You can organize your business for the production of metal doors in different ways - from a mini-garage to a large factory. And you can do without your own production, significantly reducing the initial investment in the purchase of equipment and become a dealer of a large and well-known manufacturer. Each method has its own advantages.
According to some reports, the capacity of the Moscow market of iron doors is 50 thousand per year. More than 80% falls on simple inexpensive products worth up to $ 150.
To organize a mini-factory for their production, you will need at least $ 10 thousand - $ 15 thousand. This amount includes the cost of buying a license and renting a room, equipment, components, advertising and wages for workers (in the first month of work).
Before starting work, a company producing metal doors must acquire a building license. It costs $ 800 - $ 1000.
The success of a business depends largely on finding the right space. The minimum area of the production room should be at least 250-300 square meters. m. For the production are ideal workshops of former factories or hangars. The cost of renting a hangar ranges from $ 1, 700 - $ 3, 000 per month, capital premises cost from $ 4, 000. These are the prices of the capital.
It is clear that they are beyond the power of many beginning entrepreneurs. Therefore, most firms operating in the capital's market of cheap metal doors, place their production facilities in the suburbs. There, the rental price is lower at times, a room of 300 square meters. m will cost from 500 to 1, 500 dollars.
The minimum set of equipment for a door manufacturing plant includes: welding machines, grinder saws, a guillotine for cutting metal, turning, milling and other machines. You can save by buying used units. The amount of equipment depends on the volume of products.
The staff depends on the production capacity of the plant. The average welder in a day can “weld” two or three doors. Thus, a company that produces 300 doors per month will need at least five welders. The functions of a measurer and installer in small firms, as a rule, are performed by one person. In addition, small manufacturers usually do not have their own fleet. Therefore, the installers must also be drivers who operate their own cars. Installation of one door takes 1.5 - 2 hours. That is, in one day, taking into account transfers from client to client, one installer can complete 2 - 3 orders.
Salary to employees is about 30% of all costs for one door.
Cost-effective is production that produces at least 200-300 items per month.
The fact is that the prices of products are initially low and there is no way to understand them due to fierce competition. In the cost structure, imported components account for about 30–40%, another 30% goes to employees, the rest is eaten up by advertising and rent.
There is only one way out: to increase production and reduce production costs. Therefore, the majority of entrepreneurs engaged in this business invest most of their income in the purchase of new equipment.
More profit with lower sales volumes are obtained by companies manufacturing expensive products: doors trimmed with laminated panels, MDF, artificial or natural veneer of valuable wood species. The cost of such products is higher, but they cost more by 100 - 2000%. Thus, a door with MDF trim costs $ 280, and oak veneered - all $ 800. The high cost is due not only to external decoration, but also to expensive hardware and locks, mainly of Italian origin.
Demand for such doors is lower, but profitability is higher. Such production can come to profit, releasing 60-100 products per month.
The cost of raw materials, components and wages of workers make up about a third of the cost of an expensive door. Another significant expense item for entrepreneurs involved in expensive doors is advertising.
The advertising budget of a company selling cheap doors is not more than 2-3 thousand dollars a year. Companies involved in expensive products spend at least 10 thousand. They have to place large modules in the press, advertise in specialized magazines and display their products in exhibition halls. Meanwhile, renting exhibition space in Moscow is not cheap, its cost ranges from 70 to 170 per meter. As a rule, each company has several exhibition points, each of which exhibits from 4 to 10 doors. It is easy to calculate: if a company has five exhibition points, each of which has six doors with a cost of $ 600 - $ 1, 200, then the one-time cost of their manufacture is more than $ 20 thousand. Another $ 5 thousand - $ 15 thousand must be spent on the design of the exposition itself.
Another costly part is the hiring of highly qualified sales managers who are not cheap. But these investments are justified. Real professionals will be able to explain to the client that the expensive door is not only distinguished by its external beauty, but is an effective protection of the home.
There are two ways to start a business selling expensive metal doors.
The first is its own production. Initial investments in this case will be at least $ 110 thousand - $ 150 thousand. About half will have to be spent on the purchase of equipment. In addition to welding machines, large-scale production requires all kinds of presses, guillotines, turning, milling and grinding machines, automatic hacksaws, as well as bending machines to bend the metal profile. Another $ 50 thousand - $ 70 thousand will make up the cost of renting a room, purchasing vehicles, organizing exhibitions, advertising and paying staff in the first months of work.
The second and less expensive way is to become a dealer of a large plant. Then he will have to spend only on renting an office and exhibition facilities, on staff salaries and advertising.
But there is one caveat. The fact is, to create a new representative office, an entrepreneur must first agree with existing dealers working in his city, since the appearance of each new dealer promises an outflow of customers from long-standing firms. Therefore, a novice entrepreneur will first have to find an undeveloped market.
You can organize handicraft production in your own garage. Initial investments in this case will not exceed $ 500, which will go to purchase the instrument. You can carry doors on your car.
According to the experience, a master can make and install 5 - 10 doors per month. Daytime it takes to measure and manufacture the door, another one to its installation. But the main problem is finding customers. Noteworthy are advertisements in newspapers such as Extra-M and mailing leaflets. Some masters even manage to negotiate with dispatchers of large firms on the re-purchase of customers.
Individual income, taking into account advertising costs, will be no more than $ 200 - $ 300. This amount is quite comparable with the salary of a large-scale worker. Not surprisingly, handicraftsmen, having assessed their prospects, eventually switch to factories as welders or installers.
Based on materials from the magazine My Business
* The article is more than 8 years old. May contain outdated data