What Are the Monthly Running Costs of a Rebar and Cement Dealership?
In a rebar and cement dealership the biggest cost isn’t rent or wages — it’s the time money spends outside. A dealer selling on terms pays an invisible financing charge every month. 🏗️
Short answer: a mid-sized dealer runs at ₺110K to ₺320K a month, and the financing load of credit sits outside that.
Below: the cost lines, fixed-versus-variable, three lines that inflate the bill, the break-even point and who this suits.
Monthly costs
BU BÖLÜMÜN ÖZETİ
- Fixed costs
- Variable costs
- The invisible cost: credit financing
Here’s the split.
Fixed costs
Wide yard rent ₺30-90K, staff (3-6 people) ₺45-140K, crane, forklift and lorry fixed costs ₺15-45K, accounting and insurance ₺5-12K. 📊
Variable costs
Fuel ₺10-30K, maintenance and tyres ₺3-10K, electricity and weighbridge servicing ₺2-6K.
The invisible cost: credit financing
Money on sixty-day terms doesn’t work for that period. On this thin margin the longer the term runs, the more of the margin this hidden cost eats — and it appears as a line in no cost table.
Fixed or variable?
A heavy fixed-cost structure.
The weight of the fixed side
Yard, equipment and crew produce a large load whether or not you sell. That makes surviving on low revenue hard here, and volume a necessity.
Three lines that swell the bill
BU BÖLÜMÜN ÖZETİ
- 1. Lengthening terms
- 2. Doubtful receivables
- 3. Lorries returning empty
All three are cash management.
1. Lengthening terms
Sixty days instead of thirty ties twice the capital at the same revenue and doubles the financing cost. Term length should be managed here like a price line.
2. Doubtful receivables
One large uncollected account can take the year’s profit; that isn’t a cost but a direct loss of capital. Limits and security close that risk in advance.
3. Lorries returning empty
A one-way run doubles the fuel. Planning a return load cuts this line markedly and turns more work with the same vehicle.
Where is the break-even point?
A thin margin demands high revenue.
Let’s run the numbers
With ₺200K in monthly fixed costs and an 11% gross margin, break-even revenue is roughly ₺1.8M. Working cash-weighted at a 15% margin brings it to ₺1.33M. Margin mechanics in the rebar and cement margin article. 🧭
Who is this cost table for?
Those with collection discipline.
Where do these figures come from?
Each range reflects field data, supplier pricing and sector studies read side by side. It marks a direction, not a promise. Details on our methodology page. 📐
📝 Notes from the Shop Floor
A dealer gave a small discount for upfront payment to pull his average term from sixty days to thirty-five. The discount he gave was small beside the turnover speed he gained: with the same capital he moved markedly more goods through the year. Revenue rose; the cost table didn’t change. In this branch shortening terms is more profitable than giving discounts. 🏗️
📖 Quick Glossary
Credit financing: the cost of money not working until it’s collected. Doubtful receivable: an account whose collection has become risky. Empty return: a return trip made without a load. Turnover speed: how many times capital converts to sales and back in a year.
⚡ The Short Version
Monthly running cost ₺110-320K. 📊 The invisible line: credit financing. Three inflating lines: lengthening terms, doubtful receivables, lorries returning empty. Break-even: fixed cost ÷ gross margin.
🎯 What to Do Next
Let’s set your credit policy and break-even table: quote form · free digital audit. 🤝
Frequently Asked Questions
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Credit policy and stock levels can be flexed. The yard and crane cannot; the nature of the work requires them.
Heavy fixed costs and credit risk don’t suit anyone who decides emotionally. For lower fixed costs, garden and landscaping; for high margins, locks and steel doors. Capital bands for every branch on the sector page.
It’s profitable as long as it stays below the cost of money not working through the term. A discount given without that calculation is a straight margin loss.
With regular deliveries your own lorry wins both margin and speed. With volatile volume a contracted haulier is more economical.
Not if your supply chain is fast; small stock lowers both price risk and storage cost. A minimum of cement and standard rebar is still needed.
Source: The Concrete Centre