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Business Hardware: Tips for Growing Your Hardware Business
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 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.
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