Steel supplier without a yard (broker model)

Small fabricators, welding shops, groundworkers, builders, farms and agricultural engineers.

You add a margin to the supplier's price on each order. Margins are usually thin, so profit depends on repeat customers and steady order volume.

• Reading steel specifications and sizes
• Selling and building trade relationships
• Careful quoting and order tracking

• Customer credit risk: you may owe the supplier before your customer pays, so check trade credit insurance and payment terms
• Steel prices can move quickly, so check how long you can hold a quote
• Customers may need mill certificates and traceability for structural work, check what documents your supplier can provide
• Public liability and product liability insurance
• Larger stockholders may sell direct to your customers, so build relationships and service, not just price

Startup costs are typically estimated at around £1,000 to £6,000, depending on your set-up, insurance and any credit arrangements. Monthly revenue is estimated at around £6,000 to £30,000, depending on how many customers you win and the size of orders.

Check customer credit risk, as you may owe the supplier before your customer pays, including trade credit insurance and payment terms. Check what mill certificates and traceability documents your supplier can provide for structural work, and your public liability and product liability insurance.

The estimates start at around 15 hours a week. Useful skills include reading steel specifications and sizes, selling, building trade relationships, and careful quoting and order tracking. Steel prices can move quickly, so check how long you can hold a quote.