A gap in the ceramics industry..

[Tom Fen]

Hi all,

Allow me to introduce myself. My name is Tom, I am 18 years of age and i come from Kent.

I currently work in the retail side of Ceramics in one of the biggest competitors in the uk at the moment.

My idea, is one of a basic nature, all TILERS in the trade, day in day out use the following products :-

Adhesive

Grout

Floor levellers

Tools

Edging Trims

Most of the bigg competitors in the "ONE STOP TILE SHOP" ceramic industry i.e Topps Tile, Tile Giant etc etc would probably reach anything up to 80% margin on these named products, maybe to the bonafied trade account customers this would drop to anything between 45 -65%.

I would simply like to start out selling just these "tools of the trade" kind of items at around an average margin ranging between 33% and 45% thus totally undercutting all the greedy get rich quick big time tile suppliers.

You may think, If your only going to sell the accessories, then surley it's still more convenient for the customer to visit the "one stop shop"? Actually you would most probably be wrong, in the last 2 years of me being in the industry the amount of trade tillers that buy tiles are fractional, after all they are simply "fixers" it is the homeowner that purchase and choose there tiles. And with so many of the top players now offering such competative "Home Delivery" there is no need for the tiller to get involved. In the last maybee 6 months i have only had one trader buy tiles, and this was only because it was his house!! I think this is where the pen pushers in Head Offices are going wrong.

Does anybody see the logic in my plans? Am i too young to start out? blah blah..

Your thoughts would be appreciated.

Regards,

Tom.

[fisicx]

Just to confirm, all you want to sell is the things the tiler needs to do the tiling?

A great idea but...

Where are you going to get the stuff from? Where are you going to store it and how are you going to distibute it?

How are you going to market the business without being squashed by the main players?

[Tom Fen]

Originally Posted by fisicx

Just to confirm, all you want to sell is the things the tiler needs to do the tiling?

A great idea but...

Where are you going to get the stuff from? Where are you going to store it and how are you going to distibute it?

How are you going to market the business without being squashed by the main players?

I've been working with these suppliers for 2 years now, all the stuff i mentioned is controlled at store level, so i've got quite a close relationship to suppliers. Obviously the net rate a big player gets for 80+ stores, and the rate a 1 store newjack would recieive would be a massive difference, and this is where im hoping the "who I know" not "What i know" tactic might be usefull,
Im pretty sure I could arrange an economic deal with the suppliers i need.

As for marketing, from the outset I would most probably rely on the trade I've had at my current store. They are already starting to look at more back street suppliers for there goods beacause the biggest players are way to greedy. Hence where my idea came from. Working at the sharp end of the bussiness I know most of my customers on a personal basis, and living localy to my workplace even drink with a few in the local bar!

Property is a massive problem, not owning my own home, having very little credit history, and being so young. With the market as it stands at the moment my chances of borrowing money, I would imagine to be impossible? Or issit? Thats what im asking you guys!