Local pipe and fittings supply counter

Plumbers, remodelers, general contractors, HVAC installers and handy property owners who need parts today, not next week.

You buy from wholesalers or manufacturers and sell at a markup. Many trade customers set up accounts and pay monthly. Cutting, threading or special-order services can add a little extra.

• Knowing pipe types, sizes and fittings
• Inventory and cash flow management
• Building trade relationships
• Customer service at a counter

• Zoning and commercial lease terms for a warehouse or retail unit: check with your city or county
• Sales tax registration and resale certificates for buying stock tax-free: check your state's rules
• Products for drinking water often need to meet standards such as lead-free and NSF certification: check your state and local plumbing code
• General liability and product liability insurance, plus workers' compensation if you hire
• Tied-up cash in inventory and customers paying late on trade accounts
• Competition from large national suppliers and home centers on price

As an estimate, startup costs are typically around $40,000 to $150,000, depending on your unit and lease, how much inventory you stock, and the counter and shelving fit-out.

Monthly revenue is typically estimated at around $15,000 to $60,000, depending on your stock range, the trade accounts you win and local competition. Cash tied up in inventory and late-paying customers can strain cash flow.

Check zoning and commercial lease terms with your city or county, and your state's sales tax and resale certificate rules. Also check lead-free and NSF standards for drinking water products under state and local plumbing code, plus insurance.