We are looking for partners (for a joint venture or franchise) to operate tile discount cash and carry markets worldwide. Proof of concept granted by existing markets in the Baltic States (see left) which operate at an average sales volume of 2 Mio. € with a 11% EBITDA margin. Existing supply chain based on our purchasing network and our know-how.
We believe in the long term success of a partnership where both parties pull together. That’s why we are looking for local entrepreneurs, not employees who participates in the chances of the business concept but bears its’ risks as well.
Generally speaking there is no geographic limitation apart from German and European export limitations.
Of course the local time market needs a certain demand to successfully operate a market. That’s why we generally prefer shop locations in or close to cities with a patch of 250.000 inhabitants or more.
The discount concept can either be successful in emerging and mature markets.
Who can be a potential partner?
We are looking for reliable and trustful partners who have the resources to engage in the business. Per shop we calculate around 300.000 € of investment needed depending on the local price level. The capital is needed for store equipment (heavy load shelves, pallet transporter, computer and payment systems, stock marketing expenditures, roll out costs, etc.) You ideally have either a retail background or knowledge in construction materials, since you will be running the store.
What kind of location is needed for a store?
We need a hall of a minimum of 1.000 square meters at ground level, which is located within sight of a well frequented arterial road of a larger city (more than 250.000 inhabitants). Ideally located close to other construction related retail activities. We prefer to rent the property – in case the property fits well an acquisition is possible.
The hall needs to be heated and depending on the geographic location air-conditioned. The floor loading needs to amount to 6.000 KG/m2 to the high weight of ceramic and stoneware tiles. Around 20 parking lots and enough space to unload a 40 ton-truck needed. Two offices and a break room for the staff needed.
Who are we and what enables us to make this offer?
Basically the same points concerning our excellent tile sourcing network as stated. In addition to that we have 15 years’ experience of successfully running tile discount markets together with a local partner in the Baltic States.
What do we bring into the Partnership?
We supply the know-how for running tile markets from market set-up and tile presentation to payment systems. We take over the complete sourcing of tiles and accessories – dependent on the local market taste with perfect logistics to the point of sale. This way you can fully concentrate on the sales process. Marketing: we support with a promotional tiles presentation and a sound advertising concept. Motivation: We train the sales-staff and provide a well proven incentive scheme.
Interested? How does it work?
If we caught your interest – contact us and we will discuss your market our potential partnership.