Sale of building materials as a business. Open a building materials store from scratch

In any settlement of Russia there is and will always be a need for the construction of objects for various purposes. And they decay over time and require repair. This means that we cannot do without building and finishing materials in our life. Hence the conclusion - the sale of such goods is a demanded 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 their own, but also similar products from other companies.

The main tool for the development of this business was the organization of an office for receiving 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 am from Astrakhan. Now I am selling tiles, tiles, decorative mosaics and many more related products for construction, renovation and interior decoration.

I don't have a store, but an order-receiving office. The trade turnover ranges from one and a half to two million rubles a month, from March to November inclusive.

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

My first steps in the construction business

It all started with the manufacture of paving slabs, I organized this business in 2014.

Production of paving slabs.

The production was not going very well. There was only enough money for renting premises, wages for working personnel and paying taxes.

At first, he worked with practically no profit. There were orders all the time, but it was almost impossible to make money on them.

There was a need to increase the volume of production and reach serious customers. This step required a huge investment in production. There were no such opportunities.

Choosing a direction for the further development of the case

The further path of business development was vaguely seen. It was necessary either to solve something urgently, or to stop entrepreneurial activity.

How did the idea come up

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

Finding ways to promote your business

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

Opening up without market knowledge and experience is a recipe for failure.

Proof of this is the multitude of small businesses that opened and closed, while collecting large debts.

First mistakes

I was like that too. I read a dilettante business plan on some social network. Everything seemed easy and simple. But in fact, he almost said goodbye to the money invested 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 the correct setting of the goal and finding a short path to it.

Initially, I wanted to try a business with which I was unfamiliar. Business does not tolerate amateurishness. Especially in manufacturing. It took a long and difficult time to get out of this situation. It is very good that an experienced person was found who told me what to do next.

Stages of opening and developing a sales office

Choosing a trading location and its purpose

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

• accept clients;
• present products;
• conclude an agreement.

Terms of renting premises

On the territory where I rented a production workshop, there was a free space. Its area was 150 m², the rental price was 15 thousand rubles. per month, no utility bills. The total amount of payments was approximately 18 thousand rubles. per month. I took this step reluctantly.

Equipping the office with everything you need

For full-fledged trading, you needed:

• furniture;
• racks;
• a computer;
• a printer;
• various office supplies.

I spent 70 thousand rubles on the furnishings and equipment of 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.

Equipping a full-fledged office is costly.

Later, the area of ​​this office was not enough.

Methods for displaying products on the sales floor

The first thing I did was put my products on display. Since there was a lot of space, he laid out the paving slabs in all sorts of options. He combined two or even four different colors of tiles of the same model, which could be laid in different colors.

Displaying samples of paving slabs is a necessary attribute of sales.

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

Expansion of the range of building materials

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

In the trading floor he exhibited the bricks they made, and placed catalogs of the rest of the products, which, due to their large dimensions, could not be delivered 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 gate of my workshop.

Promotional activities

The next question was related to information support of trade - marketing.

The office was on the road. The administration allowed advertising banners to be placed on the building. I made two 1m by 4m stretch lines to hang on different sides of the building. Their cost was 8 thousand rubles.

And they also made a portable 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 the promotion of products in Avito, newspapers, the production of 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 facilities, it was necessary to urgently make some kind of decision.

Reasons for contacting 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 quite affordable.

The decision 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 distribution channels become hostages of sellers.

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

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

The manufacturer is always happy to sell, even with a minimum wrap on the product. I took advantage of this position.

Very often, sales made more money than the manufacturer.

Positive Business Shifts Drive Further Growth

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

Significant progress in trade after the conclusion of the partnership agreement

It turned out to be easy to find a manufacturer for cooperation. We signed a contract with him. The list of products on display far exceeded my product release. A quarter of the space was occupied by an exhibition of their products.

I started looking for suppliers who can provide exhibition samples, stands, catalogs and other promotional items for free.

Finding new ways to increase sales

And also a certain style of work in such auctions came to light. 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 the retail space

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

Samples of roofing.

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 as a display of products for construction and landscaping, the second hall presented materials for the decoration of rooms and bathrooms.

Trade hall with samples of finishing materials.

I filled the empty seats in the sales areas with goods that fit the topic. For example, the trading floor was supplemented by two stands - one with LED lighting, the second represented manufacturers of pools for private plots, saunas, and baths.

Temporary setbacks are inevitable

Not all positions were profitable. Some goods or services have never been sold. For example, I have never accepted an order for the manufacture of a pool or a fountain. Bathroom mosaics sold very poorly and took up a lot of space, but bright and beautiful stands with such samples had a positive effect on buyers.

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

How much does the trade in building materials bring?

I will briefly tell you about the profit received from the sale of building and finishing materials.

Amount of markups on goods

I made a markup of 10 to 30% on the goods sold. The highest mark-up is for paving slabs and building materials.

And also tiles, porcelain stoneware, tiles and countertops made of natural stone go well. The average markup was 20%.

What does income depend on?

If the turnover that passed through my office amounted to 1 million rubles, then I still have about 200 thousand rubles of profit.

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

Half of this amount remains. If at the height of the season it is possible to sell for 2-3 million rubles, then the costs are the same, and the profit increases. I wrote my turnover above. It's not hard to calculate how much the business brings me clean.

But do not forget that January and February are months with almost no revenue. However, it is necessary to pay for the rent, and pay wages to the employees of the enterprise. And to do this, during the busy season, you need to work hard.

My method of organizing trading

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 clients would not come here.

Consulting buyers on goods

I have relied on advice to consumers regarding the characteristics of the building materials 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 they were selling, since I knew everything and could answer customers any question.

Application of software

He also mastered computer 3D modeling, and did projects for the renovation of premises for free with the calculation of the consumable material.

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

Design service

Also, my salesperson provided design services and helped buyers decide on colors, sizes and finishes.

This is very hard work.

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

Another advantage is reputation. For three years of work, I did not let anyone down, so wholesale consumers established business relations with me.

It would seem that construction firms can themselves go to manufacturing plants, where they can purchase goods in large quantities.

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

When words do not diverge from deeds, it is a reputation that also pays off.

In addition to the above, it is very important that the ordered goods are correctly executed, counted, checked and delivered on time.

Plans for the future

Now I am planning to open a wholesale office-warehouse, working on the same principle. There are many manufacturers who want to sell their goods. Now I want to negotiate with large companies throughout the European part of Russia. I am sure that success will surely come.

Our today's article is about how to open a building materials store from scratch. You will learn how profitable this business area is and how to achieve quick success in entrepreneurship.

Every year the number of new buildings is growing rapidly. In a short time, many new areas and residential areas appear. For construction, of course, a wide variety of materials will be needed, so it can be concluded that the business of selling building materials is a profitable and promising business.

Advantages and disadvantages of the construction business

• Great demand for the product. Building materials are in great demand in any region of the country. Their popularity is due to the fact that a person builds something or makes repairs throughout his life. For this, he needs materials, so the demand for this product not only does not fall, but also grows every year. Therefore, if you want to make a profitable investment, then the construction business will provide you with a stable income and high profits.
• Assortment of goods. If you believe the statistics, then opening a small hardware store is a hopeless undertaking, doomed to failure. The point is that the competition in the construction business is quite serious. You have to fight for customers with large construction hypermarkets that offer a wide range of goods and favorable prices. Therefore, in order to interest visitors, you need to provide a wide variety of goods or decide on the format of the store, for example, sell a certain product in a large assortment.
• Additional services. Do not forget that you can make a profit not only from the sale of goods, but also by providing additional services to customers. For example, not all buyers have the opportunity to independently deliver their purchases to their destination, and building materials are a fairly large product. Therefore, it becomes necessary to organize a delivery service. You can make good money on the provision of this service.

Building materials store: business plan

The chosen business idea needs to be properly implemented. A well-crafted business plan will help you with this.

The business plan should indicate the profitability of the idea, the payback period and the expected profit from the business. As already indicated above, the cost of opening a hardware store depends on the region and sales volumes. It is difficult to indicate the exact amount, but it is worth noting that you are unlikely to be able to open a hardware store from scratch. The only option is to find an investor who will be ready to finance your project. But it is quite difficult to find a rich person who will believe in the success of your idea, so you can count on this option only if you are a specialist in this area of ​​knowledge.

Registration of a business for the sale of building materials

If you have the necessary start-up capital to open a business, then you can safely start registering your activity.

First of all, it is worth deciding on the material and legal form of activity. You can choose one of two options: registration as an individual entrepreneur or founding a legal entity - Limited Liability Company. When choosing a form of activity, consider the amount of investment. If you plan to open a small hardware store, you can safely register as an individual entrepreneur. In the case of organizing a large business, opening a hypermarket or a network of building stores, you will have to register a legal entity (LLC).

Having decided on the form of activity, you should select the appropriate OKVED codes. The most convenient option is to pay a single tax on imputed income.

It is also required to obtain permits for activities from the SES, the fire service, the city administration, the chamber of commerce and even a certificate from the traffic police (in the case of parking equipment on the territory of the store).

The collection and execution of all the necessary documents is a rather laborious process. If you are poorly versed in legal intricacies, then entrust this matter to an experienced lawyer.

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Location and rental of premises

From the correct choice of the location of the store, its profit will directly depend. Therefore, it is very important to choose an advantageous location in the city. Choose crowded areas with high traffic. It is desirable that there are no competitors nearby.

Sufficiently profitable places for opening a construction store are the areas of new buildings, the construction market, and the industrial zone of the city.

There are no special conditions for the premises of the store. The main thing is that it is in the non-residential fund. It is also advisable to equip a parking lot and convenient access roads for loading and unloading goods near the store.

Choose a suitable space for your store depending on the volume of sales. As discussed above, small shops are not profitable, so the area of ​​the premises should be at least 200 sq. m. as for the renovation, the expensive, designer interior in this case will not in any way affect the number of sales. Therefore, I recommend that you not bother with expensive repairs. It is enough to meet the minimum requirement: the room must be clean, dry, tidy, with good ventilation. In addition, the fire and sanitary services have their own requirements for the premises, so you will have to comply with all standards (ventilation, storage conditions for goods, etc.).

Store format

Before starting to implement this business idea, you should decide on the format of the store by choosing the appropriate direction. Construction materials are sold in different ways. They are sold in small retail outlets, in stalls in construction markets or bases, in supermarkets or in narrow-profile, specialized points of sale.

1. A small building materials store. The total area of ​​this outlet is from 20-50 sq. m. Naturally, in such a room it is impossible to place a large assortment of goods, so it is better to focus on one thing. For example, you can trade in paint or wallpaper, drywall or flooring.
2. Large stores with a total area of ​​about 150-200 sq. m. In such a room it is already possible to place a small assortment of goods. You will be able to trade several types of building materials at the same time. It can be the same paint, wallpaper, glue, parquet, tiles, pipes and much more. It all depends on the competition and the demand for the product. You must analyze these nuances before deciding on the range of your hardware store.
3. Construction supermarkets. The area of ​​these retail outlets is from 1000 sq. m. In such stores, customers are given the opportunity to choose everything they need for construction and renovation in one place. A large assortment, favorable prices and promotions attract a large number of people, therefore this business format is considered the most successful. The only negative is large financial investments. It takes a lot of money to open a construction supermarket, therefore, as a rule, there are several owners of such outlets at once.
4. Store-warehouse. This business format consists in the fact that two separate premises are rented. The first is the warehouse where the bulk of the goods is stored. And the second section is a sales area for buyers, where the entire range of products is exhibited in small quantities. This business format is quite profitable, because you don't have to equip a large sales area or hire a lot of staff. It will be quite enough 2-3 sales consultants, several loaders and security guards.

Building materials store equipment

There is no need for special expensive equipment for the store. Therefore, this item will not be too financially costly for you.

Necessary equipment for a hardware store

• Showcases and racks for displaying goods;
• Glass door cabinets;
• Trade nets for hanging goods on the walls;
• Packing table;
• Equipped place for cashier and sales assistant (table, chairs, cash register);
• Shopping carts and baskets.

Assortment of a hardware store

As mentioned above, the assortment depends on the area of ​​the store. Therefore, first of all, decide on the format of your outlet and after that, start purchasing goods for sale.

Standard product groups for a hardware store:

• Wallpaper and glue. If you sell this product, then the assortment should be large enough, as they say, for every taste. Today, the variety of wallpapers is pleasantly pleasing, you can choose both paper, vinyl, washing and original fabric wallpapers.
• Dry building mixtures (sand, cement, gypsum);
• Paints and varnishes (for external and internal works);
• Incomplete coverings (tiles, laminate, tiles, linoleum, carpet, parquet);
• Plumbing (sinks, toilets, showers, hydroboxes, taps, faucets, bathroom furniture and much more);
• Doors (interior, entrance, from materials - wood, glass, or an economical option from fiberboard);
• Electrical equipment (lamps, lamps, chandeliers, lanterns, wires, LEDs);
• Building tools.

In general, a wide range of goods can be placed on a large area. If the area of ​​the store is small, give preference to the sale of a certain group of goods.

Suppliers

For any entrepreneur, finding suppliers is a very responsible task. After all, the wholesale price of the product, its quality and profit from the business depend on this.

You can find good suppliers in your city or via the Internet. The most profitable option is cooperation with manufacturers of building materials and buying goods directly.

Hired personnel

The number of sales and, accordingly, the profit will depend on the work of the store employees. Therefore, finding experienced and responsible employees is a very important matter.

The sales assistant must have all the information about the product, be able to communicate with customers, skillfully and unobtrusively offer his help in choosing the product. It is desirable that each department has its own sales consultant who is competent in this area of ​​expertise.

Employee salaries should be incentive rather than fixed. Thus, you will protect yourself from lazy people who go to work just like that. An employee whose salary depends on the volume of sales will work many times more.

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How much does it cost to open a building materials store?

As the practice of experienced entrepreneurs shows, an open small construction stall with an area of ​​up to 50 sq. M. Will cost you 400-500 thousand rubles. A small part of this amount will be spent on renting premises, and the main part on the purchase of goods. On average, the mark-up for building materials is 20-30%, which is not that much. In addition, you also need to pay salaries to employees, purchase a new batch of goods, pay taxes. As a result, the net profit at the first stages is minimal. Therefore, the opening of a small construction store is profitable only in the case of purchasing goods at low prices and the possibility of cheating more than 30%. Otherwise, there is no point in trading building materials.

To open a construction supermarket, you need a fairly large amount of money from 3 million rubles and more. But, despite the fairly solid investments, the payback of the outlet is quite fast. Therefore, if you have money, then investing it in the construction business is quite profitable.

Advertising campaign

Opening a hardware store is not the most important thing; it is important to attract buyers to the point of sale. How to do it?

Attracting buyers is an important nuance, without which you will not see profits. Therefore, do not skimp on advertising, hire competent specialists in this field and the result will not be long in coming.

• Advertising in the city. Posters, banners, advertisements, flyers, they all grab people's attention. Therefore, use all kinds of promotion methods.
• Internet advertising. Create a website for your hardware store, where all information about the assortment, contact numbers and address, as well as the possibility of purchasing goods via the Internet will be available.

Research of the construction business market has shown that even despite a certain downturn in the economy, the construction market is growing every year by 15-20%. This means that building materials are in growing demand.

Drawing up a business plan

Before starting any business, you need to draw up a competent business plan in order to understand the size of future investments. So, let's draw up a business plan for a hardware store.

Upcoming opening costs:

• equipment from 80 thousand rubles;
• execution of documents from 10 thousand rubles;
• payment of rent for the first and last month from 60 thousand rubles;
• purchase of goods from 600 thousand rubles.

So, you can see that the initial costs will be from 750 thousand rubles. In addition, there will be monthly expenses:

• salary of employees from 50 thousand rubles per month;
• rent of premises for a store from 30 thousand rubles per month;
• taxes from 10 thousand rubles per month (depending on the form of ownership);
• advertising from 20 thousand rubles per month.

Monthly expenses will be at least 110 thousand rubles.

When setting a mark-up on a product, you should take into account the prices of competitors and make sure that your prices are beneficial to buyers. Typically, the markup is around 45-65%.

Taking into account the margin, the profit should be at least 450 thousand rubles per month. But keep in mind that in the first months the flow of customers will be small - they don't know you yet. But with good advertising and favorable pricing policy, the flow of customers will grow steadily. The payback of the store should be expected no earlier than after a year of successful work.

Selection of premises

The right store location is at least half the battle.

Therefore, in order to open a store of building materials from scratch, you need to know the basic criteria that should be guided by when choosing the location of the future store.

An excellent choice would be the area of ​​new buildings. It is worth paying attention to the absence of competitors nearby, but at the same time, a location near the construction market would be a good place. The presence of parking in the immediate vicinity of the store will significantly increase your popularity with customers, because building materials are often of significant weight. Therefore, we need not only parking, but also good access roads for the passage of large vehicles. A good place would be a place in the immediate suburbs, next to large shopping centers.

Read also: Selling clothes online: where to start, how to find a supplier

There are no specific requirements for the premises for a hardware store. The only condition is to remove the premises from the housing stock. It is desirable that the area of ​​the premises be at least 150 square meters, because a store with a smaller area is likely to become unprofitable.

It will not require special investments in the renovation of premises for the sale of building materials. It is enough that the premises meet basic sanitary requirements, be dry and clean.

Required Documentation

For the legality of running any business, it is necessary to draw up all permits. The most important issue is the issue of registration of property rights.

You can register an individual entrepreneurship (IP) or a legal entity - a limited liability company (LLC).

The choice will depend, first of all, on the size of the future business. If you are planning to open one small store, then an individual entrepreneur will be enough, and if you are planning to open a construction hypermarket or even a chain of stores, then it is better to choose an LLC.

Having chosen the form of ownership, you need to select the code of the all-Russian classification of types of economic activity (OKVED). For a hardware store OKVED, you should choose from section 47.52 - retail trade in hardware, paints and varnishes and glass in specialized stores. There you can select one or several codes that match the specifics of your store.

Selection of equipment and purchase of goods

What equipment to choose and what is needed to open a hardware store? If the format of the store is small, then inexpensive showcases, racks and shelves will be enough.

You should buy goods for your store, focusing on the main product groups:

• wallpaper and glue;
• dry mixes;
• varnishes and paints;
• floor covering;
• plumbing;
• doors;
• construction tool;
• electrical equipment.

But if your store is small, then it is better to choose one of the product groups and present it as widely as possible.

Actually, the choice of equipment and product range directly depends on the format of the future store.

Advertising

Before you open a hardware store from scratch, you need to think over an advertising campaign. It is worth allocating a sufficient amount so that potential customers know about the upcoming opening, so you need to start advertising your home improvement store in advance, even before it opens.

You need to think over a loyalty program for regular customers in advance, order discount cards. You can coincide with the opening of the store a free distribution of loyalty cards, and then issue them after a purchase for a certain amount.

The production of building materials in Russia demonstrates sustainable development. In the manufacturing industry of the country, this direction occupies the fourth or fifth position, sharing it with the light industry, but giving way to mechanical engineering, electric power, and the food industry.

At the same time, fluctuations in demand for building materials are subject to the same factors that affect the rate of GDP growth. The last years have been characterized by a negative trend - a slowdown in its growth. After the “take-off” of the dynamics of GDP growth 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 effect on the sale of building materials in general.

Building material stores are part of the building infrastructure

The question of how to open a building materials store is very relevant, because small miscalculations are fraught with high costs. The challenges of the economic crisis are forcing businessmen in this industry to build their relationships with suppliers more clearly, to analyze consumption pragmatically and to carefully check their strategy on the market with the conjuncture.

On the other hand, the desire of people to improve their living conditions, to build new trade and industrial buildings for various businesses is eternal. Therefore, entrepreneurship in the form of a building materials store continues to be promising. Although it should be admitted that the profitability of such a direction of trade is not the highest among the alternative ones. Its effectiveness is largely determined by competently delivered management that is in line with the business plan.

What should you worry about before opening a building materials store? What factors determine how profitable a business will be? Answering these questions, we can single out several positions, the proper execution of which contributes to commercial success: the location of the store, the characteristics of the premises, the level of cooperation with suppliers, the degree of advertising support for the supplied goods, the qualifications of the personnel, and, finally, the general level of work organization.

A well-balanced business plan for a building materials store plays an important role in the efficiency of selling materials for construction. What trade outlet is it advisable to open? Let's figure it out. According to statistics, there are about 1,500 hardware stores operating in Moscow. Among them, four typical forms can be distinguished. But this will be discussed later. Let's start by asking where the store should be located.

Place for a building materials store

The most important organizational factor influencing the success of the sale of building materials is the convenience of shipment of goods to buyers who arrived in their vehicles, including trucks. (As you yourself understand, a building materials store is not a bakery: you can't take a purchase in a string bag by whistling.)

The above is the most critical for building supermarkets. However, one cannot say that mini-stores are insensitive to the convenience of shipping. Potential customer visits will be maximized if your building materials business is versatile and located close to major transport routes, the store has convenient entrances and a well-planned parking lot - a loading area for customers' cars.

Having found a good place, we will decide on the type of premises.

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 major repairs. Mandatory requirements should be recognized as the absence of dampness, good ventilation, illumination.

Not only commercial equipment for a building materials store should be inexpensive. The "rule of the genre" is economical renovation. Neat finishing with modern inexpensive building materials is preferable for store premises. $ 10 per square meter of painted plasterboard walls is fine. It is better to direct the saved funds into 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 the principles of interaction? Smart tactics on the part of the store are important here.

A supermarket for full-fledged filling with materials used in construction must cooperate with 90-150 suppliers. And all of them are 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 a deferred payment. Then, clearly and unswervingly following the partnership principles, he agrees to receive building materials for sale.

There is simply no other way. You won't work for a long time on 100% prepayment with all suppliers. In addition, the latter, realizing the stability of the work of the building materials store as their partner, are also interested in the efficiency of the functioning of its finances. In short, compromises are possible here.

Mini Stores

Mini-shops cover an area of ​​up to 100 m 2. In their trading floor, 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, but newcomers to this business, not wanting to risk big money, begin to gradually pour their capital into the industry, having “trained” first at a mini-store and prepared the backbone of personnel for the future supermarket there. Therefore, the question of how to open a building materials store from scratch is relevant.

The global economic crisis has had a negative impact on the construction industry. However, despite a significant reduction in construction volumes, there is a stable demand for construction materials and related products. In order to identify the relevance of this direction, a businessman needs to carefully analyze the current state of the market. Only after the nature of consumer desires has been determined and competitors are assessed, it is possible to start developing a business model for the future enterprise. Below, we propose to discuss the question of how to open a hardware store from scratch.

The hardware store is one of the most demanded and profitable types of business.

The relevance of the construction business

A detailed analysis of the selected market segment allows an entrepreneur to assess the level of demand for his idea. According to statistics, today there is a high growth rate in the area under consideration. The increased demand for building materials is due to the growing number of new buildings, shopping malls and other construction projects. Based on this fact, we can conclude that this direction is practically not tied to economic conditions. To create a successful business, an entrepreneur needs to take care of the formation of an initial customer base and product range. Particular attention should be paid to various organizational issues related to the opening of a retail outlet.

At the stage of preparation, the future businessman needs to decide on the format of trade. Taking an early decision, the entrepreneur gets the opportunity to study in advance all the subtleties of future activities. In case of insufficient funds to open a large retail outlet, it is recommended to start with a highly specialized store. This choice will allow you to build up the main customer base, which will be a kind of advertising for the store. In order to get positive reviews and reputation, an entrepreneur needs to choose only high-quality materials to form a product line. This factor contributes to the launch of word of mouth, the effectiveness of which exceeds the effectiveness of many classic marketing tools.

It is important to understand that people who want to purchase building materials are not limited in their choice of stores. In order for a potential client to choose an entrepreneur's store, it will be necessary to develop several different methods of dealing with competitors.

It is possible to attract customers only through low prices, high-quality goods or exclusive products, which other merchants do not have.

Before starting to create a business, the future store owner needs to carefully study the specifics of his city. Choosing a location where several firms working in a similar direction are already operating requires the development of a special marketing strategy based on low prices. In this case, it is possible to increase the profitability of the business only due to large client traffic. For this purpose, it is best to choose crowded points of the city with a high level of traffic. The availability of the store will be one of those advantages that will force potential customers to turn to this particular point.

It is recommended to evaluate the work of competitors taking into account the chosen concept and format. Today there are three main areas, each of which has its own unique specifics. Let's take a look at the features of each of the formats:

1. Wholesale and retail sales. This business format is more attractive for those entrepreneurs who have their own production. The presence of a workshop can significantly reduce the size of the initial investment. As a rule, such points are located near the central markets. For the implementation of this project, a property with a large area will be required, where various goods will be exhibited. The value of the mark-up for the assortment varies from fifteen to forty percent. The main advantage of this area is the ability to interact with both ordinary customers and construction companies that will purchase goods in large quantities.
2. Highly specialized store. According to experts in the field of marketing, this trading format has lost its relevance. Typically, these stores specialize in two or three product groups, in the form of different types of cement, primer or paint. It is important to note that this format of commercial activity has a high risk of loss.
3. General store. The assortment presented in such stores includes several hundred headings. One of the advantages of this format is the relatively low threshold for entering the business. Even with a small amount of money, a competent businessman can organize a profitable and successful project.

People carry out construction work almost always: when there is enough finance, they start new construction, when there is a crisis in the yard, they repair what has already been built

Business plan for opening a building materials store

When drawing up a business plan for a hardware store, it is very important to pay special attention to small details.... This applies to both the determination of the organizational status of the future business and the formation of the assortment. Attention to detail will significantly reduce organizational costs and accelerate the pace of project implementation.

Registration procedure

At this stage, the future businessman needs to make a choice between the status of a legal entity and a private entrepreneur. This choice should take into account the format and scale of the business being created. If you want to open a small retail store, it is enough to register as an individual entrepreneur. To open a retail network or a large supermarket, you will need to create a limited liability company.

One of the important points of the registration procedure is the choice of codes of economic activity. In the case of a hardware store, it is recommended to select the code "47.52". The use of this cipher allows the entrepreneur to engage in the retail sale of paints and varnishes, hardware and glass. As additional codes, it is recommended to select those values ​​that correspond to the specifics of the selected format.

Choosing a suitable room

Before starting to search for real estate, an entrepreneur needs to carefully study a number of basic parameters with which the selection of specific objects is carried out. The most optimal location is the construction market. In addition, you can choose one of the areas where new residential buildings are being actively built. When choosing a specific point, you need to take into account both the location of competitors and the availability of parking spaces. These actions will help to significantly increase the flow of customers who will buy building materials in large quantities. It is very important that cargo vans and cars can drive up to the selected location. Typically, these properties can be found closer to the city outskirts.

You should also highlight the lack of strict requirements for the room itself. The only requirement of the control authorities is the removal of real estate from the housing stock. To organize an average store, you will need an area of ​​more than one hundred and fifty square meters. Another advantage of this direction is the possibility of refusing to carry out repair work. In order to start work, it is enough to bring the premises into compliance with the SES standards.

The store will be in demand regardless of whether you plan to open it in a small or large city

Equipment purchase

Shop equipment is essential. Not every buyer will want to purchase goods at those points where it is difficult to find products of interest on their own. From this we can conclude that the presence of trade equipment designed for displaying goods is one of the mandatory requirements. To get started, you will need to purchase several demonstration podiums and tables, racks and shelves.

The business plan for a store of finishing materials should contain information about the total cost of purchasing commercial equipment. To acquire all of the above equipment, you will need to spend from one hundred to one hundred and fifty thousand. The rest of the necessary equipment can be purchased after opening a point and making adjustments to the product line.

Product range

To organize a multi-profile store, you will need to conclude agreements with several sales representatives, which will be able to provide all the necessary products. It is very important to find suppliers who can handle high volumes. You also need to understand that not all companies will want to cooperate with newcomers.

The initial assortment should include about five hundred different products. At this stage, it is recommended to select exclusively demanded product groups. Attempts to experiment with assortment can lead to the appearance of the first losses. The initial product line should include paints and varnishes, adhesives and finishing materials, as well as fasteners. In addition, you will need to purchase consumables (sandpaper, grout, etc.), as well as construction equipment.

Product display also plays a significant role. Each product group must be visible from anywhere in the sales area. Many experts in this area recommend using the widest possible range. During the first months of work, the entrepreneur must carefully study consumer demand to identify the products in demand. It is very important that each product group is represented by several products from different price categories. This step will allow you to interact with both highly paying customers and those people who wish to purchase low-cost products.

Before opening your own hardware store, it is worthwhile to monitor the region and see how developed the construction industry is.

Hiring

Service quality is one of those advantages that allows you to win the competition. First-class service creates a large customer base. Every person hired as a seller must know all the characteristics of the presented goods and have knowledge in the construction industry. The issue related to the construction of the work schedule deserves special attention. Typically, hardware stores are open twelve hours a day, seven days a week. To work in such a mode, you will need several salesmen working in shifts.

To improve trading efficiency, it is necessary to introduce a bonus payment system. A certain percentage of total sales must be added to the established salary. Such an approach guarantees decency, accuracy and accurate performance of their duties on the part of employees.

Marketing and advertising

When developing a marketing strategy, it is necessary to determine in advance what advertising tools will be used to promote the project. ... It is necessary to start an advertising campaign several months before the opening of a retail outlet... The best results are given by advertising banners placed along busy streets. In addition, advertisements on cars can be ordered. The involvement of the media is relevant only for large metropolitan areas. In the provinces, this advertising tool will not bring the desired result.

It is very important to pre-develop a program of bonuses and discounts for regular customers. The distribution of discount cards can be organized on the opening day of the outlet. In addition to the initial advertising costs, you should consider the monthly costs aimed at maintaining the results obtained.

The financial analysis

When conducting a financial analysis, it is very important to consider the format of the store and its location. The costs of passing the registration procedure vary from ten to twenty thousand rubles. You should also take into account the cost of purchasing trading equipment and starter assortment. The size of this article can reach two hundred thousand rubles. Another fifty thousand will be required for repair work and preparation of the premises.

The largest item of monthly expenses is the rental of real estate. The cost of the monthly rental of premises that meets all the necessary requirements is about thirty thousand rubles. You should also take into account the costs of forming a salary fund, paying taxes and replenishing the range. The total amount of monthly expenses can reach three hundred thousand rubles.

In order to calculate the profitability of a given enterprise, it is necessary to take into account the value of the commodity margin. Setting a forty-five percent mark-up allows you to receive revenue in the amount of three hundred and fifty thousand rubles. In this case, the entrepreneur's net income will be only fifty thousand. Based on these calculations, we can conclude that the payback period of the project will be about three years. However, in practice, there is a significantly higher level of profit, which allows you to recoup your capital within eighteen months.

The target audience of a hardware store, as a rule, includes several groups of potential consumers at once.

Taxation

In order to determine the optimal form of taxation, it is necessary to take into account both the specifics of trading activities and the legal status. Individual entrepreneurs are encouraged to use a single tax on imputed income. The use of this regime can significantly reduce the impact of the tax burden on a developing business.

In the case of LLC, it is more expedient to use a simplified taxation regime according to the “income minus expenses” system. Selecting this mode allows you to calculate the taxable base on the basis of net income.

What to make a mark-up for building materials

As we have already noted above, the level of the commodity mark-up for building materials varies from fifteen to fifty percent. However, when developing a pricing policy, it is very important to take into account several nuances. One of these nuances is the economic characteristics of the region. You need to understand that elite products intended for people with high incomes will remain unclaimed in small provinces.

Another important factor is the cost of products from competitors. In order to entice their customers, it is necessary to set prices a few percent lower than in the stores of opponents.

What to do with competitors

When creating a general-purpose construction store, an entrepreneur needs to be ready to compete with large retail chains. The only way to get large customer traffic is through the availability of highly specialized products. In order to introduce such products into the assortment, you will need competent sellers who know all the features of the products presented.

Another important advantage of small shops is their convenient location. Many large shopping centers are located closer to the outskirts of the city, which can be inconvenient for most customers. Another way to win the competition is to cooperate with large clients in the form of construction companies. The conclusion of such contracts can significantly increase the profitability of the business.

The amount of investment in a hardware store will depend on the format in which you open

Conclusions (+ video)

In this article, we examined the question of how to open a building materials store from scratch. In order to master this market, an entrepreneur needs a well-developed business plan, built taking into account all the subtleties and nuances of this area. The presence of a step-by-step guide greatly simplifies the implementation of the project and prevents the emergence of possible risks.