Water heater trade counter and warehouse

Plumbing and heating contractors, HVAC companies, builders and property maintenance teams, and sometimes homeowners buying direct.

Margin on each product sold, with higher volumes from repeat trade accounts. You can add delivery charges, special-order fees and credit accounts for regular customers.

• Product knowledge across fuel types and sizes
• Stock control and buying
• Handling heavy items safely
• Building trade accounts and managing credit

• Stock ties up a lot of money, so start with fast-moving models and review often
• Zoning, commercial lease terms and any municipal business licence for your premises, check with your municipality
• Commercial general liability, property and vehicle insurance, plus WCB/WSIB coverage once you hire (rules vary by province)
• Check that products meet Canadian certification and efficiency requirements, and how warranty claims are handled
• Safe lifting and storage of heavy tanks, and how you will dispose of or take back old units
• Extending credit to contractors can lead to late payments, so set clear terms
• Sales are often seasonal, with demand rising in cold weather

Estimates suggest startup costs typically around $40,000 to $150,000, depending on your premises, shelving, stock levels, delivery vehicle and insurance. Starting with fast-moving models helps limit the cash tied up in stock.

Monthly revenue is typically estimated at around $25,000 to $100,000, depending on your stock range, trade accounts and pricing. Demand often rises in cold weather, and late-paying contractors can strain cash flow, so set clear terms.

Check zoning, lease terms and any municipal business licence for your premises. Also check commercial liability, property and vehicle insurance, WCB/WSIB coverage once you hire, Canadian certification of products, and safe handling and disposal of old units.