Your own business: frame construction. Resale of log bathhouses

Log houses and bathhouses are buildings that will always be extremely popular. This is due to the fact that the wood is of high quality and environmentally friendly pure material, perfect for use in construction - so the demand for it is growing every day. This means that millions of people are willing to spend their money to buy this material. So why not make money on it...


What can a log house be made from? As we know, in any production there is waste. In woodworking, they are tree crowns, crooked and short logs - these are the ones that can be used to make excellent logs.

Even if you hire only two workers in your workshop, they can make one log house in a week.

Several teams at your disposal will be able to produce more log buildings, which means you will have the opportunity to arrange wholesale supplies.

What costs await a person who decides to start producing log houses? Payment for the work of the team is approximately 500 rubles/1 square meter.

For the production of a log house for a bathhouse measuring 3x3 m, workers will have to pay 11,000 rubles.

To the resulting amount you need to add the cost of the material - let's say it will be coniferous wood.

To make a 3x3 m bathhouse you will need about 5 cubes of wood. The cost of one balance cube is 600 rubles, therefore, all the material will cost you approximately 3,000 rubles.

Adding up all the costs, we get a sum of about 14,000 rubles - this is exactly the amount of investment that the construction of one log house for a bathhouse will require.

You will have to set the final price of the product yourself. The difference between the sale price of the finished log house set by you and its cost will be your income. The estimated profit of this is 2 rubles of income per 1 ruble of expenses.

As you can see, the idea is quite simple and its implementation will not cause much difficulty. So all that remains is to wish you good luck in your endeavors...


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Log houses for baths are a very expensive and quite rare product, and therefore mediation in this matter can become a very profitable and promising business. The amount of effort that will be required to resell a log house is comparable to selling the most ordinary computer, here only the income is disproportionately greater - you can earn about $800 from one transaction. The only expense item will be business promotion and printing of advertising materials.

Where to start

The first step is to find a contractor. Here it is important to compare several prospective partners and choose the one who offers best price, even if it is very far away. The main thing is that the contractor’s price allows him to cover transportation costs, while ensuring a decent income. There is no need to worry about the start-up capital, since upon signing the contract you can receive an advance payment of 50% of the price of the log house.

Finding your first clients is more difficult than finding contractors. It is the ability to advertise your services that determines the profitability of a given business. If you expect to earn about $5,000 per month, you need to make 5-6 trades.

Let's do some small calculations:

  1. If the distance to the contractor is about 1000 km, delivery will cost 300-600 dollars (with proper communication skills, you can shift the cost of delivery to the client).
  2. A 3 x 4 meter log house will cost you about $1000, 4 x 5 - $1500 (the most popular sizes).
  3. The price for the end client will be $1900 and $3200 respectively.
  4. Your profit is $600-1100 from each trade.

For large cities with “expensive” carpenters net profit can reach up to $1,700, and as a “smart” marketing ploy, you can lure clients with a cheap log house for 1,900, and then persuade him to buy a spacious one for 3,200.

Working with the client

First, let's define the target audience. In this case, this is already a “warmed-up public” - people who are interested in the topic and have found out prices from local carpenters. As a rule, the prices quoted are very high, and you can easily lure a client by offering a high-quality log house for $1900. Owners of plots who have not yet thought about building a bathhouse may also become interested when they see such a lucrative offer - literally for a couple of their salaries they get a wonderful bathhouse.

Another point that you will most likely have to worry about is assembling the log house on site. As a rule, both summer residents and residents of the private sector prefer to assemble the log house themselves - so that they can tell their friends that “I built this bathhouse myself.” However, there will also be “white hands” who would prefer to get a turnkey bathhouse on their site. Here you can also become an intermediary between the client and local builders-installers, but the amount of earnings from this will not increase much.

Advertising and Marketing

It is important to understand that the business of reselling sauna logs is built, first of all, on the ability to find a client and make him a profitable offer, and therefore proper marketing decides everything here.

A few sure steps to success:

1. First of all, it is necessary to develop a competent pricing policy in order to surely outbid the offers of all local carpenters. To do this, you should find a contractor in a small city, perhaps located a thousand kilometers from you - the significant difference in price will cover the delivery costs.

2. To attract, it is better to announce the cost of the most popular 3 x 4 log house (about $1900), and then encourage the client to purchase a more spacious and expensive option 4 x 5 (about $3200).

3. Various bonuses work very well, such as ceiling and floor joists, porch extensions, rafters, etc. For such “small things” the contractor will ask for pennies, but the client will be pleased.

4. There are two types of cutting logs: “into the bowl” and “into the paw”. You can also play on this by describing an alternative (no matter which of them becomes “alternative”) method to the client as a fashionable novelty that “keeps warm.”


With proper dexterity and good communication skills this business can be an excellent source of high and stable income. And since it takes a minimum of time, you can subsequently scale it up, increasing profitability many times over and still dealing with all the issues yourself.

Houses made from wooden logs are confidently gaining relevance with
construction country houses private type, cottages and boarding houses.

The use of log buildings for the construction of luxury hotels and sanatoriums,
allows you to create an atmosphere in the theme of ancient Russian houses, thus
attract customers and stand out among competitors. Also from log
they are building additional floors of private houses in cities.

Based on trends in increasing demand and relatively free
market, it becomes advisable to create an enterprise for
production of wooden log houses and construction of log houses.
The advantage of houses made of log cabins, environmental friendliness,
after treatment with an antiseptic and varnish, no additional
cladding or
finishing.

Enterprise strategy

It is planned to create a company with a form of organization of a society with
limited liability with focus on domestic
customers, gradual expansion of production and access to
Western European market.

To set up a business you will need an investment of 30 000
dollars and the founders’ own funds in the amount 20 000
dollars. The attractiveness of the Western European market is that
the presented products of Western companies have a high
cost due to high labor costs and limited
in resources.

Company advantages

Log processing is carried out manually, which increases
quality of finished products, and log houses acquire
uniqueness. The fundamental factor is compliance
European standards.

Mobility and flexibility

log production

will allow you to quickly

determine the most profitable areas of production,
quickly switch to them and take a free place in the market niche.

Products:

— logs with a diameter of 250-450 mm;

— structural elements of the roof;

- chopped pediments, partitions;

- round groove;

— log house “in the oblo”;

- figured cabin.

— construction of houses and cottages on a turnkey basis;

— additional products (remnants of wood, boards, carved elements
decor, furniture)

The planned initial volume is 7-10,000 sq.m per year, planned
real yield is 120-160% per annum.

Under such conditions payback period initial costs
will be about two years taking into account the discount rate.

Calculated project profitability 12%.

Entering foreign markets is possible with an increase in production volume
up to 27-30,000 sq.m per year, for this it is necessary to attract additional
investment of $150-170,000.

Average cost of the main products of log cabins
determined depending on the pricing method taking into account prices
competitors.

The wholesale price limit is $130-140 per sq. m. meter and 190-210
dollars for retail.

Basic production costs after company registration and
registration of permits.

Production areas.

— carpentry workshops;

— storage facilities;

- office rooms and places for workers to rest

Renting and placement of production space directly depends on

selected scale

making log cabins

When recruiting

significant investment, it is more expedient to purchase space in
own.

The placement must be advantageously justified with raw material bases, have
transport interchange and communications. The main office may be located
in the city, where marketing strategies are developed and carried out
advertising companies.

Starting set of raw materials and materials.

Equipment:

— carpentry machines, sawmills, chainsaws, electric planers, drills, etc.;

- carpenter's and joiner's tools;

— transport, loaders, lifting mechanisms.

Staff.

The administrative staff consists of:

— a director coordinating the entire work process;

- accountant;

— financial analyst performing the functions of controlling and internal
audit.

The production staff is provided by a staff of carpenters and
highly qualified carpenters. Number of employees
determined based on rational production and compliance
labor legislation. Work schedule: two shifts with pay
and percent of the total income of the enterprise.

The construction of baths requires deep professional knowledge and extensive experience. A humid environment and high temperatures will lead to rapid destruction of a structure built without strict rules or using inappropriate materials. If you are not a highly professional specialist in the construction of baths, find such a person and invite him to the position of team leader.

Find suppliers of high-quality and cheap raw materials. Study the demand in your region and decide on the direction of your activity: construction of baths on the site or in the customer’s house, sale of ready-made baths, design or construction according to a ready-made project.

Compose detailed business plan, think over a strategy for developing the company and finding clients.


Main risks

There are few professional companies specializing in the construction of baths. But competition in this direction is high - the owners themselves, freelance craftsmen and other construction companies offering a wide range of services get down to business.

Seasonality in this direction of construction plays a secondary role, but still a certain decline is observed in late autumn and winter. You can minimize this risk if you master the arrangement of baths and saunas in already built houses, entertainment complexes, hotels and other establishments.

The main risk is improper execution of work and errors by builders. The professionalism of our employees will help you avoid claims from dissatisfied customers and the need to correct mistakes.


Location

If you plan to harvest wood yourself, dry it and produce log houses for bathhouses, you will need a production or storage facility in an industrial area with good transport links. The area depends on the planned production volumes. For such production, you need space for a workshop, premises for drying wood and storing finished logs.

For a company that specializes in the construction of baths from finished logs purchased by the customer, a small office in the central, business and even residential area is sufficient. The main criterion is that the location is accessible; your clients should not waste time searching for your company. IN office space there should be a place to receive customers and 2-3 workstations with the necessary set of office equipment.


Equipment

To build baths, you need a full set of carpentry tools: axes, saws, hacksaws, hammers, squares, levels, jigsaws, hammer drills, screwdrivers and others. The necessary set of professional tools can be purchased for 10-12 thousand rubles.

To organize the production of log houses, you will need sawmills, woodworking machines, power tools and special equipment for drying wood. Buy the minimum set necessary equipment possible for 120-140 thousand rubles.

There is no need to buy all the machines at once. Consider what equipment will be used constantly in your work. Some stages of work that require the purchase of expensive machines that are used from time to time are beneficial to trust to a reliable contractor.


Personnel

With a small start-up capital, a new company can get by with a few employees. The most important person is an experienced master. To perform simple work, you should hire two assistants.

In the production of log cabins, the number of employees depends on the number of orders. Two people handle the production of one log house per week. Look for experienced woodworkers.

If the business owner is a master and is engaged in the construction of baths, it is necessary to hire a customer service manager. To design baths, it is better to conclude an agreement with a specialized bureau.

If you plan to both make log houses and build baths, hire a full-time accountant. The financial affairs of a company that specializes in the construction of bathhouses from finished logs can be managed by a part-time accountant.


Documents and licenses

The choice of taxation system and registration form should be chosen depending on the company’s development plan:

Individual entrepreneur provides a simplified taxation system and a minimum package of tax reporting.
- LLC should be chosen if you plan to work with legal entities and attract serious investors.

To build bathhouses, licensing and joining an SRO are not required, but if you plan to provide services to legal organizations and large companies, it is better to obtain a license. This will increase the credibility of your company. It takes about a month to complete a package of documents without licensing, and about three months to obtain a license.


Marketing

Baths and saunas built from natural wood are increasingly in demand. Advertising in the media, at dacha and gardening societies will help attract private clients. The Internet provides a large influx of customers. Create a website and page in social networks, tell us about your services and advantages, indicate prices for all types of work.

Cooperation with realtors will help you get clients. When selling real estate and plots in the private sector, they will advertise your services to new owners. Also, cooperation with designers is beneficial.

Many companies offering turnkey construction involve contractors to carry out a number of works. Study the activities of all construction companies in your region and offer them your services.

Holiday homes, hotels, entertainment and health centers, start-up private entrepreneurs can also become your customers. Bath and wellness services are quickly gaining popularity. Take part in tenders, which will be won by recommendations from satisfied clients and competitive prices.

Provide customers with a guarantee. Try to provide comprehensive service. Also, the sale of accessories for bath procedures will be a big plus.


Payback

The average cost of a full-fledged bathhouse with an area of ​​20 m² is 750-900 thousand rubles. A team of experienced craftsmen can complete such a project in 2-3 weeks (depending on the weather and other nuances). A mini-sauna for a city apartment costs around 70 thousand rubles. A team of three people can install it in 2-3 days. If you offer construction services from finished logs, your profit will be about 40% of the total cost of the bathhouse.

The production of log houses is less profitable and is profitable either in combination with the provision of construction services, or in large volumes. If you plan to combine manufacturing and construction, profits could increase by 15%.


Resume

The construction of private baths as a business does not require large funds at the start. If the company has professional employees, contracts with reliable suppliers and active marketing, it is possible to achieve payback literally in the first months of work.

Construction from ready-made log houses requires start-up capital in the amount of 50 thousand rubles and allows you to achieve payback after the completion of 2-3 objects.

Independent production of log houses requires starting capital in the amount of 200-250 thousand rubles. The payback period is about 6-12 months, depending on the number of employees and demand for products. But comprehensive services help reduce risks, ensure stable development and an advantage over competitors.