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Ways to increase sales

Trade in building materials is a business on the verge of a foul. It does not have huge margins, and the main profit comes from large volumes of sales. Construction is down. New materials appear and the assortment grows. In order to be successful in this business, you need to work finely with the assortment, different groups of buyers and customer retention conditions.

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

Who is the client?

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

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

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

3. Wholesale clients - trading enterprises (intermediaries) who resell the goods purchased from you. This is the group with the lowest marginality - intermediaries increase your turnover, but give a minimum income, 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 overpay only for an exclusive.

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

Approach the choice not from personal preferences, 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 willing 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 retail stores located in places with good traffic, it is reasonable to continue the development of the retail direction.

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 the 10 most effective ways that allow us to increase sales in such companies by at least 20%.

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

With a reduced purchase price, you can:

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

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

The expansion of the assortment allows you to increase profits by attracting new customers and selling goods by a "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 offer novelties. Hoping for ghost buyers who will appear with the renewal of the range is naive. An extension is justified when it is certain that new product will buy.

Secondly, when you know about potential customers who want to buy everything in one place. For example, if you have new roofing material, they will buy bolts, screws, and roofing material from you. On this material, you can go to zero, but you can earn money by selling screws, fasteners, gutters.

Selling goods by "locomotive", i.e. when a client comes to you for the sake of a new product, and leaves after buying a new product and something from the main assortment. In this case, as in the previous version, the new product may not be profitable - the profit will come from the “locomotive product”. Thus, you will not earn anything on the 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 “locomotive product”. He must actively sell and know everything about . 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. Sales through the Internet site. Internet sales are an effective method for increasing sales during a crisis or during periods of seasonal recession, for example, in winter. sell Construction Materials through the Internet. If you don't have your own website, it's time to create one. If there is a website, it is important to promote it competently, achieving relevant (targeted) visitors. The site allows not only to expand the circle of customers, but also save on expenses (on office rent and salaries of managers, because an employee working at home can take orders from the site).

• Visualization. To increase sales, you should not just advertise the product in words, but clearly show customers how it can be applied. For example, if you sell roofing tiles, include a photo of a roof covered in roofing tiles in your magazine ad. Or set up display stands with properly laid tile samples at the point of sale.
• Search for information. Don't know how to hook customers? Think of an informational occasion. For example, call regular customers with a message about discounts, about the delivery to the warehouse of the goods that they took last time, or about the imminent release of a new product.

5. Performing the functions of a picker. Large customers are willing to overpay 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 benefit: you will sell your product and, possibly, make money on mediation; the client will receive the necessary building materials in one machine.

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

• main clientele. Ideally, you should keep track of the days and times on 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 working.
• Counterweight to competitors. If your competitors work until 18.00, work until 20.00. If they rest on Saturdays and Sundays, try to work on those days. This will increase the chances that customers will come to you.

7. Possibility of payment by installments. How to increase wholesale building materials? If financial position allows you to sell goods in installments. Most importantly, keep an eye on the size and condition.

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

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

• If you are only doing wholesale trade, and the client dropped in / called to clarify the availability of a certain material, features or cost of the goods, you should draw him into the dialogue, clarifying the needs if possible, and be sure to take contact details.
• If you are engaged in both wholesale and retail, it is important to competently contact customers who come to retail outlets. Keep in mind that among them there may be wholesalers and persons responsible for large purchases.

10. Customer service standards. The increase in sales is positively affected by the introduction of uniform service standards throughout trading network. It is important to control the work of managers and train them to communicate competently with customers.

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

For this everything telephone conversations should be recorded, and surveillance cameras should be installed in the trading floors. Ideally developed for each manager finished algorithm talking to the client and drafting responses to any objections.

To summarize all of the above, in order to increase sales of building materials in your company, you must perform the following steps:

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

In this age of rapid growth and technological improvement, it is very difficult to keep up with the various innovations that appear in various fields, be it the food industry, nuclear technology or bioengineering. Progress has not bypassed construction technologies, and every day more and more new materials, more and more convenient and perfect construction methods are born. This material will highlight some of the latest know-how in the field of construction and interior decoration, present photographs of new products and give their main characteristics and advantages over their predecessors.

Clinker

To begin with, we will introduce such material as clinker to get acquainted with the new products. Clinker is a brick, but a brick with a number of advantages that ordinary brick lacks. Its main advantage over other facing materials is the price. Compared to, say, facing decorative stone, clinker is much cheaper and allows you to save a significant amount of money spent on finishing the facade. The next advantage of clinker is the variety of shapes and colors. Clinker brick does not contain chemical impurities in its composition, and consists only of water and clay with the addition of dyes. This is another advantage of such a facing material, it is natural and environmentally friendly. Well, the last thing I would like to note about clinker bricks is its frost resistance and resistance to various natural phenomena, which have a devastating effect on ordinary brick.

Teplosten

Another innovation in the field of bricks is a block called "heat wall". It was invented in 1999. The heat wall is presented in the form of a block, which consists of three layers. The first layer is a load-bearing block that carries the main load, the second is a layer of insulation, usually polystyrene, less often mineral wool, and the last is a decorative facade layer. In terms of thermal conductivity, such a block is 6 times superior to ordinary brick.The heat wall is mounted using tile adhesive, which is applied thin layer, which eliminates the appearance of efflorescence on the surface of the wall. This material has a large variety of configurations and design options. It is also possible to manufacture blocks to order. In terms of thermal conductivity, these blocks have no equal; they can retain both heat in winter and coolness in summer. Teplosten can be rightfully called the material of the future, thanks to its cost-effectiveness, speed and ease of installation and a wide variety of facade design options.

Penoplex

The next novelty that I would like to talk about is penoplex. Penoplex appeared on the Russian construction market quite recently. This is a new generation heater. It is a slab of extruded polystyrene foam with a very low thermal conductivity, resistant to various loads, moisture resistant, frost-resistant, with high level soundproof and non-flammable. Penoplex has a very wide range of applications in insulation and sound insulation. As a heater, it can be used almost everywhere, from pools to paving. Plates have grooves for more reliable and convenient attachment to each other. It is permissible to fix them both mechanically and with the help of special adhesive compositions.

linocrom

Next on the list is linocrom roofing material. Linokrom is, perhaps, the most perfect rolled roofing today. It is a layer of polyester or fiberglass, which is coated with a special bituminous binder coating.It has high performance, is resistant to temperature extremes, water and is durable.Linocrom can be produced with or without special crumbs. This material is used not only on flat roofs, but also on pitched ones, as well as waterproofing foundations and plinths.

Liquid rubber

In continuation of the roofing theme, it is impossible not to note one more new material for roof waterproofing - liquid rubber. When using liquid rubber, the risk of water leakage through the roof is completely eliminated, because. The coating is applied by spraying in a continuous uniform layer. hallmark when using liquid rubber, it is possible to use it on roofs with any configuration, as well as from any materials - concrete or wood.The use of liquid rubber does not require the removal of the old coating. The only requirement is a thorough preparation of the surface for further application of a layer of liquid rubber. It is necessary to clean the surface from grease and dust, and the surface must be absolutely dry, if this is missed, then there is a high risk that sufficient adhesion of the rubber to the roof surface will not be achieved. As a result, all the efforts made by you will turn out to be a waste of your time and effort. In addition, moisture must not be allowed to enter the applied rubber layer for two days, this is how long such a coating will dry.

liquid tree

In continuation of the "liquid" topic, we should mention another product that has appeared on the modern construction market quite recently - a liquid tree. Liquid wood is a very practical and reliable building material. It is made in the form of a board of polymer resins mixed with natural wood fibers. The advantages of such boards are obvious. First of all, the price. The price of this material is lower than the price of natural wood, despite the laborious and complex production process. Liquid wood is a real find for designers and planners who want to embody the reliability of plastic and the beauty of natural wood in their ideas. The reliability of this material allows it to be used in places where natural wood will not last very long, such as near water bodies, such as pools or ponds, since liquid wood does not rot, insects do not start in it, and it is resistant to the vagaries of nature. A board made of liquid wood is able to withstand quite a lot of weight, while not deforming or breaking, it will not crack during installation, so installation is easy and fast even if you do not have the skills to work with this material.

cork floor

Another equally interesting wooden novelty is cork flooring. It is made from the bark of a cork tree, which grows mainly in countries such as Tunisia, Spain and Portugal. The cork floor has amazing elasticity, which is achieved due to air pores that occupy half the volume of the cork itself. Such a floor is resistant to mechanical loads, such as heels or the legs of tables and chairs, and restores its original shape after the load is removed. But do not get carried away with the loads, it will be better if the legs of the furniture are based on special stands, because. excess weight will cause the cork to collapse, after which it will no longer return to its previous state. In addition to resistance to deformation, the cork floor has amazing soundproofing properties, so it is relevant if noisy neighbors live on the floor below. Thanks to its fine-grained structure, cork flooring is always unique and individual. Color options for such floors can be very different, but in color they are made for the most part to order. Cork floors are mounted on a special glue. After installation, you can optionally varnish the floor, however, due to the large number of pores, you will need at least five layers of varnish until it stops being absorbed and begins to form an even, smooth layer. It is not recommended to make cork floors in damp rooms, as they are afraid of moisture. This is one of the downsides of cork flooring. Another downside is enough high price, so not everyone can afford such a soft, warm and environmentally friendly floor.

rubber tile

Well, the latest novelty in the construction market, which will be presented in this review, will be a product that is still almost impossible to get anywhere - this is rubber tiles from outdated car tires. This product was invented by the European company Euroshield. To come up with such an original way of recycling old tires, the inventors of this tile were forced by the fact that all landfills and trash cans are littered with useless tires. Rubber tiles have amazing strength, are able to withstand both hail and heat, are not affected by temperature changes and have an original appearance.

Recycled tire shingles are stronger than any known roofing material due to their ability to stretch and compress. Rubber tiles are mounted, like ordinary flexible tiles, with glue, or with the help of screws and nails. The warranty period for this novelty is set at around 50 years, but in reality it will last much longer. Even after the end of its useful life, the product can be recycled to produce new tiles, so in essence it is an eternal roof.

All the novelties presented in this material are new only now, but soon they will densely enter our everyday life, taking the place of obsolete and less perfect materials that were used in construction before them and will finally replace the building materials we are used to. And these novelties will be replaced by others, and this will continue as long as a person lives on Earth. His inquisitive mind is constantly striving for discovery and the desire to improve his life, finding the most amazing solutions to the most unusual problems.

In any locality Russia always has and will need to build facilities for various purposes. They wear out over time and need to be repaired. This means that without building and finishing materials in our life is indispensable. Hence the conclusion - the sale of such goods is a sought-after and profitable business.

Reconomica today will share with you, dear readers, experience successful entrepreneur, which combined the production of building materials with the sale of not only its 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 positive and negative points, the benefits and prospects of the specified 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 construction, repair 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 a room, wages workers and paying 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 was working at the time leadership position, V production company, which 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 in 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's good that you found it 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. total amount payments amounted to 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. Commercial premises It was big, 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 were many places paving slabs laid out 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 to place on the building advertising banners. 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, rent could still be paid, but in winter, when there are almost no orders, and production room need 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 good client, then the company provides a minimum wholesale price for products.

The producer always has a need for cash- these are debts for wages, rent, debts for delivered raw materials, or simply 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, shopping room replenished two stands - one with LED lighting, the second represented manufacturers of swimming pools for personal plots, saunas, 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, he did not let anyone down, so they installed me business relationship wholesale consumers.

It would seem that, construction firms you can go to manufacturing plants yourself, where you can buy 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.