What is the markup on building materials? Possible profit from a hardware store? Optimists and pessimists

Research on the construction business market has shown that even despite some recession 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 hardware store.

Upcoming opening costs:

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

So, it is clear that the initial costs will range from 750 thousand rubles. In addition, there are monthly expenses:

• employee salary 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 markup on a product, you should take into account competitors' prices and ensure that your prices are beneficial to customers. As a rule, the markup is about 45-65%.

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

Selection of premises

The right location for your store is at least half the battle.

Therefore, to open a store building materials from scratch you need to know the basic criteria that you should focus on when choosing the location of your future store.

An excellent choice would be the area of ​​new buildings. It is worth paying attention to the lack of competitors nearby, but at the same time a good place would be a location near construction market. Having parking in the immediate vicinity of the store will significantly increase your popularity among customers, because building materials often have significant weight. Therefore, not only parking is needed, but also good access roads for large vehicles. Nice place There will be a place in the nearest suburb, 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 the removal of the premises from the housing stock. It is desirable that the area of ​​the room is at least 150 square meters, because a smaller store will most likely become unprofitable.

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

Required Documentation

To legally conduct any business, it is necessary to formalize everything permits. The most important issue is the issue of registration of ownership.

You can register as an individual entrepreneurship (IP) or legal entity– society with limited liability(OOO).

The choice will depend, first of all, on the scope of the future business. If you are planning to open one small store, then an individual entrepreneur will be enough, but 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 a code for the All-Russian Classification of Types of Economic Activities (OKVED). For a hardware store, OKVED should choose from section 47.52 - retail trade in hardware, paints and varnishes and glass in specialized stores. There you can select one or more codes that suit the specifics of your store.

Selection of equipment and purchase of goods

What equipment to choose and what do you need to open a hardware store? If the store format is small, then inexpensive display cases, racks and shelves will be sufficient.

When purchasing goods for your store, you should focus on the main product groups:

• wallpaper and glue;
• dry construction mixtures;
• varnishes and paints;
• floor covering;
• plumbing;
• doors;
• construction tools;
• 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 opening a hardware store from scratch, you need to think through an advertising campaign. It is worth allocating a sufficient amount so that potential customers learn about the upcoming opening, so you need to start advertising your hardware store in advance, even before it opens.

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

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

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

About 80-90% of the construction market volume falls on large network companies(both Russian and foreign), and the remaining part of the market is divided between single stores and 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 plans to expand 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 retail trade segment of building materials, you can try to open a small retail outlet in the “Near-Home” format.

This type of store has the following advantages:

1. The opportunity to open a store in an area where federal chains will not enter due to the impossibility of obtaining large turnover.
2. A special range of products presented and an individual approach to the buyer.

1. Organization of retail trade in building materials

1.1. Room

The premises in which it is planned to open a retail hardware store in the convenience store 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 stores 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, some of the racks and shelves for goods can be made with your own hands, and some of the equipment can be bought used

1.3. Staff

The store must be open 7 days a week, operating hours from 9.00 to 20.00. For these purposes, it is necessary to have 2 sellers on staff. (work in shifts, two after two)

1.4. Assortment

During repairs, it often happens that there is not enough wallpaper glue, the hacksaw blade for metal is broken, there are not enough nails, the glue has 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; he is ready to buy all this close to home, even at a higher price; therefore, all this should be presented in an assortment.

Approximate assortment of the store:

• Consumables for tools
• Assembly adhesive
• Wallpaper glue
• Nails, dowels, bolts, etc.
• Construction tools
• other related products.

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

1.5. Suppliers

The choice of suppliers must be made from wholesale companies operating in the region. These companies themselves deliver products to the store; if you work with them for a long time, it is possible to provide a deferred payment.

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

2. Technical and economic calculations

2.1. Opening capital costs

To maintain the assortment and uninterrupted trade, inventory must be at least two months' revenue (at purchase prices), and the optimal balance is 2.5-3 months' revenue.

2.2. Revenue

The revenue of a small (up to 50 sq.m.) hardware store in the “At home” format, located in a densely populated residential area, with a well-chosen assortment, and also in the absence of competitors in the immediate vicinity, is about 400 -500 rubles. per month.

To calculate payback and profitability, the monthly revenue was taken as 400 thousand rubles.

2.3. Cost price

The markup on products sold is 50-80% depending on the product, for calculations we took an average markup 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

* The calculations use average data for Russia

1,220,000 ₽

Starting investments

473,000 ₽

133,000 ₽

Net profit

18 months

Payback period

Opening a building materials store means starting a profitable business that is in demand at any time. By investing about 1 million rubles, you can earn 150 thousand rubles monthly.

“Repairs cannot be completed, they can only be suspended” - worldly wisdom indicates one of the reasons why it is worth opening a hardware store. There will always be a demand for building materials: while some are building, others are repairing and vice versa. The development of the construction market in Russia contributes to the fact that a lot of people are building and renovating. Even if there is no need to carry out repair work in your home, nails, a hammer, a screwdriver, etc. will be useful in everyday life. Therefore, opening a hardware store from scratch is great idea For profitable business. To figure out how to start your own business and how much it will cost, we offer detailed guide, which will answer the basic questions of a novice entrepreneur.

1. Market overview

The dynamic development of the construction industry and the real estate market in Russia contributed to the growth in demand for building materials. This was accompanied by the emergence of new retail outlets - from small pavilions to construction hypermarkets. The building materials market increased by 20% annually.

Today, there are more than a thousand general and specialized chains of construction stores on the market, with the top 10 largest retailers accounting for almost 25% of the market. The 2014-2015 crisis consolidated the success of large construction stores. Increased competition in the market and the regional leadership of large market players led to the fact that other construction stores faced problems: a reduction in sales and, as a result, a deterioration in their financial condition.

The difficulty of competing with construction hypermarkets lies in their aggressive pricing policy and wide assortment, covering all stages of construction and renovation. When planning a purchase, a potential client is inclined to choose a large shopping center. There are many reasons. This includes a wide range of products, lower prices, the ability to buy everything you need at one outlet, and service (consultations, delivery services, etc.).

However, there are situations in which the buyer would rather go to a small hardware store. This is the purchase of a small amount of building materials for cosmetic repairs, the replenishment of materials that ran out during the repair, small everyday issues, requiring urgent solutions. In this regard, since 2015, there has been a tendency among construction stores to change the assortment structure with the replacement of construction materials with household goods.

The decisive point in this area of ​​\u200b\u200btrade is the favorable location of the store. While large retail outlets occupying huge areas are forced to be located on the outskirts of the city, small hardware stores can open in a residential building, shopping center or at the local market. Therefore, despite high level competition in the building materials market, this direction may become profitable business. The main thing is to choose the location wisely and plan all the stages of opening a retail outlet.

Ready ideas for your business

Thus, a hardware store as a business 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 renovations every 5-7 years. This does not take into account purchases to maintain repairs. The profitability of a hardware store can be 30-32%, depending on the markup on goods.

Difficulties of business selling building materials:

Tough competition in the industry. In the market, you will have to compete not only with small retail outlets, but also with construction hypermarkets, which can offer consumers a wide range and lower prices;

Pricing policy. It is necessary to set the optimal price for goods, since inflated prices will scare off potential customers, and too low prices will not allow the business to recoup. The best option is to analyze pricing policy competitors and price reduction by 2%;

The need to provide a wide range of products to interest the consumer. First of all, it's worth important task correctly formulate the assortment, taking into account the preferences of the target audience. Secondly, there is a need to establish contacts with a large number of suppliers and select the most suitable ones;

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

2. Store format and assortment

As mentioned above, it is more rational for a novice entrepreneur to open a store in the “next door” format. Its scale can also be different: from a small pavilion with building materials to a supermarket. It all depends on the chosen place for trading and financial capabilities. We will look at how to open a hardware store, using the example of a small supermarket offering customers more than 100 product items.

For a store of this sales format, you should rely on consumables used in repair work (fasteners, paint and varnish products, adhesives, construction tools). Based on the format of the store, its assortment is determined, which should include the following categories of goods:

paint and varnish products (paints for interior and exterior work, 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, mounting adhesive;

hardware of various modifications and sizes, nails, screws,

wallpaper. This group products should be presented in a wide range to satisfy the tastes and requirements of different consumers. Related products include adhesives, brushes, etc.;

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

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

Before forming an assortment, you should conduct a thorough analysis of the market, suppliers and assortment of competing stores. This will allow us to determine consumer demand and select products in such a way as to create a unique offer on the market. Important! You will be of greatest interest to the buyer in two cases: if you can offer a unique product that is not on the market, or the same one, but at a more attractive price. The fact that it is close to home is also significant, but since building materials are not spontaneous purchases, you should not rely on this alone.

Basic recommendations for forming the assortment of a hardware store:

It is desirable that each group of goods be represented by several manufacturers in different price categories. At the same time, goods in the mid-price segment must make up at least 60% of the entire assortment;

choose proven, high-quality suppliers, since the store’s reputation depends on this;

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

If a product is not in demand, its stocks should be reduced, but not eliminated from the assortment completely.

It is also proposed that the store operate in a self-service format. As practice shows, such a system promotes sales growth. For this format, products should be divided into categories for convenience. A consultant is provided for each department (or related departments).

Advantages of a hardware store operating in a mini-market format:

convenient location for clients. Construction stores located within walking distance are, in certain cases, a more attractive option than hypermarkets located far from the city;

variety of assortment. The area and format of the store allows us to offer a wider range of products than in construction pavilions. Not only products from popular manufacturers can be presented here, but also less common brands. Construction hypermarkets usually work with certain brands and are not inclined to change suppliers. Smaller stores are more flexible and can work with a wide range of suppliers.

customer loyalty system. At the moment, not many construction stores pay attention to customer acquisition policies. You can correct this error and provide, for example, a system of discounts for regular customers.

3. Selection of location and premises

As with any retail establishment, the location of the hardware store plays an important role. A favorable location determines 70% of the success of a retail outlet. The store location assessment takes into account such parameters as area characteristics, ease of parking, intensity of pedestrian flow, visibility and remarkableness, and proximity to similar businesses. A good option There will be an area of ​​new buildings, as well as residential areas remote from large construction stores.

Ready ideas for your business

When choosing premises for a store, the question arises: should you rent a retail space or purchase it as your own? Entrepreneurs recommend not to rush into purchasing retail space and to work in rented premises for the first two years. If you make a mistake in choosing a retail outlet or things don’t work out, it will be much easier to simply vacate the rented space.

Requirements for the premises of a hardware store:

The required store area is at least 100 square meters. m. Otherwise, there is a risk that the store will be unprofitable.

The sales area should be square or rectangular in shape, without unnecessary bends - this will make it more convenient to place display cases and make the most efficient use of the available space.

The ceiling height must be at least 2.7 m.

There should be two entrances from the sales area - for visitors and for loading goods. With a sales area of ​​100-150 sq. m. for a warehouse you will need 50-70 sq.m.

Availability of heating, ventilation, air conditioning, water supply, sewerage, ventilation and electricity in the premises.

No special investments will be required in renovating the premises for a hardware store. It is enough that the room meets sanitary requirements, is dry, clean and well lit. Rent of retail space with a total area of ​​150 sq.m. on average it costs about 100,000 rubles per month. When dividing the rented area into premises for various purposes, you should allocate 100 sq.m. per sales area, 40 sq.m. for a warehouse and 10 sq.m. to technical premises.

4. Retail space equipment

The retail space should be well lit. The interior for a hardware store is quite simple and does not require large investments. However, when planning the project budget, repair costs should be included. One way or another, some minimal alteration of the rented premises will be required. Plan on at least 20,000 rubles for this type of expense.

When preparing a retail and warehouse area, there is no need for expensive finishing materials. The finished room should be bright, clean and dry. Make inexpensive cosmetic repairs and take care of good ventilation. This is all that is required from the premises for successful sales of your business. The technical equipment of a hardware store should contribute to the growth of sales, ensure productivity and profitability of trade, and meet safety regulations. In this regard, the sales area must be equipped with reliable lighting and ventilation equipment.

In addition, you should purchase commercial equipment - shelving, display cases, cash counter, cash register. Since the store operates in a self-service format, several shelves will be required on which the goods will be placed. For the initial stage, the store is equipped with two cash registers. However, the retail space should be zoned so that, if necessary, another cash register can be installed.

Equipment costs

5. Search for suppliers and purchase of goods

Suppliers should be sought in person, visiting wholesale centers in the city, or via the Internet. The first method is convenient because during a personal conversation it is easier to agree on partnership terms; the second is that you can save on transport costs, reach a wide range of potential partners, find more favorable conditions and enter into contracts with suppliers not represented in the local market. It is recommended to use a mixed method of working with suppliers: buy some of the goods immediately, and take some for sale.

Ready ideas for your business

Having decided on suppliers, you need to purchase goods for the store. Practice shows that for an average hardware store, the formation of the initial assortment will require 500-700 thousand rubles. Based on the specifics of demand and the conditions of suppliers, it will be necessary to purchase additional goods. The main thing in this matter is to correctly calculate the required volume of goods in order to diversify the assortment, but to avoid oversaturation of product shelves.

6. Recruitment

The main personnel in the store are sales assistants. The success of trading largely depends on them. For a store with an area of ​​100 sq.m. Four sales assistants, three cashiers and one manager will be enough. Requirements for sales consultants: knowledge of construction products, the ability to unobtrusively offer assistance and win over the client, organization, responsibility, politeness.

Since the hardware store operates seven days a week and is open for 12 hours: from 9:00 to 21:00, a shift schedule for staff should be provided. It is recommended that each shift have two sales assistants and a cashier. Sales consultants are interchangeable personnel and can assist each other if necessary. The functions of a manager and accountant can be delegated to employees, or assigned to the entrepreneur himself, which will save money in the first months of work.

In the future, it is recommended to introduce a separate position – purchasing manager. His responsibilities will include working with suppliers, creating an assortment of goods, drawing up a logistics chain for delivering goods, and developing a pricing strategy. Before starting work, personnel must undergo training, familiarizing themselves with the range of products, their characteristics and sales technology.

IN in this example the entrepreneur performs the basic functions of a manager - goes through everything registration procedures, is engaged in personnel selection, negotiates with landlords and suppliers, purchases goods, and is engaged in strategic promotion of the store. The manager organizes the work process, controls the work of sellers, accepts and recounts goods and draws up the relevant documentation.

The preparatory stage will take about two months, during which it will be necessary to complete registration procedures, establish partnerships with suppliers, search for suitable premises, select personnel, and purchase equipment and goods.

7. Advertising and promotion of a building materials store

The target audience of the construction store is retail buyers, 60% of which are the male population of the city aged 23 to 65 years. Another group of consumers are corporate clients represented by construction and installation 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, and 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 competition in the segment is quite high, it is necessary to carefully consider the advertising strategy. The most effective forms of advertising for this store format are considered to be advertising in elevators, distributing leaflets, and placing bright signs. It is important to note that the sign should be located on the facade of the store building and be clearly visible from the road when driving in any direction.

Proper design of the sales area is an important element marketing strategy. It is necessary to provide convenient navigation in the store and place the product in such a way that each item is visible to the buyer. Marketers have long established that proper display of goods in stores largely creates demand and allows an increase in sales volume by 10-15%. The placement of products such as wallpaper, flooring and other finishing materials is especially important.

Basic merchandising rules for hardware stores:

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

proper placement of product groups in the sales area in accordance with the locations of the main customer flows;

Large items should be placed around the perimeter of the store to improve visibility of the sales area. If the store space allows, then the product is located on the lower shelves under the demonstration sample. If the store area is limited, large-sized products are issued at the warehouse with the assistance of a sales consultant;

small-sized goods are placed according to their classification and are presented in several copies, which attracts the buyer’s attention. To display such goods, racks with hooks and fasteners are used. Small, vulnerable goods are located in an area with good visibility;

The main volume of finishing materials requires a special layout on special equipment: a display case for wallpaper with rollers, demonstration stands. The most convenient grouping of wallpaper is by color;

in the checkout area there are small-piece goods, goods of frequent demand and related products;

broadcast of accompanying information allowing customers to navigate the sales floor;

effective placement of consultants on the sales floor.

Thus, the cost of the starting advertising campaign will be 72,000 rubles. It will take an average of 3 to 6 months to promote the store and reach the desired sales volumes - during this time, customers have time to learn and get used to the new outlet.

8. Business registration

No special permits are required to conduct retail trade in building materials. To open a hardware store from scratch, you will need to collect a package of documents, which includes a sanitary and epidemiological conclusion from Rospotrebnadzor, permission from the fire inspection, regulatory documents to the store. Contracts for the removal of solid waste, disinfestation and deratization of the premises will also be required.

For reference commercial activities You can register an LLC or individual entrepreneur with a simplified taxation system (“income minus expenses” at a rate of 15%). The choice between an individual entrepreneur and an LLC will depend, first of all, on the scope of the future business. If you plan to open one small store, then an individual entrepreneur will be enough. If you plan to open a large construction supermarket or chain of stores, it is better to register an LLC. In this case, you need to select the type of activity according to the OKVED-2 classifier: 47.52 Retail trade in hardware, paints and varnishes and glass in specialized stores.

9. Expense planning

When planning expenses, you should divide them into three groups: initial investments, variable and fixed expenses. And now, in order.

Initial investment is the amount required to start a business. This includes all expenses incurred in the first stages of the project: from the cost of finding premises to the purchase of equipment and goods. The initial investment according to our example will be 1,220,000 rubles. Please note that the initial investment has been supplemented working capital, which will be spent on confirming the purchase of goods and covering expenses in the first months of work.

Initial costs

Variable expenses consist of the costs of purchasing goods, including their delivery. Fixed expenses consist of rent, utility bills, payroll, advertising costs, taxes and depreciation.

Fixed costs

10. Calculation of revenue and profit

When planning sales volumes, you should take into account some seasonality of the construction business - the peak of sales occurs in the spring and autumn months, and the decline in sales in the winter. The planned sales volume is calculated based on the average bill of 3,000 rubles and the number of customers - 400 people per month. With these parameters medium size revenue will be 1,200,000 rubles per month. It is possible to reach the declared sales volume in the fifth month of the store’s operation, taking into account the seasonality of the business.

How much can a hardware store earn?

We calculate based on the volume of revenue, a 65% markup on building materials and all the expenses indicated in the tables above.

Gross profit (revenue-cost): 1,200,000 –727,000 = 473,000 (rub.)

Profit before tax: 473,000 – 269,000 = 204,000 (rub.)

Net profit: 204,000 – (473,000 * 0.15) = 133,050 (rub.)

Of course, in the first months of work you should not expect such a profit, however, when you reach the planned sales volume, you can earn about 130 thousand rubles. per month. In this case, it will be possible to recoup the initial investment 1.5 years after the start. Please note that the calculations given are approximate. To get started successful business, you need to develop a business plan for opening a hardware store. This will allow you to assess the prospects for the development of such a business in a specific region, take into account the nuances of a specific project and competently plan each stage of implementation.

11. Risks

When planning a business, it is also worth considering the risks that an entrepreneur may encounter at different stages of the project. Its specificity determines the following operating risks:

increase in purchase prices for goods, unscrupulous suppliers. In the first case, there is a risk of increased costs and, as a consequence, the selling price, which may negatively affect demand. In the second case, the risk is associated with interruptions in the trade process due to a shortage of goods. It is possible to reduce the likelihood of these threats by choosing suppliers wisely and including in the contract all the necessary conditions that provide for financial liability of the supplier in case of their violation;

insufficient level of demand. Firstly, the demand for building materials has a pronounced seasonality; secondly, it is closely related to the economic situation in the country. In this regard, the risk of low demand is one of the most likely and can arise both due to low solvency of demand and high distribution costs. It is possible to reduce the risk by carefully planning the store’s activities and financial results, wisely choosing retail space, holding various promotions and discounts, stimulating repeat purchases, and flexible pricing;

competitors' reaction. Since the building materials market is quite saturated and highly competitive, the behavior of competitors can have a strong impact. To minimize it, it is necessary to create your own client base, constantly monitor the market, have a customer loyalty program and form competitive advantages;

property risks. This category includes risks associated with damage and theft of goods. Probability of occurrence given risk improves the self-service system. The threat can be minimized by having a sales consultant check the goods that arrive at the store and monitoring the situation on the sales floor;

refusal to provide rental premises or increase in rental costs. Since location is one of the most important parameters for trading, losing a location can result in large losses. To reduce this risk, it is necessary to enter into a long-term lease agreement and carefully select the landlord;

problems with personnelwhich means low qualifications, staff turnover, lack of employee motivation. The easiest way to reduce this risk is at the recruitment stage by hiring employees who meet all the requirements. It is also worth providing bonus motivation for employees;

a decrease in the store’s reputation among the target audience due to management errors or a decrease in the quality of services. It is possible to mitigate the risk by constantly monitoring the quality of goods and service, receiving feedback from store customers and taking corrective measures.

RESUME

Like any business, a hardware store has its advantages and disadvantages. The main advantage is the high demand for building materials. It is provided not only by those consumers who make repairs in new buildings, but also by residents who carry out repeated repairs. This means that one consumer visits the hardware store multiple times, which generates sales. Therefore, the hardware store has a lot of potential buyers.

The negative point is high competition in the market. It is especially difficult for small hardware stores to survive in the fight against chain hypermarkets. However, even under such conditions you can find your niche. A well-chosen assortment, active advertising, favorable location and loyalty to customers will help with this.

If you manage to win over your customers, the store can become profitable within 3-4 months after opening, and the initial investment will pay off in 1-1.5 years. A building materials store can earn about 1.5 million rubles. per year and become promising business, which has room to grow.

1003 people are studying this business today.

In 30 days, this business was viewed 212,625 times.

Calculator for calculating the profitability of this business

rent + salaries + utilities, etc. rub.

The sale of building materials as a business remains relevant even in times of crisis, which can be explained by the constant need of people to repair their property. Stores or other points of sale extremely rarely become unprofitable, breaking even in the first year after the start.

[Hide]

Services provided

Selling building materials as a business means selling the following groups of goods:

• siding and components;
• insulation;
• gutters;
• flooring;
• brick;
• extruded polystyrene foam;
• foam;
• drywall;
• forest, board;
• dry mixes (cement, putty);
• bulk (sand, crushed stone);
• roofing materials;
• dye;
• primer;
• sealant;
• foam;
• silicone;
• wall blocks;
• construction mesh;
• chain-link, sheet;
• screws and other fasteners.

The assortment of the store depends on the area of ​​the retail space. In this case, the owner must select at least 3 main lines of building materials for sale and order components for them. For example, when focusing on tiles, tile crosses and wedges should be presented as related products.

Relevance

The relevance of the chosen type of trade is due to the following:

1. In private houses and summer cottages, it is necessary to annually carry out work on plastering walls and sealing cracks (or other problematic areas).
2. When purchasing an apartment or other property, new property owners strive to improve their housing, taking into account their financial capabilities. It could be like major renovation with leveling the walls, and cosmetically - painting the existing wallpaper.
3. Continuous construction of housing by private companies and the state.
4. The desire and availability of funds to remodel or improve the appearance of an apartment or house, associated with improving the well-being of citizens.

The video analyzes the relevance of opening a building materials store and discusses the business idea itself. Taken from the Alexander channel.

Market description and analysis

The construction materials market in Russia can be characterized as follows:

1. According to research by independent consulting companies, the cost of imported materials has increased since 2015 (by 42%), which is associated with the fall of the ruble. At this time, the policy of import substitution began to be actively pursued.
2. In 2015-2016, there was a decrease in the total production of building materials in the country.
3. Since 2016, domestic companies began to actively modernize the production process, which led to an improvement in the quality of manufactured goods. This made it possible to replace most imported analogues.
4. The annual growth in demand for construction services and materials until 2015 fell from 18 to 11%. According to analysts, by 2020 a return to pre-crisis levels is expected.
5. The main supplies come from Belarus and Kazakhstan.

Target Audience

The target audience of the building materials market is represented by the following categories of people:

• average income and above - 60%;
• income above average, high (focused on prestige and quality of goods) - 20%;
• spontaneous buyers - 20%.

Competitive advantages

The competitive advantages of a building materials store include the following:

• cumulative discount of 1-10%;
• system for receiving bonuses when purchasing certain groups of goods;
• weekend promotions;
• free delivery when paying a check for more than 5,000 rubles;
• raffle of gifts among discount card holders.

It is possible to provide additional services related to the organization of repair and construction work. The team can be staffed or specialists can be selected as needed with the help of companies directly involved in the construction process.

Advertising campaign

• block on television and/or radio stations;
• distribution of leaflets and business cards;
• holding promotional events;
• concluding contracts with construction companies;
• placing a banner in places with the greatest flow of people (shopping mall, railway station);
• stretching along the road in the city center (in traffic jams);
• development of your own website;
• contextual advertising on Youtube;
• using clicks or active links through bloggers.

Step-by-step opening instructions

Step-by-step instructions for organizing your own business look like this:

1. Market analysis according to economic zoning. This service can be ordered from specialists (cost starts from $200).
2. Preparation of a business plan. You just need to download the finished document on the Internet and use it as a basis when planning your own store. The second option is to pay economists for the development (from $500 to $3,000).
3. Registration.
4. Finding and renting (or building) a store.
5. Repair.
6. Purchase and supply of equipment and supplies.
7. Selecting suppliers of goods for sale and concluding agreements with them.
8. Organization of an advertising campaign.
9. Search and recruitment of company personnel.

Documents

The business owner chooses how to register after evaluating potential buyers. When targeting construction firms and state-owned companies, it is better to register as an LLC or OJSC. In other cases, registration of an individual entrepreneur is suitable.

It is necessary to register a case from scratch in the following sequence:

1. Contact the registration center to obtain a certificate. You need to have a passport and a receipt for payment of the state fee in the amount of 800 rubles for an individual entrepreneur or 4000 for an LLC. When registering an enterprise, especially if more than one owner is planned, it is important to prepare the Charter and Minutes of the meeting of founders in advance.
2. Register with the tax service. Here you have to choose the form of tax payment - UTII ( single tax for temporary income) or simplified tax system. The simplified taxation system can range from 6 to 15%.
3. Contact the Pension Fund.

Additionally, you will need to obtain permissions from the following services:

• city ​​administration;
• fire inspection.

Room and location

The location of the hardware store should be chosen taking into account convenient access for large vehicles and the mandatory availability of parking. This could be the central or residential part of the city. If you plan to open a super- or hypermarket, a location outside the city limits is allowed.

The minimum store size is 30 m2: 20 m2 for retail space and at least 10 m2 for warehouse. These zones can be combined. Repairs in them are carried out at the expense of personal funds, or with the help of suppliers of certain types of goods (wallpaper, plumbing fixtures). The second case is a publicity stunt.

Equipment and inventory

Equipment and inventory required to start a business:

Staff

To successfully operate a building materials store, you will need to recruit the following staff:

Financial plan

To carry out financial calculations, the following initial data is taken:

• LLC registration;
• rent of premises on the territory of a shopping center in residential area cities;
• store area - 200 m2;
• work schedule - from 8 to 22.00 7 days a week without a break;
• advertising: banner, promotions.

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

To implement the chosen business idea, you will need to distribute start-up funds as follows:

Regular expenses

Monthly costs are distributed as follows:

Income

With marketing support before the store opens, we receive the following data:

• goods are sold per month for an average of 320,000 rubles;
• net profit is 110,000 rubles.

Schedule

The process of introducing a business idea occurs as follows: