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  • Best month to start TMT bar selling business

    Interested in selling TMT bars? Want to know the best time to start selling and any other piece of advice? Find advice from experts here which can assist you in resolving your query.

    I want to start TMT bar selling business in Gwalior MP. since the price of TMT bar changes over the year so I want to know that in which month, the prices of TMT bar is lowest of the year. Also please tell me in which month the prices are high.
    If you have any other suggestion regarding then please enlighten me.
  • Answers

    3 Answers found.

  • TMT bars are used for making building, beams, slabs, columns and also other kinds of structures that bear the live load of people as well as their belongings. TMT bars are steel bars and they are Thermo Mechanically treated bars. The uses of this material will be good when the construction activity is going on well.
    Generally, the construction activity will slow down in the rainy season. So the demand for these products will be less in the rainy season. Hence the prices may come down during this season. In Summer the activity will go on to the top and then you may find good demand for this product and the prices may on the higher side
    In normal conditions, the demand will be there throughout the year. Only a nominal difference may be there only. So you can start any time but you can keep the minimum stocks during the rainy season and more in the summer season. As of now because of this COVID 19, the construction activity is very less and it has to pick up. Rains are starting. So it may take some time to get the full boost to construction activity. So I feel it is better to start in the month of September this year.

    always confident

  • First of all, you need to take up an agency from an established TMT bar producing company or hold stocks of different companies so as to offer the chances of the customers for a wider choice. In order to have the comfortable level of stock, a spacious godown would be required either on the rental basis or get the same constructed.
    In the initial phase, this can be had on the rental basis having the space covering to the range of 2000 - 3000 sq feet. The material stock has to ensured so as to avoid the loss in the wake of material theft. Collection of the materials should be taken in the lean months to take advantage of the discounted price during such a season such as Rainy Season when the price of the product is at the lowest range providing you scope for bulk profit after the cessation of Rainy Season.
    You can undertake selling spree between September and November during this period while the business activities are at the peak levels.
    Holding enough stock is the key to success in such a bussiness and hence it is advisable to make a buffer stock prior to selling even though you may not get the credit from the supplier manufacturer but to remain the bussiness, you have to offer the materials to the customers on credit basis and hence ensure that your customers are financially sound to repay their credits in the shortest possible time.
    To attract your customers, you can have the following provisions to attract customers -
    1) Keep the products of reputed companies such as SAIL, Tata's etc.
    2) Direct sales to the established contractors.
    3) Approaching societies /houses needing renovations say 40 years old construction.
    4) Free delivery, though saving on that account may not be substantial but it would create a favourable impact within the mind - frame of the customers.
    5) Discount to offered on the next sale.
    6) On line availability
    7) Identify your clients having bulk requirements of materials in the next ten years so as to make continuous link with the customers apart from substantial profits.

  • There is no specific month during the year when the prices of TMT bars would be lowest. It actually depends on the demand and supply conditions. If there is a decrease in building construction activities then it is natural that prices would go down. However manufacturers keep a tab on the market and vary their manufacturing facilities accordingly to synchronise with demand and not let the prices go down. On the other side if demand increases due to renewed activity in construction industry then prices might climb up. Presently depending upon the quality and specifications the prices of these TMT bars are hovering in the range Rs 30000 to 50000 per ton. Sometimes prices would slowly rise while sometimes they would be stabilised or come down gradually. Anyway, TMT bars are used in so many places in the construction industry and it is definitely a lucrative business. If you are interested to undertake this business then you have to get the dealership from some reputed company which agree to give you a dealership in a particular area which is incidentally Gwalior in your case.

    Please note that for such a dealership business companies would ask you to deposit a security deposit with them and also require some good area for keeping the stock of TMT bars till you give them to the buyers and make place for the fresh inventory. You would also be getting some nominal interest around 5-7% on your security deposit and that varies from company to company. There are many good brands like TATA, Kamdhenu, Jindal, SAIL, Rathi, Essar, PRIME, JSW, Goel, Agni, Captain, A-One, Amba Shakti, Balmukund, Birla etc and one can apply to the concerned company for dealership. It is a business of bigger proportion and if you are able to generate a good sales, you would be benefited with a good commission on the selling of this item in Gwalior area. So, you have to hire a place for the storage of these items in bulk and you can have an attached office either in the same premises or somewhere else but the former would be a preferred option for ease of the loading and unloading operations. Another important thing is location. In every big city generally similar dealer shops would be at the same place so that the prospective buyer can compare the prices and fix a dealer for his purchases. If shop or storage area is not available in such area then one has to hire it in a separate place but it should be in the main market area and not in the outskirts as people feel it difficult to visit such far places when shops are available nearby.

    Initially you can mange with the skeleton staff but slowly if sales pick up, you might have to hire more hands. You would need someone for invoicing, billing, and payment book keepings and as nowadays most of these things are done on a computer some trained person would be required to handle all this including the GST aspect and other statutory requirements. You might need a security guard also or night watchman in your premises. If you have some good idea of this business or some other business, you can use that experience here but otherwise I would strongly recommend you to either hire good hands or learn this voluntarily in some shop in the disguise of working. It is very essential to learn the basics of any business before venturing in it. Please note that business requires sustained and sincere efforts as you are responsible for all your actions.

    The last thing that I want to mention is that business requires networking and polite relations with the customers. Sometimes depending upon the market conditions you might have to offer some more discounts to the buyers or please them with some gifts especially in festival times. Business requires all these techniques and considerations and one has to keep oneself mentally in that frame.

    Knowledge is power.

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