Sales department for Europe modular eco houses

Project summary

Frame houses came to us from Europe and America. There has long been a kind of construction.

Due to the main material: wood, insulation and our production and labor which is an order of magnitude cheaper than in Europe, tax systems and prices for the Euro, in Ukraine the price of the product is twice cheaper than even Eastern Europe not to mention Old Europe.

MARKET.

Since developers and end customers do not build their own homes at their own expense and mostly loans (almost installments), Europe has long had a culture of living in the private sector. Accordingly, build whole cottage villages from 20-50 houses to 200-500 pieces in all regions of each country. The market did not stop even during the pandemic, only moved away for 2 months.

PRICE and Margin.

The price per m2 ranges from 600-800Euro, and the cost of production at which production is released to the sales department 300-350Euro / m2.

TYPE of the Client.

Two types of customers in Europe?

1. B2B - developers. These are wholesale companies that build mines from 20 houses a year but also buy at wholesale prices, +/- 50-60Euro / m2 cheat them.
2. B2C - the final retail client, architects and foremen who provide the client for a small%. Price from 500-600Euro / m2 but with customs clearance and delivery, then cheating 150-200Euro
   m2 remains.

The average statistical house is 120-140m2.

INVESTMENT.

The basics of investing at the start of the month:

• Advertising (site and not) from 700-800Euro / month.
• Office-office is usually cheaper than in Ukraine, in modern business centers of the capital is usually 200-300Euro for 15-20m2 which is quite enough.
• Representative. From 700-1000Euro rate and% of sales.
• If necessary, investment support - the head of the country, 700 Euros.
• Business trip and fuel, from 400-500Euros.
• Company registration and taxes 300-500Euros

In total from 2500-3500Euro per month. At the rate of 5-6 months is up to 20 thousand euros. One-time costs for site preparation, translation, advertising, architect and designer - 2000 Euros.

Risks:

• The human factor - the representative for 1-1,5 months can not cope and will need to be replaced. Therefore, the office opens after the internship.
• Clients can negotiate for a longer period so 2-4 months of stock should be had as a reserve.

RETURN.

One house of 120m2 from the developer will bring 50Euro / m2 * 120 = 6000Euro. Developers are a business and they are ready to start work in 2-4 months as a rule.

One house of 120m2 at the end client will bring the most min 150Euro / m2 * 120 = 18 000Euro. Retail customers must agree on a building permit for the period before the contract 5-6 months (earnings calculations are understated to the minimum level and the terms to the highest, anything that will be faster or more - will be only a plus).

Thus, you need 3-4 retail customers to pay off and operating plus or 1-2 developers.

Proposal to open a sales office (branch to the country) with a 70% share of this branch with the above amounts of investment.

Additional earnings:

• Turnkey repairs will bring at least another 50% of the above earnings per m2.
• Furniture of our production
• and a separate direction epoxy tables and doors, kitchens. This direction has just been launched but is very interesting because in Europe production certification and environmental permits cost from 1 million hryvnias, so they open it from us or buy it.