Trade is considered the domain of budding entrepreneurs. “This is the simplest and therefore the most widespread type of small business,” says sociologist Arkady Semenov from Moscow. - Take, for example, building materials store. According to random surveys, where would you start your business, from the list of ten proposed ideas, many gave preference to selling goods for repairing and finishing apartments. It turned out that this is even more interesting than a car service or.”
And in fact, almost all people, with very rare exceptions, in one way or another at least once in their lives bought wallpaper for their apartment, screws for fasteners, taps for plumbing. Moreover, due to the constant bustle and queues, one gets the impression that almost all stores of this profile are successful. Is this really so and what needs to be done to open a successful retail outlet with repair goods, we decided to find out.
Optimists and pessimists
Judging by the information and discussions on the RuNet, the topic of owning a building materials store is popular. Here are some posts worth checking out:
“...I would like to hear the opinion of knowledgeable people: how profitable is opening a store building materials? - forum member Bulavka is interested.
“If there is an opportunity, then there is nothing to even think about, open up, develop, prosper! This type of business will always be in demand,” another forum participant shahter78 is convinced.
“I’ve been in the subject for a long time,” a certain Dmitry Ivanovich doubts. - There are enough problems, the most important of which is the attractive price. I don’t know how to achieve it. Repairmen are cunning people. They are looking for something inexpensive. Moles dig the ground. If you raise the price a little, your customers will blow away like the wind. And trading cheaper than competitors is at a loss.”
Economist experts, in particular Mira Kolomiytseva, who specializes in small business, believes last statement a kind of cry from the soul. “Numerous publications on the topic of “owning your own building materials store” have nothing to do with reality,” she says. - For example, some authors link starting amounts to retail space, saying these are key indicators. Abstract figures are given, the observance of which supposedly guarantees the success of the undertaking. In particular, 500 thousand rubles are needed as working capital for a point at 100 square meters. Meanwhile, this disorients budding entrepreneurs.”
According to Kolomiytseva, people have the false impression of a quiet business that will generate income in any case. Meanwhile, the store should be “correctly configured” in terms of assortment with taking into account the prices of the nearest wholesale distributors.
We are talking about a kind of road map that should be drawn up before the start. “Buyers don’t like the narrow specialization of a building materials store,” says Valery Andreev, a businessman from Rostov-on-Don. - As a rule, they come with a list, according to which they buy. Therefore, the assortment should be as thoughtful as possible. I know one entrepreneur who, in a large chain building materials supermarket, stood at the cash register and quietly took into account who, what and how much was buying.”
In this assortment, on the one hand, duplicate items should be excluded, since unnecessary items are expensive to service. On the other hand, transport and storage costs are optimized. “It is necessary to establish a clear system of interaction with distributors,” advises Anna Smirnova, director of a small building materials store. - Good personal relationships are important here. In this case, it may be possible to access the changing price lists of wholesalers via the Internet.”
Expense arithmetic
Anna Smirnova, relying on personal experience, says that the store should have convenient transport accessibility. It could be dormitory area, and even an industrial zone, and the territory along the main entrance and exit from a city or village. “Renovation of premises may be the most budgetary, but you will have to fork out for equipment,” Arkady Semenov is sure. “It’s psychologically important for people to buy in a familiar work environment, and certainly not in a barn.” 
Therefore, it is necessary to install up to 3 meters high and 1 meter wide, as well as several glass cabinets that can be locked with a key. You will probably need a turnstile for buyers, a packing table and about ten chrome-plated carts for purchased building materials.
Of course, each store should have its own business project, but basic indicators should still be taken into account. We present them in a simplified table.
| Position | Amount, rub. | Note |
| Working capital | 5-7 thousand per sq. m of area | But not less than 600 thousand rubles |
| Trade equipment (racks, display cases) | 2-3 thousand per sq. m of area | - |
| Rent and salary | 2-3 thousand per sq. m of area | 1 manager per 50 sq. m |
To summarize, we can say that opening a building materials store will require a businessman to detailed planning and strict implementation of the plan. Experts believe that the “break-even point” will be passed within a year from the moment of opening, while the profitability of the business should be at least 15%.
According to experienced entrepreneurs, opening a small retail outlet in this area will bring its owner more losses than profits. The reason for this conclusion lies in the fact that the costs of renting a trading area and warehouse, wages, taxes and utilities, take away almost all profits and do not give the business the opportunity to develop.
Is it really possible for an entrepreneur who wants to open a small building materials store without significant investments to create profitable business is unavailable? Let's figure it out.
Usually, in search of materials for repair and construction, a potential buyer is inclined to go to a large construction center, the area of which can be 1000 or even 2000 sq.m. The reason for this is several factors: the ability to purchase everything you need in one place, a wide range, and receiving a free consultation with a specialist if you have any questions.
But there are also cases in which the buyer is more likely to go to a small construction pavilion: picking up materials that have run out during renovation, purchasing a small amount of building materials for cosmetic repairs, the location is close to home.
The moment that determines the profitability of a business is the choice of an advantageous location for sales. While large sellers are forced to sell their goods on the outskirts of the city, you can expand your business in a residential building, mall or at the local market.
How to choose and prepare the right premises for a store
Where to start to get building materials from scratch? To open a profitable point for selling construction and finishing materials, experts recommend paying attention to the first floor of a residential building near new buildings, or a construction market located within the city.
When opening such a business in a residential building, make sure there is an emergency exit in the premises - this will be needed to pass a fire safety inspection. If the apartment is located in a residential building, in order to process documents and legally carry out trade, you will need to remove it from the housing stock.
The profitability of your business will increase significantly if you own the retail space, but entrepreneurs do not recommend rushing into this and working in rented premises for the first 2 years.
If soon after opening, you discover that this place is not profitable month after month, then it will not be difficult for you to simply leave this outlet, without the need for subsequent sale of real estate.
If you choose a construction market, before purchasing products and renting premises, walk through the pavilions, study what your future competitors are selling and at what price.
Remember: you will be of greatest interest to the buyer only if you offer a unique product that is not on the market, or the same one, but at a more attractive price.
Decoration of a building materials store
When preparing a trade 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. To prepare the premises you will need an average of $6,000 – $9,000.
Equipment for a building materials store
To trade building materials, you will need to purchase a cash register, as well as counters, display cases and shelving that will help in displaying finishing materials. Organize the lighting on the shelves in such a way as to create an opportunity to clearly see the products on offer.
If your business sells power tools, be sure to equip your display cases with several outlets.
Registration of a business selling building materials
The sale of building materials, like any business, requires pre-registration with the tax and pension authorities. For a small pavilion, registering as an individual entrepreneur is sufficient; this will help significantly save on taxes.
OKVED codes to register such activities they present an impressive list, depending on the presence or absence of your trading platform on the Internet, courier delivery and other specifics. The main code that you will need upon registration is 47.52 Retail trade in hardware, paints and varnishes and glass in specialized stores.
What documents are needed to open a building materials store?
Construction materials cannot be obtained without passing inspections and paperwork. You will need to obtain a permit and patent to trade. What is needed to obtain a permit: the following documents must be submitted to the trade department of the city administration:
- Conclusion from the fire inspection and SES;
- A certified copy of documents confirming your registration as legal entity or individual entrepreneur;
- Lease agreement or documents confirming ownership of retail and warehouse premises;
- Certificate of registration in tax office;
- Document on the qualifications or education of the founder;
- Information about the operating hours of the enterprise.
As for the trade patent, it can be obtained from the tax office. When applying for a patent, you will go through the registration procedure cash register. All these activities can take from two weeks to several months, and the cost of registration and preparation of all documents necessary to start activities will be about $300.
Construction store assortment
When choosing an assortment for your organization, it is very important to provide the buyer with products of various price categories. As a rule, at least two thirds of products are presented in the middle price segment and one third remains for cheap and expensive representatives.
The assortment of the trading platform may consist of the following construction products:
- Paints, varnishes;
- Cement;
- Tile;
- Wallpaper;
- Skirting boards;
- Hand power tools;
- Construction accessories;
- Gypsum;
- Parquet, linoleum, laminate;
- Self-leveling floors;
- Various primers;
- Spatulas, brushes, rollers, etc.;
- Drywall;
- Glue;
- Construction mixtures, etc.
Construction materials store staff
To open a building materials store, owners usually limit themselves to hiring one salesperson, or, in order to save money, stand behind the counter themselves.
A seller working as a single person must have sufficient knowledge in the field of construction, design and architecture, as well as a good knowledge of the range, purpose and features of each item of goods.
If there is an experienced and experienced person behind the counter knowledgeable person, your organization's sales will be 30% higher than otherwise, so it is recommended to take this moment with great responsibility and attention.
Profitability of a hardware store
Let's calculate the profitability and find out how much it costs to open building materials with an area of about 100 sq.m.
Investments:
- Purchase of goods for sale – $10,000;
- Registration, inspections and paperwork – $300;
- Cosmetic repairs, preparation of the trade and warehouse area for work – $8,000;
- Purchase of shelving and cash register – $7,000.
Total: $25,300.
Monthly expenses:
- Rent, utilities – $560;
- Replenishment of goods - $4,000;
- Salary to the salesperson – $280;
- Accounting – $80;
- Taxes – $130.
Total: $5,050.
Profit:
We will take into account the profit from the calculation trade margin – 45%.
The cost of sold building materials for the month is $4,000.
Profit for the month – $5,800.
Gross profit – $750.
Thus, with regular sales of at least 40% of the total stock of goods monthly, the investments made will pay off in 3 - 3.5 years of operation.
Talking about how to open hardware store from scratch and make it profitable, it is useful to know a few from experienced entrepreneurs:
- Group products. Location has great importance. It is important here that the buyer can familiarize himself with all products of one category in one place. Also distribute the products according to their intended purpose. Let brushes and rollers lie next to paint products, and screws and keys next to screwdrivers;
- Samples. Each product, which has a wide range of colors and textures, should have a catalog of samples that can be examined and touched. Place samples according to color scheme and indicate the article number for each item;
- Access. Give customers the opportunity to turn on and see how a drill or any other power tool works. Open access to your products;
- Don't stop at one outlet. One small pavilion will not be able to generate a sufficiently high and stable income. By developing and opening new points, you can protect your business from sudden surges in demand and significantly increase your income.
- Something that the buyer may forget about. Small consumables, such as light bulbs and batteries, are best placed near the cash register. The buyer will definitely remember that he wanted to purchase them while waiting for payment or his turn.
In this article we have given recommendations regarding building materials. Calculations and experience of entrepreneurs in this area have shown that, under certain circumstances, this enterprise can be truly beneficial and effective.