Through an open sash or a slightly open window: how to enter the window business

The relevance of the production of PVC windows has existed in the construction market for more than two decades. And since the construction of private houses does not stop, plastic windows will not lose demand further. To start a small workshop, you first need to carefully develop a business plan for the production of plastic windows. Its optimal structure looks like this:

• business concept, its relevance;
• characteristics of the business object and services provided;
• research and analysis of the window market;
• organizational plan, legal support;
• production plan, personnel, management;
• marketing plan;
• financial plan and strategy;
• potential risks, insurance.

Brief business analysis: Costs of organizing a business: 1.5-1.8 million rubles Relevant for cities with a population of 20 thousand or more Situation in the industry: high competition Difficulty of organizing a business: 3/5 Payback period: 1-1.5 years

Certificates

While production is at the preparation stage, all necessary certification tests must be carried out.

This confirms the high quality of the product and makes its use possible in certain climatic conditions.

Tests can be carried out both in Russia (compliance with the requirements of Building Codes, SNiP and GOSTs) and in Germany (compliance with the RAL color palette and DIN standard).

Several years ago (from 2010 to 2011), obtaining a certificate of conformity was a mandatory procedure. Now it has been replaced by declaration. Tests are carried out in accordance with the mandatory points of regulatory documentation. In addition, the entrepreneur must take care of obtaining a license from the State Construction Committee and the conclusion of the sanitary and epidemiological commission.

Description of the company and industry

Since the project relates to construction infrastructure, it is advisable to consider such interconnected markets as: the construction market, the market for building materials and the market for translucent structures.

According to IndexBox, the building materials market in the first half of 2020 was subject to the following influences:

• reduction in residential construction volumes (-16% compared to the same period last year)
• some growth in non-residential construction (+3% compared to the same period last year)
• decrease in production volumes of basic building materials (-8% compared to the same period last year)
• growth in production volumes of finishing materials (+5% compared to the same period last year)
• decrease in investment in construction (-1.6% compared to 2015)

Since December 2014, there has been a permanent decline in sales volumes in the primary housing market. During this time, sales decreased by approximately 30-35%. The largest decrease in housing construction volumes was observed in February 2020, after which there was a gradual increase in this indicator. The decline in sales was primarily caused by a decrease in the number of people purchasing real estate with their own savings. To improve the investment background in the industry, the state has taken a number of measures to stimulate the housing market (subsidy programs).

In non-residential construction, the volume of construction of commercial real estate has decreased, and the share of agricultural and industrial buildings has increased (Fig. 1).

Against the backdrop of a decline in real incomes of the population, demand is shifting towards building materials in the low price segment.

Figure 1. Structure of commissioning of non-residential real estate by type in the first quarter of 2020 – first quarter. 2020 (data from Rosstat, IndexBox)

Traditionally, more than 60% of investments in fixed assets in Russia relate to the construction industry. At the same time, there is a tendency for this indicator to grow during the crisis. In 2020, 5,945.5 billion rubles were invested in the construction industry. According to forecasts of the Ministry of Economic Development, positive investment indicators in the industry should be expected as early as 2017; expected increase in the indicator in 2017-2019. – 2.7% per year.

The driver of growth (decrease in the rate of decline) in sales of construction raw materials and materials was the increase in the volume of repair work against the backdrop of a decrease in construction volumes.

Figure 2. Dynamics of production of basic construction and finishing materials in the 1st half of 2020 – 1st half of 2020 (Rosstat data, IndexBox)

The share of imported components (primarily PVC profiles) in the plastic window market (according to O.K.N.A. Marketing data) has decreased significantly - from 35% in 2006 to 2% in 2020. According to expert forecasts, the most likely scenario for market development in 2020 is a fall of around 15%.

Competition in the industry today is relatively low due to the small number of players and established spheres of influence.

Figure 3. Dynamics of the plastic window market in Russia in 2006-205, million sq. m. m.

According to experts, the following trends should be expected in the coming years:

• the most attractive segment for manufacturers of building materials are building materials that can be used for repairs - repair work is carried out by the population constantly, regardless of the state of the economy; At the same time, demand shifts towards the low price segment;
• the weakening of the national currency will lead to an increase in the cost of both equipment used in construction and the production of building materials, and the building materials themselves; this means a significant increase in the competitiveness of domestic producers;
• demand for construction and finishing materials will be supported by the public sector;
• 2020 will be the hardest year for the residential real estate market, after which the situation is expected to improve.

Thus, based on the analysis of the data obtained, the project seems promising and has a high probability of success. The project involves the creation of an enterprise for the production of window and door structures from domestically produced PVC profiles in the city of Krasnodar.

Krasnodar is the administrative center of the Krasnodar Territory, a major economic center of the Southern Federal District. The city and region are constantly on the list of the best cities and regions of Russia in terms of amenities, investment attractiveness and business activity. The population of the city is 850 thousand people, the region is 5.5 million people.

The newly created enterprise is focused on the low price segment, uses a business model that is unconventional for this market, which makes it possible to increase competitiveness by developing new sales channels and reducing the costs of maintaining its own retail distribution network.

The main sales channel is a partner (dealer network) of 16 showrooms located in Krasnodar and the largest settlements of the region: Sochi, Novorossiysk, Yeisk, Kropotkin. It is also planned to process the market on an object basis by providing an option for subcontracting work on glazing construction projects to project dealers.

To optimize inventory, only one profile and one fitting system are used. The warehouse stock for them is also limited only to the most liquid positions; if necessary, missing items can be purchased directly from the supplier’s warehouse located in Krasnodar. The company is focused on mass production, with an emphasis on the production of simple (close to standard) structures.

Profile cutting

This stage includes cutting PVC strips and metal profiles. The level of performance of this operation largely affects the quality of the finished product. Particular attention should be paid to the location of the blades and maintaining the cutting plane. The workpieces must be cut in accordance with the order, leaving a margin of approximately 5-6 mm for welding.

This applies to cutting plastic profiles. The sash and frame materials are cut at an angle of 45 degrees. Stand profiles, bay windows, imposts should be cut at right angles, i.e. 90 degrees. At the same time, do not forget to leave a margin of 3-6 mm on each side.

Idea for a business in the field of repair of plastic windows

The glass unit becomes unusable over time and requires repair. The most common malfunctions are:

• failure of fittings;
• glass damage;
• wear of mechanisms;
• installation of window sills.

Most companies that install plastic windows offer maintenance as an additional service . You don’t have to install double-glazed windows, but start implementing a business idea for repairs.

To organize your own business for repairing plastic windows, you will need a business plan. It may include various items: registration of individual entrepreneurs, office rental, purchase of equipment, personnel, client search, advertising.

Registration of individual entrepreneurs is carried out at the tax office. You fill out an application and pay the state fee. Within three working days, the registration certificate will be ready, and you will be able to begin implementing the following points of the plan.

The next step will be to rent a room. An office will be needed to store: tools, accessories , double-glazed windows (if you provide a replacement service). You will also need office space for meetings with customers and for concluding contracts.

Glazing beads

The contour that serves as the fastening of the double-glazed window in the frame or sash is called a glazing bead. They are cut on a special saw (sometimes pendulum type).

The production process is completed by installing the glass unit into the frame and hammering glazing beads into special grooves. This can be done on a glazing stand. When all the described steps are completed, the window will be ready for installation.

Large enterprises usually install an automated line for the production of plastic windows, which runs the full cycle. Some factories have not only a full range of production equipment and an assembly shop, but also an extrusion line.

PVC window production technology

The production process for manufacturing plastic windows includes the following stages:

Profile cutting

At this stage, metal profiles and PVC strips are cut. The quality of the finished product largely depends on the level of execution of this operation, so close attention should be paid to maintaining the cutting plane and the location of the profile blades. Cutting of workpieces is carried out in accordance with the order form and taking into account the welding margin (5-6 mm). - cutting of plastic profile. The frame and sash profiles are cut on a saw at an angle of 45°. Bay windows, stand profiles, imports are cut at an angle of 90°, taking into account reserves on each side (2.5-6 mm). — cutting of the reinforcing profile is carried out on a special saw at an angle of 90°.

Milling drainage channels

To compensate for wind pressure and remove excess moisture, drainage holes are made in the sash, impost and frame. The location of these holes must comply with the recommendations of the profile supplier.

The holes should be oblong and made using a special tool or a drainage machine.

Fixing a metal profile in a plastic one

We place a metal profile in a special chamber of the plastic profile blank and secure it with self-tapping screws. This operation can be carried out using a manual screwdriver or an automatic screwdriver.

Milling holes for the main lock and handle

To install the fittings, you must first make the appropriate holes. This operation is carried out on a copy-milling machine.

Milling the ends of the impost

To install an impost into a frame or sash, it is necessary to properly process the edges of the workpiece. This action is performed on a face milling machine. Next, the impost is attached to the sash or frame using mechanical connectors.

Welding of PVC windows.

During welding, the following conditions must be observed:

• the temperature of the welding knife should be 230-250°;
• carefully treat the surface of the knife;
• seam heating time – from 25 to 40 seconds;
• seam welding time – from 25 to 40 seconds.

Before placing workpieces on the welding machine, you must ensure that they are clean, since dust, metal shavings or PVC will degrade the quality of welding. After completing this operation, visual control of the quality of the weld is carried out.

Cleaning the corners of metal-plastic products - removing weld deposits

This operation can be performed manually or on a special machine. An automatic machine cuts off the deposit from the front surface of the profile with special knives, then the milling cutter cleans the end surface of the profile.

A special cutter is selected for each type of profile!

Installation of sealing rubber

The immersion of the sealing rubber into the groove should begin from the middle of the upper crossbar. The rubber is manually placed in the groove so that it does not stretch. The seal must be joined using special glue.

Window assembly operations include installation of imposts and fittings

After installing the fittings, it is necessary to place the sash on the frame and insert rebated liners and gaskets under the glass unit.

Cutting beads

Beading is a contour that is needed to secure a double-glazed window in a sash or frame. The cutting of glazing beads is carried out on a special saw, sometimes on a pendulum saw.

At the end of the production process, you need to place the double-glazed window into the sash or frame, and hammer beads into special grooves. This operation can be carried out on a glazing bench. After this, the window is ready for installation.

The largest factories in Russia have an automated line for the production of PVC windows , which carries out the full production cycle. For example, at the Kaleva plant there is not only an assembly shop and a complex of production equipment, but also an extrusion line.

Business plan for a window business. Selecting a room

The area of ​​the room where the equipment will be located directly depends on the planned production volume. For example, a company will produce standard windows (double-hung) measuring 1400 x 1200.

In order to open a workshop that will produce 20 sets of structures per shift, you need a room with an area of ​​about 200 square meters. At the same time, we must not forget that the ceiling height must be at least 3 meters. It is best if there is a warehouse for finished products nearby.

A prerequisite for the production of metal-plastic structures is electricity. The mains voltage must be 380 V/50 Hz. The air temperature is 18 degrees, otherwise a violation of the production technology may occur.

The room should be equipped with a good ventilation system. Pay special attention to lighting. General lighting can be provided throughout the entire territory, and individual areas can be equipped with local sources.

Room

The first step in organizing a production company is choosing premises. For the manufacture of windows, 2 rooms are required. The first is necessary for the production process, with an area from 200 to 1000 square meters. m, and the second will serve as an office where contracts with clients will be concluded and finished products will be sold. At the initial stage, production space can be rented. The main requirement for an office is to be located in a crowded, accessible place. The production workshop can be located outside the city.

On video: How plastic windows are produced at the Window Factory. Industrial scale

Staff

A business plan for a window business must contain information about personnel selection. A small enterprise will require about 10 people.

• A production manager who will supervise the entire process.
• Chief technologist, whose task is to determine whether the finished product meets customer requirements and generally accepted standards. In addition, he also distributes tasks among workers and controls the technological process.
• The engineer must monitor the operation of the equipment and, if necessary, eliminate breakdowns and shortcomings in its operation.
• Workers of 7 people, including a storekeeper responsible for receiving and sending goods.

It is necessary to install a program that will calculate the cost of structures with minimal errors and provide the information necessary for production.

Option 3. Small production

An incomplete production cycle implies that the company will use ready-made laminated timber, double-glazed windows and fittings. To open your own production workshop, you can get by with a minimum set of equipment, purchasing what you need as you develop.

Required set of equipment:

• cross-cutting machine;
• drilling and grooving machine;
• tenoning and profiling milling machine (or window processing center for tenoning and profiling window frames and sashes, which combines the functions of two types of equipment);
• press for profiles;
• surface grinding machine;
• small mechanization tools (compressor, pneumatic tools, electric drill, screwdrivers, grinders), etc.

On average, the productivity of such a workshop is 500 m2/month. Area – from 600 m2, which is due to the technological delays required after each operation. To service the machines, you will need about 5 working operators who have been trained and received special permission, plus a master technologist.

In addition, you need to hire a driver (ideally in your own Gazelle), a sales manager, a measurer/order taker and two installation technicians.

As practice shows, opening such an enterprise will cost at least 1,800,000 rubles.

Advantages:

• Since you will set the price for your products yourself, depending on the cost of the finished product and market prices in the region, the profit can be 30-80%.
• Some manufacturers of woodworking equipment offer small businesses their own options for constructing a technological process. For example, , which patented the Start technology, assures that the initial investment of about $40,000 in their equipment with a sales volume of 200 m2/month will pay off within six months. This optimistic forecast is justified by the introduction of innovative fastening of window frame parts using a key, which significantly reduces the amount of necessary equipment, working and production space.

Flaws:

• Seasonality and competition are traditional problems for window business manufacturers. Despite the high profit in the summer, six months of idle production capacity, rental and heating costs “eat up” a significant part of it. Therefore, it is recommended to open a business in March-April in order to be fully prepared by the beginning of the construction season.
• Difficulties with personnel - you won’t have to rely on seasonal workers, since servicing the machines requires qualified specialists with special permits.
• A large amount of waste - since the raw material is purchased timber, much depends on its quality and the manufacturer’s compliance with all the subtleties of the technological process, from moisture control and aging of raw materials to the quality of the glue, transportation and storage conditions. A batch of raw materials from an unscrupulous customer can not only bring a significant loss, but also completely ruin the reputation of a start-up company.
• The need for product certification.

Expenses

When opening a window business from scratch, you should determine the initial costs.

Equipment:

• double-head welding machine – 415 thousand rubles;
• double-head saw equipped with a front blade connection - 375 thousand rubles;
• automatic angle cleaning machine (Türkiye) – 225 thousand rubles;
• copy milling machine (Türkiye) – 110 thousand rubles;
• automatic saw designed for cutting glazing beads - 100 thousand rubles;
• machine for milling drainage holes - 90 thousand rubles;
• end milling machine (Türkiye) - 30 thousand rubles;
• compressor – 25 thousand rubles;
• equipment for cutting reinforcement – ​​10 thousand rubles.

Having calculated the numbers, we get the cost of a complete set of equipment, which is 1 million 380 thousand rubles. In addition, we add to the amount the cost of installation and delivery of equipment - 50 thousand rubles. - and the cost of obtaining certificates and licenses - 50 thousand rubles. Capital costs will amount to 1 million 480 thousand rubles.

Equipment for the production of PVC windows

Since PVC windows are in demand today and are available in a wide variety, there is no shortage of equipment available. The greatest demand in the equipment market is for the lines of Turkish brands - Yilmaz, NISSAN, KABAN and Nikmak, as well as machines and tools from domestic manufacturers.

The list of equipment for the production of plastic windows includes:

• Single and double head saws for cutting PVC profiles and reinforcement;
• Roller conveyors;
• PVC welding machines;
• Copy-milling machines;
• Saws for cutting reinforcing profiles;
• Angle cleaning machines;
• Machines for milling the end of an impost;
• Saws for cutting glazing beads;
• Notching saws;
• Bending machines;
• Glazing stands;
• Hoods;
• Washing machines;
• Extruders;
• Demineralizers;
• Mounting lifting devices.

Material cost calculation

Let's calculate the cost of materials required to manufacture 1 m2 of double-glazed glass:

• Glass/cost 300 rub./m2. The cost norm is 2 m2. Consumption – 600 rub.
• Butyl/cost 35 rub./kg. The cost rate is 0.1 kg/m2. Consumption – 3.5 rub.
• Shell/cost 100 rub./m. Cost rate – 4 m. Consumption – 400 rubles.
• Other expenses per 1 m2 – 200 rubles.

In total, for the production of 1 m2 of double-glazed glass you will need 1203.50 rubles.

Let's calculate the cost of materials needed for the production of a metal-plastic structure:

• Rolled metal/cost 600 rub./m. The cost rate is 1 m/m2. Consumption – 600 rub.
• PVC profile/cost 1000 rub./m. The cost rate is 0.5 m/m2. Consumption – 500 rub.
• Other consumables – 2000 rub.

Total – 3100 rub./m2.

Summing up the costs of materials, we get 4303.50 rubles, which will be required to produce 1 m2 of products. Per month this will be: 20 finished windows x 22 shifts x 1.68 m2 x 4303.50 = 3 million 182 thousand rubles.

Approximate monthly income (taking into account the price of the finished product) will be: 20 finished products x 22 shifts x 10,000 rubles. = 4 million 400 thousand rubles.

A business plan for a window business requires calculating monthly expenses.

• Rent of premises for production and warehouse – 50 thousand rubles.
• Utility payments – 25 thousand rubles.
• Salary to employees (10 people) – 150 thousand rubles.
• Costs for production components and materials – 3 million 182 thousand rubles.

Total expenses for 1 month: 3 million 407 thousand rubles.

Income tax (20%) - 198 thousand 600 rubles.

Total by item of expenses: 3 million 605 thousand 600 rubles.

Option 2 business. Dealership

Mediation between manufacturer and client is one of the most profitable types of business, provided there is an established distribution channel. In fact, by selling “air”, you can count on a profit of about 20% of the initial cost of the window.

But here you can’t do without investments. It is necessary to have a rented office or a retail outlet with exhibition stands - in short, a place where you can not only show off the product, but also meet a potential buyer.

In addition to the cost of renting the premises, there will be other necessary costs:

• a “Gazelle” type vehicle for transporting finished products – about 350,000 rubles;
• installation of “Pyramid” on a car with window mounts – 30,000 rubles (Fig. 3);
• computer + specialized program for calculating window parameters (“SuperWindows” or “AutoCad”) – 50,000 rubles;
• exhibition stands of products, accessories, samples of double-glazed windows, catalogs - 15,000 rubles.

Rice. 3 installation "Pyramid"

Samples of wooden windows and fittings

In total, to open a dealership, you will need an initial capital of 500,000 rubles.

To attract buyers, dealers rarely limit themselves to sales alone; it is more profitable to offer a full range of services, from measurements to installation.

Advantages:

• Profit depends on the established customer base or good advertising. During the construction season (from May to October), the regional dealer accepts orders for 500-700 m2 of windows/month. True, in the cold season these volumes decrease 10 times.
• There is no need to issue certificates - the manufacturer will provide everything necessary.
• The manufacturer can provide large dealers with its own customer base in a given region. But, of course, everything depends on private agreements and the terms of the dealer agreement.

Flaws:

• Initial capital is required.
• The dealer makes money on discounts, therefore, the larger the wholesale, the lower the cost of production and the higher the margin, and without an established customer base, “collecting” a wholesale order is quite problematic.
• Much depends on competition and distance from the factory - delivery can significantly reduce profits.
• High advertising costs. Without a good advertising campaign, a business will take a very long time to pay off.

Profitability and profit

Having calculated the net profit, we get 794 thousand 400 rubles. The profitability of the enterprise will be 18.05%. With such indicators, the payback of the enterprise will be about 1 year 9 months. These calculations are approximate; every novice entrepreneur should know that the development of a window business in the presence of high competition will require an increase in expenditure items on an advertising campaign.

How to increase sales?

Every entrepreneur faces this question at some stage. It is not enough to have good production capacity and competent personnel; a certain sales strategy is required. Today, there are several ways to attract buyer attention to your company.

• The appearance of a new manufacturer on the market must be accompanied by a well-thought-out advertising campaign. How to promote window sales? At the initial stage, you can use various discount systems, promotions, special price tags and discount cards. In addition, an effective means is to present the product “live”. Ready-made window samples can be demonstrated to customers and told about their advantages and distinctive qualities.

• The development of high technology and the Internet will tell you how to promote the sale of windows. We are talking about creating your own website. On it, buyers can study the company’s product catalog, services and prices.

• Pay special attention to staff training. When communicating with a seller or consultant, the buyer must receive complete information about the company’s products, the quality of the products, ongoing promotions and discounts. The ability of the seller to convince the buyer that this product is most profitable to purchase from your company is also important.

Selling PVC windows will become a profitable and successful business if you follow all the details of its organization.

Marketing plan

The market for the production of PVC windows attracts investors primarily with predictability, transparency and a short payback period (up to 2 years). Although today we can no longer expect super-profits (as in many other areas of activity). The market is also characterized by the absence of monopolists - there are no companies whose share would exceed 10% of the total window production volume. Of the entire advertising budget that goes to the development of the company, approximately 85% is spent on advertising on the Internet. Many market players note the high efficiency of this advertising channel. First of all, we are talking about contextual advertising (Yandex-Direct) and our own website. In comparison with TV and radio advertising (which is also more expensive), the conversion from customer calls from the Internet (those who place an order) is at least 60%.