Business Idea

Start A Home Equipment Business

About

Starting a home equipment business requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell home equipment, or selling home equipment online, you can use this page as a guide for everything you'll need to know.

Key stats

market size
$28.9B
revenue (monthly)
$65K
starting costs
$27.9K
gross margin
32%
avg product price
$505
time to build
10 months
growth
Direct sales
business model
E-Commerce
time investment
Side project
work from home?
Yes

About

Starting a home equipment business requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell home equipment, or selling home equipment online, you can use this page as a guide for everything you'll need to know.

Key stats

market size
$28.9B
revenue (monthly)
$65K
starting costs
$27.9K
gross margin
32%
avg product price
$505

 

time to build
10 months
growth
Direct sales
business model
E-Commerce
time investment
Side project
work from home?
Yes

Startup Costs

Min Startup Costs Max Startup Costs
Employee & Freelancer Expenses $151 $352
Website Costs $223 $7,215
Business Formation Fees $600 $4,700
Equipment & Supply Expenses $66 $700
Retail Business Expenses $1,250 $11,650
Inventory Expenses $350 $14,750
Advertising & Marketing Costs $75 $4,786
Software Expenses $150 $2,420
Total Startup Costs $2,865 $46,573

Successful Businesses

Business URL Rank
SimpliSafe Home Security Systems simplisafe.com #16,032
Home and Exercise Equipment by NordicTrack nordictrack.com #27,101
Control Systems for Home Automation, Campus & Building Control by Crestron Electronics [Crestron Electronics, Inc.] crestron.com #36,994
SupplyWorks supplyworks.com #112,992
Medical Supplies, Home Medical Equipment, Home Health Care allegromedical.com #177,475
Cuda Kitchen cudakitchen.com #603,816
AMSEC American Security amsecusa.com #913,229
AeroCare Holdings, Inc aerocareusa.com #918,269
Fitness Depot thefitnessdepot.com #935,017
AZPonds & Supplies – Pond Supplies at affordable prices and FREE Shipping on most items! We carry everything you need for your existing or new pond – liners, submersible pumps, external pumps, filters, waterfalls, Koi and fish supplies. You need it? We have it! azponds.com #943,464
The Fitness Superstore thefitnesssuperstore.com #1,120,035

Pros & Cons

Pros Description
Flexibility You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.
Meaningful business connections You never know who you will meet as a home equipment business. This could be the start of an incredible business opportunity!
High customer retention rates Once a customer invests in your product, they've invested their time and energy to utilize your product/service which is highly valuable to them. Typically, your product or service becomes indispensable to your customer.
Easy to encourage "impulse buy" In the home equipment business, you have a much higher chance of encouraging your customers to buy on impulse - you can easily alter the price, placement, packaging, and promotional value to influence the decision of your buyer.
Control of workload With starting a home equipment business, you have the unique ability to choose how little or how much you want to work. You also have the freedom to decide which projects you want to work on, and can turn down the ones that do not interest you.
Unlimited income potential With starting a home equipment business there is no cap as to how much income you can make. The stronger your business skills and the more energy/time you put into your career, the more you'll make.
Cons Description
Motivation of employees If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.
Longer Sales Process A home equipment business can be a big time and money investment for your customer, so it's important you plan and predict a longer conversion funnel and stay in communication with potential customers.
Low margins The gross margins for your home equipment business are typically around 32%, which can make it more challenging to incur new expenses and maintain profitability.
High employee turnover In the home equipment business, employee turnover is often high, which can be quite costly and time consuming for your business. It's important to try and avoid this as much as possible by offering competitive pay, benefits, and a positive work environment.
Taxes As a home equipment business, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.
Niche Market A niche business is not necessarily a bad thing, in fact, it can be the key to your success. However, it can be more challenging and time consuming to find the perfect niche market and target audience.

Marketing Ideas

  • 1

    Direct Sales

    Direct sales strategy implies a direct contact between a seller and a consumer without the involvement of any third party. Direct selling is popular in sectors where sellers communicate with their clientele personally. The sales technique occurs at non-store locations which include at home, work, or online.

    For direct selling to succeed, hire a few (or many) salespeople to support the sales conversion process. It's critical that you assign them specific roles and responsibilities to nurture the client and provide excellent support.

  • 2

    Word of mouth

    Word of mouth is when a consumers reflects their interest in a company’s product or service in their daily dialogues.

    Therefore, word of mouth advertising is essentially a free advertising triggered by the customers experience.

    According to Nielsen, 92% of people trust recommendations from friends and family.

    Therefore, in today’s hyper-connected world, a single recommendation through a word of mouth can have a huge impact to your business.

  • 3

    Social Media Advertising

    Social media advertising is the use of social media platforms to connect with your audience with the objective to build your brand, increase sales, and drive website traffic.

    According to Oberlo, approximately 48% of the global population use social media, and the number is ever-growing.

    Therefore, social media allows brands access to cost-effective advertising by enabling them to interact with a large audience.