Overview of Tile Business
Tiles are used extensively in construction for floors, walls, and ceilings. A tile business has constant demand as construction continues. This business requires low capital and efficient management for great profits. Success in selling tiles requires relevant knowledge and skills, excellent service, controlled tile stock, a competent workforce, and proximity to key markets.
Market Dominance and Product Range
Ceramic tiles dominate the Indian tile market with over 70% market share. A tile shop should offer a full range of ceramic tiles, along with some vitrified, porcelain, marble, and granite tiles.
Profit Margins and Growth
Profit margins for a sample-based tile business range from 7% to 10%. A stock-based tile business can achieve 12% to 18% profit margins. Profits may be negative initially but can exceed $50,000 in the first year. As the business grows, profit margins should increase steadily.
Setting Retail Prices
Setting appropriate retail prices for tiles requires considering production costs and desired profit margins. Prices should appeal to end users and resellers.