Tool wholesale warehouse with trade counter

Building and trade businesses, contractors, independent hardware shops and rural suppliers.

You earn the margin between bulk buying price and trade selling price, with volume discounts and account customers who order regularly.

• Supplier negotiation and buying
• Inventory and cash flow management
• Sales and relationship building
• Product knowledge across tool brands

• Large upfront stock costs and slow-moving items, start with fast sellers
• Check the lease, zoning and council approval for your unit's intended use
• Public liability, product liability, stock and theft insurance
• Electrical tools must meet Australian electrical safety requirements, check with your state regulator and suppliers
• Workers compensation insurance and work health and safety duties once you hire staff, including safe manual handling
• Big hardware chains and online sellers compete on price, so think about service, range and delivery

Estimates suggest startup costs are typically around $40,000 to $150,000, depending on the unit you rent, how much stock you buy and your fit-out. Large upfront stock is the main cost, so starting with fast sellers may help.

Check your lease, zoning and council approval for the unit's intended use. Also check public liability, product liability, stock and theft insurance, electrical safety requirements for tools, and workers compensation and work health and safety duties once you hire.

Estimates suggest monthly revenue is typically around $20,000 to $90,000, depending on your range, location and trade customer base. Expect at least about 35 hours a week. Big chains and online sellers compete on price.