Local building supply yard for contractors

Open a small supply yard stocking lumber, fasteners and basics for local contractors and DIYers.

Startup cost$50k to $250k
Monthly revenue$20k to $100k
Time needed40+ h/week
First incomeMonths
  • $50k-250k
  • Full-time
  • Own premises
  • Licence or permit needed

Estimates for a small start in the US, not guarantees.

Official data

3,756 US businesses with employees in this field, +0.5% in a year

NAICS 423390 “Other construction material merchant wholesalers”. Source: U.S. Census Bureau, County Business Patterns 2023.

What it is

A small building supply store or yard in a rented unit or lot. You stock a focused range, such as framing lumber, decking, fencing, fasteners, concrete and drywall, and add special orders from larger distributors.

Your first three steps

  1. Talk to local contractors about what they struggle to get nearby, and pick a focused product range
  2. Open trade accounts with two or three regional distributors and compare their pricing and delivery terms
  3. Price a small unit or yard with loading access, and check zoning with your city or county
Who pays

Local general contractors, remodelers, handymen, small builders and serious DIY homeowners.

How it makes money

You buy at trade prices and sell at a markup. Contractor accounts, delivery fees and special orders add repeat income.

Skills that help
  • Knowing building materials
  • Sales and customer service
  • Stock and cash flow management
Watch out for
  • Zoning and permits for storing materials and operating a yard, check with your city or county
  • Sales tax registration and resale certificates, check your state's rules
  • General liability and property insurance, plus workers' compensation once you hire
  • Cash tied up in stock, and competition from big-box stores on price
  • Delivery vehicles may need commercial insurance and extra licensing, check your state

Deep research report · US

Everything you need to start: local building supply yard for contractors

Researched with live web search for United States: real startup prices, the licences and rules, what others charge, a break-even example, how to find your first customers and a 30-day launch plan. With sources.

  • Startup costs with real prices
  • Licences, registration and rules
  • Pricing: what others charge
  • Break-even example
  • Finding your first customers
  • 30-day launch plan
  • Risks and how to reduce them
Ready in about 2 minutes · one-off payment, tax included

See a full sample report

Questions people ask

How much does it cost to start a building supply yard?

Startup costs are estimates, typically around $50,000 to $250,000, depending on your premises, the range of stock you carry and any delivery vehicle. Cash tied up in stock is a major factor, so plan your opening range carefully.

What zoning, tax and insurance rules should I check?

Check zoning and permits for storing materials and operating a yard with your city or county. Check your state's sales tax registration and resale certificate rules, and look into general liability and property insurance, plus workers' compensation once you hire.

How much revenue can a small building supply yard make?

Monthly revenue is typically around $20,000 to $100,000 as an estimate, depending on your range, location and contractor customer base. Competition from big-box stores on price is a risk to weigh when planning. It usually needs around 40 hours a week.

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