One Man’s Challenge Is Another Man’s Treasure - Home Building Materials, part 3 of 3 and continuing.

Welcome back to SourceJuice and the treasure of knowledge in sourcing for home building materials and products that truly make sourcing from China a golden opportunity for those willing and determined to reap the benefits of going direct to the source. If you haven’t already read the first two parts to this series, go here to #1 and #2.

Now to part 3 as SourceJuice explores the different components of home building materials and products.

Appliances – every house, condominium or apartment has them. There are many pieces to fitting a home (microwaves, vent hoods, stoves) and builders absolutely love to save as much money as they can – they want to pay as little as possible. However, this is an area to stay away from as builders have a period of warranty they must deal with and parts for Chinese appliances are hard to acquire. Even if you get a builder crazy enough (trust me all builders have crazy in them), it will be a hard sell for the final customer - the homeowner who is going to ask why the appliances are not name brands like GE, Whirlpool, Jenn-Air, Sub-Zero, etc. So SourceJuice’s advice, in the US and Canadian markets at least, is to stay away from this area and save yourself time and money for other areas as noted below.

Hardwood Flooring – there is competition in this category from contractors, national wholesalers like Space Flooring and online retailers like flooring.com. Check prices everywhere before you get into this game. This is one of the most expensive items to the builder and one of the better opportunities if done right. This is where private labeling may make sense to reap even larger benefits. Most builders check prices and look for cheap and easy solutions, but just because you are the cheapest does not mean you will get the deal. Be cautious of laminate hardwood flooring as builders will opt instead for cheaper engineered flooring. Also be cautious of hardwood flooring materials with protective sealing materials, when you spill something the liquid is never able to escape, causing mold. Builders are aware of this and most will stay away from these products.

High End Roofing Tiles - this is your million dollars and more opportunity just waiting for new businesses to enter the market. Look for slate tiles from the same companies you purchase granite through in China. Many builders are also looking at synthetic alternatives to save a buck. Without a doubt, this is an area where price is critical and so are choices. Not a bad place to also start your own private label brand and build a long term business.

Custom Doors - builders spend an incredible amount of budget dollars on custom doors. Many of the reasons builders do not buy doors, in general, direct from a distributor is because of the finishing that is required (hinge mounts, door knob holes, etc). When we are talking custom doors, we are talking Georgia Art Glass. This is a very detailed industry with standard sizes, glass types, etc. Know your business before getting into this area but SourceJuice believes this is one area where unique ideas and designs can truly bring you significant opportunities to make money. Don’t just think doors here, think lifestyles, security, glass and wood, metal and wood, sculpted, embedded with granite fixtures, and the list can go on about how unique design and your ideas can create new and highly desired models for people and builders looking to create a unique look for their homes. Another great place to start your own private label products that may start as your brand but soon could be a name brand if done right.

Fireplaces – Great margins, little market saturation, every house needs one (maybe more). Another area looking for innovative products and a great way to think about how your partner companies in China can, with your ideas or theirs and some unique designs to sizes, create a very large business.

Fireplace mantels - look into marble slate, crushed limestone, plaster composite and low end mantels for opportunity and to be unique. Builders buy a lot of mantels from companies like Valencia Accents. You could easily do the same with the right partner in China.

Travertine Tile - If you are in the USA, go Mexico. You can bypass steam ships, railroads and import duties thanks to NAFTA. The only cost you will incur is product and domestic freight across the border to your loading dock (approximately $1,300USD). Need a suppler, try Impameric. This is an expensive item on builders’ budgets, but watch out for Home Depot (they have the price jump on everything) and other large home improvement retailers as they will be tough competition. For other markets in other countries, once again China is your factory and partner unless your country is imposing tariffs.

Lighting & Ceiling Fans - there are a lot of the big companies like Progressive Lighting in the game already manufacturing overseas. What SourceJuice has noticed recently are import companies bringing in light fixtures with no pre-planned pricing schedule. This market is relatively new to the small import shops and they haven’t quite figured out pricing yet. The major retailers (Home Depot, Lowe’s, B&Q, etc.) all have a stock of their own private label products and are making good margins here. There are thousands of ceiling fan and light fixture manufacturers in China and this creates great opportunities for smart importers. Get unique, great looking, upscale product at great prices and you have opportunity. Once again, everyone with enough determination can buy product from China at great prices (even with all the changes in currency, labor, raw materials, etc.) but the key is not just buying and selling but rather giving yourself a competitive position.

SourceJuice is a firm believer that companies succeed by offering value that is not so easily found – that means you either have great prices and decent product, great products at decent prices, or unique products at whatever price you can set with the end buyers. Looking back at this article and all the prior ones in this series and what you will find is that there is opportunity everywhere. So many companies, started by 1 or 2 persons, started from nothing and made fortunes. The companies and people that make fortunes and continue to make fortunes are always the ones that are excellent in one or many ways and the real treasure is in being unique, reliable, fast, and knowing your business.

Sourcing is for the strong, the determined, and those who know that it is not easy but that is why there is opportunity and that is why every treasure takes a map. That map is not easily found but for those of you reading this should already know that you are far more prepared and far more knowledgeable than most of your competition and yes – information is power. Now you know why most of your competitors or even others outside of your business do not want to share their supplier and their buyer information – because that is power, that is knowledge, and that is their supply and demand chain.

Next week we will bring you part 4 in this series. Thanks for reading and see you soon at SourceJuice.

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dylan@sourcejuice.com // Dylan Blankenship