How to open a hardware store from scratch. Business idea: trade in building materials. How to start your own business

• Capital investments: 800,000 rubles,
• Average monthly revenue: 450,000 rubles,
• Net profit: 65 414 rubles,
• Payback: 12.3 months!

According to a study carried out by ABARUS Market Research, the Russian construction materials retail market is at an early stage of development in comparison with the Western one. At the same time, the annual growth rate is 20%. In 2007, the volume of the retail market for household goods and repairs amounted to more than $ 14 billion in Russia. In 2011, the market volume was about $ 17 billion, and by 2020 the market volume will be about $ 30-35 billion. (expert opinion).

About 80-90% of the construction market volume falls on large network companies(both Russian and foreign), and the rest of the market is divided between single stores, small retail chains(regional). Taking into account the fact that several new foreign players are planning to enter the Russian market, as well as taking into account the plans to expand the existing federal chains, the market share of “single stores” will decrease.

In connection with the above, small stores cannot compete with federal retail retailers either in prices or in the range of products offered.

But if you want to start a business in the building materials retail segment, you can try to open a small outlet in the "At Home" format.

This type of store has the following advantages:

1. The ability to open a store in an area where federal chains will not enter due to the impossibility of obtaining large turnovers.
2. A special assortment of the presented goods and an individual approach to the buyer.

1. Organization of retail trade in building materials

1.1. Premises

The premises in which it is planned to open a retail construction store in a neighborhood format must meet the following criteria:

• Area 30-50 sq.m.
• The premises should be located in a residential area, within walking distance for buyers.
• Lack of other shops selling building materials in the immediate vicinity.

1.2. Equipment

The choice of equipment can be approached quite freely, so to reduce the cost of purchasing equipment, part of the racks and shelves for goods can be made by hand, and part of the equipment can be bought used

1.3. Staff

The store must work 7 days a week, the operating hours are from 9.00 to 20.00 for these purposes, it is necessary that there are 2 sellers in the staff. (work in shifts, two in two)

1.4. Range

During repairs, it often happens that there was not enough glue for wallpaper, a hacksaw for metal broke, there were not enough nails, the glue disappeared somewhere, the neighbor took the screwdriver and did not return it. The buyer is not interested in going to a construction hypermarket for such small things, all this, he is ready to buy next to the house, even at a higher price, in this regard, all this should be presented in an assortment.

Approximate assortment of the store:

• Consumables for tools
• Mounting glue
• Wallpaper glue
• Nails, dowels, bolts, etc.
• Building tools
• other related goods.

For optimal performance the range of products sold should be about 300 items.

1.5. Suppliers

The choice of suppliers should be carried out from the wholesale companies operating in the region. These companies themselves are engaged in the delivery of products to the store, with long-term work with them, it is possible to provide a deferred payment.

Replenishment of stock and assortment must be carried out on a weekly basis.

2. Feasibility studies

2.1. Opening capital costs

To maintain the assortment and uninterrupted trade, the inventory should be at least two monthly receipts (in purchase prices), and the optimal balance should be 2.5-3 monthly receipts.

2.2. Revenue

The revenue of a small (up to 50 sq.m.) construction store in the "Near the house" format located in a densely populated residential area, with a well-chosen assortment, as well as in the absence of competitors at the nearest distance, is about 400-500 thousand rubles. per month.

To calculate payback and profitability, the amount of monthly revenue was 400 thousand rubles.

2.3. Cost price

The mark-up on the products sold is 50-80%, depending on the product, for calculations they took an average mark-up of 60%

2.4. General expenses

2.5. Calculating the profitability of a building materials store

2.6. Payback calculation

3. Organizational issues

3.1. Organizational form

The optimal organizational and legal form is individual entrepreneur.

3.2. Tax system

* Calculations are based on average data for Russia

1. SUMMARY OF THE PROJECT

The goal of the project is to open a construction store for retail sale building materials in a city with a population of over 1 million people. The target audience of the hardware store are retail buyers, 60% of whom are the male population of the city aged 23 to 65, as well as wholesale buyers represented by construction and assembly teams with whom cooperation agreements have been concluded.

To implement the project, a retail space of 200 m2 is leased, located on the central street of the residential area of ​​the city, in the immediate vicinity of residential buildings. The sales area is 130 m2.

The initial investment is 1,408,000 rubles. Investment costs are aimed at the purchase of equipment, the initial purchase of goods and the formation of working capital, due to which losses of the initial periods will be covered. The main part of the required investments falls on commodity stocks - 50%. Own funds will be used to implement the project.

The financial calculations cover the five-year period of the project. According to the calculations, the initial investment will pay off in the fifteenth month of operation. The industry average value of the payback indicator is 10-18 months. The monthly net profit of the project is about 120,000 rubles. For the first year of the project, the net profit will amount to 1,082,000 rubles.

Table 1. Key performance indicators of the project

2. DESCRIPTION OF THE INDUSTRY

The dynamic development of the construction industry and the real estate market in Russia has led to a high demand for building materials. This trend was accompanied by an active growth in the number of home improvement stores and hypermarkets. The building materials market grew by 20% annually and reached a volume of $ 1.46 trillion by 2015. rubles. The trend changed in 2016 against the backdrop of a general economic downturn, when household incomes fell by 6.5% and residential real estate commissioned by 9%. In 2015, a record was recorded for last years fall of the construction market finishing materials- eleven%. At the end of 2016, the market volume amounted to 1.068 trillion. rubles. However, when compared with other segments, the building materials market, with a 5% decline, does not feel so bad - for example, the food segment sank by 10%.

The dynamics of retail trade in construction and finishing materials has also been subject to decline in the past two years. The most vulnerable were materials for construction and rough finishing - a decrease of 16.7%. The market of finishing materials showed itself the most stable, having decreased by only 0.3%. In other words, less construction has begun in Russia, but repair work has not been abandoned.

Figure 1 - Turnover of retail trade in construction and finishing materials

According to forecasts, the market for construction and finishing materials will be able to return to its previous volume no earlier than 2018. The recovery will begin in 2017, but it will be quite slow - only 2-3% per year, which is explained by the significantly reduced purchasing power of the population and the falling business activity. During this time, small and ineffective players will leave the segment, while large construction retailers will maintain their volume at the same level.

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Today, there are more than 1000 universal and specialized chains of construction stores on the market, while the top 10 largest retailers account for almost 25% of the market. The 2014-2015 crisis consolidated the success of large construction retailers. Strengthening competition in the market and intensified regional expansion of market leaders led to a decrease in traffic and a deterioration in the financial condition of other Russian retailers. The difficulty of competing with construction hypermarkets lies in their aggressive pricing policy and a wide range of products covering all stages of construction and renovation. In this regard, since 2015, among construction stores, there has been a tendency to change the structure of the assortment with the replacement of building materials with goods for the home.

Thus, opening a hardware store has its advantages and disadvantages. The main advantage is the high demand for the product, which guarantees a stable income. According to statistics, the average family in Russia makes repairs every 5-7 years. This does not include purchases to maintain repairs. The profitability of a hardware store can be 30-32%, depending on the margin on goods.

The challenges of doing business include:

Strong competition in the industry. The market will have to compete not only with small retail outlets, but also with construction hypermarkets, which can offer the consumer a wide range and more low prices;

Price policy. It is necessary to establish an optimal price for goods, since overpriced prices will scare off potential customers, and too low prices will not allow a business to be recouped. The best option is the analysis pricing policy competitors and a 2% price cut;

The need to provide a wide range of products that will interest the consumer. First, it's worth important task to form the assortment correctly, taking into account the preferences of the target audience. Secondly, it becomes necessary to establish contacts with a large number of suppliers and choose the most suitable ones;

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Seasonality of sales. Statistics show that the peak of retail sales was recorded in the spring and autumn months, summer sales are 70-80%, and winter - 50-60% of the maximum. Moreover, the seasonality is also observed for certain commodity items, which is why a wide range of a hardware store is important.

3. DESCRIPTION OF GOODS AND SERVICES

This project involves the opening of a construction store for the retail sale of building materials. The store is positioned as a small construction supermarket “near the house”. For a store of this sales format, you should rely on expendable materials used in repair work(fasteners, paints and varnishes, adhesives, Building tools).

Based on the format of the store, its assortment is determined, which includes the following product groups:

paints and varnishes (paints for interior and exterior works, primers, impregnations, varnishes and coatings for various materials, as well as rollers, brushes);

building mixtures, cement, primer, putty, alabaster, etc .;

polyurethane foam, sealant, liquid nails, assembly glue;

ironmongery of various modifications and sizes, nails, screws,

wallpaper. This group goods must be presented wide assortment to meet the tastes and requirements of different consumers. Related products include adhesives, brushes, and more;

floor coverings (laminate, linoleum, carpet, parquet and related products in the form of fasteners, underlays, baseboards, etc.);

construction tools (rollers, spatulas, hammers, nail pullers, drills, screwdrivers, etc.).

Before you form an assortment, you should conduct a thorough analysis of the market, suppliers and assortment of competing stores. This will allow you to determine consumer demand and select products in such a way as to create a unique offer in the market. A competent approach to the selection of the assortment will allow you to avoid excess inventory, reduce the likelihood of illiquid assets, increase turnover, form competitive advantages and attract a potential buyer.

When forming an assortment for a hardware store, the following recommendations must be taken into account:

it is desirable that each product group be represented by several manufacturers in different price categories. At the same time, goods of average price segment must be at least 60% of the total range;

choose reliable, high-quality suppliers, since the reputation of the store depends on it;

when choosing suppliers, also pay attention to whether they are presented in other stores. Unique offers on the market will attract buyers;

if some product is not in demand, its stocks should be reduced, but not excluded from the assortment completely

The store will operate in a self-service format. As practice shows, such a system contributes to the growth of sales. The products in the store will be categorized for convenience. A consultant is provided for each department.

Thus, the construction supermarket, which is envisaged in this project, has the following competitive advantages:

customer-friendly location. Construction hypermarkets are usually located outside the city, which is not always convenient for buyers. Hardware stores that are within walking distance are, in certain cases, the most attractive option;

variability of the assortment. It is planned that the assortment range will be presented not only by goods popular manufacturers but also less common brands that create a unique offer.

customer loyalty system. On this moment not many home improvement stores pay attention to customer acquisition policies. This store will provide a system of discounts for regular customers.

4. SALES AND MARKETING

The target audience of the hardware store is retail buyers, 60% of whom are the male population of the city aged 23 to 65 years. Another group of consumers are corporate clients represented by construction and erection teams, with whom contracts are concluded and work is carried out on the invoicing system.

Advertising for a hardware store can be divided into two types - passive and active. Passive advertising includes signs, banners, pillars, etc. Active advertising involves distributing leaflets, distributing business cards, articles in specialized publications, advertising on radio and television. Another effective advertising tool is cooperation with repair and construction companies and teams. They will bring customers to the store and purchase building materials, and the seller will give a percentage of the sales of attracted customers.

Since there is a lot of competition in the segment, it is necessary to carefully consider the advertising strategy. The most effective forms of advertising for this project are considered: advertising in elevators, distributing leaflets, placing a bright sign. It is important to note that the sign should be on the front of the store building and be clearly visible from the road when moving in any direction.

Competent design of the sales area is important element marketing strategy. It is necessary to provide for convenient navigation in the store and place the goods in such a way that each position is visible to the buyer. Marketers have long established that the correct layout of goods in stores largely creates demand and allows you to increase sales by 10-15%. The placement of items such as wallpaper, flooring and other decoration materials is especially important. The basics of merchandising for home improvement stores stipulate the following rules:

classification of the placement of the entire presented range of products; separation of large and small-sized goods;

competent placement in trading floor product groups in accordance with the localization of the main flows of buyers;

bulky goods should be placed around the perimeter of the store to improve the visibility of the sales area. If the area of ​​the store allows, then on the lower shelves under the demo sample, the goods are located. If the area of ​​the store is limited, then the issuance of large-sized products is carried out at the warehouse with the assistance of a sales assistant;

goods of small dimensions are placed accordingly with their classification and are presented in several copies, which attracts the attention of the buyer. To lay out such goods, racks with hooks and fasteners are used. Small, vulnerable goods are located in the area with good overview;

the main volume of finishing materials requires a special layout on special equipment: a showcase for wallpaper with rollers, demonstration stands. The most convenient grouping of wallpapers is by colors;

in the checkout area there are small-piece goods, consumer goods and related goods;

broadcasting of accompanying information, allowing customers to navigate in the trading floor;

efficient placement consultants in the trading floor.

This project provides for the following advertising tools:

distribution of leaflets with a 10% discount coupon for the first purchase - 5,000 rubles;

training of personnel in the basics of merchandising (for 2 people) - 25,000 rubles;

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It will take an average of 3 to 6 months to promote the store and reach the desired sales volumes - during this time, buyers have time to learn and get used to a new outlet.

When planning the volume of sales, one should take into account some seasonality of the construction business - the peak of sales occurs in the spring and autumn months, and the fall in sales is in the winter.

The planned sales volume is calculated based on the average check amount of 2,000 rubles and the number of buyers - 600 people per month. Thus, the average amount of revenue will be 1,200,000 rubles per month. It is planned to reach the declared sales volume in the ninth month of the store's operation, taking into account the seasonality of the business.

5. PRODUCTION PLAN

The implementation of this project includes the following stages:

1) Business registration. Building materials retail does not require any special permits.

To open a construction supermarket, you will need to collect a package of documents, which includes a sanitary and epidemiological conclusion from Rospotrebnadzor, permission fire inspection, regulatory documents for the store. It will also require contracts for the removal of solid waste, pest control and deratization of the premises.

To conduct commercial activities, an LLC is registered with a simplified taxation system (“income minus expenses” at a rate of 15%). Type of activity according to OKVED-2:

47.52 Retail sale of hardware, paints and varnishes and glass in specialized stores.

2) Choice of location. As for any institution dealing with retail, the parameter of the location of the hardware store plays an important role. The favorable location determines 70% of the success of the outlet.

The location assessment of a store takes into account such components as the characteristics of the area, ease of parking, the intensity of pedestrian traffic, visibility and noteworthiness, and proximity to similar businesses. The required store area is at least 100 m2. However, it all depends on the size of the store and the range of products.

As for the premises itself, the sales area should be square or rectangular, without unnecessary bends - this will make it more convenient to place showcases and make the most of the available space. The height of the ceilings should be at least 2.7 m. Two entrances should also be provided - for visitors and for loading goods. With a trading floor area of ​​100-150 m2, a warehouse will require 50-70 m2.

This project provides for the rental of premises in a residential area next to residential complexes. The location is beneficial as it covers a wide range of consumers, who are primarily residents of nearby houses. The presence of parking spaces and a convenient road access are also advantages of the site. Lease of commercial premises with total area 200 m2 on average costs about 130,000 rubles per month. It is planned that 130 m2 will be allocated for a sales area, 60 m2 for a warehouse, and 10 m2 for technical rooms.

3) Equipment of the sales area. The retail space should be well lit. The interior for a hardware store is quite simple and does not require large investments. An amount of 50,000 rubles is allocated for the repair of the premises.

The technical equipment of the home improvement store should support sales growth, ensure the productivity and return on trade, and meet safety requirements. In this regard, the sales area must be equipped with reliable lighting and ventilation equipment.

In addition, you should purchase commercial equipment - racks, showcases, cash counter, cash register. Since the store operates in a self-service format, several racks will be required on which the goods will be placed. For the initial stage, the store is equipped with two cash desks. Table 2 shows the main equipment costs, which are rubles.

Table 2. Equipment costs

4) Search for suppliers and purchase of goods. Suppliers should be sought in person by visiting wholesale bases city, or via the Internet. The first method is convenient because it is easier to agree on partnership terms during a personal conversation; the second is that you can save on transportation costs, reach a wide range of potential partners, find more favorable conditions and conclude contracts with suppliers not represented on the local market. It is recommended to use a mixed method of work with suppliers: to buy part of the goods at once, and take part for sale.

Having decided on the suppliers, you need to purchase goods for the store. Practice shows that for an average hardware store, about 700,000 rubles will be required to form the initial assortment. Based on the specifics of demand and the conditions of suppliers, it will be necessary to make additional purchases of goods. The main thing in this matter is to correctly calculate the required volume of goods in order to diversify the assortment, but to exclude oversaturation of product shelves.

5) Staff recruitment. The main personnel in the store are sales assistants. It is on them that the success of the trade largely depends. For a store with an area of ​​150 m2, four sales assistants, three cashiers and one manager will be enough.

Requirements for sales consultants: knowledge of construction products, the ability to unobtrusively offer their help and win over the client, organization, responsibility, politeness.

A shift work schedule is envisaged, in each shift there is one sales assistant and a cashier. Sales assistants are interchangeable personnel and can provide assistance to each other if necessary. The functions of a manager and an accountant are entrusted to the entrepreneur himself - this will save money in the first months of work.

Before starting work, personnel must undergo training, familiarizing themselves with the range of products, its characteristics and sales technology.

6. ORGANIZATIONAL PLAN

The preparatory stage lasts about two months, during which the registration procedures, the establishment of partnerships with suppliers, the search for suitable premises, the selection of personnel, the purchase of equipment and goods are provided.

In this project, the entrepreneur performs the main functions of a manager - he goes through all the registration procedures, is engaged in the selection of personnel, negotiates with landlords and suppliers, purchases goods, and is engaged in strategic promotion of the store. The manager organizes the workflow, supervises the work of sellers, accepts and recounts the goods and prepares the appropriate documentation.

Sales consultants and cashiers work in the store to carry out the trading process. Since the store is open daily, a 2/2 shift schedule should be established. The shift is a cashier serving a cash desk and two sales assistants working in the hall.

The store is open from 10:00 to 20:00. Based on these conditions, the staffing table is formed. The wage fund is 178,100 rubles.

Table 3. Staffing table and payroll

7. FINANCIAL PLAN

The financial plan takes into account all the income and expenses of the project, the planning horizon is 5 years.

To launch a project, you need to calculate the amount of investment. To do this, you need to decide on the costs of purchasing equipment, the initial purchase of goods and the formation of working capital, due to which losses of the initial periods will be covered. The initial investment for opening a hardware store is 1 408 000 rubles. The main part of the required investments falls on commodity stocks - their share is 50%; working capital accounts for 14%, purchase of equipment - 19%, rent of premises in the first month of store operation and renovation of premises - 13%, and the remaining 4% - for advertising and business registration. The project is financed with equity capital. The main items of investment costs are shown in Table 4.

Table 4. Investment costs

Variable costs consist of the cost of purchasing goods. To simplify financial calculations variable costs calculated based on the average bill and a fixed trade margin of 75%.

Fixed costs consist of rent, utility bills, fund wages, advertising costs and depreciation charges. The amount of depreciation deductions is determined on a straight-line basis, based on the useful life of fixed assets of 5 years. Fixed costs also include tax deductions, which are not presented in this table, since their amount is not fixed, but depends on the volume of revenue.

Table 5. Fixed costs

Thus, fixed monthly expenses were determined in the amount of 339,500 rubles.

8. EVALUATION OF PERFORMANCE

The payback period of the project with an initial investment of 1,408,000 rubles is 15 months. The project's net monthly profit when reaching the planned sales volume is about 148,000 rubles. Achievement of the planned sales volume is planned for the ninth month of operation, taking into account the seasonality of sales.

The net present value is positive and equals 254,897 rubles, which allows us to speak about the investment attractiveness of the project. The return on investment ratio is 10.71%, the internal rate of return exceeds the discount rate and is equal to 8.03%.

9. POSSIBLE RISKS

To assess the risk component of the project, it is necessary to analyze the external and internal factors. The specifics of the institution determines the following risks of activity:

increase in purchase prices for goods, unscrupulous suppliers. In the first case, there is a risk of increased costs and, as a result, the selling price, which may negatively affect demand. In the second case, the risk is associated with interruptions in the trading process due to a shortage of goods. It is possible to reduce the likelihood of these threats with the right choice of suppliers and the inclusion of all necessary conditions that provide for the supplier's financial liability in case of their violation;

insufficient level of demand. First, the demand for building materials is highly seasonal; secondly, it is closely interconnected with the economic situation in the country. In this regard, the risk of a low level of demand is one of the most probable and may arise both due to the low solvency of demand and because of high distribution costs. It is possible to reduce the risk with careful planning of the store's activities and financial results, competent choice of retail space, holding various promotions and discounts, encouraging repeat purchases, flexible pricing;

the reaction of competitors. Since the building materials market is quite saturated and competitive, the behavior of competitors can have a strong influence. To minimize it, you need to create your own customer base, constant monitoring of the market, the presence of a customer loyalty program and the formation of competitive advantages;

property risks. This category includes risks associated with damage and theft of goods. The likelihood of this risk is increased by the self-service system. To minimize the threat, the seller-consultant will check the goods that enter the store, control the situation in the trading floor;

refusal to lease premises or increase in the cost of rent. Since location is one of the most important parameters for trading, the loss of space is fraught with large losses. To reduce this risk, it is necessary to conclude a long-term lease agreement and carefully choose a landlord;

problems with personnel, which mean low qualifications, staff turnover, lack of employee motivation. The easiest way to mitigate this risk is at the recruiting stage, by hiring employees who meet all the requirements. It is also worth providing for premium motivation of employees;

deterioration of the store's reputation in the circle of the target audience in case of mistakes in management or a decrease in the quality of services. It is possible to mitigate the risk with constant monitoring of the quality of goods and services, receiving feedback from store customers and taking corrective measures.

10. APPENDICES

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Trading is one of the most common business options for aspiring entrepreneurs. Experts note that every tenth person, when asked what type of business he considers the most promising, answers - the sale of building materials.

There is a rational grain in this, because each of us at least once in his life bought materials for construction and repair: drywall, tile, laminate, all kinds of fasteners, etc.
Moreover, the general hustle and bustle makes one think that the overwhelming majority of stores of this profile still bring decent profits. Is it really? Let's look at the nuances of organizing a building materials business.

Classification of building materials stores

Today, both large store chains and private traders in the markets are engaged in the sale of this type of product. Depending on the scale of the business, points are conditionally divided into the following types:

• Pavilions with an area of ​​60-70 sq. m. The assortment is represented by 15-20 product names of a narrow range of applications (plumbing, floor coverings, finishing materials).
• Full-fledged shops 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 shops with retail space (700-1200 sq. M.) And warehouse(1500-2000 sq. M.). The range of such stores reaches 20 thousand items.
• Hangar premises. As a rule, in such shops there is no decoration, they are more like a covered market.

Choosing a place for a building materials store

Without describing banal phrases, we can make a recommendation to build on our financial capabilities. For example, to open a small store with an area of ​​80-100 sq. m will have to spend at least 10 thousand dollars. Practice shows that such a business format in modern realities not cost effective. The maximum that he can cover is the salary of the staff. It turns out that there is no point in attracting investments in such a project, and if you have your own money, it is better to invest it in something more profitable.

If we consider the opening of 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 - 4-5 thousand dollars.

This is the most profitable way to build a business. As a rule, in such stores, a person can buy everything he needs for repairs. Here you can build a competent system of discounts, arrange delivery.

The most promising place to open a building materials store is near busy roads and not far from construction sites.

You should not consider options on the first floor of a residential building. Sale of a number of goods ( paints and varnishes) is prohibited in housing facilities.

Another important question - rent or buy premises? Practitioners argue that you can try the option of lease with subsequent purchase if the business is "trampled". Buying premises is not the most rational option, because if problems begin with the business, another problem will surely arise - the sale of working capital.

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Suppliers of goods

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 go for options with a delay or transfer of goods for sale. In the beginning, it is unlikely that it will be possible to take more than 30% of the goods for sale; as the business develops, the volume can grow to 60%.

It is quite difficult for a novice entrepreneur to guess with a stock. Large chains buy goods for the warehouse, the quantity of which is 2-3 times higher than the monthly turnover. This policy allows us to serve orders from large customers. If the inventory is low, supply disruptions may occur.

The immutable truth is that a person must live somewhere, which means that the construction of housing will never stop. And housing is dilapidated, which means that it needs to be repaired from time to time. At my entrance, only one of the newcomers is repairing it. The elevator is taken out of their building by the transportation of building materials. I go out to staircase, and then there are bags of cement, some cans and sheets of plywood or something else. Understanding people have long understood that the sale of building materials is in demand.

Recently, however, I often hear buyers' dissatisfaction with poor-quality building materials. Who does it depend on? Clear business from the sellers. I think that people's demands for the quality of building materials will continue to grow. Do you think who have been selling building materials for a long time are ready to improve the quality? I personally doubt it. Since they are already accustomed to high margins, and reduce their profits by supplying quality materials they are unlikely to be.

So much for a niche that you can safely enter. I will not say that the niche is simple, but demanded by a new approach. Times are changing, and people in this niche are in no hurry to change their views. You can start this business without investment, acting as an intermediary between customers and suppliers. Conduct a detailed analysis of the building materials market. If you seriously intend to enter this market, then one way or another it must be done. Make a list of all the manufacturers of building materials in your area, as well as all the vendors. I am sure that you will find flaws in both.

In our city, for example, bricks are transported from other cities, despite the fact that there is more than one brick factory in the city. What does this fact mean? So in your region there is not very quality supplier which can be replaced by a supplier from another region. The main thing is to find and negotiate prices. By gradually studying the needs of the market, you will have a complete picture of where and what to get and at what prices you can sell. The profit can also be calculated in advance.

Now directly sale of building materials as a process. I don’t know how this process is organized in your region, but my observations on our market indicate purely passive sales. The overwhelming majority of sellers place ads in newspapers and sit by the phone, waiting for a call with an order. Do you think you can use this moment? Definitely you can! You should go to active sales. We need several agents who would analyze the allotted territory for the occurrence of repairs or construction and immediately offer building materials with delivery.

It is worth noting that in the cities there are teams of builders who are engaged in. As a rule, suppliers have direct contact with the foremen and interest them in bonuses for the order. Explore this opportunity in your area. Your trump card as building materials. Do not forget about this when talking with the foreman. And it is worth explaining these details to customers. And if you can somehow prove the higher quality of your materials, then that will be critical.

Along with agents, it should be mandatory to create an online store of building materials, as society moves towards computerization. The sooner you start, the sooner you get results. Combining work “in the field” and on the Internet will yield results.

To increase profits, you can combine production of building materials and sale of building materials. For example, you can produce or paving slabs, and take all other items from suppliers. In any case, you will provide customers with building materials with delivery throughout the list.

An additional feature in your building materials business can be the sale of used building materials. In order to incorporate this topic into your business, you will need a constantly revolving database of demolition projects in your area. A team of "destroyers" is recruited and all recyclable building materials are collected from the destroyed buildings. Floor slabs are especially in demand.

My friend, who is directly involved in construction, once had a database of all hangar structures in the region. At any moment, he was ready to disassemble these hangars, translate them and build them again at the specified location. He suggested good price for these used hangars. It seems that his margin was not small at the same time.

At some point in development, your sale of building materials will require the creation of a site for their storage.

Do not forget that this activity is regulated by section 14 of the Rules for the sale of certain goods (Resolution No. 55 of 01/19/98 of the Government of the Russian Federation). This section deals with the peculiarities of the sale of building materials.

It is here that it is indicated how to sort the goods, how to sort and check the completeness, and then store. By adhering to the provisions of this decree, you will save yourself from problems.
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