Business Hardware: Tips for Growing Your Hardware Business

• Oct 27, 2023
• |
• BestBizFinder

Watch out for your competitors

 First, determine who your competitors are. Are the other hardware stores even if they don't sell similar products? (They are more into building supplies and you are more into electrical accessories and paint.) Are your competitors well established and well known in the city? Although these competitors have the potential to put you out of business, collaboration can be a win-win scenario; your store complements what they don't offer and vice versa.

There is no point in engaging in a price war of attrition; the public will benefit from lower prices but it can be costly to the bottom line for each of your businesses.

Create your own niche

You need to develop and make your core range of products visible (competitive pricing, prominent presentation and variety of options). This will make your store the familiar name for these products. The choice of these products depends on various variables such as the target audience (what are their main problems that you want to solve?), your competitors (what products do they not sell that you might offer?).

Find worthy suppliers to partner with

Should you choose to be a hardware or building supplies dealer? It is not just about users and end customers. The previous part of the supply chain involves your interaction with your source.

Building supplies are often arranged in shorter periods (about 30 days) than hardware supplies (about 90 days), so you can choose between the two types of products. Hardware supplies can allow you to make more money on building supplies that buyers often spend more time comparing prices with the competition.

Expansion into other purchasing channels

Owning an independent store may be old-fashioned but in the Philippines, that store is still a popular way to sell products (and establish a relationship with your customers). Also, there are thousands of hardware products for which physical presence is necessary to verify the correct product model.

But that shouldn't stop you from expanding your hardware selling business online. Set up a website and display your product line/brochure for easy access on mobile phones without having to visit the store. Allow visitors to inquire about stock availability and place orders that they can pick up at the store or have it delivered to their homes.

Having this presence also helps with the purposes of the inventory-customer relationship. You know the products they purchased so you know which items to secure the next time they order the same model. It also allows you to sell similar and more profitable products.

Develop your online presence

In addition to more alternatives and convenience for customers, enhance your online presence. This is because you cannot count on your neighbors to be your customers; this part should be expanded to include others outside your immediate area.

Not only will you provide a list of products, you will also give advice on things related to your products. For example, you could write a blog post about decorating tips, how to save money on utility costs, and why you'd recommend a product you're currently selling. Do your best to solve current and future customer issues and leverage your online presence to do so.

Don't forget to be on social media where you can showcase individual items on Pinterest and attract audience from this platform. Keep your Facebook and Twitter profiles active in engaging customers who may ask questions, make suggestions, or even rant about the quality of the products you sell. Doing so makes your business more accessible so that customers begin to trust it more.

Add the complementary value to the products you sell

The relationship with your customers should not end the moment they make the purchase. Build a good relationship with them and offer help as needed. Do they need help replacing faulty electrical wiring? Are they looking for plumbers or reliable referrals for Lipat Bhai? Have them on hand. Such partnerships help other partners set up business and give you back in the future or share referral fees if this is in your agreement.

Even when customers aren't buying from your store, your thought leadership in your field (and related areas like energy savings, product evaluation, and more) will be greatly appreciated. The important thing is that whatever your capacity, there is a willingness to help your clients. At this juncture, customers may be better known as the partners.

Stay in season as much as possible

As in a sari sari store where seasonal adjustment helps in generating additional income, the same applies to the hardware supply business. During the sunny summer season, people may spend some time sealing leaks in their rooftops and replacing their attic, so a steady supply of Vulcaseal and plywood helps.