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Building materials store: profitability, assortment, initial purchase

The project involves the organization of a building materials store in a city with a population of 50 – 500 thousand people. The store area is about 200 m2, of which 150 m2 of retail space. In the adjacent area, it is planned to erect a semi-closed warehouse with an area of ​​50 m2.

The facility is located at the site of the prospective construction of multi-storey residential buildings, commissioned according to the “construction option” scheme. The assortment of the store is aimed at trading materials for rough finishing of apartments and households.

The business plan of the project plans a gradual increase in sales by assortment groups, associated with the expansion of the contractual base of product buyers. The seasonal nature of sales of the main products of the store is taken into account. The first and second quarter of the year are “high season” when sales are maximum, the third and fourth quarter of the year is the low season, characterized by a slight decrease in sales volumes from the base. This is due to the fact that the use of building materials, as a rule, is maximum in the second quarter, and, often, materials for construction and repair are purchased in advance, in the first and second quarter, then gradually diverging in the third and fourth.

The basic sales volume (maximum revenue for the analyzed period falling on the 6th quarter of the project) for this store is calculated at the level of 900 thousand rubles per month.

The largest weight in the revenue structure is occupied by the volume of sold construction mixtures (810 thousand rubles per quarter) and paint (675 thousand rubles per quarter).

In two years, the project will provide a net profit of 1.9 million rubles.

The project is profitable throughout the analyzed period. The average monthly profit is at the level of 60.5 to 107.3 thousand rubles per month.

Brief Project Description
The project involves the organization of a building materials store in a city with a population of 50 – 500 thousand people. The store area is about 200 m2, of which 150 m2 of retail space. In the adjacent area, it is planned to erect a semi-closed warehouse with an area of ​​50 m2.

The retail building materials market is slightly prone to economic crises. The construction of your own residential building or repair is an integral part of the life of any family. Therefore, it is worth paying attention to this segment of the business, since it provides quite decent indicators of profit and the stability of its receipt.

As you know, when choosing a location for a point of sale, there are three most important criteria: location, location, and again location. Therefore, if a small store cannot compete in price with large hypermarkets, then by providing a personal approach to customers and reducing the logistics leverage, a small store can occupy a quite comfortable niche.
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An object of this format is best placed at the site of the prospective construction of multi-storey residential buildings, leased according to the “construction option” scheme. Often such areas are adjacent to arrays of private residential households, which are regular consumers of building materials. And this is ideal for the location of the new building materials store. The assortment of the store in our proposed version is aimed at trading materials for roughing and finishing of apartments and households.

Another important aspect of the project is active work with small wholesale consumers of building materials – small construction organizations and foremen. As a rule, with the right job with them, they can acquire a large share of the store’s sales. The scheme of working with them is known, and we will not dwell on it in detail. It is based on the payment of a certain (usually from 5% to 15%) percent of the purchased products. Of course, such payments are preferably formalized, for example, as agent fees. Since even private superintendents for the most part use the organizational form of IP, the legal conduct of such agent payments does not cause problems.

Next, we determine what legal form to choose for the opening of a building materials store.

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