Setting up my plumbing and heating mercheant

[cwright23]

Does anyone know how I would go about setting up my own wholesalers? Been in the mercheant game nearly 12 years and it's all if ever done. Have a customer base approx 75 strong and have worked for a national supplier since day one. Get treated like a 2nd class citizen at work and these firms have no loyalty to me. Think I could make a go of it if I only knew where to start?

 

[jonnyswamp]

What's your area

 

[cwright23]

North Yorkshire

 

[Chalked]

Know a guy in North yorks who has just done this. Selling direct to plumbers and buying from wholesalers.

You will need a backer, or have quite a few thousand to start up.

 

[Dotty]

Good luck with your venture but be aware that we cannot allow you to advertise through this forum.

And I'm afraid that if you applied to become a sponsor you would be turned down there too. One of our main sponsors are Williams & Co who have an exclusivity clause written into their sponsorship contract.

Sorry.

 

[Masood]

One of our main sponsors are Williams & Co who have an exclusivity clause written into their sponsorship contract.

Sorry.

More importantly, they've earned the trust and loyalty of a LOT of forum members as well as the wider plumbing community. That takes years and a lot of effort. Meanwhile you either have a lot of capital tied up in stock, or you lose business because you can't supply quickly enough. I reckon it'd be a very tough game to get into...

 

[Billy Bob Bob]

Also learning how to spell correctly would be a big advantage

 

[markfxy]

be a lot easier just selling online get yourself an ebay shop as well, I've lost loads of money selling on ebay you should be able to as well:smug:

 

[cwright23]

Cheers for the info lads, just to be clear I wouldn't be trying to advertise here I am just genuinely after some advice from anyone who has done it or knows someone who has done it. I know blokes who buy from me and sell on to there customers and the Internet does play a huge part but I still firmly believe people buy from people and blokes want somewhere to pop in for a coffee and a chat on a daily basis. I wanted to know what the first steps are really.. Should I see a bank, find a premises, draw up a business plan?

 

[snowhead]

You need to do a bit of research first.

What price and where can you buy your stock.

Is there enough profit between your buy and sell price to cover all your costs.
For premises, rent business rates insurance etc.
For wages, yourself and staff and all employee liabilities
Delivery vehicle costs
And to cover loses from non payers.

Have you also got enough capital to cover your initial stock purchases and to cover the 1, 2 or maybe 3 months before your customers pay their accounts.

A bank or lender will want to see a substantial investment from you and proof of your business capabilities.

 

[cwright23]

Cheers snow head that's great mate, think when I'm ready il draw up an in depth business plan and maybe seek advice from a lender.. I'm not saying I'm a ready made Alan sugar but I think the instant my branch opened I could start to turn over £100k p/c/m. At a fairly decent margin. Then as the years go on I'd build up a bigger customer base, open another depo and maybe even a bathroom showroom.

 

[Ray Stafford]

Cheers snow head that's great mate, think when I'm ready il draw up an in depth business plan and maybe seek advice from a lender.. I'm not saying I'm a ready made Alan sugar but I think the instant my branch opened I could start to turn over £100k p/c/m. At a fairly decent margin. Then as the years go on I'd build up a bigger customer base, open another depo and maybe even a bathroom showroom.

It depends on whether you want to be a plumbing merchant, or a plumbing and heating merchant.

If its the former, you can probably manage on an initial investment of around £125,000 for set-up, initial stock, financing the early months losses, plus financing the early months sales (I know that sounds strange, but your customers will pay you later than your suppliers will permit - particularly when you first start up.)

If you want to be a heating merchant (as well as plumbing) you should double that investment.

On a firm customer base of 75, you should easily be able to make your T/O target assuming you are including heating, but £100k pcm is not the important thing. Profit, not turnover!

PM me if you are interested in talking some more.

 

[Chalked]

Top post ray.

 

[Riley]

He's a very nice man