Building Materials Merchant: compare the models.

Look at the operating differences before comparing financial projections.

Back to all building materials merchant models
Building Materials Merchant: operating comparison
ModelEarns fromCapacity constraintsKey distinction
Building Materials RetailRetail basket or merchandise unitCustomer demand, product availability and checkout capacityThe retailer owns merchandise and recognizes gross product sales, unlike consignment.
Building Materials WholesaleExternal wholesale unitSupply availability, warehouse capacity and dispatchBusiness-customer volume sales require stockholding, handling and trade-credit working capital.
Project-Supply Finishes ShowroomFulfilled customer orderSales pipeline, supplier lead time and installation capacitySamples drive project orders; inventory and fulfillment differ from stocked retail.
Builder and Customer Tool RentalRented asset-dayAvailable asset-days after downtime and turnaroundShort hires generate frequent handovers and variable availability; the customer supplies the operating labor.

Compare like with like

Use consistent periods, geographic assumptions, owner labor treatment and financing assumptions. These operating descriptions are not a profitability ranking.

Understand financial assumptions