Experience in building materials business

With the development of the current life, building materials business has never been a “Hot” industry and probably never out of date. However, how to experience building materials business so as not to face specific problems is always a problem that building material shop owners always need to pay attention to first.

So what are the notes to remember in order to trade materials to minimize losses and recover capital as quickly as possible? Find out with Sapo right in the sharing below.

1. The most important material trading experience – Raising capital

To open a building material store requires you to prepare a small amount of capital. It depends on the size of your business store but usually the amount is up to hundreds of millions of dong.

Capital is always the most important issue in building materials business

Most people don’t have enough money to start a business in this field, so if you can’t meet this amount, we suggest the following 3 sources of funding to open a building materials store: This:

– From relatives, relatives: the advantage of this option is that you will save a lot of time for paperwork, plus interest costs will definitely be more favorable when borrowing from a bank, right? But it should also be noted that even though you are a relative, you must also create trust with a number of necessary security documents so that they can safely hand over money to you.

– Combine business with others: if it is said that this is a form of capital mobilization, it is not really accurate. Because when starting a business cooperation, both parties have responsibilities and duties to dedicate to building business activities to ensure a return on their investment. Your workload is also greatly reduced, because no one can handle everything

– Bank loan: With support policies from the State and banks, the loan procedure for shops selling building materials is quite fast but the interest rates are relatively high. Therefore, you should consider carefully before taking out a loan in this form. This should be the last option if you cannot get capital from the above options.

2. Consult the building materials market in the region

Before conducting any business, market research is an almost mandatory element to help you have an overview. We recommend that you spend the first few weeks traveling to local malls, building materials stores, and some locations in inner-city areas as a shopper.

The market is always an important factor in building materials business

Firstly, you will know how many shops are dealing in building materials like you, have they been in business for a long time?, geographical location, customer traffic like?, layout, layout How is the store layout, signboards… And is the number of building material stores saturated? Should we open

Second, the most important factor you must know is How to trade in building materials? of competitors, what kind of building materials they are dealing in, what are the main products, what are the best selling prices, what is the price fluctuation… From there, it will be easier for you to plan a suitable business strategy. in line with the weak market and the needs of the region.

3. Selection of building material suppliers

In today’s fierce and competitive market, the quality and reputation of the source of goods are the basis to ensure the development and success of a store.

According to the experience of trading in building materials, you should actively look for sources of goods to immediately start your business. There are 3 sources you can choose from:

– Import goods directly from construction material companies: this is a source of goods used by many people. With this form, you will become a building materials agent under direct binding from the company. Usually, companies will set retail prices, and support dealers through a percentage discount.

– Enter through the regional general agent: with this form, the price has been clearly listed on the goods. In addition, all detailed instructions on how to use and install the goods are also shown clearly and in detail so you can be assured of the quality of the goods.

Always interested in the source of imported construction materials

– Importing goods from abroad: Vietnamese people have a preference for imported goods, and construction materials are no exception. The demand for using foreign equipment to install for houses, apartment buildings… is extremely high. Therefore, if financial conditions allow, you should balance using a source of imported goods to meet the diverse needs of customers.

Experience in building materials business is not to import foreign goods in too large quantities, avoid capital backlog or spend a lot of transportation costs to send goods back to partners.

See more: Tips on how to find cheap construction materials

4. Experience in trading building materials – Valuation of building materials

According to the experience of trading in building materials, the price of building materials today changes rapidly and there is a difference between companies producing building materials.

Therefore, you must regularly update the average price in the market to have a suitable selling price compared to competitors. As long as the price difference is slightly higher than the ground level, you will lose customers.

In addition, it should be noted more about how to trade in building materials, the selling price depends on the number of purchases, fast or slow payment, the buyer …

5. Identify key products for trading in building materials

Construction materials include raw building materials and finishing building materials. It is difficult for you to import all the items for business. How to trade in building materials it’s best to choose only certain types of staples.

Raw building materials include: sand, gravel, cement, building bricks, steel…

Finishing materials have many categories such as: sanitary ware, water equipment, electrical equipment…

You should consider the amount of investment capital and the situation around the store to make an appropriate decision on which items should be invested.

See also: How did I fail when trading in building materials?

Blog Sapo hopes that after this article, you will no longer be confused when starting to step into the building materials business. Don’t forget, start your building materials store management by using the software to manage all transactions quickly and conveniently: