How to become a profitable construction material wholesaler. The big question for you as you are about to start your new business and Don’t know how to start it, get the License, what will be the investment, and how much profit margin?
This kind of business is a one-time investment and earning the money for a long time. The scope of building materials demands is large and never ends. Even though there are more suppliers and fulfilling the demand is still on a large scale.
In India, Construction will never end, every year from the village to towns, the industry needs building materials suppliers.
If you want to do a building material business in rural areas or Township areas, then this blog will help you with everything from beginning to end and also guide you to make the most Profit.
What are building materials-
To construct a house, you will need materials like Sand, Aggregate, Rods, Bricks, Cement murum, and paints. These materials are collectively known as building materials.
Legal Registration
A legal agreement is very necessary for starting this kind of business. As mining Chalan is important to be approved for the transportation of Aggregates, and River sand. Sometimes transportation of this kind of material needs Thana’s approval. For that, you’ll need government permission.
Here you have to Create Two Licence-
1. MSME REGISTRATION or UDYOG AADHAR REGISTRATION
You can get the loan amount easily from the Government scheme with this Registration. Because once you register under this you’ll be considered as a MICRO, SMALL, or MEDIUM ENTERPRISES. You can APPLY FOR UDYAM REGISTRATION, MSME REGISTRATION, and UDYOG AADHAR REGISTRATION under the same website with the following documentation required.
- APPLICANT NAME
- MOBILE NUMBER
- EMAIL ID :
- OFFICE ADDRESS
- SOCIAL CATEGORY
- PAN CARD NUMBER
- BANK ACCOUNT NUMBER
- IFSC CODE
- DATE OF COMMENCEMENT OF BUSINESS
- TYPE OF ORGANIZATION
- MAIN BUSINESS ACTIVITY OF THE ENTERPRISE
- ADDITIONAL DETAILS ABOUT BUSINESS
- NUMBER OF EMPLOYEES
- INVESTMENT IN PLANT & MACHINERY / EQUIPMENT
- SUBMIT APPLICATION
And you can get the Registration Number in the next 30 Minutes.
You can fill out the form online by yourself and later it will go for verification. After verification, if all the fillings are correct, you’ll get the MSME Certificate for the Construction Material wholesaler or you’ll be informed through E-mail or Courier.
Benefits for you Building Material Supplier Business.
- You can get the Loan from any Bank with less Interest,
- You’ll have some exemption from income tax
- Low Electricity charges
Click the Below Link to Registration for the MSME Registration
Udyog Aadhar Registration – MSME Registration online
Important Note- If you have less Investment Amount, Initially, You can start your Business without any legalization. But later once you make a profit, you should register under the government laws.
2. GST Registration Licence
You Must have made a GST number. For that, You can go to any cyber cafe and do the online process with the help of an expert. They will charge you some money but you’ll instantly get the license within a day.
If you’re going to Open a construction material wholesaler at large Investment, you should go to your civil Court or contact a Private chartered Accountant (CA) for the Trade License.
For GST Registration, You’ll need the following documents.
- Aadhar card
- Two photo
- Bijli bill
- Rent document
Click The Link Below to Apply for The GST Number-
जीएसटी फॉर्म ऑनलाइन भरें – Apply GST Registration
Where to buy Materials
Aggregate-
To provide Aggregates to the customers, you should make a stock of Aggregates. For that contact the Crusher Owner and tell him about your new business. You would deal with them at a low price. The Regular price per ton aggregate is 1450 /-. You should deal with them and tell them that they will charge you per ton equals 1400/-. And with the transportation charge, you will make a good profit margin.
Generally in the Town area, there is low space so the house owner wants only 100 cft tractor aggregates. In this, you can make almost 500/- Per tractor Margin. In a day if you find 3-4 Customers, you’ll make 2000 net profit from the aggregates only.
In this segment, You should keep good Cresar Black Stone Chips, Stone Dust, and Good quality chips of 20mm
Bricks
For storage of bricks, a little bit of a large area is required. In selling bricks, there is a huge margin. You should approach any Bhatta where you could deal with the Bhatta owner and deal with the price. And after transportation and all, if you sell the brick and earn an even profit margin of 0.50 paise per brick. Even though you’ll make huge money. generally, bricks are required in larger quantities than other building materials. so with the 1500 Brick Order, you can make a profit of 750 and that’s a good Profit. you should store Rad Bricks, Fly Ash Bricks in your goddam.
Want To know about the Brick, quality, and price- Read the Following Blog!
Brick Business, Numbers, Quality Price- The easiest way to Counting!
Dealership of Cement
You can store different companies’ cement according to the demand-supply chain. In some specific locations, people used to use the same kind of Cement. They prefer particular companies with cement. do your research first on which cement is purchased most in your location. For specific reasons, there are only a few cement distributors.
So you have to contact the dealership and purchase the cement bags in tons. Later you can sell them per piece. It seems that the cost of per bag cement such as ACC F2R, the cost is 380 /- and wholesalers sell it for 400/- rupees. you can make 20/- per bag profit and which is a good sum.
River Sand
When choosing sand for building construction, every customer prefers River sand which falls under the fine quality of construction sands that is found near rivers. to start a construction material wholesale Business, River sand is the most demanded material for every house construction. find who can provide you with daily tractor-wise river sand in Bulk. so that you can make 500-1000 Rupees in the tractor. the place should be spacious to store the River sand.
Manpower
You’ll need at least 2 Labor Initially and a Driver to take the Material to the destination. Labor will help in loading the Cement bags and picking the Roads and arrangements. If the Business Grows significantly in a Few Months, you should Hire a Supervisor on a monthly salary basis to Note down the materials.
Transportation of Materials to Customers site
For transportation of materials to the customer’s construction site, you will need a tractor or small dala tempo. Initially, you do not have enough investment, so you can borrow or just buy on a rent basis. Also buying a 2nd hand truck is a small vehicle that will help you to reach the loaded materials to specific a location.
CCTV camera
To take care of the Materials, you’ll need to install at least two CCTV cameras to save them from Thieves. when the business grows, you can hire a Guard to keep eye on materials.
How to Reach Customers and increase customer base
This is one of the Important things to keep your business running profitably. Because if you would have no customers, you would have no profit, and business stop. So here we’ll discuss how to increase the Customer base.
Repeat customers
- Delivering Products on Time- This can make the trust of Customers because when customers need Building material, then only they visit your shop.
- Supply Building Materials on a call basis- This is the new method to gain the trust of Customers. First, tell the Customers to make an Advance payment, One third or 50% through online payment methods, and then you can supply them cement, Cement, aggregate, and Others directly to your location on-call basis.
- Maintain Good quality and Price- As you are going to be the most trustable Business owner in your Town, so never compromise the Quality of the materials. Once customers are happy with your Products and services, they visit you again and even tell their other Friends to take goods from your shop.
- Strong Payment methods- Nowadays, People prefer different Pay Methods to pay the amount. So you should have UPI Payment, PayATM, Google Payment, and QR Integration to make payment easy for all customers.
Online Approach to Attract Customers
- Have a website- When the world is going online, why would you stay behind the fence? Every citizen now first searches on Google for construction material wholesaler near. So it’s the best time to have an online presence. The website creates credibility over your competitors.
- Social media accounts– Instagram and Facebook are the measured source to reach your customers online. As most people’s eyes are on social media, you can take advantage of letting them know about your recent rates of building materials through Instagram Post. And what are the materials available in your shop? This way, many new customers will know you and reach your store frequently.
- Google my Business Account- As of now it’s in trend and when people search for any construction materials wholesalers near me, Google my business accounts appear on the first page of Google. So people will find the dealers on the first page and if they get a phone number, they call the wholesalers. So you should definitely open an account on Google my Business to see your shop on Google’s first page. As the options like location tagging and phone tagging opened by Google, now it’s easy to reach your shop following the Google map direction given on your Google My Business account.
How much Profit From the Building Material wholesalers
It depends on the following factors-
- Your patience and hard work- As a construction material wholesaler, you should always be active in your Business. You should keep notice of the Materials, New Customers, Money management, and labor management.
- Weather- People build their houses every month, but they need Different kinds of materials for the construction. Generally, we see that in the rainy Season (May- June-July), House construction goes down, but still, Materials sales are High. But you should be concerned about what materials to store. For cement, the validity of cement is almost 3 Months. If you stock in large, customers might not purchase and your overall margin will affect.
- Profit Margin- Profit Margin depends on Every Segment of Materials. In the case of Sand, Aggregate, and Murum, you can make a profit of 30 % Profit. But in the case of Cement, Pains, and Rods, You can make a profit of 10 to 15 %.
Few Important things to keep in mind before starting a construction material wholesaler-
- Because the materials used in the Construction are costly and most of the customers who want a loan don’t give on loan to everyone.
- For the Customers, You should not follow the builder, big builders buy goods directly from the company.
Please comment below if you have any doubts regarding civil Engineering.
