Profitability

[IceBoy]

Could someone shed any light on how profitable local Hardware stores are ?

I have typically been looking for an off-lic/gen stores but a local hardware shop is up for grabs?

Cheers
IceBoy

[justinp1]

IceBoy said:

Could someone shed any light on how profitable local Hardware stores are ?

I have typically been looking for an off-lic/gen stores but a local hardware shop is up for grabs?

Cheers
IceBoy

If the shop sells string, measure an undefined length and that will give you the answer

Seriously though, its impossible to give any idea without any idea of the factors involved. Looking at the books carefully is essential - maybe they want to sell as B&Q has set up a mile away!?

[Wacky Racer]

It depends on many factors.....

Is the shop feehold or leasehold?? If so how much are the rent and rates..?

What is the TRUE turnover...

How long has the proprieter been in business......?

A good indication is stand across the road for three or four hours and see how much activity goes through the front door...

Two golden rule in business.....Expenses down, profits up and turnover is vanity, profit is sanity....

And remember the DIY sector is struggling at the moment even giants like B&Q are having a tough time....


Good luck if you decide to go ahead but look before you leap....

[Leftie]

I have no idea, but we have a local hardware store that has positioned itself between B and Q and the builders merchants geograpically and business wise: staff who know the stock and have experience in the building trade, a good range of fixings and good opening hours at a weekend and BH.

[vex]

Tring seems to support two hardware stores both at opposite ends of the high street!

Never really understood how they both survive.

[srebbe64]

IceBoy said:

Could someone shed any light on how profitable local Hardware stores are ?

I have typically been looking for an off-lic/gen stores but a local hardware shop is up for grabs?

Cheers
IceBoy

What a strange question! Obviously it depends on MANY different factors. However, my knee-jerk reaction was "not very".

[simon67]

Gross margins somewhere between 50 & 55%. I used to sell paint brushes to hardware stores. Good ones could make a packet but most struggled. Keys to sucess are - location, size and range of stock kept, good & knowlegeable staff. In my experience the ones that did well had been established for donkeys years and were af a decent size.

Good luck


Simon