Plumbing Hardware Business Plan
Plumbing Hardware Business Plan
Plumbing Hardware Business Plan Overview
This Plumbing Hardware Business Plan looks at the business of selling plumbing items. Usually plumbing items are sold in general hardware shops or specialist plumbing hardware shops. This guide focuses on the specialist shops.
Plumbing like most other hardware business is a function of the real estate sector. And as much as the real estate has slowed down a little bit (March2018), generally there is still enough demand to profitably run a successful plumbing business. Nonetheless success will depend on among other factors the specific characteristics of your location and the ability to seize local opportunities.
Why Specialize?
In terms of set up a plumbing hardware shop competes with a general hardware shop. But why would a customer opt for the plumbing hardware rather than the general hardware? There are several reasons:
- Knowledge – The specialist plumbing shop portrays knowledge. Skill. The specialist is supposed to know more about plumbing and plumbing equipment than the shop selling everything. It’s not always necessarily true but perception counts.
- Variety –The plumbing hardware is expected to have a wider variety of equipment as opposed to the general hardware shop. While the general hardware proprietor might spread her budget to have a little of everything, the specialist concentrates all her budget on plumbing and thus often can has a wider variety.
- Market Strategy – Specialization is a way of differentiating. In some locations the number of general hardware shops almost rivals those of grocery shops. A specialist plumbing shop just like one specializing say in tiles or electrical items is able to have stand out from the crowd. However we hasten to add that even the number of plumbing hardware shops is on the rise because of all the above reasons. Competition is expected to continue rising.
Plumbing Shops Set Ups
Plumbing hardware shops set ups take some very basic forms which include:
Kiosk” Shops – These are shops located in kiosk size spaces. This does not necessarily mean that they are poorly stocked. The nature of plumbing items means that even as shop as small as 4 meters by 4 meters could be holding stock worth thousands of shillings.
An entrepreneur will pick this kind of premises because of limitations in availability of space. Economies of location also play a role. In some towns there are sections say streets well known for having plumbing shops.
Such streets could be crowded such that there is no space for bigger shops leaving the entrepreneur with no option but to grab the smaller shops around and enjoy the foot traffic in the area.
For others it’s a business strategy. Why go for a big shop while a small one can serve you equally good while costing less? The biggest hiccup with the kiosk shops is that they limit the kind and quantity of products that you can stock. For instance in such a space it’s not possible to stock items like bathtubs which take up a lot of space , consume space could be slow moving of course depending on who is your target market. And any space can only hold as much.
Large Shops –These are the antithesis of the kiosk shops. They have space and with products very well displayed such that the customer does not have to guess if really the shop has a particular items. By virtue of their size they can have a bigger and wider variety of stock. Hence they could accommodate bigger items like tanks and bathtubs, depending on who the target market is.
Entrepreneurs will go for such large spaces either because their capital allows, they want to stock the ‘bigger’ items as per their target market, or it’s the kind of space available. At times a big shop is a business strategy; shock and awe. Get into a market dominated by small retailers in a big way, attracting attention and with it customers and profits.
In markets dominated by small, big could give an impression of wider variety and better prices. At times this strategy works pretty well. But obviously requires more capital and ability to meet expectations.
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