Entrance to the business: how to open a door store

* The calculations use the average data for the World 270, 000 ₽

Starting investments

₽ 270, 000

Revenue

100 000 - 150 000 ₽

Net profit

5-7 months

Payback period

A door store is a profitable business that is in demand at any time. In the article, we will consider how to succeed in the competitive market and earn from 100 thousand rubles a month with minimal investments.

In recent years, the construction market in Russia has been developing: they are building and repairing a lot. Demand for building and finishing materials is at a high level. In this regard, the number of outlets selling goods for construction and repair is growing. One of these areas is the sale of doors.

The door business has good prospects. Doors are always needed: both when buying new housing, and when repairing. Doors are needed by everyone: in addition to residential buildings, doors are installed in commercial and public institutions.

Interior and entrance doors are a direct part of any interior. Therefore, people responsibly choose the door, considering options and visiting different outlets. A large number of competitors does not interfere with opening new stores. Each has different suppliers and assortment, its own target audience and price segment.

Opening your own door store is a profitable business that brings a steady income with small investments. A high level of competition in the field will not be an obstacle for a novice entrepreneur. The main thing is to skillfully dispose of the invested funds and correctly formulate the assortment.

What you need to open a door store

For a successful start, you need to solve the following issues:

  • analyze the market and decide on the assortment that will be presented in the store;

  • choose a profitable place for trade;

  • find reliable suppliers of goods;

  • to think over the service of your store: method and delivery time, installment plan, discount system, etc .;

  • determine the method of door delivery to the outlet and to the buyer;

  • calculate the amount of initial investments, plan income and expenses, determine the terms of their payback.

Challenges of selling a door store business:

  • Competition in the industry. The market will have to get along not only with small retail outlets, but also with large players. According to 2Gis, in the million-plus cities of Russia, there are 9, 702 organizations engaged in the retail sale of doors. Especially high competition is observed in the economy segment, since most large retailers work with such goods. And a large share of sales in the door market falls precisely on the economy segment - this is due to a decrease in household incomes. There is also an increasing need to buy here and now. People choose doors for the price and the ability to immediately buy them, rather than wait a month for an order.

These conditions shift consumer demand in favor of large retailers. Construction hypermarkets can afford to work with retail, maintain warehouses and offer competitive prices. Therefore, it is quite difficult for beginners to compete in the economy segment;

  • Price policy. At first, it will be difficult to find a balance between a favorable selling price and a low price for the consumer. In this case, do not chase the minimum prices that construction hypermarkets can offer. Otherwise, there is a risk of working at a loss. The simplest and most successful option is to analyze market prices, deduce the average and lower your prices by 2%;

  • Assortment formation. Many novice entrepreneurs who are engaged in the formation of the assortment make a mistake - they select all the goods exclusively to their taste. But it's not right. After all, your task is to choose an assortment so that it is diverse and takes into account different tastes, styles in the interior, etc. You choose products not for yourself, but for potential customers. The best solution: to study which products are in demand in the market; ensure that the assortment is diverse; and only a few models to choose to your taste. Over time, you will gain experience, and it will become easier to form an assortment;

  • Seasonality of sales. The construction industry has a pronounced seasonality: the peak of retail sales is in the spring and autumn months, summer sales are reduced by 20%, and winter sales are 40-50% of the maximum. Therefore, plan to open a store a month before peak sales in order to be fully equipped by the beginning of the season. In the off-season, it is better to plan for discounts and various promotions to stimulate sales.

Market analysis

The dynamics of the domestic door market is determined by wholesale and retail trade, the quality and cost of components, which entails an increase in prices. Demand for products from Russian manufacturers made from natural materials is growing. People are looking for quality products at affordable prices. Therefore, if you can offer such products - you will quickly find your buyer.

As for the distribution of demand by type of door, people often acquire interior doors. Several people buy them at once and change more often than the front doors. In addition, buyers carefully choose interior doors, as they are part of the interior. All this should be considered when choosing the direction for your door store.

* according to the number of requests related to the purchase of doors. Source: Yandex Wordstat data on 02.15-18.08.2019

In the last 2 years, market volumes have been reduced by about 10-20%. This is due precisely to a shift in consumer demand towards a cheaper segment. The middle segment suffers the most - doors from 10 to 20 thousand rubles per set of interior doors.

But not everything is so sad. There are prerequisites for growth, but they depend on many factors: from an increase in the disposable income of the population to a decrease in mortgage rates.

Market participants have noted that recently the door business has become more complex and less profitable. Therefore, it is necessary to start your activity with an assessment of demand, conditions and opportunities in the local market.

Another important market trend is the outdated format of “door benches”. This category includes small shops where goods of different price categories are presented for customers with different requests. The most popular and effective model is company salons, representatives of a particular manufacturer.

The modern door market is oversaturated, the entry threshold is high enough, and new retail outlets will be opened either by successful dealers or manufacturers. Therefore, the second step after analyzing the market is to choose the format of your store.

Choosing a trading format

So what is a door interior? This is a store that specializes in the sale of interior and exterior doors and is characterized by quality. In all, with regards to the range and service. If there is no quality, there is no sales. There are currently no inappropriate, random purchases in the door retail industry. People come to the store for a specific purpose: to a construction hypermarket - for low price and availability, to a specialized network - for an assortment, to a salon - for quality.

As practice shows, salons sell and develop, while obscure, small and poor-quality shops close, unable to withstand competition. And in this case, the problem is not in the assortment and pricing policy. Different customers come to the store, they want different solutions to their door question, but everyone needs a high-quality individual approach. Who will provide this customer request - he will make a profit.

Today retail doors sell:

  • Dealers Most often, they sell through single-brand stores of some manufacturer, less often through their own brand (this is more expensive). Online stores in this market are ineffective.

  • Distributors Through monobrand salons of the manufacturer they represent. But the number of such companies is declining, as Russian manufacturers are more likely to work directly with dealers. Customer orders are increasingly becoming individual, exclusive - therefore, the manufacturer has no need for large warehouses, and therefore a distributor. This model is more relevant for distributors who work with foreign manufacturers.

  • Manufacturers Many manufacturers open their stores, and some are building a full-fledged retail network.

To summarize. According to experts, company salons are the most promising format in the door trade. But their own brands, which are called "door shops", change the format for branded stores or leave the market. Therefore, a correctly selected format is one of the factors of business success.

Business Registration

It is recommended to design a door store as an LLC in order to be able to sell goods not only to private but also to legal entities. In this case, you can work with large companies by bank transfer. LLC registration procedure is standard and will not cause any difficulties.

For the door store, indicate the OKVED code of the selected activity:

  • 08/18/2019 "Retail sale of metal and non-metal structures in specialized stores."

  • 08/18/2019 "Retail sale of wood products in specialized stores."

  • 08/18/2019 "Courier delivery activities by various means of transport."

As a tax system, it is recommended to select the STS “income minus expenses” at a rate of 15%.

You will also need to collect a package of documents: sanitary and epidemiological conclusion from Rospotrebnadzor, permission of the fire inspection, regulatory documents for the store, etc. You can check with the local authorities for a complete list of documents.

Search for store premises

For any retail outlet, location is important. A successful location determines 70% success. And the door store is no exception. The following parameters will help assess the location: the intensity of pedestrian traffic, the visibility and noteworthiness of the place, proximity to other enterprises, transport accessibility and the possibility of parking. The most suitable places for a door store are: areas near stores of related specialization (furniture, wallpaper, etc.), close to construction markets, and the area of ​​new buildings undergoing repairs.

In addition, you will have to pick up the room itself. Given that the door store should accommodate at least 20 samples of goods, then the retail space will be rather big. 40 sq.m. will be enough. There are no special requirements for the room: the main thing is that it complies with sanitary standards, is clean, dry and well-lit.

Equipment and furniture

There is no need to purchase a lot of equipment for a door store. It is enough to purchase special supports or fasteners to compactly arrange the goods. You will also need a computer, an MFP, and a cash register. From furniture - a table of the seller, chairs for customers. The total cost of equipping the store will be about 100 thousand rubles.

Selection of suppliers and purchase of goods

This is the most important and perhaps the most difficult stage of opening a door store. Suppliers can be searched in person at the wholesale centers of the city or via the Internet. If you plan to work not on order, but to maintain the range in stock, you will have to decide how to pay for the purchased goods. Try to negotiate a mixed payment method with suppliers: redeem part of the goods immediately, and take part for sale. As a rule, suppliers make concessions to beginning entrepreneurs and sometimes even offer exhibition designs at discounted prices. This will significantly reduce the initial investment. To get started, buy samples for about 100 thousand rubles.

Which doors are profitable to sell

Today, in Russia there are more than 500 door manufacturers. And this does not take into account small firms, handicraft private production and enterprises for which the manufacture of doors is not the main activity.

Market leaders: Furniture Array (TM Volkhovets, Sofya, Tula Doors, Alexandria Doors), Cabinetmaker, Leader, Luidoor, Valdo Puertas, etc.

When forming the assortment and choosing a supplier, it is necessary to take into account the characteristics of demand.

  1. There is still a high demand for solid wood doors. But since the financial situation of the population does not always allow one to purchase premium segment products, the most popular are: solid pine leafs with veneer made of natural wood; combined products from glued beams and MDF boards.

  2. The decisive criterion for choosing a door is its cost. Usually, doors are bought at the final stage of repair, when the budget is limited.

  3. Warehouses in crisis conditions are inefficient to maintain, so most stores switch to pre-order. The deadline is from 2 to 4 weeks. On the one hand, pre-order work is more convenient and profitable for shops, but there is a risk that the client will go to another seller who can immediately provide the goods.

Staff recruitment

For the operation of the door store you will need a minimum staff. The main staff is a sales assistant. Other employees can be hired as needed to save money. For example, sign an agreement with a freight company that will deliver doors to a customer. Agree with a door installer to provide this service to customers. If necessary, find an accountant who, on an outsourced basis, will keep a record. accounting. At first, you can cope with everything alone, but with the development of the business you will need to delegate part of the authority to the assistant.

Door Store Advertising

To attract customers to your store, you need to use various methods of promotion. Make a bright, eye-catching sign at the entrance to the store. Place a banner with great offers. The sign should be well visible from the road when moving in any direction.

Distribute leaflets: this can be done in the parking lot of construction stores or just on a busy street. Try to negotiate a collaboration with a store whose target audience matches yours. For example, you can offer the wallpaper store mutual advertising: each advertises each other at home - this is how buyers exchange.

You can place the offer in the elevator or on the notice board at the entrance. Offer cooperation to repair and construction companies and teams. The scheme is simple: they bring customers to the store, and you pay a percentage of these sales. In the first months of work, do not spare money on advertising. Launch active promotion right away so that as many people as possible can find out about you. In the following months, you can reduce advertising costs.

Costs for opening a door store

Now you can calculate how much money it takes to start a business selling doors. Initial investments will amount to 270 thousand rubles.

Initial investment in a door store

Expense item

Amount, rubles

one

Shop Equipment

100, 000

2

Paperwork and obtaining a license

10, 000

3

Advertising

50, 000

four

Purchase of exhibition samples

100, 000

five

other expenses

10, 000

Total:

270, 000

Door Store Revenues

A good seller will sell 3-4 doors per day. If you take into account the average cost of the goods, then the monthly revenue will be about 270 thousand rubles. To determine the amount of net profit, you need to subtract all monthly expenses. These include rental premises, utility bills, advertising, taxes, staff salaries (if any). The approximate amount of monthly expenses is 100-120 thousand rubles.

With these indicators, the net profit of the door store will be about 150 thousand rubles a month. Of course, it will not work at once to reach such a volume, so the payback period for investments will be 5-7 months.

Business risks

Opening a door store is easy. It is much more difficult to establish sales and properly build all trading activities. Indeed, in the future it will be necessary to expand the inventory, work on the quality of service, create competitive advantages, etc.

An entrepreneur who sells doors may face the following risks:

  • Increased purchase prices for doors - in this case, you will also be forced to raise prices, and there is a risk of losing some customers. To prevent this, regularly monitor changes in prices, change suppliers and try to purchase goods in larger quantities to reduce costs.

  • Increased competition - in this case, you need to increase advertising costs, create a profitable offer or arrange a campaign.

  • Deliveries of low-quality goods. To prevent this from happening to you, carefully select a supplier. Start cooperation with a small purchase, control the quality when accepting goods.

In custody

Like any business, selling doors has its pros and cons. The main advantage is a high and constant demand for products. The negative point is that there is high competition on the market: both from small shops and construction hypermarkets. The former can be fought, the latter are pointless. You can only correctly reorient using the flexibility of your business. Предложите потребителю то, чего нет у конкурентов. Даже в условиях конкуренции можно занять свою нишу и успешно работать в ней. Помогут правильно подобранный ассортимент, выгодное расположение и активная реклама.

Если удастся завоевать своего потребителя, то окупить первоначальные вложения можно уже через 5-7 месяцев работы. Магазин дверей способен зарабатывать более 100 тыс. рублей чистой прибыли ежемесячно. Это перспективный бизнес, у которого есть возможности расти. В будущем организуйте свой склад, чтобы закупать популярные позиции дверей. Покупатели оценят возможность моментальной покупки дверей, а вы обезопасите себя от скачков цен на товары.

Evgenia Yurkina

(c) www.clogicsecure.com - a portal to business plans and guidelines for starting a small business 08/18/2019


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