Construction supplies methods have since evolved drastically over the past decade. More and more stores are fighting for a diminishing market share as new stores open with a wider variety of selection, different qualities, new construction technology and a thinning profit margin. As an investor in the construction supplies business one needs to constantly reinvent and update the key resources in the business in order to remain relevant and profitable.
This is the most preferred retail style. It has been in existence since time immemorial with investment capital of not less than $ 40,000/- to run a fully operational venture. The main expenses range from storage space, display areas, labor, marketing, purchases and administration costs.
To break-even the business will favor wholesale buyers, and will realize profits between the 12th and 60th month period. It is heavily involving and requires an avid precision of management.
This model of selling construction materials is preferred by traders who transport building materials to far off areas to clients who are beginning to construct and also other wholesalers say local hard wares in the region.
An investment amount of $30,000 to $40,000/- depending on the number of fleet vehicles, with the most recurrent expenditure being fuel and purchase of stock. This methods though profitable is limiting as well as tedious and requires a well drafted logistics layout template.
With a regular demand one is able to break-even within 12 to months after start-up.
The onset of the millennium has brought with it a steady crop up of online stores and the construction industry is deftly looking into the option of hosting not only physical stores but also claiming the digital market share. An online store would demand a seed capital of about $10,000/- only.
The near absence of a physical store or inventory makes this the fastest way to scale up uptake and break-even. With online stores specific to construction and building materials such as Erdenmann, Mabati Rolling Mills, CTM Kenya and Advanced Builders it is evident that the construction business has definitely transformed itself and in doing so strategically placed itself right into the customers lap.