Thinking of starting a plumbing and heating supplies bussiness

[bilow]

I have been a plumber for nearly 15 years and made good living from it, and saved quite a lot of money since I been living with my family.

I am really thinking of using a office space and buying boilers and heaters and stocking and selling them, what I have noticed is plumbing and heating supplies shops always seem to be open and there is a demand for it.

Just wanted to hear more from people who know people who have done the same things.

thanks in advance

 

[ShaunCorbs]

Sorry to say I don't think you can compete with Internet or screwfix prices

 

[bilow]

Sorry to say I don't think you can compete with Internet or screwfix prices

I think I could the premises I own and the capital will be all of my own.

 

[ShaunCorbs]

See what prices you get first before commit anything

Also check / see what other plumbing business are local to you

 

[rpm]

Setting up my plumbing and heating mercheant

You might find this helpful.

 

[Chalked]

I know a lad who did this last year. He was a buyer for a large plumbing distributor. He knows all the manufacturers, so can get a good deal.
He is only small time and sells mainly locally to known plumbers. But is struggling, because all the installers want credit. If one is late, he can't pay his own bills and then uses overdraft. So makes no money.
The big guys insure the debt, but this costs and needs to be included in your markup.

 

[Welder]

I was talking to the commercial director of one of the big 4 merchants last week. He told me they make less than 4% on a boiler sale!

His other comment was, and I quote, "the (plumbers) merchant market is turning to ****" For your information, each of the big 4 (with their buying power) has closed tween 60 & 100 branches 'each' in the last 12 months.

If you have a genuine USP that is sustainable, then go for it. If not, find something else to invest your money in - like us

 

[neilrj]

I have been a plumber for nearly 15 years and made good living from it, and saved quite a lot of money since I been living with my family.

I am really thinking of using a office space and buying boilers and heaters and stocking and selling them, what I have noticed is plumbing and heating supplies shops always seem to be open and there is a demand for it.

Just wanted to hear more from people who know people who have done the same things.

thanks in advance

A good way to make a small fortune in business is to start with a big one! Very negative I know but if it was that easy everyone would be at it.

 

[bilow]

I was talking to the commercial director of one of the big 4 merchants last week. He told me they make less than 4% on a boiler sale!

His other comment was, and I quote, "the (plumbers) merchant market is turning to ****" For your information, each of the big 4 (with their buying power) has closed tween 60 & 100 branches 'each' in the last 12 months.

If you have a genuine USP that is sustainable, then go for it. If not, find something else to invest your money in - like us

I see thanks for the input.
the only reason why im still interested of doing it is because of the huge capital I got to start of with and the fact I don't have to use loans and also have to pay rent on the premises, which im sure most of the branches never had such privileges but nevertheless its a eye opener

 

[bilow]

A good way to make a small fortune in business is to start with a big one! Very negative I know but if it was that easy everyone would be at it.

exactly I see your point but not everyone has the the chance to start of with a huge capital and not pay rent on the premises, so this needs to be factored in because most take loans and pay huge rent which makes its even more harder.

 

[Chuck]

I see thanks for the input.
the only reason why im still interested of doing it is because of the huge capital I got to start of with and the fact I don't have to use loans and also have to pay rent on the premises, which im sure most of the branches never had such privileges but nevertheless its a eye opener

I've seen someone loose a lot of money using this line of reasoning. Having ready access to his own capital meant they didn't need to go through the usual discipline of developing a business plan, market research, supply-chain research, getting investment from others, exit strategy, benefiting from the experience and feedback gained in the process, etc. They also got locked into the 'sunk cost fallacy' and threw good money after bad.

At the very least get yourself an accountant with experience of small-business startups. Pay for their advice and listen to it.

 

[oz-plumber]

I would never throw my capital against a venture like this.
I would borrow against my capital.

As for the 4% markup on boilers - most of these deals are done with a 'kickback' at the financial years ending.
The more you sell - the greater the reimbursement from the manufacturer.

As for your rent - if you own the building or a family member does - business wise - wouldn't you want to pay yourself, or others, a rental out of the business.

You may decide to try things for a year to get you off the ground - but treat it as an arms length deal after a year.

If you can't make the business pay for itself after that long - there's no point.

Plenty of loopholes you can exploit if you get the right advice and set yourself up properly. ( this may be required if things go real bad - you may be able to salvage yourself to some extent )

 

[Welder]

Glad there are so many people here so intimatly aquainted with plumbing retail.

Me? I'm involved on both sides and wouldn't put my money anywhere near it. Good luck. I'm out...