Apartment decoration and renovation business: market realities

Repair and construction business Repairs

Apartment decoration and renovation business: market realities

In the Yekaterinburg market of construction and repair work, billions of rubles are spinning. Hundreds of small companies with a staff of five to ten people share this money among themselves. Outgrow such a modest scale and few can create a stable business. The return on traditional ways of promoting a company on the market is minimal. Therefore, repairmen are looking for intermediaries: agree with developers, UZHK and designers who can load them with work.

How to negotiate with the developer

How much do interior designers take for their patronage

Why would a building materials store look for customers for repair teams

The scope of work of finishing and repair companies consists of areas of new buildings and renovated apartments. Last year, 810 thousand square meters were commissioned in Yekaterinburg. m of housing. About the same number of squares of secondary residential real estate were finished, whitewashed, painted, glued with wallpaper and laid out with a laminate.

In 2007, for each square. m customers finishing work gave an average of 4 thousand rubles. The total amount they spent on repairs is 6.5 billion rubles. According to the calculations of ALEXEY TRENOGIN, director of the construction company Art-Ek, each square brought finishers 2-3 thousand rubles. net profit and last year they earned 3.2-4.8 billion rubles.

Access to this money is relatively simple. The threshold for entering the finishing and repair market is 350 thousand rubles. A small staff can be put together for a maximum of a couple of months. Beginners find first clients among acquaintances. “If the company works with stable quality and does not break deadlines, it will not sit without orders. They will come to her according to recommendations, ”concludes OLEG IVANOV, director of ISC Ural.

Due to the flow of recommendations, a small company of 10-15 people can work stably, but it is unlikely that market players can make big plans.

Client flow cannot be managed

The main problem of repair teams is that the standard methods for attracting customers do not actually work on the market.

The company "Art-Ek", engaged in the decoration of luxury apartments, tried to increase customer flow through print media. “For a whole year I spent money on advertising in three glossy magazines in Yekaterinburg. There was no return. Generally, ”Mr. Trenogin shares the negative.

Another repair and finishing company, Restot, is looking for customers on the Internet. The company has created its own website and is engaged in its promotion. Website traffic, according to ANDREY SIDOROV, Technical Director of Restot, is growing. But the organization has not yet intercepted a single client through the World Wide Web.

If finishers are not recommended, a good customer will not turn to this company, even if she has a good reputation, extensive experience and she spends a lot on advertising. In 99% of cases, contractors for finishing work are searched exclusively for recommendations, Mr. Sidorov notes.

“The difficulty is not even in the number of customers, but in the fact that it is almost impossible to predict something, to predict something, ” the head of one of the repair crews shrugs. The finishing and repair organization, he said, can be loaded with urgent orders and work for 16 hours a day for several months, and then spend as much time sitting idle.

Therefore, the DC interviewee does not have a permanent staff of specialists. A team is formed for a specific order from acquaintances, and if necessary, people from among Koreans, Tajiks and other migrants who migrate from one employer to another are selected. He is not sure of his profit, so for now he prefers to work illegally: the team has neither a legal entity nor the necessary permits. And so, according to an anonymous team leader, the majority of his colleagues act.

Repair companies in the market, in fact, act as foreman-dispatchers. Their staff usually does not exceed ten people. Spontaneous brigades wandering the market need orders, and dispatcher brigades need working hands.

Freedom in exchange for construction contracts

Finishers are not able to seriously increase the volume of their own work. Therefore, they are looking for partners who can load them with this work. The ideal companion is a construction company.

To form a constant forecasted volume of orders, a repairman may refuse to complete the finishing of private apartments and focus on a specific type of subcontracting. For example, do plastering at construction sites.

The Yekaterinburg mid-area developer builds 10-15 thousand square meters annually. m of housing, and the leading company - about 200 thousand square meters. m. By agreeing with the builder, the finisher can earn only through his orders and actually not look for other customers at all. On the contracts of the developer there is, in particular, ISK Ural. For two years the company has been working at the facilities of the Stroy-Accent construction organization in Verkhnyaya Pyshma. At the Pyshminsky construction sites, Ural is engaged in plastering. Now the finishers are finishing the second nine-story building of the Stroy-Accent. By July, they plan to enter the next Pyshminsky nine-story building, and by August - another one. “The developer plans to build two more sixteen-story houses in the same area. I think we will plaster them too. Therefore, the work will last for a long time, ”adds Ivanov.

Thanks to such cooperation, plastering became the main activity of the Urals, continues Oleg Ivanov. The company automated the process - purchased German equipment. On average, about 30 Ural employees are constantly working at Stroy-Accent facilities. In a year they bring the company an income of 12-15 million rubles.

Without the help of the builder, Mr. Ivanov admits, Ural would not have such speed or technology: “On scattered orders for apartment repairs, the equipment is simply unprofitable. Transporting it from place to place - here today, a week later at the other end of the city - is difficult and expensive. And in Pyshma, we, in fact, constantly work in one place. The process does not stop. ”

The scheme for the repair and construction organization is almost perfect, but in reality only a few are so lucky - market participants say. Developers are not eager to conclude long-term apartment decoration contracts with third-party contractors. Most construction organizations in the city prefer to do such work on their own.

According to Vyacheslav Trapeznikov, chairman of the board of Aston Group, many construction organizations in the city keep their own finishers. It’s pointless to hire a contractor for each object, he says: “It’s almost impossible to bind one company that will work stably. And to sign an agreement with an unfamiliar organization means taking risks. How do I know, maybe they will break the deadlines or do the work poorly? ”

Although developers still attract third-party finishers to their sites (when they themselves can’t cope with the work on time). But even such one-time orders to repair and decoration organizations is not easy to obtain. As a rule, builders hire those with whom they have already collaborated, or hold closed tenders among three to five companies. And an unfamiliar company has quite a few chances to get to the construction site.

The instability of subcontracting orders is one of the reasons why many repairmen refuse to focus only on such work. “We spent a couple of years finishing at construction sites, ” recalls one of the market participants. - We got there through the superintendent, interested in his money: he received 10% from each of our orders. This guaranteed us stable volumes. They earned 8-9 million rubles. in year". But when the foreman quit, the finishers were forced to leave the facilities that brought good money. The company had to recruit plumbers and electricians again, look for orders among private clients. Without the patronage of his person, the construction organizations of the city did not need it. Now the company is looking for a superintendent who, for a fee, could help return to the construction site.

The return from the VIP client is the same as from the construction contract

Those who can’t agree on a construction subcontract are trying to build a stable business by going into the narrow niche of elite apartment renovation. In particular, the Art-Ek company took this path. “We basically do not do cheap apartment repair. A system business cannot be built on large volumes of not too complicated work, ”explains Alexey Trenogin. The company focused on expensive complex works (electrics, plumbing, decoration, etc.), mainly repairs suburban cottages. Orders are voluminous (the average cottage is comparable in size to five two-bedroom apartments). Due to this, it turns out to load employees with permanent work and draw up a clear schedule.

As Mr. Trenogin notes, his organization constantly has 1-2 thousand square meters. m of premises. At the same time, the company repairs three to eight facilities. Teams of specialists of different profiles succeed each other. It turns out a continuous conveyor. For this purpose, "Art-Ek" contains a permanent staff of 40 workers of various profiles and three foremen. Earn such employees 1.5-2 times more than ordinary workers-shabashnikov. If on average under the contract the plasterer receives 120-180 rubles. per sq. m, then a professional full-time specialist for the same need to pay 200-350 rubles.

The profit from the repair of elite cottages, according to experts, is approximately the same as that of a contractor at a plastering contract with a builder (excluding the cost of building materials, Art-Ek customers give repair workers 12-18 thousand rubles for each sq. M). The main thing is to form a continuous stream of orders.

To find customers in the segment of expensive repair crew help interior designers. Customers trust them with the selection of building materials and the search for a team. According to Andrei Sidorov, Restot, which also makes expensive repairs, receives about 50% of orders through designers.

Designers, as a rule, work with several teams. Repairmen do the same. They form a pool of designers around themselves, each of which leads customers from time to time. The more repair assistants there are, the better.

Repairmen tied the most profitable designers, attracting money customers, with kickbacks. In informal conversations, finishers say: for a designer who receives a good order to call you, he will need to pay from 5 to 10% of the cost of this contract.

Repairmen are looking for those who do not have their own hands.

Most Yekaterinburg construction companies do not yet specialize in contracted construction work, but are also not going to leave exclusively to the high price segment. For the most part, dispatch supervisors work in all directions and do not refuse orders.

If you do not focus on a certain specialization, there are more ways to attract customers. Without waiting until the customer arrives on his own, repair companies attract him in several ways. For example, a repairman may come for orders to a private housing management company (UHK). Unlike builders with third-party finishers, such organizations are more willing to work. There is no reason for managing companies to maintain their own staff. On average, the ULC carries out redecoration in each house once a year, and the current one every seven years. The farm UZHK exceeds 100 thousand square meters. m. The company will not survive on UZHK orders alone, experts explain, but everyone needs constant stable volumes of work, and there’s no reason to refuse them.

True, the decorator, unknown to the head of this structure, is unlikely to get on the objects of the Uzhk. According to VLADIMIR FATEEV, general director of the Astra UZHK, a contractor for painting an entrance, replacing doors or whitewashing ceilings is sought as follows. At first, UZHK turns to those finishers with whom it has already collaborated more than once. If they are busy or the company has not yet managed to form a pool of such organizations, it turns to colleagues for help. “I consult with representatives of three or four city management companies. They recommend repair companies to me, ”Mr. Fateev explains.

Due to these recommendations, the supervisor can significantly increase its speed. Well-done work at the facility of one management company attracts an order from another. These works are most often predicted. Based on the needs of several UZHK, the repairman can draw up a work plan for the year ahead, free up working hands. As a result, everyone is happy: UZHK gets a reliable contractor who always has the opportunity to go to the scheduled work, and the finisher - a stable volume of orders.

In addition to UZHK and designers, finishers, it provides work, for example, by Trust SKM (it manages the SuperStroy and StroyArsenal networks). Four years ago, this retailer introduced a new service: along with the acquisition of building materials, the buyer was offered to order repair service in stores, which would stick, assemble and lay these materials.

SKM Trust did not create its brigade. The company organized only a special service that accepts and processes orders (consultation, analysis of estimates, execution of contracts). And the work is performed by third-party contractors.

SCM Trust in Yekaterinburg collaborates with five to six companies of various specializations. For searching and attracting a customer, the service takes about 10% of the order value. The remaining money is the income of the repairmen. “For us, the repair business is not a source of profit. This is an additional service that should attract customers to network stores. Our commission covers the costs of the service, ”explains GALINA RUBANOVA, service manager of SuperStroy and StroyArsenal.

To the partner finishers, SCM Trust finds about 200 orders every month. Amounts, according to Ms. Rubanova, range from 1.5 to 300 thousand rubles. The retailer is looking for contractors according to the same traditional scheme for the market - through acquaintances and partners.

Source: Business Quarter

* The article is more than 8 years old. May contain outdated data

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