It is observed that the majority of hardware stores close down within two years of their set up. One wonders as to what could be the possible reasons behind the failure of setting up hardware Is it lousy marketing strategies or losses or any other issues? A potential hardware store business owner, it is essential to understand what a hardware store is and the right business plan for a successful venture.
What Is A Hardware Store?
A hardware store sells household hardware items that comprise of different building materials, keys, locks, hinges, hand tools, power tools, plumbing supplies, electrical supplies and more. Many hardware stores sell supplies based on the local needs of the customers as well as the interests of the owner. These department stores could also sell plants and nursery products, hunting and fishing supplies, pet food and supplies, swimming pool chemicals, canning supplies and much more. Some of the major department stores include The Home Depot, Obi of Germany and Lowe.
A Business Plan for A Hardware Store
Before you set up a hardware store, it is essential to devise a plan and understand the market thoroughly. It is essential to know where you should plan to set up the store, who will be the suppliers and who are your customers. One must assess the strength, weakness, opportunities, and threats of the business and focus on their potential competitors.
#1. Understand the Market: Research about the business and learn about the competitors in the market. You need to effectively to penetrate the market as well as your budget for the business. You must understand the weakness and strengths of the market.
#2. Where to Set Up the Hardware Store: It is essential to set the store at a strategic point where it is more visible as well as assessable for the potential customers. Start small, and you can look for small towns or suburb areas that are upcoming.
#3. Know Your Competition: One of the significant barriers for any hardware store business is the competition in the market. There are possibly already a number of competitors in the market where you plan to penetrate. The first step is to create good relationships and win the trust of your customers with good quality products and excellent customer care.
#4. Products That Sell Fast: Hardware stores sell many different products, but some fastmoving products are always in demand and sell fast. For example, it is easier to sell white cement, nails, door hinges, flooring tiles, plumbing material, steel bars and rods, welding rods, etc.
#5. Effective Marketing: with the kind of competition around, one has to employ aggressive marketing tactics to woo the customers and grab their attention. You have to be right about your prices and the kind of products you are marketing.
#6. Have A Stock-Taking Exercise: in order to manage the hardware store, one has to monitor the stocks on a regular basis to know which products are selling and which are not. Keep track of the performance of the store at all times.
#7. Costs and Profitability: The success of any hardware store will rely on the higher sales that translate to higher profits. Good running hardware generally makes a 10% profit on its daily sales. Sales will rely on the number of customers and the products being sold.
Thus, as one can see, it is possible to set up a successful hardware store provided one follows the right steps.
A convenient shopping location that provides just the right kind of hardware products the current customers need and at competitive prices is sure going to translate into success and profits.