage in online sales. Today this is perhaps the only sales channel that shows growth, albeit small. Which method to choose: your own website or existing DIY networks is up to the businessman to decide, depending on his needs and the degree of his own courage.

“And don’t forget about mobile,” reminds Vlad Shirobokov. — If you are not on mobile now, next year you will no longer be anywhere.

Prepared by Alexander GUSEV, Evgeny GORCHAKOV

FOR REFERENCE

According to information presented at the round table, Leroy Merlin delivers goods within a radius of 300 km, Saint Gobain - 100 km. Returning goods from Leroy Merlin is possible within 100 days to any store in the chain, from Saint Gobain - within 14 days.

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 was not going to give up, I tried various projects, but it was all frivolous, 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.

Of course, big money could not come with this approach - in order to earn money properly, you need to be properly immersed in activities. 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 in 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 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. 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 kind of scarce product - used road slabs or soil, or when the object is located far outside the city, and the spread 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?

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

Sales of building materials today are carried out 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. The study will examine the issues of choosing a suitable location and premises for setting up a store selling construction materials, the necessary equipment and qualified personnel, as well as issues of analyzing the market for construction products and methods of advertising such a business.

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:

• the most popular types of construction tools, including power tools;
• floor coverings;
• entrance and interior doors made of 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 other finishing materials, wallpaper glue, various dry mixtures, as well as cement and sand;
• paint and varnish materials 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;
• tools for gardening, 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 forming a 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, the ideal option would be to register as an individual entrepreneur.

Selection of premises and requirements for it

Store space optimization

Selecting the right location is important, so 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 for opening a retail outlet for selling building materials would be 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 a square or rectangular room, which will ensure the most efficient use of the usable space of the store for the 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, and it is also recommended to equip a separate room for a warehouse of 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 the storage area. 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, the interior space of the store should be competently and conveniently divided into zones with construction products of the same category displayed on display cases, counters and racks in each zone. 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 a cash register, security and fire safety 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 are 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 be well versed not only in the range of products presented, but also in 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 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, there must be at least two sales assistants and one cashier in the store, 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 construction and installation teams, with whom it would be practical to enter into separate contracts with an invoice for the goods supplied and to practice a system of promotions and discounts.

The modern popularity of such a business causes serious competition in the retail trade of 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 on popular social networks will only have a positive impact on the growth and development of your business.

Financial plan

Investments and maintenance costs

We will need initial investments for registering a business, selecting and renting premises for a hardware store, redecorating and installing the necessary equipment, recruiting personnel, establishing relationships with suppliers and forming a starting assortment. 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 must include payment for utilities, rent for premises, regular payment for 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 of business 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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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, finishing 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 storage space (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. The 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 say 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 is lower, supply disruptions may occur.