How to start a wood burning fireplace business step by step guide by netlinehost

How to start a wood-burning fireplace business


Starting capital - from 300 thousand rubles.

How to start a wood burning fireplace business step by step guide
How to start a wood-burning fireplace business step by step guide


The fireplace business is a very profitable and stable company with good prospects for further development. in this article we will be talking about how to start a wood-burning fireplace business According to leading domestic manufacturers, today fireplaces and their electronic counterparts are purchased in almost every second house. Buyers who are not able to afford a natural fireplace with a real flame and a slight crackle of firewood buy electric fireplaces. According to the latest statistics, more than 35% of the total sales of fireplaces at the beginning of 2018 are electric fireplaces.


Content

  • Development directions
  • Organizational and working moments
  • Advertising campaign
  • Business project passport


Fireplaces are often considered by buyers not only as a decorative element of the house and a tribute to tradition. Do not forget that its main purpose is a complete heating system. In European countries, more preference is given not to bulky equipment, but, on the contrary, to more energy-efficient, compact and multifunctional installations. Many customers do not mind paying several thousand dollars for a natural fireplace, since wood heating is environmentally friendly and much less hazardous to health. You can arrange heat dissipation for every room in your house. Closed type furnaces (when an open flame is located behind durable and impact-resistant glass) can be folded up.


The owner of such a fireplace can leave the flame to burn out without risking his life, and he himself can be absent for several hours. The furnaces are necessarily linked, as they give off huge amounts of heat - you can get burned even from a distance of several meters. The main parameter that you should pay attention to when choosing a fireplace is the area of ​the room in which it will be installed: the larger the room, the more the fireplace is placed. 1 square meter requires about 1 kilowatt of power.


Almost every player in the fireplace business, even a large one, has more than one vector for the development of their business. For example, marble framing of fireplaces is only a small part of the enterprise. In the CIS countries, the most affordable marble portal costs about 1.5 thousand dollars (which is equivalent to 86 thousand rubles). The approximate cost of a marble frame is in the region of 4-6 thousand dollars (which is equivalent to 230-350 thousand rubles). The cost of a good fireplace, if it is made exclusively by hand, can reach higher levels - from 55-75 thousand dollars (which is equivalent to 3.15 - 4.3 million rubles!) And even higher (especially if the order was taken by a famous company - manufacturer). Even at such huge prices, there is a client base - mainly, these are the owners of huge country houses, including the owners,



Lovers of real flame need to know first whether it is possible to put a fireplace in your home. For example, a natural fireplace heated with wood can only be installed in rooms with a prepared chimney shaft. Although in some new buildings, a chimney shaft is often provided for all apartments. In Soviet-era houses, there is also the possibility of installing a natural fireplace - such houses were specially built with the expectation of heating by stoves. Theoretically, the conclusion of such a pipe can be made independently in any multi-story building. But in this case, the cost of work will increase significantly - the passage of each floor together with the arrangement of the exit to the attic may cost more than one thousand dollars.


If the necessary communication networks are absent or it is physically impossible to implement them, there are alternative options - electric fireplaces, as well as decorative portals without the possibility of heating. There are a huge number of compositional solutions: inside you can lay brickwork of a certain color, you can install candles in cones, a colorful herbarium, even a firebox that imitates natural fire. If the client wants to heat with the fireplace, but there is no way to install it, it is better to offer an alternative option for combining a decorative device with a flame on the screen and installing a gas boiler.


Even despite the fact that imitation cannot completely replace a living flame, fireplaces with artificial fire are in rather high demand. They have a number of advantages over real fireplaces:


Have less power consumption;

Do not emit toxic fumes;

Absolutely safe for the health of others;

More affordable cost,

It can be installed even in a small room, even in a sauna (the range includes models that are resistant to moisture).



An electric fireplace is much easier to install, no extractor hood is needed. In fact, it can be called “furniture”, which is put in when the renovation is finished.


Electric fireplaces also have a heating function - up to 2 kilowatts of allocated power. At their cost, such fireplaces can be an order of magnitude (and in some cases, by several orders of magnitude) cheaper than natural ones - when buying a firebox together with a portal, you can keep within $ 600. As a comparison, we will give the following example - the cost of only a high-quality cast iron firebox can reach up to 1 thousand dollars (which is equivalent to 60 thousand rubles), and the framing of the fireplace (together with the cost of work) can cost 2-3 thousand dollars.


Organizational and working moments

It is possible to start a "hot" business these days even with a small amount - 5-8 thousand dollars, but with one important "but" - you must already have a workspace. Today, margins in this business can reach 40-42%. At first, you can take a product for sale from a larger “player” and put a certain percentage on top. But to organize the production of natural fireplaces, you will need at least 150 thousand dollars in start-up investments (which is equivalent to 8.5 million rubles). In this case, you will need a working room with an area of ​​more than 30-40 square meters, several highly qualified and experienced specialists, as well as an expensive material base.


An important role in choosing a fireplace will be played by the design team and architects, whose services are used by most of the customers with high incomes. Thus, the designer will inevitably become a link between the seller and the buyer. In total, each side will be satisfied.


Installing a fireplace is the most time-consuming part of a hot plant. Today, modern high-tech solutions are used in this area, which allows significant savings at the stage of project development. The work team is only required to correctly install the finished fireplace/portal.


The average cost of an order for a fireplace is 3 thousand dollars. Often, in specialized stores or departments, consulting services are offered on the choice of one or another type of fireplace. In some elite salons, such services are paid.


Advertising campaign

One of the most effective methods of attracting an audience is regular participation in thematic events (fairs, exhibitions, and so on). Often not only specialists and manufacturers themselves come to them, but also ordinary citizens. A considerable number of purchases are made at the exhibition itself, sometimes there are cases when customers can contact your company even 5 or 10 years after visiting an exhibition event.


A slightly outdated, but very effective way is word of mouth (or, as it is also called, word of mouth). Satisfied clients will be able to attract their friends and acquaintances, who in turn - their friends and acquaintances, and so on.


You can focus on new suburban settlements of the elite type. Houses in such settlements have several floors, which means large areas. Basically, people with good income settle in such complexes. Small editions of brochures or business cards can be produced and distributed locally. On the advertising source, indicate the full list of services and your contact information. Come up with a colorful and memorable design and voila - an additional advertising source is ready!


Another extraordinary advertising move is the combination of economy and heat. Offer your customers an unusual set of devices, consisting of an electric fireplace and solar panels. This combination will definitely be approved by the owners of summer cottages, cottages, private houses, as well as owners of apartments on the top floors.


Business project passport

Market volumes - about $ 65 million (equivalent to RUB 3.7 billion);

Competitiveness level: there are about 20 major players in our country;

Profitability: in the region of 65-72%;

Approximate cost of finished products


Electric fireplace - from 0.5 thousand dollars (equivalent to 29 thousand rubles);

Natural fireplace for wood heating - from 3 thousand dollars (which is equivalent to 180 thousand rubles);

Framing the fireplace with wood species - from 0.4 thousand dollars (which is equivalent to 23 thousand rubles);

Framing a fireplace made of marble - from 1.5 to 75 thousand dollars ((which is equivalent to 90 thousand - 4.3 million rubles).

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