Household plastic businesses can gain profits at least 5% of total revenue, which indicates the high profitability of this business. In this post, we are going to give you an estimated profits of household plastic business and reasons for why it is profitable. There are also some ways to maximize the profits, even if you are brandnew in the field.
1. Attractive Profits of Household Plastic Business
With over 45 years of experience in the field, cooperating with a number of companies in 80 countries, we find out the profits for small household plastic businesses is around 5%-10%, and 10%-20% for the larger ones. But this amount is collected by calculating on average, so the profits of your business may be either higher or lower. Just take it as a reference if you have no idea about the profits of this market to penetrate.
However, there is no definite amount of profits of household plastic business because it varies depending on the business itself, the micro and macro environment of the business.
To calculate the profits of household plastic business in a month, you can use this formula:
Profits = Revenue – Total cost (Include Fixed cost per month and Operating cost)
For the first 3 months, there may be losses because you have to pay much for marketing and promotions, which are parts of your investment. But the return on investment (ROI) is very worthy if you have a smart strategy and are well prepared before penetrating into the household plastic industry.
2. Why Is Household Plastic Business So Profitable?
Household plastic business is so profitable thanks to these reasons:
High and consistent demand throughout the year
According to Medium.com, the market for plastic household items is expanding thanks to consumers’ increasing preference for products that are inexpensive, long-lasting, and adaptable to various uses. Nowadays, plastic products are present in every household and used everyday. In addition, with the development of e-commerce, plastic products can easily reach the international market, making profits of household plastic business even higher.
The market for plastic household items is expected to expand rapidly in the coming years, increasing at an average rate of 8.81% per year from 2024 to 2031. This growth will result in the market’s value increasing from 12.5 billion US dollars in 2023 to 22.58 billion US dollars by 2031 (source: Market Research Pulse). Therefore, household plastic is really potential for businesses to enter.
Small capital
It is estimated that you can start plastic business with around USD 200K USD, which is quite a small amount of initial investment.
But it is only for reference because the business capital varies due to business size. But you don’t need to worry if you have a humble start because you can expand your business gradually.
Diverse consumers
Household plastic products are indispensable for the majority of society. Fortunately, they are also diverse in types (kitchenware, bathroom supplies, cleaning equipment, portable items, baby products, etc.) to meet higher demand of consumers.
If you are able to provide your customers with high quality plastic products, attractive designs with affordable prices, you can make a lot of profits from them. With such a large target audience, you shouldn’t waste the chance to make profits.
No expiration date
One advantage of plastic products is that they have no expiration date, or if they do, it is very long. Thus, plastic products can last for a very long time without getting damaged. This makes the plastic shop business a very attractive option for those looking to start a business. Because plastic products have such a long lifespan, the plastic shop business is a relatively low-risk investment.
Easy to manage
Compared to other businesses such as F&B, the household plastic business is much easier to manage. Basically, you only need to stock plastic products, do marketing and sell to customers, without the process of producing goods and managing ingredients. By this, there are minimal risks and more chances to maximize profits of household plastic business.
No specialized knowledge required
Household plastic exists around you on a daily basis, it is not difficult to understand your products. Because you are both a seller and consumer of plastic products, you can easily stay up-to-date with the latest trends and adjust your product offerings accordingly, particularly in terms of design, materials, and production methods.
However, it is undeniable that high potential always goes along with high competition. Therefore, to succeed, businesses must differentiate themselves from others by innovative goods and smart business strategies.
3. How to Maximize the Profits of Household Plastic Business
To maximize the profits of household plastic business, you can refer to these ways:
Choose the most reliable manufacturer
Selecting a reliable plastic supplier is the most important factor for the success of your plastic shop business, especially for those who just start plastic business. The supplier should offer a diverse range of plastic products and be efficient in fulfilling orders. Ideally, you should find a manufacturer that provides high-quality products at competitive prices and maintains consistent stock levels to maximize your profits. If you source from a supplier who is a distributor or intermediaries instead, the price will be higher and it is hard to verify the quality. Consider these factors when choosing a household plastic manufacturer:
- Reputation: Research the manufacturer’s reputation in the industry. Look for testimonials, reviews, and case studies.
- Experience: Choose a manufacturer with a proven track record in producing high-quality household plastic products.
- Quality Control: Inquire about the manufacturer’s quality control measures to ensure that products meet industry standards.
- Pricing: Negotiate favorable pricing terms while maintaining quality standards.
Inochi is a leading plastic manufacturer from Vietnam. We offer premium plastic products with the best pricing policy for businesses. Inochi has an in-house R&D Department which specializes in creating the most innovative products that keep up with the latest trend on the international market.
Contact Inochi via:
- WhatsApp: +84 88 661 4788 (Ms. Lee Phung – Sales Manager)
- Email: lee.inochi@gmail.com
- Website: Inochi Global
Sell household plastic products on E-commerce
E-commerce has revolutionized the retail landscape, providing businesses with a wider reach. Selling your household plastic products online can significantly expand your customer base and boost sales, thus increasing profits of household plastic business. You can leverage some platforms like Amazon, your own website or social media to do business online.
Improve services
Price competition is a fierce battle and does not bring good profits in the long run. Therefore, service is one of important factors you can exploit to help your business gain more competitive advantages compared to other businesses. Here are some strategies to enhance your services:
- Fast and reliable shipping: Ensure timely delivery of products to satisfy customers.
- Easy returns and exchanges: Offer hassle-free return and exchange policies to build customer trust.
- Excellent customer support: Provide responsive and helpful customer support channels, such as email, phone, or live chat. Let your customer keep connection with your social media is a way to deliver support and also increase customer engagement.
- Customer feedback: Regularly collect customer feedback to identify areas for improvement.
- Personalized Experience: Tailor your products and services to meet the individual needs and preferences of your customers (i.e. combo, gift set, customized products, etc.)
By following these strategies, you can effectively maximize the profits of your household plastic business. Choosing a reliable manufacturer, selling on e-commerce platforms, and providing excellent customer service are key components of success.
In conclusion, the profits of household plastic business are so attractive that there is quite tough competition among businesses. But there are many strategies for you to gain success in the field if you are smart enough, especially finding a reliable manufacturer like Inochi. We are 24/7 available to support you. So if you are interested or find something unclear, feel free to ask us directly via the information below. Thanks for reading!
