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How To Start Railing Business Easily

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Starting capital – from 3.75 million rubles.

Roof rails are special devices installed on the roof of a car and designed to secure loads of various sizes and weights on it. Standard roof rails are made from plastic raw materials. Despite their lower cost, they have a lower safety margin. Metal products have a longer service life and are able to withstand heavy loads, and also have increased moisture resistance.

Car rails are selling very well (compared to previous years, annual sales of rails have grown significantly), and with the high quality of the manufactured products, this company has every chance of taking a place in the sun. To debug the production process, it will be necessary to purchase modern equipment, as well as the necessary tools.

You will also need to rent a room. The working area will allow you to significantly save money in the early stages of development. With a good combination of circumstances, high quality of products and a successful advertising campaign, the payback period will be from six months to 1.5 years.

Content

Workroom rental

At the first stages of development, renting a work space or an entire building is much more profitable and preferable, because it is better to concentrate your efforts on buying the necessary equipment and tools, as well as finding experienced and highly qualified employees. The minimum working area (this includes: a room for the direct production of roof rails, as well as warehouse and office space) – 200-250 square meters. All communication networks must be installed inside the premises: water and gas supply, lighting system. It is possible to install and configure the heating system yourself, without spending a lot of money.

The rental price depends on its location. Therefore, if you are going to save as much as possible, it is better to find a work area outside the city limits, but at the same time as close to the city itself as possible. Then you will have to take care of the accessible entrances for vehicles. The average monthly rental cost is 8-9 thousand rubles per 1 square meter (in the territory of the Moscow agglomeration). When choosing premises, take into account the general condition of the supporting structural elements in order to avoid unnecessary costs for major repair and construction works.

Let’s calculate the rental of premises within Moscow. 8.5 thousand rubles (minimum cost) x 250 = 2 million and 125 thousand rubles excluding tax payments and other expenses for equipping the premises. Let’s round up to 2.5 million rubles.

Purchase of the necessary tools and equipment

For the manufacture of car rails, you will need to purchase at least a minimum set of production equipment, which will give you the opportunity to carry out casting, welding, painting and assembly work. It is advisable to buy units only from reliable dealers with good recommendations. If you could not find any (or succeeded, but there are suspicions), purchase the equipment in specialized dealer stores. To reduce this item of expenses, you can try to buy used equipment (here you should pay attention to its general condition) in the case of purchasing secondary units and devices.

An approximate list of installations with prices indicated for the summer of 2017:

  • Specialized furnace plant for metal smelting – 275 thousand rubles;
  • Metal forging machine – 100 thousand rubles;
  • Grinding unit – 15 thousand rubles;
  • Painting installation -45 thousand rubles;
  • Milling and drilling equipment – 50 thousand rubles;
  • Racks for storing finished products – 20 thousand rubles;
  • Assembly tables – 10 thousand rubles.

Let’s calculate the total cost of this set of equipment and tools: 275 + 100 + 15 + 45 + 50 + 20 + 10 = 515 thousand rubles excluding commissions and tax deductions.

Hiring an experienced and qualified work team

 

Competent selection of the staff is a guarantee of high quality of manufactured products. The staff must support the enterprise in all its aspects, as well as directly produce the car roof rails. To reduce some items of costs and time, you need to be very responsible in hiring workers. At the first stages of the development of this business project, it is necessary to set high production capacities.

The approximate composition of the working team, taking into account their salaries:

  • Turner-discharger – 55 thousand rubles;
  • Light metal foundry worker – 50 thousand rubles;
  • Assembly technician – 35 thousand rubles;
  • Painter – 45 thousand rubles;
  • Loader – 25 thousand rubles.

Let’s calculate the total payroll for this composition: 55 + 50 + 35 + 45 + 25 = 210 thousand rubles. For a year of joint work, the total fund will be – 210 thousand x 12 = 2 million and 520 thousand rubles, excluding salary increases and bonus payments.

Competent advertising campaign

A well-designed advertising campaign makes it possible to attract more potential customers who are ready to purchase your car rails. Components of an advertising campaign: a personal web page (or a full-fledged site with a full catalog and contact numbers) or an online store, newspaper ads, distribution of leaflets, radio ads, television, as well as large-format banner ads.

A multilateral approach to this issue will help increase the loyalty of your customers, reduce cash costs, and, consequently, increase your bottom line. A full-scale advertising campaign will cost you on average half a million rubles, taking into account the printing of leaflets and large-format ads, as well as rent for advertising on a billboard or pillar.

Total starting investments

According to our approximate calculations, it was obtained:

  • Lease of industrial premises – 2.5 million rubles.
  • Purchase of the necessary equipment and tools – 515 thousand rubles.
  • The salary fund for employees is 210 thousand rubles.
  • Carrying out a full-scale advertising campaign – 500 thousand rubles.

Total, we get: 2,500,000 + 515,000 + 210,000 + 500,000 = 3 million and 725 thousand rubles (minimum start-up capital).

Wholesale distribution of manufactured roof rails, payback period of this enterprise

Sale of metal car rails is carried out through the Internet store, wholesalers, large car store chains, etc. Ideal for wholesale. In this case, you get more income in a relatively short time frame. The average price tag for a metal roof rail is about 8-9 thousand rubles. With monthly sales of 250 products, the profit will be 250 x 8 thousand = 2 million rubles, the annual profit is 2 million x 12 = 24 million rubles. The approximate payback period is about six months.

 

Roof rack for roof rails, crossbars for roof rails, crossbars

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