Tile shop profits and trade accounts

[Briton]

hi, I'm considering opening a tile shop in the Sunderland/Durham area. My question is - does anyone know what profit margin tile suppliers achieve and what would be the minimal investment I would need to get started.

I'm also interested in what the needs of traders would be so I could start supplying to local timers too.

Thanks for any info given.

 

[Dumbo]

I would say the main needs of a trader are . Good prices on good quality adhesive , grout , levelling compound and trims . If you aim to get those products out the door at a good price you may not make much per unit but you will get a big trade Base that will come back again and again and buy a lot of adhesive and therefore make money and don't sell rubbish tiles because all you will get is complaints and nobody recommending you .

 

[Dan]

I'd go work in an existing tile shop for 12 months or so. And take it from there.

 

[Middlesex Tiles]

Having recently done this I know exactly how much there is to think about.

You can call manufacturers and distributors and try to find out what prices they will charge you for supply. You then need to know how much local (and internet) competition sell similar products for. Your prices, and therefore margins, will be largely dependent on these two factors.

As for minimum investment . . . so many factors to consider. Rent + deposit of premises. Fit out costs. Professional fees. Equipment. Levels of stock holding. Insurance. Signage. Stationary. The list is very long . . .

This is only the start of it though. Who is going to buy from you and why? The shop is unlikely to hit the ground running, therefore can you afford for the shop not to give you an income (possibly not even cover it's own costs) for 12 months?

Start making a list, some phone calls and a business plan.

 

[Dan]

There are easier things to make money out of if you have some investment cash.

You usually find those that set up a tile shop these days do so because they already somehow have a hand in the trade or a similar one and kinda do it by accident or whatever.

Planning to set a tile shop up is mental right now IMO. Importing is going get even more costly and manufacturing in the UK is getting more expensive.

 

[Dumbo]

There are easier things to make money out of if you haven't some investment cash.

You usually find those that set up a tile shop these days do so because they already somehow have a hand in the trade or a similar one and kinda do it by accident or whatever.

Planning to set a tile shop up is mental right now IMO. Importing is going get even more costly and manufacturing in the UK is getting more expensive.

Surely we will just be fixing more Chinese and Indian tiles .

 

[Dan]

Surely we will just be fixing more Chinese and Indian tiles .

Hopefully, eventually, it'll be the right country to setup a British business selling British tiles or British whatever.

But right now I wouldn't sign a 3 or 5 year lease on a building or even take on a member of staff with so much uncertainty.

Give it a year and assess. And I'm the mean time the OP can get to grips on the industry because at the mo they sound super new to it.

 

[Time's Ran Out]

For the OP to ask his original question leaves me dumbfounded!
To consider starting a business without researching its prospects is madness, unless this is the sum of your research so far.

 

[Tile seller]

I work in a tile shop and, Dan is right.
Get some experience first.
You will need to know the trade inside out before you have any chance of survival.