Housing and communal services 

Sales and installation. Business for the sale and installation of plastic windows, air conditioners, doors, roller shutters and stretch ceilings

Evgeny Smirnov

bsadsensedynamick


Business prospects for video surveillance systems

Security systems are only gaining popularity and are installed only in a small part of private buildings in the Russian Federation. This means that the number of potential customers will grow in the near future.

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  • Brief Market Analysis
  • Business Format
  • Lines of business
  • Private individuals
  • Retail
  • Wholesale
  • Offices
  • Equipment
  • Staff
  • Conclusion

This is a complex, but demanded business in modern conditions. In this material, we will consider exclusively the business of security systems that signal criminal acts or prevent them.

Brief Market Analysis

Unfortunately, no studies of the security systems market in Russia have been conducted, and if information is available, then they relate to sales of equipment in individual settlements. Global trends indicate an increase in equipment sales, in 2017 the market volume amounted to just over $30 billion (at producer prices). And this is without taking into account the cost of installation and installation of security systems.

Approximately 55% is accounted for by CCTV (video surveillance systems), ACS (access control and management systems) are in second place, and various alarms (security and fire) are in third place.

It is worth noting new technologies in some segments that contribute to the growth of the market. These are biometrics, various cloud solutions, video cameras with a built-in thermal imager, etc. In Russia, not all of them are in great demand due to their high cost (with the exception of large cities), but we note that we have many specialized companies that work with certain security systems.

In general, the market for the installation of various security systems in Russia should be recognized as promising. The competition is high, but at the same time there are no prerequisites for the fact that the crime rate will decrease and the need to install security systems will disappear.

Business Format

There are two options: exclusively installation, as well as installation and sale of equipment. It is curious that on many sites this business is characterized as requiring minimal investment and focuses solely on installation. This is a key mistake. In our opinion, it is not worth even thinking about opening a company that will deal exclusively with installation. Why? Everything is very simple.

You can enter queries like "Installation of a security alarm + your city" or "Installation of a video surveillance system + your city" into any search engine and see the results. Yes, there are companies that provide this service. But they all sell equipment without exception. You will not find a company that exclusively installs security systems, but does not sell them! There are two exceptions:

  • Individuals who provide such services (usually a jack-of-all-trades).
  • Separate companies that install a very wide range of equipment.

The sale of equipment brings more income than the actual installation. In addition, there are very few customers who separately buy equipment and separately look for specialists in its installation. People prefer to buy turnkey services. Therefore, the only reasonable business format is the sale and installation of equipment.

You can buy equipment for video surveillance in the All Tools online supermarket.

Lines of business

It is important to decide on the direction of the business. All companies have a different set of services. Potential customers we will divide them into several categories.

Private individuals

These are various security systems for private houses and apartments. There is something to work with, with the exception of the actual signaling. Almost the entire market is occupied by non-departmental security, as well as private security companies that send crews to trigger an alarm. It doesn't suit us.

All that remains is video surveillance and a number of other security systems that serve to prevent crimes and complicate their activities for intruders. If you work in this area, you must also install safes, automatic gates, etc.

Retail

Mostly video surveillance, but other options are possible here. In a nutshell, it's called "retail loss prevention." Equipment and software to account for goods, control the work of cashiers, prevent the appearance of expired products. Not the easiest line of business, but very promising.

Wholesale

Everything is the same as with retail, but only in the warehouses of wholesalers. They steal from any warehouse, that's a fact. And not all companies can successfully deal with it. And specialized enterprises that not only install video cameras, but also offer comprehensive solutions, are only in big cities.

Offices

Access control systems, video surveillance, corporate espionage prevention. There is a wide scope for activity, but, in our opinion, at the moment this particular area is too specific to start working in it and rely on a large flow of customers.

Equipment

A small company cannot afford to buy a large range of equipment. Unfortunately, negotiating with wholesale suppliers to buy as needed is extremely difficult, even almost impossible. Therefore, they buy a limited number of models in different price categories. If we talk about video cameras, then 4-6 options in different segments are enough.

The hardware also includes software, which in some cases also needs to be purchased. Or develop it yourself (but this is already a very special line of business).

And it's not just about the security systems themselves. The greater the range of your services, the more successful your company can be. Here are just a few additional ideas for working with individuals:

  • equipment for connecting to the Internet outside the city (amplifiers, antennas);
  • "Smart House" systems;
  • supervision of children.

The point of the idea is that your employees, who can mount various security systems with high quality, will be able to work with other electronics. In practice, only those companies that can offer a wide range of services survive in this business.

Staff

Good staff is the main problem in this business. Initially, you need to be prepared for the fact that it will be extremely difficult to find specialists. Usually, all small security installation companies are based former employees larger enterprises. And to find a free specialist in the labor market will be a very difficult task.

This problem needs to be addressed comprehensively. Firstly, it is not necessary to look for experienced people, their services will be very expensive and the salary will have to be offered much higher than the market one. You will be suitable for people who are more or less versed in electronics and are able to hold a screwdriver and other tools in their hands. They will need to be sent to training courses that are held in large cities.

Second, keep your employees. Salaries should be at the market level, working conditions are acceptable. Training new employees will always cost money and take a decent amount of time.

Conclusion

The business of installing security systems has many directions and options for development. Here you can create both a small company with an initial investment of 200-300 thousand rubles, and a large one, where several million are already required. It all depends on the selected specifics and a set of services.


Picking a business idea is one of the most important choices you make as an entrepreneur, and it really is quite difficult. Many have been looking for a suitable business idea for years, and, not finding it, they never become the owners of their business, despite their great desire. In fact, there are quite a lot of business options around, and the choice can really be a difficult test. One of the simplest solutions in this situation is to follow in the footsteps of established companies. These ideas include the opening of a company specializing in the sale and installation of air conditioners.

Conclusion of contracts with suppliers

To start acting and making money in this area, you need to conclude an agreement with a large company selling air conditioners. The company may not be the only one, because different companies often sell lines of air conditioners from different manufacturers. Before concluding an agreement, you should know that the pricing policy of suppliers is almost the same, but the conditions for working with dealers often differ, which you will be. The best option would be to conclude an agreement with a company that guarantees the delivery of air conditioners in the shortest possible time - within 3-5 days from the moment you order the air conditioner. Naturally, contracts are concluded for a certain period, and in case of unsatisfactory work of the supplier, you can easily terminate it.

Search for specialists in the installation of air conditioners

If the quality of air conditioners and their delivery time depend on the supplier, then the quality of installation and connection will directly depend on you. That is why it is very important to find a qualified installer. Usually in such cases, an employee with a good reputation is lured away from another company, but it would be more honest to offer him to work for you during your free hours - this is due to the fact that:

Installers are busy much less than 8 hours a day. And many during the "windows" in the work schedule are ready to work extra.

Placement of the point of acceptance of orders

To open a business for the sale and installation of air conditioners, you will need a room with good traffic - it can be an office center or a large shopping center. Naturally, the closer the building is located to the central streets of the city and the most crowded places, the more expensive the office rent will cost, but the faster the business will pay off. Another great option is to rent an office in the centers for the sale of building materials and goods for repair and decoration, because the decision to install an air conditioner in the house is usually taken during the repair.

Naturally, the staff of employees will not be limited to just one installer. At a minimum, you will need a sales person. Ideally, this would be a middle-aged man who is not just versed in technology, but able to answer technical questions about air conditioners that customers are interested in. There is no gender discrimination in the fact that a sales manager should not be a woman - in most cases, the male population is simply buying air conditioners, and it is much easier for men to find a common language with each other. And even if a woman is the initiator of buying an air conditioner, in 90% of cases she will come to choose an air conditioner with a man.

We take into account the seasonality of the business

It is worth paying attention to the fact that the business of selling and installing air conditioners is seasonal. After all, most people prefer to purchase air conditioners during a hot period or in advance, that is, in spring or summer. To ensure that your business does not stand idle during the rest of the year, you can create a list of additional services that your company will deal with in the fall and winter. An example would be the maintenance of air conditioners, the preparation of installation projects for offices in new buildings, the development of an air conditioning system for a large office or retail space. Thus, during the autumn-winter period, the work of your company will specialize in providing services to legal entities. This is also beneficial because, unlike individuals who start thinking about installing an air conditioner as the hot season approaches, legal entities begin to develop air conditioning plans for the next period just in autumn and winter.

Financial plan

An approximate financial rationale for such a business idea is as follows:

Investments:

  • Tool - $1650.
  • Samples of conditioners for demonstration to buyers - $3300.
  • Office equipment - $1700 (including furniture, communications, decoration and purchase of office equipment).

Income:

  • Sale of air conditioners - $650 per unit.
  • Service maintenance of one air conditioner - $65 per year.

Expenses:

  • Office rent in 10-15 sq.m. – $250 - $500.
  • Wage sales manager - $500.
  • Communication costs - $100.
  • Advertising - $500 - $650.
  • Installation services - $100 for 1 installation.
  • The cost of an air conditioner is $250 - $350.
  • Taxes - $330.

Total:

  • Fixed expenses - $2100.
  • Gross income from the sale and installation of 1 air conditioner is $230.
  • Sales (during the season) - 15 pieces / month.

Starting investment in business

Starting a business selling and installing air conditioners requires a minimum initial investment of about $15,000.

Air conditioners are often indispensable both in hot summers and in cold winters. For this reason, today they are installed in almost every home, and the service associated with their sale, installation and maintenance is in high demand.

Moreover, despite the presence of very tough competition in this market segment, finding your niche is not so difficult. The amount of initial investment required to organize a business for the sale and installation of air conditioners depends on many factors. These are the climatic conditions prevailing in the region and the purchasing power of the population and the market situation. On average, the starting capital is about 50-100 thousand dollars. In the regions, this figure is significantly less and reaches 10-20 thousand dollars.

All air conditioners depending on quality, cost and reliability conditionally divided into three groups:

First- elite includes air conditioners produced by the most high-tech Japanese companies. These conditioners possess excellent consumer characteristics, the developed systems of protection and self-diagnostics. The average price of such an air conditioner in the consumer market is from 850 to 1250 dollars.

Second group includes air conditioners of European and Japanese manufacturers, which can be attributed to the middle class. They are quite reliable and at the same time have a good value for money. They are distinguished from elite air conditioners by a shorter warranty period, a slightly higher noise level, as well as some other minor differences. The cost of air conditioners in this group ranges from 700 to 850 dollars.

And finally third group includes air conditioners manufactured by Korean, Chinese and Russian companies. These air conditioners are the cheapest, their price ranges from $400 to $650.

by the most popular and best selling brands in the Russian market are Samsung, LG, Rolsen, Hyndai, Shivaki air conditioners, which belong to the third group, and Panasonic, Sanyo, Sharp, DeLonghi, Toshiba, Daikin air conditioners, belonging to the first and second groups.

At the initial stage of implementation business ideas for the sale, installation and maintenance of air conditioners the main task is to find and select business partner-suppliers from whom, in fact, the equipment will be purchased. As a rule, most firms whose activity is the sale and installation of climate equipment prefer to work with one supplier, while having several others "in reserve". Such "spare" suppliers are needed in order to expand the range of products offered by additional models.

It is worth noting that changing partners in order to save an extra 20-40 dollars is not worth it. First of all, it must be borne in mind that with a significant volume of purchases from one company, as a rule, significant discounts are provided. In addition, suppliers work more responsibly with regular customers. At the height of the season and, accordingly, the shortage of the most popular equipment, they are the first to be supplied with goods.

There are many ways to organize the sale of climatic equipment: air conditioners and split systems. The most common option is to open a specialized store with a small showroom. This option is suitable for companies that rely on mass sales of equipment to retail customers. Among the advantages of opening a store are the creation of a sense of trust and solidity, as well as the possibility of organizing trade in more high prices. Disadvantages include high rents and high costs associated with maintaining vendors. This is especially acute in the off-season, when, with a small number of clients, costs remain at the same level.

As for the staff, the work will require sales managers and the most important thing, professional installers, the search for which is the main problem of this type of business. After all, 80% of the good work of the air conditioner depends on proper installation. The way to solve this problem is extra education personnel, which is a better option than the transfer of functions for the installation of air conditioners to teams hired at random.

In everyday life, there is an opinion that the climate business is characterized by a seasonal nature. However, in practice this is not entirely true. Such a statement is more likely to apply to one-day firms that are engaged in the "summer installation" of air conditioners. More serious companies operate throughout the year and offer their customers a full range of climate services, including air conditioning, heating, and ventilation.

Moreover, when installing air conditioners, serious companies conclude agreements on after-sales service. Thanks to this additional service, you can significantly increase the status of the company and distinguish it from many competitors. As for the cost of maintenance, as a rule, it ranges from $ 30 for a one-time service within six months of one split system to $ 20-50 monthly.

Good luck with your new business!

There is an opinion that a good sales manager does not care what to sell. Can this rule be applied to starting your own business? IQR found those who followed this principle in practice. Today's business story is about entrepreneurs who decide to take on any home renovation job they can find. What came of it - read below. The author asked not to be named.

How I decided to start a business in the field of sale and installation of plastic windows

Samples of plastic windows

I want to tell the story of my sales and installation business metal-plastic windows, entrance and interior doors, blinds, shutters, air conditioners, stretch ceilings in the beautiful city of Donetsk. Now I am 29 years old, I have experience, I know how to do business and what not to do. Perhaps, after reading this story, you will learn some useful lessons for yourself or take note of the necessary information.

So, initially the idea of ​​​​a business for the sale and installation of plastic windows appeared in 2012. At that time I was 26 years old, I was on maternity leave, the child was two years old, and I was thinking about going to my main job. Somehow, having gathered with friends, we raised this topic and, unexpectedly for ourselves, caught fire with the desire to open a common business. I decided to postpone the exit from the decree. It all started with plastic windows, we chose them, as it was a profitable business that did not require large financial investments. And what is also important is that in our area there was not a single outlet selling plastic windows.

My friend is an excellent master who can do everything. He has, which for many years has been building houses, renovating apartments, installing stretch ceilings, installing and maintaining air conditioners, installing metal-plastic windows and other things. Also, plus everything, he already had a patent for private enterprise. The next day, we held a meeting, distributed responsibilities - and began.

On his part, it was necessary to measure, deliver and install structures, he also had a financial side (rent and running costs). My duties included:

  • supplier search;
  • taking orders;
  • work with manufacturers;
  • advertising;
  • full-time job as a salesperson.

Advertising and customer search

We rented a small room, set up a table, a chair, a printer and a laptop with internet. We brought our own laptop and printer from home. I ordered outdoor advertising, flyers with the opening date and business cards. I advertised in the local newspaper and posted our page on the Internet with the address and types of services. I hired leaflet peddlers who went around the whole area. Contacted local manufacturers metal-plastic structures, has entered into cooperation agreements as their regional dealers. I studied all the technical information about enterprises, products, characteristics and types of profiles, brands of fittings and much more.

Business plan for organizing a point of sale metal-plastic structures

window installation

Current costs are:

  1. Place rental — 500 hryvnia per month (the current hryvnia exchange rate is 3.2 rubles - ed.).
  2. The fee for the Internet and the starter communication package is 100 hryvnia.
  3. Advertising, flyers and business cards - 1000 hryvnia.

Representatives of factories brought me free samples of goods and installed their own special calculation programs, which calculate prices for metal-plastic designs. They explained in detail how to place an order, taking into account all the nuances.

The main thing that I understood is that if I make a mistake, then the entire expensive structure that was made goes to my home, and I accept claims from the customer in full. This is a great responsibility. And it was very easy to make a mistake.

In a word, I was mentally prepared for the arrival of the first client. This is probably the most exciting moment for every entrepreneur. When you prepare for a long time and do a lot of work - and here he is, the long-awaited buyer. I will omit the description of all the curious, onlookers, secret visits of competitors to “sniff out” prices, and so on. Yes, and I will add, we made a tempting promotion. A mosquito net for a standard window was a gift. This also played a certain role in luring customers, and at the same time we lost only UAH 50 on an order.

I will describe in detail the algorithm of work on the example of the first order. The first client ordered six plastic windows for glazing two apartments. My companion made a measurement, I made an order, coordinated everything with the managers, took the payment, sent it to work and paid the order to the manufacturer. Let me clarify that it works only on a prepaid basis. Two weeks later, they said that you can pick up. We agreed with the customer on the date of installation and at the same time they took the finished windows from the factory. The guys quickly put everything in one day. The customer was very pleased with our work.

Profit amounted to 30% of the order value. That is, from 10,000 UAH. - this is 3000 UAH. From here we subtract the expenses of 1000 hryvnias to the rest of the guys for help in the installation, plus transport. This was followed by the second, third orders.

The most profitable positions were orders for glazing balconies, or when ordering a complete replacement of windows in an apartment or house. There were savings on delivery, installation time, and a significant profit was immediately obtained on one order. We had about thirty different orders per month with a total value of about UAH 50,000.

Our monthly income was:

50 000 UAH - 30% = 35000 UAH.
We take away the installation fee for the guys, taxes, transport, rent, advertising, communications, etc.: 35,000 - 10% - 500 UAH. - 100 UAH. - 2400 UAH - 2500 UAH = 26,000 hryvnia per month (over 80 thousand rubles).
Each gets 13,000 UAH, but this average profit came out in the so-called “season”. In winter, things were much worse. In January, for example, my earnings were about UAH 4,000.

Business expansion: doors, shutters, air conditioners

Then the business slowly began to develop, and six months later we decided to add another sale of entrance and interior doors. Expanded retail space. I contacted the suppliers and agreed to purchase samples for the stand. I had to purchase two entrance and three interior rooms, this is the minimum, but at a discount. Plus a bunch of samples of coating materials for these doors and catalogs.

We spent 13,000 hryvnias on this:

  • Two entrance doors for 3 000 UAH. = 6 000 UAH.
  • Three interior fully assembled with a box, fittings and platbands 5 000 hryvnia.
  • Any samples of cuts of corners and accessories - 2 000 UAH.

Work, I'll tell you, increased after that. I had to thoroughly understand the fittings, awnings, veneered and laminated coatings, extensions, planks and more. Now I had to quickly switch from one client to another, and tell everyone in detail about the benefits of our product. But after the first order for interior doors, I realized what a nightmare it was. If, moreover, these are old houses in which all doorways are crooked in any plane, then it’s generally terrible. The doors were supplied in standard sizes and could only be modified slightly. It's only in workshops for the production of doors that you can order any size, but people did not understand this.

The main problem is maintaining the declared level of work quality

Plus, there were delays with installation due to the large amount of work on installing windows and balconies. A friend made the customer wait with the installation, and every day I had to listen to nervous demands. There were scandals. But somehow we managed and got out. The amount of net profit (approximately UAH 20,000) from the sale of doors was added to the main income from the sale of windows.

Then profitable suppliers of window blinds and protective roller shutters turned up. Stretch ceilings and air conditioners were added. Gritting her teeth, she agreed to this. There is also a huge amount of technical information, which had to be dealt with in detail.

I even went to numerous seminars, consultations and exhibitions. I had to work for three. And besides, I was waiting at home Small child that demanded my attention.

Problems with delivery and installation arose more and more often. Having decided that this would not work, they hired another installer, but he turned out to be an unreliable and unprofessional person, another one followed him. It turns out that it is very difficult to find a universal person, and besides, a professional master for such work.

And in the end, as they say: “If you chase two hares, you won’t catch one.” More and more customers were dissatisfied with the quality of services, I was torn between orders, agreeing on delivery dates, monitoring prices, agreeing on the availability of goods and consultations. Income was falling. We held out like this with varying success for two years, on the third we no longer had the strength to continue everything.

What this business has taught me

After another order with a "fun" installation, we decided that it was time to end this business. Sold at a discount exhibition samples and dispersed. The good news is that they stayed with their money, and this business was not driven into large debts. But now I know absolutely everything about air conditioners, plastic windows, roller shutters, stretch ceilings, entrance and interior doors. Which ones are good, how they are installed, and which ones are not even worth looking at. And also it was a huge experience of working with suppliers, principles and fundamentals of trade and invaluable experience of working with clients. I will have fond memories of them for a long time.

Now I'm thinking of starting my own business, but without partners. So, only I will decide how and what to do, calculate my strength and make decisions.

From advice to beginners, I would like to note the following points:

  1. Don't take on multiple tasks at the same time. Do not scatter in pursuit of profit. It’s better to do one thing, but it’s good, than to grab onto a bunch of small ones and not finish them.
  2. Believe in yourself, if you believe in yourself, then everything will definitely work out.
  3. Before starting your business, consult with specialists in terms of bookkeeping and accounting of goods turnover. It will be very helpful.
  4. Be sure to purchase exhibition samples of the proposed goods. Then the client will be able to see everything clearly, and you won’t have to tell everything “on your fingers”. The presence of samples disposes the client to cooperate with you.
  5. Don't start a business with friends you don't want to lose. Not only my example proves that conflicts and resentment are inevitable. They can happen on any issue. Money and friendship should exist separately.
  6. No need to spontaneously rush into the pool of your ideas, sit down and calmly calculate the planned income, take into account possible expenses. Make a business plan.
  7. Work with two or three suppliers. This makes it easier to monitor prices, control the availability of goods in the warehouse and make purchases. Plus, the supplier for large quantities can increase the discount.

Windows business (video)

The sale and installation of air conditioners is carried out by various online stores. If you study the specifics of retail outlets in the global network, you will notice interesting feature- Significant price variation. The cost of the same model varies significantly depending on the place of sale. And often the differences relate to such an aspect as the quality of the device. Therefore, a store that sells air conditioners on the Internet should be chosen correctly.

Criterias of choice

  • Experience. An online store that has recently launched its activities will in any case be suspicious. And here are the big ones outlets that sell climate equipment through their representative offices in different cities inspire confidence. You can safely trust these sellers.
  • The presence of a team of installers. Large stores hire professional installers at their headquarters. For such online stores, the sale and installation of air conditioners is the main specialization.
  • Affordable prices. If the online store is a distributor, then you are unlikely to buy products cheaper somewhere. In addition, such a company always arranges profitable promotions and sales. On such days, the sale of air conditioners grows, the price drops significantly.
  • Help of a consultant. Online specialist provides professional help. Stores pay such qualified employees. For example, they will help you choose equipment, talk about the features of equipment and installation.
  • Availability of warranty service. Selling household air conditioners is one thing, another is to provide the client with maximum privileges. Only prestigious online stores offer long-term warranty service.

By choosing a large and prestigious online store, you have the opportunity to purchase high-quality climate equipment at a profit.