Business DIY store

Store format and range
Before you open a hardware store and form a range, you should conduct a thorough analysis of the market, suppliers and range of competing stores. This will determine consumer demand and select products in such a way as to create a unique offer in the market.

Assortment of construction store
A competent approach to the choice of range will avoid unnecessary inventories, reduce the likelihood of illiquidity

The difficulties of doing business in general include:
fierce competition in the industry. The market will have to compete not only with small outlets, but also with construction hypermarkets, which can offer consumers a wide range and lower prices;
pricing policy. It is necessary to set the optimal price for goods, because inflated prices scare away potential customers, and too low prices will not pay for the business. The best option is to analyze the pricing policy of competitors and reduce prices by 2%;
the need to provide a wide range of goods that interest the consumer. First, there is an important task to properly form the range, 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 ones;
seasonality of sales. Statistics show that retail peaks are usually recorded in the spring and autumn months, summer sales are 70-80%, and winter - 50-60% of the maximum. Moreover, seasonality is observed in some items, which is why a wide range of construction stores is important.

As a rule, small construction markets focus on several categories of building materials, tools and related products for the home, which are in high demand. The profitability of a hardware store can be 30-32% depending on the markup on goods.

How to open a hardware store


Although the current market situation is not conducive to the opening of construction stores, this does not mean that you can not start your business in the current situation. If we are talking about a small traditional construction store from scratch, the launch of which will be described below, the key factors for success will be a good location and a competent assortment policy.

Let's highlight the main market trends:
Declining demand. Building materials are not essentials, so in a situation of financial instability and declining incomes, people simply postpone repairs.
Increase in prices for certain types of goods. Due to the growth of the dollar, as well as due to the temporary closure of some industries, prices for some categories of construction and finishing materials increased by 5-25%.
Difficulties with supplies. Due to the coronavirus pandemic, logistics are changing and the market is periodically facing supply disruptions. Some companies have paused their work, others have canceled installments or require full prepayment. In addition, it has become more difficult to guarantee delivery times in the face of border closures today, deadlines can be extended for a number of reasons.
Changing the competitive field. It is expected that some small suppliers will leave the market, small individual stores will be closed. In their place come construction hypermarkets, construction fairs, as well as online markets

The market of building materials, like many other industries, found itself in a difficult situation. The issue of suburban construction and renovation of apartments began to worry people much less than in better times. For a while, construction stores in many regions closed completely, or switched to the online and delivery segment. In 2020, the entire construction industry is in a state of shock.

How to open a hardware store
According to experts, construction volumes will decrease by 11% by the end of the year - and this is the largest decline in recent years.

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