If you are interested in starting a business in the Paint Industry, you can easily start a Berger Paints Dealership and enter the Paint Industry.
Berger paints has a market share of almost 15% in the Indian paint industry. As usual, Asian Paints remains in the top spot with 40% market share and there is tough competition for the second spot between Berger and Nerolac Paints.
In this article, we will only talk about the Berger Paints Dealership, which includes dealership cost, profit margin, space required, whom to contact, licenses, and documents required, etc.
Berger Paints Dealership Types
Berger paints operates on 3 business models – Direct dealership, Sub-dealership, and Distributorship.
In sub-dealership, you need to purchase the color mixing machine from the company and inventory you can purchase it from any big Berger paints dealer in your region.
In distributorship, the company gives distribution rights to some guy and he purchases products in bulk and supplies to the local area. This model is available in only a few remote areas where the company cannot supply its goods.
In a Direct dealership, the dealer deals directly with the company and company supplies the materials and offers different schemes and bonuses to the dealer.
This article is written focusing on Berger paints ‘ Direct dealership model’.
Why Berger paints dealership?
Berger Paints is India’s second-largest decorative paint manufacturing company. The company has a pan India reach and has a presence in international markets like Russia, Poland, Nepal, and Bangladesh.
The company has 14 manufacturing plants in India, 2 in Nepal, and 1 each in Poland and Russia.
Berger paints employ 3400+ employees and have a distribution network of 25,000+ dealers all over India.
Licenses and Registrations Required
These are the licenses and documents required to start a Berger paints dealership in India.
- Shop and Establishment Registration from Local Government
- Trade License from the local municipality
- Business Registration – Sole proprietorship/LLP/Pvt Ltd
- GST Certificate
- Authorization certificate from Berger paints
- Shop Agreements/Documents
- Previous six months bank statement
Berger paints Dealership Cost
Berger paints dealership will cost you approximately 6 lakh rupees. It depends on whether you have your own shop or rented one. Below we have given a breakdown of investment.
Initial Stock Purchase 2.5 lakh to 3.5 lakhs
Color mixing machine 70,000 to 85,000 rupees ( includes mixing machine, gyro shaker, and a UPS )
Shop Interior – 1 lakh to 1.5 lakh ( racks, furniture, interior, signage, etc. )
Computer system & printer 50,000 rupees
Miscellaneous – 20,000 rupees
Shop security deposit and 1st-month rent – Approximately 1 lakh rupees
The major investments required to start a paint dealership business are, paint initial stock purchase, color mixing machine, a shop in a good location(own or lease), shop interior, and a computer system & printer.
Berger paints have automatic and semi-automatic color mixing machines. You can opt for an automatic one as there is no huge price difference between the two.
Berger paints provides software and necessary training to operate the machine.
Berger Paints Dealership Profit
You can expect a profit margin of approximately 10% to 18% on Berger paints dealership.
Your profit margins will depend on the schemes and bonuses provided by the Berger paints. These schemes include Cash discounts and RTBT discounts. The discount ranges from 3.5 to 5 % depending upon the market.
These schemes will be available only 5 months after your shop opens.
How to get Berger paints dealership?
To get a Berger paints dealership, first, you need to contact your area sales manager. You can get his phone number by calling Berger paints customer care no. 1800 103 6030
The sales manager will get in touch with you. He may ask you about your shop location and your financial background.
The main factors to getting you a dealership are that there should not be any other berger paints dealer within 2 to 3 kilometers of your shop location and there should be enough footfall in your shop location.
Contact Details for Berger paints
You can visit Berger paints official website and click the contact us option. You can also contact them directly by calling their toll free number 1800 103 6030.
Also you can also visit them at their kolkata Head office
Berger House, 129 Park Street, Kolkata 700017
FAQ about Dealership
How much investment required to start a Berger paints dealership ?
To start a Berger paints dealership you require an investment of approximate 6 lakhs rupees.
How to Contact Berger Paints?
You can call toll free number 1800 103 6030
What is the Profit Margin in Berger Paints ?
You can expect a profit margin of 10% to 18%
How much space required to start a Berger Paints Dealership ?
To open a Berger paints dealership you need a minimum space of 500 to 1000 square feet.
I hope this guide to ‘Berger paints dealership’ will help you get started. If you have any additional suggestions, feel free to mention them in the comments section below.