9 Tips on How To Start & Operate a Hardware Store Business in the Philippines
Updated: Sep 20, 2020
TIP #1 - Know Your Market
You need to understand your market thoroughly.
Also, you need to identify places with ready and growing market potential for hardware products.
Key Questions you need to ask:
Where are the ongoing and/or upcoming real estate and public works construction?
How many existing hardware stores are already in the market?
What are the weaknesses of potential competitors are how can I use it to my advantage?
TIP #2 - Know Your Store Location
If there is an upcoming residential & commercial development in an area, that is the best place to start a Hardware Store business.
Look for the most accessible area near a the residential & commercial development and start small. As the community grows, your business will most likely grow as a result of ease of access and customer loyalty.
The best advice for any business:
TIP #3 - Know Your Competition
If there is an existing store near your area, that is a good sign that there is a customer base on that area.
It's also important to build strong relationships with your customer, this can be achieved by:
Create a low priced image by offering affordable prices on common items like cement, gravel, sand, coco lumber and recovering profit from steel bars, electrical items, & plumbing items.
By offering convenient shopping thru SMS & online ordering, FREE delivery and Cash-On-Delivery services.
By offering various hardware & construction items so that they will save time on finding other items.
TIP #4 - Know The Fast Moving Products
Invest in fast moving products to acquire profit then reinvest again in the business.
These are: wood and roofing nails, coco lumber, cement, sand, welding rods, electrical items & plumbing materials.
Please note that fast moving products are typically low margin. Some items may be fast moving & high margin in one area and slow moving & low profit in another area. It may vary depending on the location, availability of materials and numbers of competitors.
TIP #5 - Know How To Market Your Products
In this digital age, don't just rely on traditional kinds of marketing like giving flyers or just waiting in your store because you already have a big signage in front of your store.
You should use new marketing trends like Social Media Marketing in Facebook, Instagram, Youtube, Linkedin, Tiktok, etc. You should also try Email Marketing & Chatbots.
You can also hire a salesman to survey your area for upcoming residential & commercial developments. Build relationships with the foreman and and site owners.
TIP #6 - How To Manage Your Store
Just like any other business, a hands-on approach is highly recommended in a Hardware Store business especially in the startup phase (0 - 6 months).
In those early months, it's very important to implement operation systems like Point-of-Sale system, Inventory Management system, Sales & Marketing system, Customer Management system, Tax & Accounting system and many more.
Bear in mind also that you need to get Government Permits like DTI Permit, Mayor's Business Permit, BIR and other permits depending in your local city.
TIP #7 - Know Your Profit Margin
On average a good performing Hardware Store makes a 10-20% on its daily sales.
Some items have a 30-50% profit margins. Please note that this figure may vary depending on your location, pricing policy, access to suppliers, and operating & marketing strategies.
TIP #8 - Know Your Initial Investment
We, at Buildtribe Hardware is proud that we are the first in the Hardware & Construction Industry to introduce the innovative, pioneering & affordable Mini Hardware Store Business Package that can be set up inside your own home.
Here are the benefits of the Mini Business Package:
Easy to setup
Easy to Sell products
Here are the inclusions of the Mini Business Package:
Initial Products (Php 39,331.33 VALUE) - Hardware & household items, Nails, Electrical items, Lights, Adhesives (Rugby, Vulcaseal), etc.
FREE Business Owner & Staff Training (Php 21,000 VALUE) - Hardware store operation, POS system, Inventory System, Store layout, Costing, Pricing, List of Suppliers, Business Registration Training (DTI, Mayor's Business Permit, Advertising & Marketing strategies, SEO Optimization, Google My Business & Google Map, Social Media Marketing, How to Create a Website)
Continuous Business Support (Php 12,000 VALUE) - You can contact us anytime during office hours if you need help regarding the trainings that you get. We will also update you on the latest trends & strategies that can help you grow your business.
Package Total Value: Php 72,331.33
Get the Package for only Php 50,000 + FREE Delivery (T&C apply)
TIP #9 - Know The Best Supplier & Partner
Know the supplier that will give you the best value in terms of PRODUCT, SERVICE and AFTER SALES SUPPORT.
Good for you, Builtribe Hardware is just one call/text away! :)
To get the full Business Package details,
please click this LINK
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