Build It franchise Yes/No

[sbu22]

Advice needed please.

Ever since I can remember, my dad has always talked about owning a hardware shop but finances always prevented this from happening.

Anyways, to cut a long story short; I'm in a position to make my dad's dream come true and would really like to do this for him.

Question is, do I go the franchise route or not?

We have about 3 franchised hardware's and 3 private hardware's operating in our nearest town.

80% of the town's hardware customer base is located about 15km away. I plan to put this hardware about a kilometer from these customers thereby negating the need for them to travel the 15km.


Do you guys think this is a good idea or not?

Business must be good to have 6 hardware shops within a km from each other.

 

[Batista]

Is your Dad onboard? Is he going to run it?
You are a good son, just make sure your Dad is 100% committed to it (and all the crap that comes with it).

 

[MickZA]

We have a Build It about a km up the road and a Power? has just opened nearby, I have quality issues with both and rather travel 10km to Builders for a wider choice (Builders also stock some budget rubbish though ).

 

[TheMightyQuin]

Advice needed please.

80% of the town's hardware customer base is located about 15km away. I plan to put this hardware about a kilometer from these customers thereby negating the need for them to travel the 15km.

Do you guys think this is a good idea or not?

Well the distance factor could be you saving grace. All in all I think Build It is kuk and avoid it like the plague. Any store however is only as good as it's staff. Who will run this business? If your dad, does he have any experience?

 

[cr@zydude]

We have a Build It about a km up the road and a Power? has just opened nearby, I have quality issues with both and rather travel 10km to Builders for a wider choice (Builders also stock some budget rubbish though ).

I used to love ServiStar, but since Massmart bought them and converted them to Builders Express it has gone downhill. There's hardly anyone on the floor and some of those Builders Pride tools are hopeless. I spend 20 minutes looking for the right hose connector without being helped, and had a paintbrush break the first time that I used it.

In topic, is your Dad still onboard with this idea? Did he work in a hardware shop or does he have any experiance running a business. If you want a franchise they will need to do a feasability test and they will decide if a store will work there.

 

[MickZA]

I used to love ServiStar, but since Massmart bought them and converted them to Builders Express it has gone downhill.

Agreed, it was a sad day when Builders took over ServiStar but they're still a cut above Build It iro quality and pricing in my opinion.

 

[Jacgil]

Look at cashbuild or Buco if they franchise. Penny, Build It, both similar. To make these shops work you need contracts otherwise you are just klicking over. Where are the new developments in your area. Otherwise you only get the old farts comming to shop for new shelfs and lights. That what I do now.

 

[sbu22]

Thanks for the feedback.

My dad is totally onboard and 100% committed.

My only concern is, is it worth it to fork out the huge franchise fees or is it better to go at it solo?

If we go at it solo (non-franchised), would we be able to compete with the big franchised shops or is going under their umbrella a better option?

 

[cr@zydude]

Thanks for the feedback.

My dad is totally onboard and 100% committed.

My only concern is, is it worth it to fork out the huge franchise fees or is it better to go at it solo?

If we go at it solo (non-franchised), would we be able to compete with the big franchised shops or is going under their umbrella a better option?

I don't know what the hardware business is like, but building a supply chain from scratch can be a bitch. Wallmart is a monster, and gets goods to their stores cheaply. I assume that the other hardware franchises help their stores out a lot too.

 

[sbu22]

I don't know what the hardware business is like, but building a supply chain from scratch can be a bitch. Wallmart is a monster, and gets goods to their stores cheaply. I assume that the other hardware franchises help their stores out a lot too.

My thoughts exactly, but is that help worth the 2 bar they are asking for?

 

[boxerulez]

Advice needed please.

Ever since I can remember, my dad has always talked about owning a hardware shop but finances always prevented this from happening.

Anyways, to cut a long story short; I'm in a position to make my dad's dream come true and would really like to do this for him.

Question is, do I go the franchise route or not?

We have about 3 franchised hardware's and 3 private hardware's operating in our nearest town.

80% of the town's hardware customer base is located about 15km away. I plan to put this hardware about a kilometer from these customers thereby negating the need for them to travel the 15km.


Do you guys think this is a good idea or not?

Business must be good to have 6 hardware shops within a km from each other.

Where are you planning to set up shop? Build Its can fail miserably in some areas. I supply a load of stuff to Build It EC ad Rank shops do well..

Others like Port Alfred and Queenstown not so much...

 

[sbu22]

Setting up shop in kzn near a small town called howick.

The town itself is very small about 15k population but has a large customer base from the nearby townships which count around 175k according to the last count.

I plan to setup right at the bade of these customers and as I mentioned in my previous post, its these customers driving the hardware businesses in howick which has seen the town having 6 hardware shops.

The local municipality is planning on adding another 10000 RDP houses with the proposed site being about 2km from my premises and a shopping mall is to be build right across the road from me in November.

People in townships are building mansions nowadays and I hope to take advantage of this.

Within the black population, especially in the townships; they use build it stores mostly cos of the nedbank home improvement loans they offer in house. I'm afraid going solo would result in me not offering this facility and thereby losing a lot of business in the process, dammit I'm stuffed.

 

[Mortymoose]

I'm looking to expand into a Build It franchise, we have the Spar , The Tops, putting in a coffee shop franchise within the next six months and the only thing holding me back on the Built It, is the lack of available property. We already know that we will give way better service than the current hardware franchise in town....

In essence , the Franchise looks solid...be prepared for long hours though...

 

[ajv]

Hmm, In my very very limited experience I think a cashbuild would better match the target demographic as described in post #12

 

[dunkyd]

After 45 years in hardware may I suggest some other present for father....
Franchise is a crazy waste of money unless your staff are experts in hardware. 7 stores in Howick is madness.
You will have to buy from wholesalers whilst the big boys buy direct. In most cases you will pay 100% more.
Took me 20 years to get accounts direct. Paying cash on delivery for stock that can stick on the shelves for years...deep pockets required.
Think elswhere.
Stick with the product father knows inside out.

 

[boxerulez]

NO Build It rakes in money from the township.

Ask me... EC Build Its are the biggest in the country thanks to their promo planning.

They Make Bank.

Kuyasa, Buffalo, Kwa Wicks, Ncobo and Elliott Street branch in mthatha. All on the rank... all pumping all day.

They each push around 50k worth of curtain track alone every month...

PS Op... I supply curtain track... Contact me if Eezi track stuffs you around. Might not beat their price but will always beat their service.

 

[sbu22]

After 45 years in hardware may I suggest some other present for father....
Franchise is a crazy waste of money unless your staff are experts in hardware. 7 stores in Howick is madness.
You will have to buy from wholesalers whilst the big boys buy direct. In most cases you will pay 100% more.
Took me 20 years to get accounts direct. Paying cash on delivery for stock that can stick on the shelves for years...deep pockets required.
Think elswhere.
Stick with the product father knows inside out.

That's why I'm leaning towards the franchise route. With build it, you get a 45 day trading account with the spar group so lucky he doesn't have to wait the 20years for accounts.

 

[sbu22]

Hmm, In my very very limited experience I think a cashbuild would better match the target demographic as described in post #12

Why do you think cash build is better suited?

 

[boxerulez]

Any news?

 

[dd1313]

What does a Build IT franchise cost nowdays ?