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How to Start a Hardware Store

Starting a Hardware Store Business


Summary: The hardware store business is an ideal start-up business because it is extremely profitable. To generate revenue quickly, you must know what you are getting into. This article offers tips on how to open a hardware store business.

Hardware stores provide consumers with tools and construction materials needed to build, maintain, and improve their homes and properties.

Examples of home improvement merchandise are as follows: automotive supplies, building materials, electrical supplies, hand and power tools and accessories, hardware, home decorating products, house wares, lawn and garden items, lumber, paint/paint sundries, plumbing/heating/cooling products, sporting goods and more.

If you are thinking of starting your own hardware store then now is the best time to do so. Why? The demand for retail stores of this nature have grown tremendously because of the upsurge of the do-it-yourself phenomenon.

To help you in this endeavor, enumerated below is list of things a hardware store owner must know:

  • Advertise your retail hardware store aggressively, and if you can, try to establish a low-price image and put emphasis on convenience shopping.
  • Before jumping in the water, make sure you know how to swim. Ask yourself if you have sufficient experience to start and operate a hardware store.
  • If you are considering buying a previously owned hardware store, make sure you know the reason why the business is being sold. Try to find out how the sales volume for the store is, is it high or low? And the reason behind it. Also, check out the market price to see if the owner gave you a fair figure. Don’t forget to negotiate to get a better deal.
  • In choosing a location to open a hardware shop, consider the following factors: the neighborhood’s prospect for growth, the age and income of your customer base, the amount of competition in the area, and the accessibility of the area.
  • Study the competition in the area. Find out the strengths and weaknesses of the other players in the locale. Find out how you can compete with them.
  • The average size of a typical independent hardware store is between 20K to 30K square feet or larger. Maximize the full use of your space by installing a lot of shelving and display cases. The more items your browsing patrons come into contact with, the better. This will translate to additional sales for you.
  • The perception that this industry is dominated by big players is just that, a perception. Although retail chains are important in this industry, in no way do they control the total retail distribution channel. They may have the bigger market share but small to mid-size hardware stores do enjoy their own portion of the consumer pie. In fact, studies reveal that independent hardware stores can compete successfully with the large chains. In some cases, consumers find them better than corporate chains because of their personalized approach.
  • You can get your stock from three sources. One, full line hardware wholesalers, two direct from the manufacturers, and three, secondary or specialty distributors. The usual avenue chosen by most independent hardware store owners is via wholesalers. When affiliating with wholesalers, you get to receive marketing and advertising support as bonus.
  • Your target market would be the local community. As such, your inventory of products must be geared to cater to their preference and needs. Ensure satisfactory customer care by providing personal service and hiring/training your staff to make them leaned in the field of home improvement and construction.

36 Responses to "How to Start a Hardware Store".

1. lori on 4/26/2008

HOW DO YOU KNOW WHAT THE MARK UP SHOULD BE? I AM HEARING DIFFERENT PERCENTAGES.

2. daniel on 4/26/2008

usually your distributors will help you out giving you a unit price and suggest price list.

3. Donna Herrington on 6/29/2008

how much money do you think i will need to start?

4. carl on 7/9/2008

Don’t be fooled. a hardware store is a huge investment that takes meticulous planning. it is not a one man show anymore and will take a team of dedicated people to see it be successful and by the way, the DIY market is trending down as the population ages, that's why so many of the big box stores are pushing installation services. good luck.

5. Dennis Clark on 7/17/2008

I have been working on opening a nationally known hardware store in my town since December 2006 and it is now July 2008. What a ride!!! Start, stop, start, stop... Be prepared for a lot of stress, time and money. we are almost ready to open in October 2008.

6. Ron on 9/2/2008

Is it easier to start if you already own the building?
I want to open a non franchised store in a small town.
The rent from the apartments carries the building mortgage.

7. Vicki on 9/28/2008

I manage a hardware store in a VERY small town and it is very big struggle. I know that I mark up everything up 30% and that seems to still be lower than the lumber yard in town. My spouse and I are planning on purchasing this business and yes we are very scared but excited about the new adventure.

8. Dilan on 10/5/2008

Could someone please provide a few names of some wholesalers/manufacturers/distributors?

9. Dilan on 10/5/2008

Could someone please provide a few wholesalers, manufacturers and distributors?

10. Gary on 10/8/2008

Looking to start a hardware soon already have the location and building set up. Need some wholesalers, manufactures and distributors.

11. Allen on 10/19/2008

Trying to open up my own little hardware store and trying to find the local wholesalers...any help on going about it?

12. Bruce on 12/1/2008

I am looking for local wholesalers also. Any Ideas!

13. vipul patel on 1/8/2009 5:58:23 AM

My father owns a hardware store in a prime location & i want to extend my business by adding some hydraulic fittings and components. I want some tips & knowledge about how to extend my business.

14. Jasper on 1/25/2009 11:43:20 PM

Can I ask more tips on how to start a hardware store in a municipal area, and how many percent should i put in one item?

15. manuelo f. on 2/20/2009 2:00:11 AM

Hey, here is a wholesaler for hardware stores, the number is 787 769 2933... they have really good prices.

16. Riaz on 3/3/2009 1:42:06 PM

i wanna start a retail store of hardware, will it be profitable for me? moreover i am a MBA graduate.

17. Rich on 3/6/2009 10:22:19 AM

How much money do u need to start up a hardware store?

18. Amir on 3/30/2009 11:48:51 AM

I read all the comments posted and would like to know how much capital do I need to set up a hardware store? Secondly, I have HD and Ace with in 5 miles, how do you find a location outside your town, and are there any services available which can help me find the locations?

19. henry on 4/3/2009 10:24:45 PM

how much money i need to start up a hardware store ?

20. Allan Bucknol on 4/7/2009 6:19:33 AM

Thanks for your information. I have started a small hardware store and would like to know the best way of grouping and coding the inventory items. For example Paint department.

21. vikrant v.modi on 4/25/2009 3:29:11 AM

how can i start my own business with minimum investment......

22. Terry on 4/30/2009 7:01:17 AM

Hardware "don't do it" When Bunnings comes to town there objective is to CRUSH the small independents and even small franchise Hardware stores and eventually do the dirty F######!!!

23. Kripa Nath Singh on 5/3/2009 4:51:12 AM

How much money want to invest in Medium hardware shop and where are the wholesaler please give me the name and address.

24. daniel on 5/6/2009 6:14:27 PM

orgill is wholesaler we deal with from the U.S. and Canada we deal with canwel building. that's mostly just on hardware. Lumber is different mills seem to carry all different sizes. your best bet is to look at what your competitor is selling and go from there. it takes time for you to earn trust from the wholesalers and distributors.

25. Janet on 5/12/2009 8:42:07 AM

I have interests in starting up a hardware store in my village, i have a house which needs to be renovated, how much do i need to start with?

26. SHAFI ALHAJRI on 5/27/2009 8:43:11 AM

We are interested to open a hardware store in the Eastern Region of Saudi and expand later into other Saudi Major Cities. What's your suggestion and how we go about it. Thank you

27. ed on 6/2/2009 2:40:58 PM

Try Fastenal. They are a full line wholesaler with over 2300 branch locations. Probably one near you.

28. Sahid on 6/6/2009 12:14:53 AM

How much money do I need to start a hardware store?

29. dennis on 6/11/2009 12:50:54 PM

how much money do you need up front to start a hardware store?

30. k.m on 7/7/2009 9:51:03 AM

competition is tough and competitors are going high especially my next door competitor hardware store.

31. waleed youssef sultan on 7/21/2009 11:04:34 AM

I want to start Hardware Business in my country becoming an agent of the biggest store to deal and distribute their products.

32. Isaac Hoff on 8/4/2009 1:04:58 PM

I want to start a hardware store in my area, how much money do i need?

33. ourangaseeb on 8/15/2009 2:12:32 PM

I have already a small furniture store now. I am looking to start a power tools accessories store. where are the wholesalers, please give me the address thank you

34. Joseph Mutagonza Mukasa on 8/21/2009 5:16:14 AM

any one's success in any business today will depend on how much in depth knowledge you have about it. its important to have interest in the business, know the inner workings of the business, the right connections and also give a "cosmetic" approach to it. i.e it should provide something distinct from what the rest are providing. so dont be discouraged by those talking of "a lot of capital, time and stress."

35. W. Hudson on 8/30/2009 12:10:12 AM

I'm an independent dealer and I used a guy named Dan Ramos (danramos at cox dot net) to set up my whole store. He planned everything, ordered and installed my fixtures, set up my computer system (POS), merchandised product, hung signs and trained my employees. Because I talked to him first, I will be opening another store next year. Look out for the "helpful hardware..." they are not very helpful at all. I will not be affiliated with a coop ever again. My advice is look around and do your homework.

36. abel neesy utin on 10/15/2009 11:13:21 AM

in nigeria we have power energy problem, how can i help.

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