Why is the hardware store business getting worse and worse

There are several reasons why the hardware store business is not doing well:

1. Store rent, operating costs increase.

2. Customer loyalty is not high, whoever gives the lowest will buy it.

3. The market competition is fierce, and there is a big battle between stores.

4. There is no core competitiveness, and the product homogeneity is serious.

5. The sales model is backward, and we are still waiting for customers to come to the door.

First, the inventory needs to be considered, and the purchase can not be radical or slack.

Through the communication with the hardware city store, we found that due to the instability of the market, the dealer's control of inventory is also very troublesome. Especially in the past two years, the ups and downs have increased, and only a few large hardware manufacturers can still compete with it, and some private small and medium-sized enterprises are afraid of declining, and dare not purchase a large number of goods, basically can only take one step at a time, because there is a time interval between purchase and sales. Experienced hardware dealers said that they should grasp the off-season and peak season of the hardware market, adjust the inventory appropriately according to the market situation, and not be too urgent, so as not to undersupply and oversupply.

Second, the goods are placed neatly and a brand image store is set up.

Through the analysis of customers, it can be clearly found that among homogeneous brands, they often choose your brand's store image and service quality.

Standardized store decoration will produce a strong brand appeal. Reasonable shipment, so neat, beautiful, sufficient. It is necessary to change the items displayed in the store frequently, and pay attention to the appropriate placement of advertising and promotional materials, and whether the placement is appropriate.

To do a good job in the hygiene and cleaning of the store, from the store image to make customers feel more comfortable and tidy, dare to ask if the store products are messy, how many customers are willing to come to the door to understand?

Nowadays, with the surging of the network, the product sales channel.

Becoming more and more diversified, so to adapt to the trend of the network, learn the knowledge of network management, become the choice that hardware dealers must choose. Maximize the use of network platform resources, improve the level of operation, and make it in line with the information age.

Adapt.

It's good to open a hardware store. The profit of a hardware store is not a single existence, depending on the specific circumstances of opening a store. There will be a good market in the ** and the demand is relatively large, but at the same time, the store rent is more expensive.

However, hardware stores have a wide range of products, and if they can attract some regular customers for a long time, they will naturally have a good income. Let's take the store with an investment of 50,000 yuan as an example, the store is located near the community, the store area is about 30 square meters, and the goods in the store are complete, and you generally do not appear out of stock. At the same time, the passenger flow is also relatively stable, so that the annual income is about 200,000 yuan.

In addition, the after-sales service of the goods should be guaranteed.

In this way, we can attract some regular customers, and the revenue and profitability of the store will tend to be stable. The storefront is also very important, and keeping it clean and tidy will also give consumers a sense of security when purchasing goods.

The gross profit of the hardware store is also relatively high, but the time occupied is relatively long, usually the amount of incoming and outgoing goods is relatively small, and the gross profit is not large, only about 20% to 30%.

There are usually two types of profit composition for hardware and grocery stores.

1. Sell daily hardware and groceries, such as: light bulbs, wires, water pipes, faucets and other shower room equipment; Maintenance tools such as: screwdrivers, electrician's pliers, wrenches, throat pliers, electric pens, forceps, etc.; Groceries such as paper towels, toilet paper, electric kettles, induction cookers, thermos flasks, water cups, electric fans, floor mops, brooms, trash cans.

2. It is a service category, such as matching keys, door-to-door wires, network cables, dredging sewers, unlocking, repairing small household appliances, etc., which are the scope of door-to-door services.

Precautions for opening a hardware store

Therefore, to be a qualified hardware and grocery store owner, you must be an electrician, a locksmith, a plumbing worker, an electrical repairman, a sewer dredging expert, if the craftsmanship is good, it is naturally more work.

In addition, as a hardware grocery store actually has a certain risk, the greater risk is that their craftsmanship is not strong, no one to do the work themselves, but generally speaking, science and engineering men are only not good at words are rarely poor hands-on ability, and another risk is that too many hardware and grocery stores are piled up to open stores, resulting in bad competition is also a relatively big risk.

The profit of the hardware store is OK, but the competition is bigger, and it is easy to do business or small competition, and now there are many special products. You can check it out. I went to a friend the other day and saw that a wall decoration product was also ok.

They painted a large picture in their living room, which he said was painted on the wall with tools by ordinary workers. The effect is realistic when viewed up close. I asked a friend to learn that this painting is called Tianyi background, and now this kind of wall painting is very popular, he originally wanted to make this wall painting, but unfortunately the city he wanted to do, someone has already done it, and he can't continue to sign it.

Hardware stores are usually run together with groceries, and rarely do pure hardware, so its profit composition:

Bathroom equipment such as water pipes, barges, forks, sluices, faucets, sprinklers; Power equipment, such as lights, wires, fuses, sockets, power switches, leakage switches, etc.; Maintenance tools, electrical tape, such as screwdrivers, electrical pliers, wrenches, throat pliers, electric pens, forceps, etc.; Groceries such as paper towels, toilet paper, electric kettles, induction cookers, thermos flasks, water cups, electric fans, floor mops, brooms, trash cans.

Bathroom equipment such as water pipes, barges, forks, sluices, faucets, sprinklers; Power equipment, such as lights, wires, fuses, sockets, power switches, leakage switches, etc.; Maintenance tools, electrical tape, such as screwdrivers, electrical pliers, wrenches, throat pliers, electric pens, forceps, etc.; Groceries such as paper towels, toilet paper, electric kettles, induction cookers, thermos flasks, water cups, electric fans, floor mops, brooms, trash cans.

Hardware business is generally not too good to do retail test, go engineering, run the construction site yourself have to run the business, at the beginning of the business is not good to do, it is recommended that you start into a place where the hardware is more concentrated, the popularity must be good, it is best to form a long old market and a good location, or it is very difficult to have customers, rely on other stores to pull merchants for you, generally do hardware local conditions are more difficult, this is a common problem of hardware.

It is not easy to do in the early stage, the main relationship is few, it is still okay after a long time, the investment is not too much, and the rent is not a small expense.

The most important thing is persistence. That's what it is.

Hardware stores sell very miscellaneous things, can meet people's various needs, although it usually seems that there is no business, but these hardware stores are very profitable, so they will not go out of business.

Because the profit is relatively high, and sometimes a large order will make a lot of money, and some of them have a construction site business, so they will naturally not go out of business.

Because their turnover is relatively good, they cater to some special groups of people, who don't come to the store often.

Although it doesn't seem to have a deep meaning, they also trade online, so it doesn't necessarily have to be a lot of people to have a deep meaning.

Nowadays, many hardware stores have small store area and low rent, and they are all husband and wife partners, so the operating costs are not high and the profit margin is large. At the same time, the hardware store has a wide range of sales channels, in addition to individual customers, there are decoration companies, construction teams and other long-term customers. In addition to the sale of hardware accessories, hardware stores also provide a variety of repair services, so even if many hardware stores have no business, they will not go out of business.

Generally, hardware stores are located in some inconspicuous corners or next to residential areas. And the store area is not large, so the store rent is relatively not very high. At the same time, most of the current hardware stores are husband and wife partners, and the clerk is hired at most, so the pressure on labor costs is not great.

In addition, hardware stores have a long shelf life and no risk of product loss. In addition to the profit is considerable, usually the profit margin of hardware products is about 20%-50%, such as screws, in the wholesale market are weighed by the pound, but in the hardware store is priced by the number of **, the profit margin in the middle is very large.

Hardware stores have a wide range of sales channels, and the stores are generally for retail customers, but the patronage of individual customers alone is not enough to maintain the daily expenses of the store. Hardware stores will take automatic attacks to distribute leaflets, discounts and other ways to infiltrate the surrounding real estate owners. In addition to the traditional individual customers, there are also long-term and stable customers such as decoration companies, real estate construction teams, and factories behind the hardware store.

Such customer groups have a great demand for hardware accessories, and hardware stores will provide door-to-door delivery services to such groups.

Today's hardware store business model is not only limited to traditional sales services, but also provides a variety of maintenance services. For example, provide door-to-door repair of household appliances and water pipes, unclogging sewers, circuit maintenance and other services. As long as the customer calls the hardware store, the master will be arranged.

In addition to the cost of hardware materials, customers also need to pay for door-to-door service, which is generally 30 yuan for a door-to-door service. In addition, hardware stores also provide maintenance and after-sales services, which are a full range of humanized value-added services, which to a large extent help hardware stores lock in the customer base.

Nowadays, many hardware stores have no business, but they can stand because of low costs and large profits. Not only limited to sales business, but also a lot of humanized value-added services, locking in long-term fixed customer groups.

Clause. First, the profit of hardware stores is high. Because of the relatively high profit margin, even if the sales volume of the hardware store is relatively small, it will not go out of business. Clause.

Second, the purchase rate of hardware stores is high. Hardware stores are not like ordinary supermarkets, everyone usually goes to the supermarket may be aimless, sometimes will buy, sometimes will not buy, but the purchase rate of hardware stores is very high, most customers into the hardware store as long as there are goods will basically buy, because the purpose of everyone to go to the hardware store is very clear, not shopping but to buy things. It is precisely because the customer purchase rate is very high, so even if the customer flow of hardware is usually small, the transaction rate is very high, 10 people enter the hardware store, at least seven or eight people will buy.

Because these hardware stores have specialized merchants, and even many hardware stores are engaged in online live broadcasts, so you may seem that their business is very bleak, but in fact, they are quite profitable.

1. There is no expiration date for hardware store products.

Hardware stores are very different from clothing and food industries, food has a shelf life, and clothing will be out of season, but hardware stores basically rarely have expired things.

2. There are many and miscellaneous products in the hardware store.

The more products there are, the more profitable they are.

3. Hardware stores have high profits.

Don't look at the hardware store as inconspicuous, its profit margins are even higher than you think.

4. The turnover rate of hardware stores is high.

Although the amount of hardware stores is not high, people who go to hardware stores have a purpose, and they will only go to hardware stores if they encounter some problems at home. Therefore, the turnover rate of hardware stores is at least 80%, which is also the advantage and particularity of the hardware industry.

Because these shops are not for profit, they are just a thought, and the family is not short of money, although the business is bleak, but they can still open and will not go out of business.