The rise in living standards and the development of society always lead to an increase in the volume of construction, making the trade in building materials one of the most profitable types of business. However, opening your own hardware store is impossible without solving certain and often difficult tasks, including the formation of an assortment, the search for reliable suppliers and the organization of the correct display of goods. This article is designed to help entrepreneurs overcome all difficulties at these stages and open a profitable and stable business in the construction industry.

How to form an assortment of a building materials store

To create the optimal assortment of a hardware store, an entrepreneur needs to choose the format of a retail outlet, determine his target customer and form an assortment matrix. Each of these stages is extremely important - only after completing all the preparatory work and studying all aspects of this issue, you can open a truly stable and profitable business.

Types of building materials stores

First of all, such stores are classified according to their size and the number of product names in the assortment (the latter most likely follows from the size of the point):

1. Small pavilions or shops. The area of ​​such points ranges from 70 to 100 square meters. m. In the range of 10 to 20 items.
2. Standard shops. Area from 150 to 200 sq. m. In the range of 40 to 70 items.
3. Large shops. Area from 500 to 1000 sq. m, warehouse area from 500 to 2000 sq. m. The assortment includes about 100 items, about 15 thousand articles.
4. Warehouses-shops. Area - 2500 sq. m. Assortment - from 15 to 30 items, from 300 to 1000 articles.

Also, building materials stores are:

• Specialized. These stores focus on one or more product groups that complement each other. So, for example, the outlet can sell wallpapers of different types and manufacturers, as well as everything necessary for gluing them.
• Universal. At such points, the assortment is as diverse as possible and consists of many product groups, including: dry building mixtures, tiles, finishing materials, plumbing, electrical goods, floor coverings, etc. Of course, such a variety of products requires large retail space and cooperation with several suppliers. However, this does not mean at all that only a hypermarket can be universal - often small points work in this format, with the difference that the depth of the assortment in them is much lower (the depth of the assortment is the number of types and brands of one product, for example, wallpaper) ...

Your main clients can be:

• Individuals;
• Designers;
• Construction organizations;
• Construction crews.

Of course, the choice of your target clientele will have a huge impact on your product range. If you open a relatively small hardware store and focus on private buyers, ordering 20 types of construction soil or engineering plumbing is definitely not worth it. In points of a similar format, it is better to focus on the products that are needed for ordinary people to renovate apartments and goods for the home and garden.

Assortment matrix

The assortment of such stores may include the following product groups:

1. Construction Materials:
   general construction materials (brick, aerated concrete and wall blocks, plaster nets, fences and barriers, polycarbonate); consumables (garbage bags, gloves and mittens, covering materials, scotch tapes and tapes, construction containers, bags, bags, boxes); GKL, sheet materials; profiles and accessories for gypsum board (profiles, suspensions, connectors, fiberglass mesh, serpian tubes, tapes); lumber (timber, lath, boards, lining, platbands, plinth, corners, furniture boards); roofing materials (metal tiles, corrugated sheets, flexible tiles, galvanized iron, slate, roll roofing, roofing felt); reinforced concrete products; rolled metal (steel, aluminum, composite); formwork components (siding panel, front panel);
2. Building mixtures:
   dry mixes (cement, DSP, masonry and installation mortars, adhesive for tiles, adhesive for facade insulation, grouting, putties, plasters, floor leveling agents, oven solutions, additives to solutions); bulk materials (gypsum, alabaster, sand, lime, chalk, clay, expanded clay, crushed stone);
3. Heat and sound insulation(mineral wool, glass wool, expanded polystyrene, extruded polystyrene foam, substrates, foam rubber, seals, pipe thermal insulation); waterproofing (bituminous, polymer, cement); hydro-vapor barrier, geotextile, covering material;
4. Decoration Materials:
   doors (interior, entrance, visors, special, platbands, doors, thresholds, door fittings); windows (wooden, metal-plastic); window sills; PVC; seals; ceilings (cellular, cassette, rack, suspended); decorative elements made of expanded polystyrene (tiles, sockets, plinth); wall panels and accessories (PVC, MDF, sandwich panels); wallpaper (non-woven wallpaper, painting non-woven, glass wallpaper); wallpaper glue; finishing corners; decorative film;
5. Paintwork materials, foams, sealants:
   soils (anticorrosive, betokontakt, ready-to-use, concentrates, liquid glass); water paints (for the ceiling, interior, washable, facade, decorative plasters); enamels (universal, anticorrosive, aerosol, nitro enamels, for floors); oil paints; pigments and tinting paints; solvents and cleaners (solvents, cleaners, drying oil); antiseptics (priming, bio-protective, fire-bio-protective, special, decorative, means for baths and saunas); varnishes (interior, special); ready-made putties; adhesive materials (universal glue, construction glue, PVA, wood glue, liquid nails, adhesive mastic); mounting foams (household, professional, cleaners); sealants (silicone, acrylic, heat-resistant, roofing);
6. Tile and ceramic magnet:
   tiles (for walls, floors, anti-slip, increased wear resistance, embossed surface, ceramic magnet, steps); decorative elements; tiles for facing facades and plinths; adhesives for tiles; grouting; primers; waterproofing agents; corner layout, profiles; revision hatches; care products; crosses and wedges for tiles; tiling tools;
7. Floor coverings:
   laminate; linoleum; PVC tiles; plinth; substrate; threshold; pad; carpets and rugs; floor adhesive; related products;
8. Plumbing:
   baths; shower corners, trays, sinks; sanitary ware (washbasins and pedestals, toilets, urinals and bidets, installations, fittings, toilet seats); mixers; accessories for mixers; bathroom furniture; heated towel rails and accessories; plumbing tools; plumbing fasteners; Consumables;
9. Engineering plumbing:
   water supply (pipes and fittings, taps and valves, flexible pipes and hoses, collectors, collector groups, cabinets, valves, regulators, instrumentation, water heaters, plastic containers and accessories); water purification systems (filters; cartridges; pool chemicals); drainage systems; shut-off valves and accessories; sewerage (fittings for sanitary ware, siphons, bends, ladders, pipes and fittings for internal and external sewerage, storm sewerage, septic tanks, toilets, hatches); pipe thermal insulation; gas supply (taps, flexible pipes, hoses, gas equipment); revision hatches (metal, plastic, under the tiles); pumping and boiler equipment (pumping equipment, expansion tanks); plumbing tools; plumbing fasteners; Consumables;
10. Electrical goods:
    cable laying and wiring (power connectors, cable support systems, cable fittings, products for insulation, fastening and marking, terminal clamps, auxiliary equipment); cable and wire products (coaxial, flexible, VVG, NYM, low-current cables, AVVG, PVS, ShVVP, PUNP, PV3, SIP); low-voltage equipment (automatic devices, differential. Automatic devices, RCDs, measuring devices, power supply devices); wiring accessories (sockets, switches, frames, extension cords, surge protectors, pads, splitters, tees, plugs, bells and buttons for bells, electrical boxes); switchboard equipment (switchboard enclosures, elements for equipment installation); lighting products (incandescent lamps, halogen, fluorescent, gas-discharge lamps), LED lighting systems, lanterns, lamps, light control, components for lamps and lamps);
11. Ventilation, heating:
    ventilation systems (round, rectangular); fans (floor, exhaust, supply and exhaust); ventilation grilles; anemostats, diffusers; heating systems (heating radiators, heated towel rails and accessories, heat carriers); radiator grilles; underfloor heating (electric, water); electric heaters (thermal curtains, convector heaters, infrared, oil heaters, thermal guns, fan heaters);
12. Tool, equipment:
    power tools (grinders, cordless drills and screwdrivers, electric drills and screwdrivers, hammer drills, grinders, saws, planers, jigsaws, electric grinder, garden tools, special tools); concrete mixers, gasoline-powered tools (chainsaws, vibratory saws, generators, consumables); accessories for power tools (drills, drills, bits and adapters, crowns, cutters, saws, cutting discs, abrasive discs, flap discs, cleaning discs, saw blades, diamond discs, rootlets, grinding belts, accessories); welding equipment; pneumatic tool; ladders and stepladders; storage systems; hand tools (measuring and marking tools, assembly tools, painting tools, abrasive tools and materials, for plastering work, for plumbing work, for laying tiles, garden tools); carpentry and metalwork tools (hinge-pliers, screwdrivers, wrenches, hacksaws for wood, metal, hammers, sledgehammers, mallets, axes, cleavers, files, chisels, planes);
13. Fasteners, hardware:
    self-tapping screws (universal, universal with semicircular heads, plasterboard-metal, drywall-wood, metal-metal, roofing, window, for sandwich panels, gypsum plasterboard); screws (hook screws, plumbing screws, for concrete); dowels; dowel-nails (universal, frame, for insulation); anchors (driven, wedge, ceiling, spacer, for sheet materials, anchor bolt, nail anchor, wedge anchor); fasteners for wooden structures (staples, tapes, corners, plates, cleats, special fasteners); nails; rivets; metric fasteners (bolts, screws, washer nuts, rods); cargo fasteners; plumbing fixtures; fittings and hardware (latches, lugs, latches, handles, latches, screws, hinges, door closers, springs, stoppers);
14. Home and garden products:
    household goods (detergents and cleaning products, rags, sponges, napkins, mops, brooms, scoops, shelving and rack systems, garbage containers, cylinders, gas equipment); cords, ropes, twines (cords, ropes, twines, halyards); garden products (hoses, barrels, canisters, plastic containers, buckets, watering cans, covering materials, picnic products, plant care products); septic tanks, toilets; inventory (wheelbarrows, stretchers, pitchforks, rakes, shovels, special tools); fences and barriers.

As you can see, the number of product groups, names and subspecies of construction products is simply enormous. Each owner of stores in this direction must do a lot of work, choosing from the above positions those that will satisfy the needs of his target customers and correspond to the chosen store format.

Choosing suppliers for a hardware store

Upon completion of the formation of the assortment, the owner of a building materials store needs to find reliable suppliers for his point. Of course, the more conscientious the partner is and the lower the purchase prices, the better it is for the business. The conditions for the purchase of goods are also important, as well as compliance with all established deadlines. Experienced entrepreneurs working in this area note that it is better to make purchases from dealers and representatives than directly from manufacturers - it simply does not make sense to buy a huge batch of goods at once (unless, of course, you plan to immediately open a construction hypermarket). Their contacts can be found on manufacturers' websites, on the net, in catalogs, in printed publications.

In general, the process of finding a supplier can be roughly divided into several main stages:

1. Identify a couple of dozen representatives of the products of the desired nomenclature working in your area;
2. Determine the criteria that you consider most important for your business (a list of possible criteria is described below);
3. Distribute the criteria according to the degree of importance;
4. Draw a rough picture of each supplier graphically and select the best options.

Selection criteria can be as follows:

• Mechanism of the negotiation process on prices and terms;
• Experience and reputation;
• Compliance of the supplier profile with your requests;
• Willingness to cooperate;
• Ability to work under special conditions and willingness to make concessions;
• Willingness to comply with commercial secrets;
• Conscientiousness and adherence to deadlines;
• Additional services and bonuses.

Entrepreneurs working in this area recommend that beginners have about three suppliers - this way you protect yourself from possible supply disruptions. You also need to think over the delivery logistics - if you buy goods in another city, study the prices for the services of transport companies and find a partner with whom you can work on an ongoing basis and on favorable terms for you.

Rules for displaying goods in a building materials store

After you form an assortment, find suppliers and rent a retail space, you will need to properly organize the display of all goods. It would seem that there is nothing easier than organizing a trading space, but in reality this task turns out to be very difficult. First of all, you will need to purchase commercial equipment, after which you can begin to lay out the goods in groups.

Perhaps the most difficult point in laying out building materials is their diversity and heterogeneity. That is why there are rules for each product group:

• Dry mixes. They must be divided by type by type and brand, and the groups must be laid out vertically. In other words, the products of one firm must be under the products of another, creating vertical blocks. If the assortment includes large packages of mixtures, they must be laid out on pallets separately from other goods. It should also be remembered that cement, for example, is a commodity in high demand, which means that it must be placed closer to the end of the hall so that the buyer has to pass all the shelves with the goods - perhaps this motivates him to buy something else. If the area and layout of the store make it possible to separate the area of ​​bulk materials from the general hall, this is definitely worth doing - dry mixes inevitably lead to the accumulation of a large amount of dust.
• Ceramic materials, in particular, tiles and porcelain stoneware, should be divided into groups by purpose, for example, tiles for the bathroom, kitchen, floor, outdoor, etc. Also, the product can be divided into subcategories: mosaic, author's, etc. In general, tile collections can be laid out according to colors, brands, prices. Remember, it is better to place related products near such products - borders, inserts, etc. When you bring new materials, do not forget to inform buyers about it with the help of bright posters, price tags.
• Fasteners require careful sorting - these items are very small, which makes the selection process difficult for the buyer. If you open a store in which the visitor independently selects the desired product and pays at the checkout, the grouping of fasteners should be obvious. You can sort such products by type, for example, screws separately, dowels separately, rivets separately, etc., subtypes: galvanized nails, screw, etc., purpose: window screws, roofing screws, etc. It is equally important to consider the size - small items should be laid out at eye level, while large items can be placed below. If your store's assortment is wide enough, fasteners can also be laid out vertically.
• Instruments should be divided into groups. Separately, it is worth placing the painting and locksmith tools. Within the groups, the product can be divided by brand. Hand and power tools should be placed from the middle to the top shelves. Remember, buyers prefer to view expensive products, which means that the most expensive tools should be placed so that each visitor has the opportunity to thoroughly study the product, or better yet, test it.
• Small consumables such as cutters and drills can be placed directly next to the checkout counter or in glass cabinets.
• Pumps and compressors are also targeted goods, which means they should also be placed at the end of the hall.
• Samples of large products are usually presented on free-standing stands.
• Wallpaper, as a rule, is laid out on special stands. The packaging is removed from the rolls, after which they are placed on the rollers. Each visitor to a building materials store should be able to approach the product, carefully examine it, touch it, and unwind the roll. Also, entrepreneurs often purchase special cabinets for pasting wallpaper - they allow you to place samples on top, while the inventory itself is located below. Often, some of the wallpaper is placed in free space (in groups), and the rest of the samples are placed on special racks. If the same wallpapers are made in different colors, they must be laid out one after the other. It is believed that color display is the best option for almost all products. You can also take into account the size of the pattern on the wallpaper.
• Luminaires should be grouped by style or by the similarity of models. You can place lamps, chandeliers and sconces separately or mix the layout, thereby giving buyers the opportunity to imagine how all these products will look in one room. Remember, in no case should you place expensive appliances next to cheap ones. In the lighting department, you can also lay out related products - lamps, cords, sockets, etc.
• Doors must be divided according to their purpose: interior doors, entrance doors, etc. Within a group, they can be placed by color, material, or by price. In this case, placing expensive products next to cheap ones is also unacceptable.
• Floor coverings (linoleum, carpet, etc.) must be divided according to the following parameters; material, size, color, price. At the same time, for each type of coating, a separate, special trade equipment is required.

* Calculations are based on average data for Russia

1 220 000 ₽

Initial attachments

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. Having invested about 1 million rubles, you can earn 150 thousand rubles a month.

"The renovation cannot be completed, it 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 is being built and renovated. Even if there is no need to carry out repair work in the house, nails, a hammer, a screwdriver and so on will come in handy in everyday life. Therefore, opening a hardware store from scratch is a great idea for a profitable business. To figure out how to start your own business and how much it will cost, we offer a detailed guide that will answer the basic questions of a budding entrepreneur.

1. Market overview

The dynamic development of the construction industry and the real estate market in Russia has contributed to an increase 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 grew by 20% annually.

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

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

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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 addition of materials that ended during the repair, minor everyday issues requiring urgent solutions. In this regard, since 2015, among construction stores, there has been a tendency to change the structure of the assortment with the replacement of building materials with goods for the home.

The defining moment in this area of ​​trade is the advantageous location of the store. While large retail outlets occupying vast 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 the high level of competition in the building materials market, this direction can become a profitable business. The main thing is to correctly choose a place and plan all stages of opening a retail outlet.

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

Difficulties in the business of selling building materials:

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

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

The need to provide a wide range of products that will interest the consumer. First, there is an important task to correctly form 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 choose the most suitable one;

Seasonality of sales. Statistics show that the peak of retail sales was recorded in the spring and autumn months, summer sales are 70-80%, and winter - 50-60% of the maximum. Moreover, certain commodity items are also seasonal, 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 “near home” 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 that offers customers more than 100 items of goods.

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

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

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

polyurethane foam, sealant, liquid nails, assembly glue;

ironmongery of various modifications and sizes, nails, screws,

wallpaper. This group of goods should be represented by a wide assortment, allowing to satisfy the tastes and requirements of different consumers. Related products include adhesives, brushes, and more;

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

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

Ready-made ideas for your business

Before forming the assortment, a thorough analysis of the market, suppliers and the assortment of competing stores should be carried out. This will allow you to determine consumer demand and select products in such a way as to create a unique offer in 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 available on the market, or the same one, but at a more attractive price. The fact of proximity to the house is also significant, however, since building materials do not belong to spontaneous purchases, so you should not hope only for this.

Basic recommendations for the formation of the assortment of a hardware store:

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

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

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

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

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

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

great location for clients. Hardware stores that are within walking distance, in certain cases, are the most attractive option than hypermarkets remote from the city;

variability of the assortment. The area and format of the store allow us to offer a wider assortment range than in construction pavilions. Not only products of 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 partner with a wider range of suppliers.

customer loyalty system. At the moment, not many home improvement stores are paying attention to customer acquisition policies. You can correct this mistake and provide, for example, a system of discounts for regular customers.

3. Choice of location and premises

As with any retail establishment, the location of a home improvement store plays an important role. The favorable location determines 70% of the success of the outlet. Evaluation of the location of a store takes into account such parameters as the characteristics of the area, ease of parking, the intensity of pedestrian flow, visibility and noteworthiness, proximity to similar enterprises. A good option would be the area of ​​new buildings, as well as sleeping areas away from large construction stores.

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When choosing a space for a store, the question arises: rent a retail space or acquire it as a property? Entrepreneurs recommend not to rush to buy retail space and work in a rented space for the first two years. In the event that you are mistaken with the choice of a retail outlet or it does not work out, it will be much easier to simply vacate the rented area.

Requirements for the premises of a hardware store:

The required store area is at least 100 sq. 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 showcases and make the most of the available space.

The ceiling height must be at least 2.7 m.

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

The presence of heating, ventilation, air conditioning, water supply, sewerage, ventilation and electricity in the room.

Special investments in the repair of premises for a hardware store will not be required. It is sufficient that the premises meet sanitary requirements, be dry, clean and well lit. Lease of a retail space with a total area of ​​150 sq.m. on average it costs about 100,000 rubles a month. Dividing the rented area into premises for various purposes, 100 sq. M. Should be allocated. to the trading floor, 40 sq.m. for a warehouse and 10 sq.m. to technical rooms.

4. Equipment of the sales area

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

When preparing a retail and warehouse area, there is no need for expensive finishing materials. The finished room must be bright, clean and dry. Get some inexpensive redecoration and good ventilation. This is all that is required from the premises for the successful sale of your business. The technical equipment of a home improvement store should help to increase sales volumes, ensure the productivity and profitability of the trade, and meet safety standards. In this regard, the sales area must be equipped with reliable lighting and ventilation equipment.

In addition, you should purchase commercial equipment - racks, showcases, cash counter, cash register. Since the store operates in a self-service format, several racks will be required on which the goods will be placed. For the initial stage, the store is equipped with two cash desks. However, the retail space should be zoned so that, if necessary, one more cash desk can be put up.

Equipment costs

	Name	price, rub.	Quantity, pcs.	Total cost, rub.
	Wall shelving
	Wall panel
	Island shelving
	Cash counter
	POS system with cash register
	Security and fire alarm
	Baskets and carts (including freight)

5. Search for suppliers and purchase of goods

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

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Having decided on the 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 make additional purchases of goods. The main thing in this matter is to correctly calculate the required volume of goods in order to diversify the assortment, but to exclude oversaturation of product shelves.

6. Recruitment

The main personnel in the store are sales assistants. It is on them that the success of the trade largely depends. For a shop 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 their help and win over the client, organization, responsibility, politeness.

Since the hardware store works seven days a week and is open for 12 hours: from 9:00 to 21:00, a shift schedule should be provided for staff. It is recommended that two sales assistants and a cashier work in each shift. Sales assistants are interchangeable personnel and can provide assistance to each other if necessary. The functions of a manager and an accountant can be delegated to employees, or entrusted 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, forming a range of goods, drawing up a supply chain for the delivery of goods, and forming a pricing strategy. Before starting work, personnel must undergo training, familiarizing themselves with the range of products, its characteristics and sales technology.

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

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

7. Advertising and promotion of a building materials store

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

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

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

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

Basic rules of merchandising for home improvement stores:

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

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

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

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

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

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

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

effective placement of consultants in the trading floor.

Thus, the cost of the initial advertising campaign will amount to 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, buyers have time to learn and get used to a new outlet.

8. Business registration

Building materials retail does not require any special permits. 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 for the store. It will also require contracts for the removal of solid waste, pest control and deratization of the premises.

To conduct commercial activities, 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 scale of the future business. If you are planning to open one small store, then an individual entrepreneur will be enough. If you plan to open a large construction supermarket or a chain of stores, it is better to register an LLC. In this case, you need to choose 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. Cost planning

When planning costs, they should be divided into three groups: initial investment, variable and fixed costs. And now, in order.

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

Upfront costs

	Amount, rub.
Rent for 1 month
Renovation of the premises
Set of commercial equipment
Business registration, obtaining permits
Purchase of goods
Working capital

Variable costs consist of the cost of purchasing goods, including shipping. Fixed costs consist of rent, utility bills, payroll, advertising costs, taxes and depreciation charges.

Fixed costs

	Name	Amount per month, RUB
	Rent
	Communal payments
	Depreciation
	Payroll with deductions
	Taxes (average)

10. Calculation of revenue and profit

When planning the volume of sales, one should take into account some seasonality of the construction business - the peak of sales occurs in the spring and autumn months, and the fall in sales is in the winter. The planned sales volume is calculated based on the average bill amount of 3,000 rubles and the number of buyers - 400 people per month. With these parameters, the average revenue will be 1,200,000 rubles per month. You can reach the declared sales volume in the fifth month of the store's operation, taking into account the seasonality of the business.

How much a hardware store can earn

We consider, based on the volume of proceeds, the mark-up on building materials of 65% and all costs indicated in the tables above.

Gross profit (revenue-cost price): 1,200,000 - 727,000 = 473,000 (RUB)

Profit before tax: 473,000 - 269,000 = 204,000 (rubles)

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, but 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 in 1.5 years after the start. Please note that these calculations are approximate. In order to start a successful business, it is necessary to develop a business plan for opening a hardware store. This will allow us 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 face at different stages of a project. Its specificity determines the following risks of activity:

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

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

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

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

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

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

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

SUMMARY

Like any business, a hardware store has 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 are doing repeated repairs. This means that one consumer repeatedly visits the hardware store, which generates sales. Therefore, there are a lot of potential buyers at the hardware store.

The negative point is the 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 occupy your own niche. A well-chosen assortment, active advertising, an advantageous location and loyalty to customers will help in this.

If you manage to win your consumer, then the store can go to a profitable job in 3-4 months after opening, and the initial investment will pay off in 1-1.5 years. A building materials store is able to earn about 1.5 million rubles. per year and become a promising business that has room to grow.

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When it comes to renovation, everyone starts buying building materials. And it is on the choice of building materials that further comfort and coziness in the house will depend. And if these materials are needed for construction, then it is worth considering the choice even more carefully. After all, as you know, the durability of the building, and its reliability and safety can depend on the quality of the material.

How do I choose good building materials?

The modern construction market offers a wide range of materials designed for various budgetary frameworks. However, even if you have a small budget, you shouldn't buy the lowest quality material. You can choose from all the options the most optimal, meeting both the quality requirements and the acceptable pricing policy.

So how to choose building materials and what should you pay attention to? The main tips in this area can be considered:

• Price quality. Keep in mind that the cheapest materials will not create reliability. And vice versa, not always the material with the highest price can be the owner of a high worthy quality.
• Check the storage conditions for building materials. That is, if you see that the packaging has not retained its originality, then you need to be careful about the material itself inside.
• The availability of guarantees from the seller allows us to speak of the material as reliable and safe.
• Consider all the compliance with your requirements for the material before you buy it (frost resistance, safety, moisture resistance, etc.).

Taking into account all your preferences and wishes, you yourself can choose for yourself the best option for building materials that will not only serve you as long as possible, but also save some money.

Where can you find the best building materials quickly?

If you do not have time to search for building materials in the market or in stores, the services of the GlavOrgStroy company will help you make this difficult choice. Here are collected the best and most popular offers in the field of building materials that can meet absolutely all search criteria and customer requirements.

On the GlavOrgStroy portal, you can:

• Place your ad with the requirements of what you are looking for, receive offers from sellers, make your choice.
• Negotiate with potential sellers and customers.
• Offer your products or services completely free of charge.
• Receive fresh and relevant news in the construction industry.

In order to take full advantage of the services of GlavOrgStroy, you need:

1.? Register on the website.

2.? Fill out a profile application, indicating the points of what you are looking for or suggesting.

3.? Place an ad requesting the ability to complete the assigned tasks.

4.? Make your choice from all the options offered by concluding a deal with a reliable and responsible partner.

As you can see, in a fairly short period of time you will be able to make a choice of high-quality building materials, cooperating with reliable and trusted partners.

Ways to increase sales

Trade in building materials is a business on the verge of a foul. There are no huge markups in it, and the main profit comes from large sales volumes. Construction is shrinking. New materials appear and the assortment grows. In order to be successful in this business, it is necessary to subtly work with the assortment, different groups of buyers and the conditions for keeping customers.

How to increase sales of building materials in these conditions, and other features of increasing the profitability of this business line. This will be discussed in the article.

Who is the client?

All buyers of building materials can be roughly divided into three groups.

1. Retail customers. They bring the maximum profit from each unit of goods, because for retail buyers the price is less important, and they are ready to pay 10-15% more for service, availability, transport accessibility, quality of service. But their maintenance requires high costs for goods in the warehouse, retail outlets, service personnel

2. Wholesale customers - construction organizations. This is the most attractive group of buyers, as they regularly need large quantities of goods. In addition to the price, they are guided by the presented assortment, speed and security of supply.

3. Wholesale customers - trading enterprises (intermediaries) who resell the goods purchased from you. This is the group with the lowest marginality - intermediaries increase your turnover, but give the minimum earnings, because in order to make a profit, they must purchase goods at the lowest possible price. The essence of their business is to buy cheaper to sell more expensive, they can only overpay for an exclusive.

To increase sales of building materials, you need to clearly understand which customers you are targeting - wholesale, retail, or both.

To approach the choice not out of personal preference, but taking into account the situation and statistics for the region and other objective factors.

The number of potential customers in the category, the current business situation, the needs of the regional market, the amount of funds that you are ready to invest in development, and others.

Example

If you trade in a region that is developing well and in which there are many developers, it makes sense to focus on them. If you already have an extensive network of retail stores located in high traffic locations, it is wise to continue developing your retail business.

10 effective ways to increase sales

You can increase sales in both traditional and non-traditional ways. We will tell you how to increase sales of building materials for the population and the B2B sector. Below are 10 of the most effective ways that allows us to increase sales in such companies by at least 20%.

1. Wholesale for retail. If before that you were exclusively engaged in retail, you can open an additional wholesale direction, even if it does not bring profit. What for? In order to have a constant high volume of sales, due to which it is possible to receive discounts from manufacturing plants and a low entry price.

Having received a reduced purchase price, you can:

• put a higher markup on retail and earn even more on each unit of goods sold;
• reduce the retail margin by making prices as low as possible, and increase profits by increasing turnover.

2. Expansion of the range. Expanding the range requires additional investments, and therefore must be clearly justified. It is not worth going to this step "just in case" or "to make it cooler than others". It makes sense to expand the product line if it will increase profit or customer flow.

Expanding the assortment allows you to increase profits by attracting new customers and selling goods by the "steam locomotive".

Attraction of new clients. The expansion of the assortment contributes to the emergence of new customers in two cases.

Firstly, when you know those to whom you can suggest new items. It is naive to hope for ghostly buyers who will appear with the renewed assortment. Expansion is justified when there is confidence that the new product will be bought.

Secondly, when you know of potential customers who want to buy everything in one place. For example, if you have a new roofing material, they will buy bolts and screws and roofing material from you. On this material, you can go to zero, but you can make money on the sale of screws, fasteners, gutters.

Selling goods by a "locomotive", that is, when a client comes to you for a new product, and leaves, having bought a new product and something from the main assortment. In this case, as in the previous version, the new product may not bring profit - the profit will come from the “steam locomotive product”. Thus, you will not earn anything on a new product, but you will earn on everything that he buys additionally.

Please note that in this case, the work of the sales manager plays an important role. It is he who must offer the client not only a new product, but also a “steam locomotive product”. He must actively sell and know all about cross-selling. In reality, it often happens that the owner creates such a system, but the manager does not fulfill the requirements and the company works to zero.

3. Website sales. Online sales are an effective method for increasing sales during a crisis or during periods of seasonal downturns, such as winter. Sell ​​building materials online. If you don't have your own website, now is the time to create one. If there is a website, it is important to correctly promote it, achieving relevant (targeted) visitors. The site allows not only to expand the circle of buyers, but also to save on expenses (on renting an office and salaries of managers, because an employee working from home can take orders from the site).

• Visualization. To increase sales, you should not just advertise a product in words, but visually show customers how it can be applied. For example, if you sell roofing tiles, add a photo of the roof covered with the tiles to your magazine advertisement. Or put up display stands with well-laid tile samples at the point of sale.
• Search for news feed. Not sure how to hook your customers? Come up with an informational reason. For example, call regular customers with a message about discounts, about the delivery of goods to the warehouse, which they took last time, or about the imminent appearance of a new product.

5. Performing the functions of a picker. Large customers are ready to pay extra for the opportunity to purchase goods in one place. You can not only sell your product, but also find / bring other products for customers. Everyone will remain in the black: you will sell your goods and, possibly, earn money on mediation; the client will receive the necessary building materials in one machine.

6. Schedule of work. You can achieve an increase in sales in a building materials store by adjusting the work schedule.

• The main client flow. Ideally, it is worth keeping track of the days and times in which the main flow of customers goes and be sure to take orders during this period. For example, if the lion's share of orders goes on Saturday and Sunday, then it is better to do the day off on Monday, and leave Saturday and Sunday as workers.
• Counterbalance to competitors. If your competitors work until 18:00, work until 20:00. If they rest on Saturdays and Sundays, try working on those days. This will increase the chances that customers will come to you.

7. Possibility of payment by installments. How to increase wholesales of building materials? If your financial situation allows, sell the goods in installments. The main thing is to keep track of the size and condition of accounts receivable.

8. Cold calling. You can increase the number of sales by using cold calls. They will not give quick results, but if you build the dialogue correctly, in 2-3 months the number of clients will begin to grow.

9. Active work with clients on the incoming stream. It is easier to keep the client than to call him "cold" later. It is important that managers establish contact with all clients who came on their own in order to be able to subsequently make “warm” calls.

• If you are only engaged in wholesale trade, and the client looked / called to clarify the availability of a certain material, features or cost of the product, you should involve him in a dialogue, if possible, clarify the needs, and certainly take contact information.
• If you are engaged in both wholesale and retail, it is important to competently communicate with customers who come to retail outlets. Keep in mind that these may include wholesalers and those responsible for large purchases.

10. Standards of customer service. The increase in sales is positively affected by the introduction of uniform service standards throughout the retail network. It is important to monitor the work of managers and train them in competent communication with clients.

Situations when the manager was not in the mood and sent a client or was too lazy to fully answer his question should be reduced to zero.

For this, all telephone conversations must be recorded, and surveillance cameras must be installed in sales areas. Ideally, develop a ready-made algorithm for a conversation with a client for each manager and compose answers to any objections.

Summarizing all of the above, to increase sales of building materials in your company, you need to follow these steps:

• Analysis of customer needs
• Maximum customer satisfaction
• Improving the work of your own sales department
• Attraction of new clients
• Motivation to keep existing