How to start a ballpoint pen business step by step guide by netlinehost

 Ballpoint Pen Business


Starting capital - from 500 thousand rubles.

How to start a ballpoint pen business step by step guide
How to start a ballpoint pen business step by step guide 


According to the latest data, more than 90% of the inhabitants of our planet use pens (including ballpoint ones)! About 7.5 thousand ballpoint pens are bought every minute. in this article we will be talking about how to start a ballpoint business  All these indicators indicate the high profitability of the enterprise for their production - especially since they are used by almost every person on earth. The demand for them is incredibly high, so there is no need to worry about the payback of this business project.


In our country, the annual market volume of ballpoint pens (if you count them by the piece) is 450.2-584.3 million pieces (taking into account the fact that every citizen of Russia uses them). Ballpoint pens are included in the stationery section - “writing instruments”. According to Sanford, in this market segment, they occupy almost 50% in terms of volume and over 58% in monetary terms.


At cost, ballpoint pens are divided into several subgroups:


Low price category (from 4 to 15 rubles for 1 piece);

Medium price category (from 25 to 100 rubles per piece);

Highest price category (more than 100 rubles for 1 piece);

Souvenir products for promotion (usually such pens are ordered by companies as advertising, for example, mobile operators, banking, and government organizations).

All writing instruments fall into two broad categories:


Gift items;

Ballpoint pens for daily use.

This article will look at the classic ballpoint pens that are in the highest demand due to their low cost and relatively good quality.


The enterprise for the production of ballpoint pens is quite specific, which means that it requires special equipment. Right now, we will take a closer look at each cost item, as well as calculate the profitability and payback period.


  • Content

  • Used raw materials and necessary equipment
  • Workroom
  • Working staff
  • Start-up capital
  • Marketing moves
  • Registration moments


The process of manufacturing ballpoint pens can be carried out in both full and incomplete cycles. The first option includes the manufacture of the writing unit (the tip of the pen together with the ball), as well as the casting of a plastic rod and body. In this case, you will have to equip a large production line, as well as purchase raw materials:


Molds for casting castings. Cost - from 250 to 750 thousand rubles;

Installation for the production of plastic rods. Cost - from 350 to 650 thousand rubles;

A specialized assembly unit that will connect the body, stem, and cap of the handle;

Polypropylene raw materials. Cost - about 50 rubles per 1 kilogram;

Powerful centrifuge. Cost - around 250 thousand rubles;

Refill ink for pens;

Ball tips made of copper or its alloy;

Other consumables.

You can save a little by looking for used equipment. In this case, pay special attention to their performance and serviceability (often people sell installations that have become unusable, but at the same time have a presentation).


In any case, the full cycle operation of an enterprise is very costly. A particularly difficult moment is the mold, which must be changed every time the design of the product changes.




It is difficult to open such an enterprise in our country (huge start-up capital will be required). The cost of a pen is influenced by the following parameters:


Materials used;

Tax payments;

Payment of salaries to employees;

Other items of expenditure (salaries of service personnel, bills for electricity, water supply, and much more).

As a result, we get a rather expensive product that the average buyer is unlikely to buy. For this reason, a more reasonable solution (especially for start-up entrepreneurs who do not have a high start-up capital) would be to organize an incomplete production cycle. There are two options here:


You can buy ready-made rods, then make your own bodies;

Buy both rods and housings - you just have to put everything together.

With an incomplete production cycle, you will not need to purchase an installation for the manufacture of plastic rods and a centrifuge that removes all the air from the writing unit.




To create ballpoint pens, you will need specialized equipment, since manual labor will be much more expensive. For comparison, an average rig can collect about 25-35 pens in 1 minute. To complete an equivalent amount of work at the same time, 15-20 employees must be involved. The approximate price of 1 rod is from 20 kopecks to 1.1 rubles per piece (there are also more expensive options). The main criteria affecting the cost: color and manufacturing company. In total, having spent about 350 thousand rubles for a plant for the production of plastic rods and 250 thousand rubles for a centrifuge, we will increase the profitability of the enterprise. Therefore, we will reduce the payback period.


The most popular are ballpoint pens in blue and black ink, in which you can change the refill when it runs out. To apply your own logo or an original print, you can use pad printing technology, which is the most effective. To do this, you will need to purchase the appropriate equipment. The cost of such an installation can be different: the simplest ones - from 25 thousand rubles, the price for more productive ones can go up to half a million rubles. You will also need a compressor, exposure chamber, dye, thinner, and acetone to flush out the dye.


Workroom

It is better to find a workplace outside the city, while as close as possible to the city itself (or in an industrial zone). So you will significantly save on the transportation of raw materials and finished products. Also, you will not be bothered with complaints by the “neighbors”. The minimum area including warehouse and office space is over 200 square meters. The average monthly rental price is 30 thousand rubles (for the most part it depends on the region, the closer to large cities - the more expensive).


Working staff

The required number of employees in this enterprise is about 5-8 people. This includes:


Technological engineer specializing in molds. Salary - 35-45 thousand rubles;

Service staff (2 people). Salary - 25-28 thousand rubles;

Ancillary handymen. Salary - 10-18 thousand rubles;

Marketing / Advertising Manager. Salary - 15 thousand rubles or more.

You can recruit qualified personnel through advertisements after interviews. Or trust the professionals and contact a recruiting company. Reputable organizations train employees for various types of activities, so you can be sure of the good qualifications of the recruited workers.


Start-up capital

To open an enterprise for the production of ballpoint pens with an incomplete production cycle (“rodless” cycle) will require more than 500-600 thousand rubles.


Marketing moves

There are many manufacturing companies that have proven themselves in the domestic market: this includes the countries of the Far East (China, Japan, and others), Europe, and America. But often buyers don't pay attention to who made the pen. They are more interested in its cost and quality. This moment greatly simplifies the implementation of manufactured products. Their only drawback is minimalism (no buttons and other "switches"), but little importance is attached to it too. Moreover, you always put an interesting and memorable print on the shaft of the pen.


This enterprise is a little, but still subject to the seasonality factor. The peak of sales is celebrated before September 1 - everyone gathers their children en masse for the new school year (especially children in elementary school - they buy whole sets of colorful pens). During the summer season, there will be a slight decline in sales.


With well-functioning distribution channels, remember that a ballpoint pen can serve as a good advertisement - an additional source of income. For example, many large corporations order unique ballpoint pens with their own logo (banking and government organizations, insurance companies, many educational institutions, and so on). Having received such a contract (signed for several years - most often, from 1 to 3), you will increase your profits and receive a stable source of income.


In addition, you can create your own online store with the placement of all types of products. Inexpensive hosting will allow you to increase the audience of your customers without significant costs.


Registration moments

Officially, you will spend more than one month to acquire all the necessary documentation, and you will also need to pay a fee. Registration of an individual entrepreneur will cost you 10-15 thousand rubles (plus the production of a seal). You will also need to obtain the appropriate permits from the sanitary-epidemiological station and the fire department. When creating ballpoint pens with technological equipment, do not forget that not every “filling” is permitted by law. For example, for the production of spy pens, you will be convicted and imprisoned for 4 to 10 years.

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