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Hardware business plan. How to open your own store selling fasteners and hardware

If you are familiar with the construction business firsthand, if you were once engaged in the repair or production of furniture, then you do not need to explain what hardware means. You should also like the idea of opening a hardware store. You do not need to invest in complex expensive equipment, run around for permissions, collect documents for a license. At first, you may well get by with a modest investment within 500 thousand rubles.

Business Features

No wonder the need for close acquaintance with the field of construction and repair has already been mentioned above. It is difficult for a person far from this area to understand the assortment and features of product promotion. Namely, your profit depends on practical knowledge. Otherwise, you run the risk of purchasing slow-moving goods or losing a client due to the fact that you cannot find the fasteners he needs.

Yes, and the location of your outlet should be selected, given the proximity of potential consumers.

As for investments, the biggest expenses relate to the purchase of goods. Renting premises, buying equipment - these investments are not so great.

How to open a hardware store

You do not need a license to start a business. You will need to register as a sole trader. The form of IP is considered the most optimal. The procedure is simple, long preparatory work and the collection of documents does not require. And the costs are minimal.

Most individual entrepreneurs work on a simplified taxation system. With this option, it is necessary to install a cash register. Therefore, documentation for it will be required, and also the personnel who will work with the KKM must have permits.

In addition to the "simplification", in some regions there is taxation in the form of a single tax on imputed income. In this mode, a cash register is not required.

Potential clients

Before you open a hardware store, find out the circle of your future customers. Typically, the most active customers are various repair teams, small construction companies or furniture manufacturing and assembly firms. According to statistics, they form up to 40 percent of profits.

It does not hurt to establish good relations with large construction companies in advance, who will be happy to take wholesale consignments of goods from you. The rest of the proceeds are private individuals who buy the same construction nails for personal needs: to repair a garden house, put an arbor in order, and you never know what small household chores you sometimes have to do.

Choose a place

Based on the circle of your potential customers, select the location of the store. The closer he is to a building base or market, the better. There is a good trade in fasteners in the area of new buildings. New settlers are actively engaged in the repair and improvement of apartments, so interest in your assortment will not disappear for quite a long time.

Think about how to open a hardware store next to the office of a construction company. Then your ad will be noticed very quickly, and just as quickly you will get regular customers.

room

The place has been chosen, now you need to decide the size of the room. You don't have to rent large spaces. It doesn't justify itself.

Twenty or thirty square meters is enough. You can equip a stand-alone pavilion or organize a retail outlet in a common room at a construction market or base. According to modest estimates (the rental price varies greatly by region), you can rent such a room for 40-50 thousand rubles.

The room should be divided into a warehouse area and an area where the goods will be presented. Some entrepreneurs rent a modest "patch" in a specialized shopping center for goods for repair and construction, and the items ordered by the client are issued from the warehouse or delivered. The business option you choose should reflect the hardware store business plan. In it, lay down the costs of launching an online store or a business card site of the company, if any are included in your plans.

Equipment

You do not need to buy complex units. But standard commercial equipment will be needed. So, you need to get:

Also, you need a sign. This is enough to get started. When purchasing equipment, remember that it must be durable.

Shelving is better to take metal, they will last you much longer. It is better to choose shockproof glass for showcases so that it does not crack or scratch during the demonstration to the buyer of the goods. If you are thinking about how to open a hardware store in a large trading floor of a construction base, then roller shutters are needed to cover the goods during the absence of the seller.

Your salesperson or sales manager will need a computer and desktop.

Store assortment

Now a little about the product range. It includes self-tapping screws, anchors, dowels, rivets, sandwich panel fasteners, studs. These devices are necessary when installing the roof. You can’t do without them when attaching ventilation systems or installing floors, assembling furniture, building a house.

The assortment of your outlet should include construction nails, screws, nuts, bolts, abrasives for metal, mounting cartridges, welding accessories, clamps.

Not bad sold out manual (screwdrivers, hammers, etc.) and power tools. You should not just take on the sale of expensive or large-sized units, for example, lawn mowers, chainsaws. These devices will require you to make a serious investment, but they will be much more difficult to sell than a box of nails.

Because of the characteristics that distinguish your business (hardware has a well-defined customer base), you need to choose your product range with the utmost care. Without the necessary knowledge, it is very easy to buy illiquid positions. They will gather dust in your warehouse for a long time until you get rid of them. To avoid losses, thoroughly study the demand.

With today's article, we continue a series of business ideas for launching niche stores in one direction or another. Specifically, in today's article, as you understand, we will talk about how to start your own business selling fasteners and what needs to be done first.

In a crisis, the building materials market, like the whole business, overcomes difficult times, but in spite of everything, our people are trying to repair their homes and even build new ones, so that customers will be in any case, and they will buy where it is cheaper . Plus, where there is a wide selection of goods. It is the realization of these needs that we lay in the idea of a narrow niche store selling fasteners.

Is it profitable to start such a business?

Fasteners are a hot commodity that is in demand both in summer and in winter. Therefore, there will always be customers, the only thing is that it all depends on how you arrange sales and what prices will be for your product.

The most effective would be to open such a store in a small town where there are no large shopping hypermarkets. For promotion in a big city, you will need much more effort, money and time, but the profit can be much higher.

Let's talk about what we need.

Rental of retail space and purchase of equipment

To open a fastener store, you will need to find a room in a crowded place, the best option would be a trading area near the market, or other hardware stores. You initially need to focus on where the maximum flow of your potential customers will be.

The size of the room should be sought in the region of 20 - 35 sq.m. There is no point in renting a larger room at the initial stages. The indicated sizes are quite enough to demonstrate the assortment and ease of use of the store.

From the equipment you will need racks, cabinets with glass surfaces and various hooks and fasteners for hanging goods on the walls.

Also don't forget about the trading space for the seller.

Range

When developing a full-fledged business plan for a fastener store, you will need to work out the assortment very carefully. It is important to offer customers something that competitors do not have and significantly expand the choice of what they have. Your store should feature a variety of product price segments. In fact, the trade in fasteners is divided into two types:

By weight. This is how nails are usually sold.
By the piece or in packages. So they sell everything else (screws, bolts, etc.).

So, when planning the budget, consider the purchase of normal scales.

What must be present in the hardware store:

bolts
nuts
screws
nails
screws
anchors and dowels
self-tapping screws
retaining rings
lock washers
washers
hairpins
pins
foams, sealants, adhesives, building chemicals
perforated fasteners
rigging
rivets
profiles, suspensions and crabs
machine normals
clamps
washers
cotter pins
key
rope
related products (adhesive tape, electrical tape, etc.)

In fact, the range is much wider, and it can be constantly supplemented with new positions.

As you can see, the goods are running, and are in use in almost every home. The niche of fasteners is very narrow, but at the same time, its potential is enough to launch a full-fledged store, and even with the prospect of expanding the range.

Advertising

An effective method would be to hand out flyers about your opening and advertise in the local classifieds newspaper.

If you work in a big city, then you definitely need to launch a full-fledged online store of fasteners and hardware and connect contextual advertising at the start. In the future, you can do search promotion.

Staff

Here it is necessary to say a few words about the selection of personnel. The product is very specific and not everyone will be able to quickly navigate and offer the client what they need. Therefore, select people who understand this matter and can distinguish a bolt from a self-tapping screw.

How much do you need to start?

Room rental - $250 - $300
Taxes - $150
Salary to the seller - $ 200
Initial Purchase of Goods – $8,000 – $12,000
Purchase of equipment - $500 - $1000
Advertising — $250 (+ advertising on the Internet).

If you are launching an online store, also take into account the amount for its development.

Product markup?

This is the first thing you need to be interested in when calculating the prospects for a business payback, as well as calculating the profitability of your business. The average markup on goods in a fastener store is kept at the level of - 50% - 300%.

Brief conclusions. A fastener store should still be opened only if there is little competition; over time, you can expand your business by supplementing it with the sale of various tools, both electric and battery-powered. Or supplement with lighting products.

Perhaps you have some thoughts about this? We are waiting for them in the comments.

At first glance, it may seem that a hardware store is not the most profitable business, but this is far from the case. The advantages in this case are knowledge of the construction market, this will allow you to freely navigate the assortment and correctly form purchases. Business does not require investments in expensive equipment, obtaining permits and licenses.

Peculiarities.

Knowledge of the assortment is necessary to promote the product, it is difficult for a person far from this area to purchase a hot product, which is directly related to the profitability of the store. Ignorance of the assortment will lead to the loss of customers and low turnover of funds. The bulk of the investment should be spent on the purchase of goods, the cost of renting premises and purchasing equipment in this case is not so high. When choosing the location of the outlet, it is necessary to take into account the proximity of potential customers.

Calculations.

The advantages of this type of business include also low initial investments - for the first time, 600-800 thousand rubles will be enough. The main amount of investment in this case will be spent on the purchase of goods - 450-500 thousand rubles. The cost of the premises depends on the specific location and its promotion, on average, monthly rental costs vary between 20-50 thousand rubles. If you have extra money, you can buy a retail outlet, the price also depends on the location and the specific city (60-250 thousand rubles).

The cost of furniture, cash register, computer, table, commercial equipment can range from 30 to 40 thousand rubles. It is recommended to plan 50 thousand rubles for the salary of two sellers and a remote accountant. The turnover of the pavilion in the construction market will average 450 thousand rubles, the net profit will be at least 150 thousand (30%).

Decor.

Opening stores does not require licenses; for registering an enterprise, it is best to choose an individual entrepreneur with simplified taxation. The registration procedure takes up to 5 working days and does not require large investments. Simplified taxation requires the installation of a cash register with documents. The staff must also have permits.

Clients, choice of premises.

Before opening a store, it is recommended to identify the circle of future buyers, usually repair teams, small construction or furniture companies. They form up to 40% of the profit. It is also recommended to establish contact with large construction companies, they will be wholesale customers. The remaining 60% of the profit is generated by retail sales.

It is recommended to choose the location of the store based on the circle of potential customers; a store located near the construction market or base will bring a good profit. It is advisable to open a retail outlet in the area of new buildings, apartments will be sold and repaired over several years, which will ensure long-term demand for products. The store can also be located near the office of a construction company, whose clients will become your regular customers.

In the process of choosing a place, it is also recommended to pay attention to the size of the premises; it is not worth renting large areas at first. The best option is a room with an area of 20-30 sq.m., it can be either a stand-alone pavilion or a department section at a construction base or market. Monthly rent in this case should not exceed 40-50 thousand rubles.

Equipment, sign.

A hardware store does not require complex equipment; at the initial stage, it is enough to purchase a showcase, racks, cash registers, roller shutters and a computer. Shelving is best to buy metal, display glass should also be strong enough, it should not scratch and crack in the process of demonstrating goods to customers. The seller lowers the roller shutters during his absence. A sign is needed to attract the attention of customers, its size and design depend on the location of the outlet.

Nomenclature.

The assortment of the store should always include bolts, screws, nuts, self-tapping screws, rivets, dowels, studs, etc. Hardware is used when installing ventilation and roofing systems, installing floors, when building a house and assembling furniture. Hand tools (saws, hammers, screwdrivers) and power tools are also in great demand.

When forming the assortment, it is recommended to pay attention to the needs of customers, illiquid positions can significantly slow down turnover and cause low profits. To minimize possible losses, demand should be known as much as possible, for this you can study the range of outlets with a similar specialization, study the offers of online stores.

Staff.

To ensure the normal functioning of the outlet, two sellers will be required; in this case, the “two by two” schedule is considered the standard option. When selecting employees, it is recommended to pay attention to their qualifications and knowledge of the range, their responsibility includes not only sales, but also consulting. Salary in such cases traditionally consists of a salary and a percentage, this scheme contributes to sales growth.

Promotion.

To bring the store to a stable profitability, it is necessary to plan advertising costs. Information should be placed in the media, you can also order leaflets, booklets, flyers, you can also attract the attention of customers with promotions and discounts.
It is best to open a store in the spring, when the construction season begins, it is at this time that construction stores make the maximum revenue.

If you want to open a building materials store, but do not have enough finances, then selling fasteners would be a great option. So gradually it will be possible to expand the range, and fulfill your dream.

You can determine the profitability of the store based on the economic situation in the country. If the situation is stable and prosperous, people make repairs, and construction companies take orders, then your store will easily find customers and quickly pay off. One question remains: how to open a fastener store?

The success of the whole business will depend on how competently and efficiently the business plan of the fastener store is drawn up from scratch. It will list all the expenses that will be spent on opening a store: on premises and the purchase of goods, payment of utilities and wages to employees. As a result, it will be possible to calculate the planned profit.

First of all, to open any store from scratch, you will need to find a suitable premises, register an individual entrepreneur or LLC, and obtain permits from the fire service and the sanitation station. After that, the business plan will already describe all those points that will help you choose an assortment and successfully implement it.
Particular attention should be paid to the place for opening a store. Since the goods are specific, there is no need to locate the premises in crowded places, this will not bring any benefit, only a large amount will have to be paid for rent.

But a good place to open a store selling fasteners would be one of the options:

construction markets;
economic markets;
near large construction companies;
near shopping centers;
in a good transport interchange.

How to organize assortment?

You can open a store with hardware, that is, metal products, by purchasing two groups of goods: household and industrial. The first includes knives, shovels, scissors, saws and knives.

But we are more interested in the second group, because among them there is such a variety of fasteners:

wire;
rivets;
screws;
washers;
nuts;
crutches;
bolts, etc.

The fastener section may be a separate section in a hardware store, or it may be a separate small outlet. Then you will need to take care of a wide range, which is necessarily recorded in the business plan. This will be needed in order to get around competitors, of which there will be a large number.

Many fastener outlets stock only the most common items, such as self-tapping screws and dowels, so having fasteners for ceilings, appliances, furniture, etc. will be a big advantage.

Purchase

The first purchase is the most costly and largest, it should be about 500 items.

How to open your hardware store from scratch?

Our company provides assistance in organizing retail sales for potential customers. We have extensive experience in organizing the opening of retail outlets throughout Russia and the CIS countries.

The topic of opening a department of building fasteners or a hardware store from scratch is now very promising, we invite you to visit a whole site dedicated to this area.

Now the site is being actively filled with information, a full-fledged online store will start working very soon, each of our Partners will have the opportunity to create a “Personal Account” and form an application on the most favorable terms!

The technical specialists of our Company are always ready to provide you with all the necessary advice:
- what equipment and in what quantity to choose;
— preparation of planograms to improve sales efficiency;
– assortment and quantity of goods in accordance with your sales strategy;
- pricing;
— advertising equipment and merchandising;
— Calculation of stock points and much more…

What do you need to know?

As a rule, retail sales of fasteners are divided into 3 types:

— Sale in blister packs or sachets (1-50 items per pack);

This type of sales is suitable for self-service stores.

Pros: a more preferred format for retail customers, as it has the smallest packaging; occupies little retail space; does not require stock; does not take the time of the seller to plumb the right amount; have a barcode.

Cons: requires special trade equipment for hanging goods; goods in the purchase and sale are more expensive than other options, as they have additional costs for packing and packaging; narrow range of products.

— Sale in small boxes and plastic buckets (50-250 items per pack);

This type of sales is suitable for stores selling building materials, household goods, for expanding the existing range of goods with a new group, as well as for self-service stores.

Pros: packaging is convenient for storage and sale (does not require special trade equipment); does not take the time of the seller to plumb the right amount; there is a barcode; Cheaper than blister pack.

Cons: the goods in the purchase and sale are expensive, as there are additional costs for packing and packaging; narrow assortment; stocks are needed.

– Sale of goods by the piece or by weight;

This type of sales is optimal for specialized fastener stores, as well as stores equipped with packaging equipment or a special department.

Pros: the cheapest fasteners in the purchase; the ability to pack the warehouse in the required quantity and assortment; a wide range of fasteners; convenient for storage in a warehouse; no special trading equipment is needed; suitable for wholesale trade.

Cons: packing scales are needed to weigh the required amount; stocks are needed; no barcode.

Depending on the chosen fastener sales strategy, our company carries out the optimal selection of products by assortment and quantity. The selection is carried out in such a way that the assortment would include the most popular positions (group A, according to ABC analysis), as well as slightly less popular positions (group B).

The amount is determined based on the 3-month requirement for these groups.

What is required from you?

In order to open a department or direction for the sale of fasteners, the owner needs to answer several essential questions for himself:

1. Fasteners will be the main line or additional assortments in the outlet?
2. If fasteners are an additional range, what will be the main product?
3. What type of trade is planned to be developed - retail sales or wholesale and retail?
4. What sales scheme will be implemented at the point of sale - self-service or work with the seller?
5. What sales area will be used?

Working with us you get

Contacts for wholesale partners in the regions

Departure of sales representatives

Production of stands with product samples

Possibility of deferred payment

Convenient delivery on time

So, for a hardware store, investments are needed, the amount of which does not exceed 500,000 rubles, and at the initial stages, the main problem will be to form a sufficient assortment and select running positions.

How to choose a room for a hardware store

To open a retail outlet, a small area of 20-30 m² will be enough. It can be either a trade pavilion in the construction market, or a point that has the "island" format. The cost of renting such an area per month lies in the range of 35-45 thousand rubles.

Key moment of this business is the location of the outlet. The best option would be its location in a passing place near the construction market or construction base. It is possible to consider the option of opening a fastener store in a residential area of the city, but only where there are many new buildings. However, in this case, sales of hardware will be at a very high level at first, since builders, repair teams and furniture assemblers will purchase various fasteners. But sales will gradually decline as all apartments in new buildings are completed and renovated.

Investments - how much does it cost to open a fastener store

The amount of investments that are necessary to open even a small fastener store starts from 400,000 rubles or more (depending on the scale of the planned business).

At the initial stage, the main cost item will be the purchase of goods. Everything here will depend on the size of the trading area. The approximate calculation is as follows: 300,000 rubles for every 15 m² of area. The assortment line of the store can reach 500-1000 items, since fasteners are very small goods (nails, screws, clamps, self-tapping screws, staples, wire, etc.)

The procedure for the first purchase should be taken very seriously, because without a certain experience in this area, you can fill the store windows with goods that turn out to be illiquid. It is better to take an interest in the running positions of competitors and also take into account that such types of fasteners as screws, joiner's nails, self-tapping screws, dowels with hooks and impact screws, etc. are in greatest demand at retail outlets.

Retail store equipment

For the normal operation of the fastener store, the following trading equipment will be required:

racks - from 6 thousand rubles;
shop windows - from 15 thousand rubles;
roller shutters or other protective equipment - from 15 thousand rubles;
computer and cash register (ONS) - from 30 thousand rubles;
signboard and billboards - from 8 thousand rubles.

Required documents to open a hardware store

To organize a fastener store, registration of an individual entrepreneur (individual entrepreneur) is suitable. As a taxation system, they usually choose UTII (imputed income), which does not require accounting and the mandatory installation of a cash register. In this case, the amount of tax will be minimal, since the tax is charged depending on the sales area.

Recruitment

For the normal operation of a small fastener store, you will need to hire 2 salespeople for shift work (2 through 2). Such employees must necessarily understand the assortment and have experience in this area.

The salary of such specialists will be made up of the amount of salary and a percentage of sales (increases the motivation of sellers). Taking into account the payment of insurance contributions, two sellers will spend 50,000 rubles per month.

Please note that working with small goods requires the mandatory installation of the 1C program (to account for turnover and prevent shortages).

How to promote a fastener store

It is very difficult to increase the store's turnover without additional advertising costs, including on the Internet (by creating a simple one-page site with contact information, posting ads on various thematic boards, and registering in online directories).

In conclusion, I would like to note that the fastener store cannot be called a completely seasonal type of business, however, an increase in demand always occurs in the spring and summer. As a result, it is recommended to plan the opening of a fastener store at the beginning of spring, which is guaranteed to allow you to build up a regular clientele in a short time and reach breakeven, and then make a profit.

Additional tricks and features to increase profits at the hardware store

There are several proven ways to increase profits in fastener stores. However, often, inexperienced entrepreneurs overdo this advice. Let's take a look at their pros and cons.

Sale of additional hardware and cargo products. As an increase in profits, along with hardware, the hardware store sells various hardware and cargo products. Hardware is called various special fasteners. The most popular directions for selling hardware products are:

Window and door fasteners - hinges, handles, latches, all kinds of locking plates and locks, latches, latches.
Special mounting elements - corners, brackets, strips, rails, etc.

Beginning entrepreneurs make the mistake of trying to diversify this assortment as much as possible, unfortunately, there are few universal elements in this direction, and special hardware products are rarely bought, for example, a special handle lock for a certain type of windows.

Cargo (rigging) products include ropes, cords, ropes, chains and cables. Finished products take up quite a bit of space (reel on display) and are sold by the meter.

Sale of tools and electrical goods. The hardware store sells well all kinds of tools - hammers, saws, screwdrivers, wrenches. But, if you want to sell power tools, then you should think about it. When buying a power tool, consumers try to choose a well-known brand or a good device in terms of price / quality ratio. That is, you will have to trade, either with a well-known brand, or by empirical means, look for a little-known manufacturer. The disadvantage of the first approach (famous brand) is that you will have competition with large chain stores, to which you will definitely lose. The disadvantage of the second approach is that the empirical path determines the primary sale of a “pig in a poke” (even guided by reviews on the Internet), which means there will be a lot of complaints from your consumers, which can ruin your reputation. Thinking about renting a power tool.

The sale of electrical goods includes the sale of electrical wires, wiring fasteners and connectors. But, you should not expand your assortment with various sockets and switches, you will not be able to compete with specialized stores, the goods will gather dust on the shelves. Add a couple of the simplest sockets and switches to the shelf, this will be enough, even if there is no demand, you will not spend much.

Sale of overalls and consumables. Although there are specialty shops with workwear, you should consider introducing it into your assortment. At a minimum, construction cotton gloves should be on the shelves of your store. Consumables mean various cutting and cutting equipment (cutting discs for grinders, blades for hacksaws for metal, etc.), electrodes for electric welding, drills, staples for staplers, etc.

Properly approaching the assortment of your fastener store, finding the balance points of supply and demand, you can make the store popular throughout the city.