What are the typical margins for tiles in the UK

[Mani]

Hi all

I’m new to this community and would appreciate any help around the tile industry in the uk and margins at each step (manufacturer-distributor-retailer)

I’m asking this as I have an opportunity in relation to becoming a distributor for a well established tile manufacturer from abroad (not China).

With this I’m trying to work out cost etc and margin to see if the deal stacks up.

To keep it simple I’m doing some costing on a 60x60 porcelain tile to start with as I have figures for these currently.

Thank you in advance

Mani

 

[Middlesex Tiles]

I am a small retailer and get approached on a monthly basis by people who wish to import tiles - mainly India at the moment.

You first need to decide what sort of service you will offer - room lot/box quantity ordering (including samples?) or pallet quantity only? The smaller the quantity you offer to supply - the more you can charge (generally), but then your warehousing and logistics costs will be much higher.

I buy tiles for many different prices - but would need to see the tiles and here the service proposition before I would decide if it would be worth me displaying the tiles.

Distribution is not for the faint-hearted - you generally need to make a hefty investment and have a good knowledge of the tiling industry.

 

[Dumbo]

Surely it doesn't matter what antibodies margins are as they have to work with your costs . Best thing is to go to tile shops see what they are selling for and approach the shop owner and try and sell him something but I know guys buying stuff below 7 euros a metre.
You are not going to be able to operate in day the same margin as tilemountain or topps tiles

 

[Dumbo]

I will give an example .
Their was a tile called Galapagos.
My local shop selling mid twenties psm
Homebase 7 pound something psm

 

[Mani]

I am a small retailer and get approached on a monthly basis by people who wish to import tiles - mainly India at the moment.

You first need to decide what sort of service you will offer - room lot/box quantity ordering (including samples?) or pallet quantity only? The smaller the quantity you offer to supply - the more you can charge (generally), but then your warehousing and logistics costs will be much higher.

I buy tiles for many different prices - but would need to see the tiles and here the service proposition before I would decide if it would be worth me displaying the tiles.

Distribution is not for the faint-hearted - you generally need to make a hefty investment and have a good knowledge of the tiling industry.

I am a small retailer and get approached on a monthly basis by people who wish to import tiles - mainly India at the moment.

You first need to decide what sort of service you will offer - room lot/box quantity ordering (including samples?) or pallet quantity only? The smaller the quantity you offer to supply - the more you can charge (generally), but then your warehousing and logistics costs will be much higher.

I buy tiles for many different prices - but would need to see the tiles and here the service proposition before I would decide if it would be worth me displaying the tiles.

Distribution is not for the faint-hearted - you generally need to make a hefty investment and have a good knowledge of the tiling industry.

Hi,

Thank you for the feedback, i stubbled across this opportunity and I’m looking at supplying directly to developers I am already networked with as well as a potential UK retailer with 14 stores nationwide who is willing to give me a go and for this I was really trying to work out what the typical mark ups are..

I have already been provided with product details and costs from a number of developers and so far it seems like I could supply to them at a further discount to the trade prices they are currently paying so a win win. just don’t want to be selling myself to short to the retailer and realise this after

I’m based in Burnham (bucks) and should have access to a industrial unit in the next few weeks.

Where are you In Middlesex perhaps we could talk further..

Thank you again for your help so far

 

[Mani]

Surely it doesn't matter what antibodies margins are as they have to work with your costs . Best thing is to go to tile shops see what they are selling for and approach the shop owner and try and sell him something but I know guys buying stuff below 7 euros a metre.
You are not going to be able to operate in day the same margin as tilemountain or topps tiles

Hi

7 euros a meter, what size of tile is that?

Mani

 

[Dumbo]

Hi

7 euros a meter, what size of tile is that?

Mani

I said under not sure prob 600x600 as that s the most pop size
[automerge]1574182912[/automerge]
There is then shipping on top.

 

[Mani]

I said under not sure prob 600x600 as that s the most pop size
[automerge]1574182912[/automerge]
There is then shipping on top.

That’s food for thought.. but just means that people are making an absolute killing when they mark up.. as the cheapest I think I’ve seen a 60x60 on the high street for is normally £20+ If not much more..

But did find that the tile mountain did come in at good discounted prices in comparison

Thanks the conversation is very helpful always learning

 

[Middlesex Tiles]

That’s food for thought.. but just means that people are making an absolute killing when they mark up.. as the cheapest I think I’ve seen a 60x60 on the high street for is normally £20+ If not much more..

But did find that the tile mountain did come in at good discounted prices in comparison

Thanks the conversation is very helpful always learning

It must be an easy game that retail - that's why the high street is doing so well!

 

[Dumbo]

You need to go in independent shop and try and sell some tiles, then you see what they are willing to pay

 

[Mani]

You need to go in independent shop and try and sell some tiles, then you see what they are willing to pay

Hi

Iv done that to and the results were promising as long as they could get to them when they need without keeping stock them self and I can do that..

So what I’m gathering and as my suspicions were.. there are not set prices / industry mark ups etc and it’s basically what ever you can get away with, not very good. One Independent that buys from a big name said even if he got the tiles cheaper from me he would not sell them cheaper then he already does (£70-90 m2 for 60x30) as his customers in his area liked/wanted to pay it and would associate cheap tiles with poor quality which is not always true.

 

[Dumbo]

I have a retailer who makes no more selling porcelenosa at £70psm than he does selling other tiles at half that price .

 

[Mani]

It must be an easy game that retail - that's why the high street is doing so well!

Lol 😆 I think it’s important to keep lean and overheads low and perhaps try and keep the middle men to a minimum and I’m not looking for a retail presence as such myself.

I suppose I may also be in a unique place as I’m practically joint venturing with the manufacturer for a win win for all parties involved and I’d like to come up with some pricing which would then also extend to become a win for the wider tiling community / trades etc with standard lower prices and no gimmicks.. well that’s the grand idea anyway
[automerge]1574190653[/automerge]

I have a retailer who makes no more selling porcelenosa at £70psm than he does selling other tiles at half that price .

Well if I can sell them for £70 m2 that would do me fine actually even half that if not lower 😆 as that still gives a decent mark up

 

[Dumbo]

Lol 😆 I think it’s important to keep lean and overheads low and perhaps try and keep the middle men to a minimum and I’m not looking for a retail presence as such myself.

I suppose I may also be in a unique place as I’m practically joint venturing with the manufacturer for a win win for all parties involved and I’d like to come up with some pricing which would then also extend to become a win for the wider tiling community / trades etc with standard lower prices and no gimmicks.. well that’s the grand idea anyway
[automerge]1574190653[/automerge]

Well if I can sell them for £70 m2 that would do me fine actually even half that if not lower 😆 as that still gives a decent mark up

The reason it's £70 is it's porcelenosa and hardly any margin

 

[Mani]

The reason it's £70 is it's porcelenosa and hardly any margin

Ok I’ve seen this with porcelenosa and there pricing. also seems like a lot of independents use them.. is this just because they are easy and convenient for small shops or is it because they are more of a house hold name as the quality of there tiles can easily be matched if not beaten.