A fireplace is a place to make a fire within a residential house that is usually found at the base of a chimney. Fireplaces warm the house, it creates a certain ambience but is also installed for cosmetic purposes.
The Fireplace Business – Supply Value Logistics
There are a few opportunities in the fireplace business:
Supply of raw materials used to manufacture fireplaces
Manufacturing of fireplaces
Wholesale of fireplaces
Selling fireplaces retail
Yes, there is scope for vertical integration in this industry (manufacturing and installing) but it’s not common, selling and installing is probably more common but most times the installation is done separately from retail.
Selling and Installing
This model the business buys the fireplaces from the manufacturer and installs it. So usually they will have a small showroom and catalogue and depending on their capital they will order a fireplace from the manufacturer when it comes in or have stock on hand.
Fireplace Installation Business
In this business, the customer buys the fireplace and the business just installs it. This can be a dedicated business can also be done as part of a handyman or even small building business. This is the cheapest business to start as it is purely a labour business. But there is scope here to market your services via the retailer that sells the fireplaces as a recommended installer.
An installation business can focus on various similar things, like pizza ovens or building braai areas etc.
There is some complimentary business in this industry, chimney sweeping, fireplace service & repair, fireplace moving, removal etc. You can even supply the wood to home fireplaces.