Starting an electrical equipment sales business can be very profitable if you get it right. If you can position yourself as the go-to business for all of the local electricians, you’ll get a steady amount of business and the profit margins on the products that you sell can be quite high, so it’s a great way to make money. However, there are already a lot of established sellers out there and it can be difficult to beat them, especially as they’re manufacturing large volumes so they can offer low prices. But there are still ways that you can get ahead and beat the competition, you just need to plan the business properly. If you’re thinking about opening an electrical equipment business, you need to think about what sets you apart from the rest.
There are already plenty of other electrical equipment businesses out there, so why should customers come to you instead of anybody else? There are 3 main ways that you can differentiate yourself here; price, quality, and expertise.
Price
You can try to undercut the rest of the companies in the area but you’ve got to do your research. If there are some big national stores nearby, you’re really going to struggle. When they’re supplying stores all over the country, they’ll be manufacturing on a large scale which means their costs are going to be a lot lower. If you’re going to manufacture on a large scale to try to beat them on price, you’re going to have to pay for storage which makes it hard to manage your startup costs effectively. It’s usually best to focus on quality and expertise rather than price.
Quality
The big companies can mass produce products at a low price point, but the quality of those products isn’t always going to be great, so you can beat them there. If you’re using more expensive manufacturing processes and investing heavily in things like cu plating equipment so you can create a quality of product that the cheaper places simply can’t offer. The way to market yourself here is to be upfront. Say to customers, yes we are more expensive, but you’re getting a better quality product for the price and that means the work that you do for your customers will be better.
Expertise
The big companies might be able to beat you on price and sometimes quality, but the thing that they often lack is expertise in their sales staff. Larger companies that are operating stores around the country will hire sales staff and give them some basic training, but they’re not going to be experienced electricians. One of the best ways that you can beat them is to focus on hiring retail staff that have a good knowledge of all of the products and how they work in practice. That could be people that were electricians in the past, or perhaps even people that are currently training and are looking for part time work. This means that your staff can actively help people solve problems that they’re having on a job and give them advice on which products are best. That level of expertise is very attractive for electricians when they’re looking for a supplier.
Beating the big companies in the electrical equipment industry is going to be tough, but if you focus on good quality products and expert sales staff, it is possible.
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