Help - Hardware Store Business

[ckice168]

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sa hardware biz, if you go small, big guy eat you alive. only advantage small guy has over big guy is that small guy is hungry and has a riskier appetite, willing to take on riskier customers. walay contractor mu palit ug cash, rare kayo.

BIR is a required but as a hardware store, you have to manage your VAT input against your VAT output MONTHLY. Penalties can be very high. that's where managing your cash flow comes in handy. a hardware store, no matter how you put it is a TRADER. he does not produce anything but rather "buys and sells".

Another point on how a big store can kill a small store is how big stores buy in volume and get bigger discounts from suppliers. For example on cement. To buy direct from a cement factory is impossible unless you secure a quota. To secure a quota, you need to place a cash credit facility. Normally involves millions. Margin on cement is piso piso ra. Patay paka sa delivery. Where the magic is to the quota holder is achieving sales targets set by factory. That nets in quarterly rebates and annual rebates. That is pure profit (after a 30% income tax) Same thing with paint and PVC products. (more so paint than other items)

500k sales a month in hardware is not equal to a profit margin of 10-20%, you would be happy to average 10, but I would expect around 5-8%. If you mark up too much, people end up buying from the bigger players. its really not hard to sell a lot, but its hard to convert your sales into a profit if you don't get paid on time or even get paid at all... the risk is all there.

[cebu.opportunities]

naa ko kaila marketing officer sa in-ani nga business TS.
tanan iya gipang-share ky similar jud sa gi-point out ni @ckice168...

nag-set ang tag-iya og quota sa ila trabahante, unya if ma abot nila, naa sila ihatag commission on top sa basic salary.
tasagaran sa clients ky utangon gyud unya paksit kaayo sa capital ky modagan pila ka months (ang uban moabot pa og tuig) ayha mabayran. let's say, daghan ka clients in a month, ma-drain gyud imo funds... unsa nmn imo pang-roll nga money to replenish stocks.

if kuwang og pang capital, lisod kaayo i-move forward.
that's why mao pud ako nakita nga mag-trader lang sa if mag-sugod pa lang. at least, unsa ang mga kinahanglan sa imo clients, mao rpud imo gahinan og puhunan. wa or gamay lang imong idle (tambay) stocks.

pero with regards to delivery, kailangan gyud competent pud ka ani ky if wa ka ana, moadto na sa lain.

for starter, pwede isa ka motor (without side car)-- this is for marketing side, site visit, inspection, etc..
then, pagkuha pud lain vehicle for delivery sa stocks, installation (if apil sa imo service), etc...

[dembile]

Good day,

I own a hardware and construction supply, need a partner or investor. if interested pls contact me at 09177914423 09229881086. location talisay city.

[denmar]

hi...im Dennis of Marble and Granite Stone.

we are a direct importer of marble and granite...

to be our distributor we give competitive price. and at least minimum purchase of 30pcs slabs

for more info

Dennis

Sun: +639255046449
Globe:+639178411609
Landline: (+6332) 3502237
Email: dennis@mgstone.ph
fb page: https://www.facebook.com/MarbleandGraniteCebu/