Building materials dealer with no yard

Small contractors, remodelers, property managers and DIY homeowners who want materials delivered and don't want to spend time sourcing them.

A markup on materials plus a delivery or sourcing fee. Repeat accounts with a few busy contractors keep it steady.

• Knowing building materials and quantities
• Negotiating with suppliers
• Organizing orders and deliveries

• Sales tax collection and resale certificate rules, check your state
• General liability insurance, and ask distributors about delivery damage responsibility
• Thin margins if suppliers raise prices after you quote
• Home occupation permit, HOA or lease rules if you work from home, check locally
• Wrong quantities or wrong products can be costly, double-check every order

Startup costs are estimates, typically around $2,000 to $10,000, depending on your setup, such as ordering tools or a simple website, and any supplier accounts. Because you hold little or no stock, costs are usually lower than for a yard.

Check your state's sales tax collection and resale certificate rules. Look into general liability insurance and ask distributors who is responsible for delivery damage. If you work from home, check home occupation permit, HOA or lease rules locally.

Monthly revenue is typically around $3,000 to $15,000 as an estimate, depending on how many contractors you serve and order sizes. Margins can be thin if suppliers raise prices after you quote, so double-check every order.