Joint business selling building materials. Building Materials Store Promotion

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

However, fluctuations in demand for building materials are subject to the same factors that affect GDP growth rates. Recent years have been characterized by a negative trend - a slowdown in its growth. After the "take-off" of GDP growth dynamics in 2011 (4.3%), the rate of its increase began to decrease in 2012 (3.5%), and in 2013 this trend intensified (1.7%). The slowdown in development has a corresponding effect on the sale of building materials in general.

Building materials stores are part of the construction infrastructure

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

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

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

An important role in the efficiency of the sale of materials for construction is played by a well-balanced business plan for a building materials store. What kind of outlet is appropriate to open? Let's figure it out. According to statistics, about one and a half thousand hardware stores operate in Moscow. Among them, four typical forms can be distinguished. But this will be discussed later. Let's start with the question of where the store should be located.

Place for a building materials store

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

The above is most critical for construction supermarkets. However, it cannot be said that mini-stores are insensitive to the convenience of shipment. Potential customer visits will be maximized if your building materials business is versatile and close to major highways, the store has convenient driveways and a well-planned parking area for customers' vehicles.

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

Premises for a building materials store and its equipment

The premises for a building materials store should be selected carefully. Its layout should be convenient for maintenance and sales. It is desirable that the condition of the building does not require major repairs. Mandatory requirements should be recognized as the absence of dampness, good ventilation, and illumination.

Not only commercial equipment for a building materials store should be inexpensive. The "rule of the genre" is an economical repair. A neat finish with modern, inexpensive building materials is preferable for a store. $10 per square meter of painted drywall walls is fine. The saved funds are better directed to the main activity, they will be useful for purchasing goods from suppliers.

Work with providers

The trade in building materials is fueled by wide-range deliveries. How to start formulating the principles of interaction? A reasonable tactic on the part of the store is important here.

A supermarket for full filling with materials used in construction must cooperate with 90-150 suppliers. And all of them are vitally interested in 100% prepayment. However, the entrepreneur (shop owner) "hacks" their intransigence by gradually persuading them to work with him for realization.

This activity involves a two-stage combination. To begin with, the entrepreneur seeks to purchase goods at a discount or with a deferred payment. Then, clearly and steadily following partnership principles, he agrees to receive building materials for sale.

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

mini-shops

Mini-shops occupy an area of up to 100 m 2 . Up to 20 items of goods are presented on their trading floor, the total number of articles is up to 200. Among them, there are often highly specialized ones. For example, wallpaper or selling ceramic tiles. Even large entrepreneurs, but newcomers to this business, not wanting to risk a lot of money, begin to gradually pour their capital into the industry, having “trained” first at a mini-store and trained the backbone of staff for the future supermarket on it. Therefore, the question of how to open a building materials store from scratch is relevant.

In the current economic climate, the idea of starting your own business is becoming more and more popular. The fact is that a personal enterprise opens up a number of advantages that were not available before. At the same time, you should not hope that your own business is devoid of any difficulties and unpleasant moments. From the very beginning, you need to understand that in order to achieve any positive results, it will be necessary to make a lot of effort. To date, the trade in building materials is almost the most popular business idea.

Relevance

The demand for construction products is quite high among domestic consumers. The thing is that a fairly large number of people make repairs in their houses, apartments or country houses. That is why they often turn to the retail building materials industry for help. On the other hand, there are individuals or legal entities that are engaged in large construction projects. Given the large volumes, representatives of the second group can be found in the wholesale trade in building materials.

Buy or create from scratch

People who decide to start selling building materials quite often have the following question: should I buy a ready-made hardware store or is it better to create it myself from the very beginning? Although both options have their advantages and disadvantages, buying a ready-made business is considered a more profitable solution to this issue, since in this case it will be possible to assess the profitability and profitability of a particular store in a particular area. Thus, it is believed that buying a ready-made store and re-registering it for yourself is the right decision. In addition, experts argue that the costs of both the purchase and the creation of a store are approximately the same. For those who decide to start their business from scratch, it would be useful to remind you that you need to register a legal entity to trade in building materials. LLC can be called whatever you like. The main thing is that this name does not repel potential customers.

Types of building stores

Fortunately, for a simple consumer, the number of places where you can buy various types of building materials is now very large. The whole set of points of trade in building materials according to the proposed assortment and trading area can be divided into the following groups:

small shops up to 100 sq. m with an assortment of about 200 items;
large stores (construction supermarkets) with a total area of about 200 sq. m, offering their customers 5-15 thousand articles of goods;
stores-warehouses with an area of up to 2500 sq. m. and trade assortment up to 1000 articles.

At this stage, you should immediately determine what type of store you are going to open. Here it is very important to correctly assess your own strengths and existing demand in order to avoid possible financial problems in the future. For example, if you have a dream to open a construction supermarket, but in a territory where there is no strong consumer demand for construction products, then it is better to give up this dream. It is much more profitable to open a small hardware store to balance supply and demand.

Location for hardware store

This is how smoothly we approached the next important aspect in opening our own building materials trading business. The location of your store is one of the most important factors affecting its profitability. Naturally, the place of the outlet will directly depend on its type. However, the most versatile is the one that is located next to new buildings or not far from a busy highway. It is this location, as well as convenient access roads, that guarantee the store a decent flow of potential buyers in advance.

It is also worth noting that it is undesirable to make a building materials store in a residential building. In this case, there may be problems with the fire department regarding the sale of flammable substances.

If you decide to open a store-warehouse, then it would be useful to equip it with access railway tracks so that you can transport large loads in different ways.

In general, when it comes to choosing the best place, you need to find a compromise between a good location and rent. The fact is that landlords also understand the importance of the location of the store, and the cost of rent increases proportionally with the improvement of this very place.

Appearance

Once you have found a suitable location and premises for your store, you should start designing it. Appearance should be given special attention, because it is on it that visitors will draw the first conclusions about your business. So, the store should be attractive in a general sense and have the right sign from a marketing point of view. In addition, do not forget about the need for parking, which is also very important for your future customers.

Interior view

Inside your store, a favorable atmosphere should reign, so that customers want to stay there and come again. First of all, you need to make sure that the internal appearance matches the external. Here it is necessary to use the same color scheme, the same design techniques, the same fonts and the like.

good lighting;
large areas;
easy access to goods;
clear prices;
product indicators;
grouping goods by belonging;
favorable temperature.

These were the most general requirements. When running your own business for a long time, determine a number of other requirements yourself that will be special for you.

Another important aspect in the design of the store is the correct location of the product. The most important thing here is to put to the fore the products that you consider the most sold, that is, promising building materials for trade at a particular moment. For example, if you know that a strong hurricane has recently passed, then roofing and glazing repair materials will be promising products.

Range

What is the most important element of a hardware store? This is an assortment. In a building materials store, it must be very large. The best option is when you can offer your customer almost everything: from a nail to a sponge for washing dishes.

It is also very important to provide goods from different price groups. For example, if you are selling imported timber at a crazy price, it would be quite reasonable to also have a cheaper analogue.

In addition, do not forget that the store must keep up with the times. Firstly, you need to constantly monitor the replenishment of the assortment with various new products, and secondly, in summer, focus on one product, in winter - on another.

Other important points

In addition to all of the above, there are a number of other points that can be decisive when it comes to the profitability of your building materials store. First of all, it concerns advertising. If you want to get a decent flow of customers from the first days of work, you should not save on funds to promote a new business.

The next aspect is the careful selection of personnel. Particular attention should be paid to how this same staff will serve customers. Any manifestations of rudeness or rudeness to customers should be stopped immediately.

Another point that can attract more buyers is the provision of additional services. For example, the delivery of purchased products or the presence of teams of builders who could assemble, assemble, repair what was purchased. This can be an additional advantage of the new store in the eyes of the target audience.

The final point is taxation. Trade in building materials, like any other type of commercial activity, is subject to taxes. This point must be taken into account from the very beginning, when running your own business is just an idea in your head.

Conclusion

This article mentioned the main points that you should pay attention to when opening your own building materials trading business. Naturally, this list is far from complete, but careful study of each of these points at an early stage will greatly facilitate the start of a business. Do not be afraid to take risks, then everything will work out!

* Calculations use average data for Russia

1. PROJECT SUMMARY

The purpose of the project is the creation of a trading company, a wholesale base of building materials in Simferopol, the Republic of Crimea. The active development of the region is expected in the coming years, associated with government investments, as well as with an increase in its popularity as a resort. In this regard, an increase in construction volumes is expected, and, accordingly, an increase in demand for building materials.

The main difficulties in the implementation of the project are related to the establishment of supply chains - the search for a manufacturer of quality materials from the range in question, as well as the organization of efficient logistics. First of all, the organization of the transportation of goods through the Kerch Strait requires attention, which so far is carried out only with the help of a ferry crossing.

The project does not require the use of special technologies or the involvement of highly qualified specialists. Investment costs amount to 11,855,000 rubles.

Key indicators of the economic efficiency of the project are given in Table. 1.

Table 1. Key performance indicators of the project

2. COMPANY AND INDUSTRY DESCRIPTION

The project involves the creation of a wholesale base of building materials in the city of Simferopol. The main direction of work is lumber; besides, it is planned to expand the assortment due to sand, crushed stone, cement. Such a narrow focus at the first stage will allow to consolidate the volume of purchases and get a more favorable entry price. In addition, it will simplify logistics and warehouse management.

The territory of the base is an unheated warehouse with convenient access roads for heavy vehicles and a covered area; also provides for the presence of a railway dead end, tk. delivery of goods will occur mainly by rail. In the immediate vicinity of the warehouse, there is an office for administrative and sales personnel. Warehouse area - 100 sq.m., sites - 250 sq.m., office area - 20 sq.m.

The main competitive advantage of the company is working directly only with manufacturers of building materials, due to which it becomes possible to ensure a competitive price and uninterrupted supply of material in any volume. Narrow specialization, as mentioned above, also provides advantages in price, logistics and doing business, that is, it reduces operating costs, making the enterprise more profitable.

Today, the Crimean Federal District is a very attractive area for investment. The main source of income for the region is tourism and beach recreation. In connection with the blocking of such popular destinations among Russians as Egypt and Turkey, one should expect an extremely high interest in domestic tourist destinations. In addition, the popularity of Crimea as a resort is ensured by its political role. At the same time, the entire infrastructure of the peninsula is in a state far from the average for the country as a whole. The mass construction of hotels and tourist infrastructure facilities is beginning, primarily at the expense of private investors.

In 2014, the Government of the Russian Federation approved the target program "Socio-economic development of the Republic of Crimea and the city of Sevastopol until 2020", for which 681,221.18 million rubles were allocated. budgetary and extrabudgetary funds. All this allows us to say that even in the face of a difficult economic situation in the country, the region will develop, and any development involves construction, both residential and industrial, as well as the reconstruction of old funds. Thus, the need for building materials becomes obvious.

Difficulties in the industry arise due to the lack of established supply chains from Russian manufacturers, as well as due to logistical limitations - communication with the peninsula is currently carried out only by ferry. For the smooth overcoming of the crossing, an administrative resource can be extremely useful. In the case of establishing unhindered transportation of goods through the strait, the only serious restriction on the development of the project is removed. According to the plans of the Government of the Russian Federation, the construction of the bridge should be completed by the end of 2018, which will finally eliminate the logistical problem. By this time, the project should have developed a stable client base and occupied a market share of at least 5% of the total volume of the peninsula sawn timber market.

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The competitive environment in the industry has been formed, there is a fairly large number of offers, however, during the season, many suppliers have problems with logistics and the availability of goods; in 80% of cases, problems are caused by delays at the ferry crossing. This confirms the thesis that a key role in the implementation of the project is played by: the presence of a stable supply chain and a well-established scheme for transporting goods across the strait. By offering a competitive price and meeting the stated delivery times, you can win a significant market share. The quality of the goods in this case plays a secondary role, however, of course, when choosing a supplier, serious attention must be paid to checking the quality of products.

The business is seasonal, so it is necessary to organize the base before the onset of the construction season; the first active purchases usually begin in mid-March. For the search for a suitable place, as well as the execution of documents related to the registration of the enterprise and the lease, you should lay a margin of two months. The term of delivery of goods by rail can reach 30-50 days, depending on the region of dispatch, which must also be taken into account. Thus, the project start date can be considered January 1, 2017.

As an organizational and legal form, it is advisable to choose an individual entrepreneur with a simplified taxation system. In the future, with an increase in turnover, the option of registration in the Free Economic Zone of Crimea will be considered in order to reduce the tax burden. Types and volumes of investment costs are given in Appendix 1.

3. DESCRIPTION OF GOODS (SERVICES)

The main direction of the company's work is the sale of sawn softwood - boards and edged beams. In addition, the range includes sand, crushed stone, cement. Full product information is given in Table. 2. Prices are inclusive of all shipping costs to the base warehouse. Variable costs are shown in Annex 2.

Table 2. Assortment matrix of the project

Lumber is used in construction for flooring, roofing, formwork, etc. The scope of application is very extensive. Sand is used in the zero cycle of construction, for the preparation of CPS, concrete, plaster, etc. Crushed stone can be used in the production of concrete and reinforced concrete, in the construction of roads. Portland cement brand 500 is used for the preparation of DSP and concrete. Given the widespread use of frame-monolithic construction technology, the high demand for cement is beyond doubt.

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As a rule, only the most general quality requirements are imposed on such goods, so it makes no sense to build a sales policy only on the consumer characteristics of the goods. All suppliers are manufacturers, as a result of which the intermediate mark-up of intermediaries is excluded. Suppliers are selected taking into account the possibility of uninterrupted provision of planned purchase volumes. The supplier also organizes the delivery. Lumber and cement are transported by rail, while sand and crushed stone are transported by sea. Delivery time: crushed stone and sand - 10-14 days, cement - up to 30 days, lumber - up to 50 days.

Monitoring of competitive prices in the region showed that the average price level today is as follows:

Lumber - 9250 rubles / m. cube;

River sand - 2000 rubles / t;

Crushed gravel - 2800 rubles / t;

Cement PC-500 - 4800 rubles / t.

At the same time, the goods are not always in stock in the required quantity, especially at the height of the construction season.

4. SALES AND MARKETING

Sales are carried out by both active and passive methods. The role of a sales representative is performed directly by the entrepreneur. Work is carried out with construction organizations, including visits to construction sites.

Passive sales are carried out through Internet marketing, as well as through your own website. Taking into account the low level of quality of work of local webmasters, the development is transferred to specialists from one of the largest cities in Russia. It is expected that it will be possible to pre-order through the website. In addition, information about prices and products of the company is posted on all local information Internet sites and in catalogs. Information about the company is also placed in printed free catalogs distributed in hardware stores.

The working hours of the base are Tuesday-Sunday from 08.00 to 17.00. Trade is carried out by two sellers; six days a week they work in shifts. The sale is made on the terms of full prepayment and pickup. If necessary, the company's managers can order transport at the expense of the buyer.

The pricing policy is diversified. Depending on the volume, the client may receive a discount. For regular or prospective customers, a deferred payment is provided. Accounts receivable is controlled by the company's managers.

The sales plan is given in Appendix 5.

5. PRODUCTION PLAN

The project does not provide for the production of products, only wholesale trade. However, the specificity of the materials being sold also requires compliance with certain technologies for warehousing, loading, etc. In particular, loading and unloading of bulk materials is carried out using a wheeled excavator based on a tractor; loading and unloading of lumber and cement in containers is carried out using a forklift. Maintenance of the trading platform and warehouse is carried out by loaders and machinists.

The cost of equipment, staffing and payroll are given in Appendix 4.

To work on loading machines, qualified workers with appropriate permits and at least 5 years of experience are involved. For other work, special qualifications of workers are not required; they can be recruited for the season, without pay for the winter.

To form the initial warehouse stock, the following volumes of goods are required (Table 4).

Table 4. Initial stock

Table 5. Fixed costs (per month)

6. ORGANIZATIONAL PLAN

The project implies the execution of all administrative duties directly by the entrepreneur. He is required to have knowledge of the basics of accounting and the fundamentals of entrepreneurship, legislation in the field of entrepreneurship and labor protection. In addition, for successful work with construction companies, knowledge of the technology of construction production is necessary. Subordination of all employees - directly to the entrepreneur.

In order to fulfill their main duties, employees are subject to the most general requirements related to their field of activity.

7. FINANCIAL PLAN

Legal form - IP. The taxation system is simplified, the object is income reduced by the amount of expenses.

Investment costs - 11,855,000 rubles. Own funds - 3,000,000 rubles. It is planned to attract credit funds for the missing amount of 8,855,000 rubles. Loan term - 36 months, rate - 18%. The loan is repaid by annuity payments starting from the third month of using the loan.

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The calculation of financial indicators takes into account the volume of sales of each type of product and the seasonality factor. The financial model of the enterprise is given in Appendix 7.

8. PERFORMANCE EVALUATION

The effectiveness of the project is evaluated using generally accepted integral indicators obtained by analyzing the projected financial results of the enterprise in a five-year period, taking into account the discount rate. Despite the fact that the project has a low-risk potential, the discount rate is assumed to be 24%, which makes it possible to judge the high financial stability of the project, since integral indicators are at a high level (Table 1).

9. RISKS AND WARRANTY

Table 6. Potential risks and countermeasures and prevention measures

The project can be characterized by an average degree of risk.

10. APPS

Denis Miroshnichenko
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Trading is one of the most common business options for start-up 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 our lives bought materials for construction and repair: drywall, tiles, laminate, all kinds of fasteners, etc.
Moreover, the general fuss makes one think that the vast majority of stores of this profile still bring a decent profit. Is it really? Let's look at the nuances of organizing a business on building materials.

Classification of building materials stores

Today, both large chain stores 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 conventionally divided into the following types:

Pavilions with an area of 60-70 sq. m. The assortment is represented by 15-20 items of goods with a narrow range of applications (sanitary ware, floor coverings, finishing materials).
Full-fledged stores with an area of 120-170 sq. m. More goods are sold here (50-70 items) with the number of articles up to 4 thousand.
Large shops with a trading area (700-1200 sq. m) and a warehouse (1500-2000 sq. m). The assortment of such stores reaches 20 thousand articles.
Hangar rooms. As a rule, in such stores there is no decoration, they are more like an indoor market.

Choosing a place for a building materials store

Without writing banal phrases, we can give a recommendation to build on your 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 format of business in modern realities is not profitable. 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, the monthly yield after deduction of all expenses is 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 necessary for repairs. Here you can build a competent system of discounts, organize delivery.

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

Do not consider options on the ground floor of a residential building. The sale of a number of goods (paint and varnish products) is prohibited in housing facilities.

Another important question is to rent or buy a room? Practitioners say that you can try the option of renting with a subsequent buyout if the business “tramples”. Buying premises is not the most rational option, because if business problems begin, another problem will most likely arise - the sale of working capital.

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Product Suppliers

In order to offer the client a sufficient range of goods, it is necessary 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. At 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%.

Guessing with a commodity stock is quite difficult for a novice entrepreneur. Large networks buy goods for storage, the amount of which is 2-3 times higher than the monthly turnover. Such a policy allows us to serve orders of large customers. If there is less inventory, there may be interruptions in supply.

In any settlement in Russia there is always and will be a need for the construction of objects for various purposes. They wear out over time and need to be repaired. This means that we cannot do without building and finishing materials in our life. Hence the conclusion - the sale of such goods is a sought-after and profitable business.

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

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

Greetings. My name is Mark. I am 37 years old. I am from Astrakhan. Now I am engaged in the sale of tiles, tiles, decorative mosaics and many more related products for the construction, renovation and decoration of premises.

I do not have a store, but an office for receiving orders. The trade turnover is from one and a half to two million rubles a month, from March to November inclusive.

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

My first steps in the construction business

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

Production of paving slabs.

The production was not going well. There was only enough money to rent the premises, wages to the working staff and pay taxes.

Initially, he worked practically without profit. Orders were constantly available, but it was almost impossible to earn money on them.

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

The choice of the direction of the subsequent development of the case

The future path of business development was vague. It was necessary either to urgently solve something, or to stop business activities.

How did the idea come about

My friend, at that time, worked in a managerial position in a manufacturing company that specialized in the manufacture of bricks and concrete products. He showed me the way forward.

Finding ways to promote business

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

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

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

First mistakes

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

Business is a science and a way of life. This craft can be mastered. The main thing is the correct setting of the goal and finding a short way to it.

Initially, I wanted to try a business with which I was unfamiliar. Business does not tolerate amateurism. Especially in the manufacturing sector. Getting out of the current situation was long and difficult. It is very good that there was an experienced person who told me what to do next.

Stages of opening and developing a sales office

Choosing a trading place and its goals

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

receive clients;
present products;
conclude contracts.

Conditions for renting premises

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

Equipping the office with everything you need

For a full-fledged trade, you need:

furniture;
racks;
computer;
Printer;
various office supplies.

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

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

The equipment of a full-fledged office is a costly business.

Later, the area of this office was not enough.

Methods for demonstrating products on the trading floor

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

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

Thus, he could not show his products in the conditions of the workshop.

Expanding the range of building materials

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

On the trading floor, he exhibited the bricks made by them, and posted catalogs of the rest of the products, which, due to their large dimensions, could not be placed in the office.

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

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

Product promotion activities

The next question concerned information support of trade - marketing.

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

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

From 4 thousand to 7 thousand rubles were spent on the promotion of products in Avito, newspapers, the production of leaflets and business cards. per month.

How to make money selling third-party construction products

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

Reasons for contacting other manufacturers

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

In the warm season, the rent could still be paid, but in winter, when there were almost no orders, and the production facility needed to be heated, the cost of rent significantly hit the pocket.

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

My advantages when choosing a partner

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

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

A commodity producer always has a need for cash - these are salary debts, rent, debts for delivered raw materials, or just a person has a loan in a bank.

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

Very often on sales earned more than the manufacturer.

Positive shifts in business give impetus to further growth

When organizing any business, you need to constantly move forward. Otherwise - stagnation.

Significant progress in trade since the conclusion of the partnership agreement

It turned out to be easy to find a manufacturer for cooperation. They signed an agreement with him. The list of presented products far exceeded my output of goods. A quarter of the room was occupied by an exhibition of their products.

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

Finding new ways to increase sales

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

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

Samples of reinforced concrete products in an open area.

Retail Space Optimization

The trading floor began to be filled with samples of various goods. Then he divided the trading zones. On the production area, he placed the most dimensional specimens - reinforced concrete products.

Roofing samples.

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

Samples of rolled metal.

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

Trading room with samples of finishing materials.

Empty places in the trading floors were filled with goods that fit the theme. For example, the trading floor was replenished with two stands - one with LED lighting, the second one represented manufacturers of swimming pools for personal plots, saunas, and baths.

Temporary setbacks are inevitable

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

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

How much does the trade in building materials bring

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

Sizes of allowances for goods

On the goods sold, he cheated from 10 to 30%. The highest margin is for paving slabs and building materials.

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

What does income depend on?

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

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

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

But do not forget that January and February are months of almost no revenue. However, money must be paid for rent, and employees of the enterprise must be paid wages. And for this, in a busy season, you need to work hard.

My trading method

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

Advising customers on products

I relied on advice to consumers regarding the characteristics of the purchased building materials. In addition, he did not accept low-quality goods for sale.

Consumers did not have to run after sellers and ask for illiterate advice about the product I was selling, since I knew everything and could answer any question for customers.

Software application

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

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

design service

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

This is very hard work.

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

Reputation is another benefit. For three years of work, I did not let anyone down, so wholesale consumers established business relations with me.

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

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

When words do not disagree with deeds, this is a reputation that is also paid.

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

Future plans

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