Walking in the streets and alleys of the city, you must have seen this kind of store: it has a small facade and simple decoration. The shelves are filled with screws, water pipes, wrenches, sockets and other miscellaneous items. Usually, few people come into the store when passing by, and it is so deserted that it makes people feel that it will close at any time.
But the reality is that these hardware stores have been open for more than ten years and are much more stable than the milk tea shops and clothing stores that have changed several times next to them. Many seemingly inconspicuous shops can quietly earn hundreds of thousands a year.
Many people wonder, how do hardware stores that no one visits and do not rely on traffic survive?
And why can it survive the impact of e-commerce?
Today, we will use vernacular to explain the underlying logic behind the “deserted but profitable” street hardware store. The content is the real situation in the industry, and there is no exaggeration or lies.
Let me talk about everyone’s most intuitive feeling first: If the hardware store looks empty, is it really “out of business”?
The answer is: It looks deserted on the surface, but in fact it is precisely what is needed, and the transaction rate is frighteningly high.
Unlike convenience stores and milk tea shops that rely on foot traffic to make money, the core customers of hardware stores are never just passers-by.
Ordinary people usually don’t take the initiative to enter a hardware store. They will rush into the store only when the water pipe at home leaks, the light bulb is burned out, the door lock is broken, the socket is tripped, or a special screw is missing for decoration, or a batch of consumables is urgently needed at the construction site.
This kind of customers have a common characteristic: they don’t come once every six months, they definitely buy once they come, and they basically don’t bargain.
Industry statistics for 2026 show that in hardware stores around the community, the average number of people entering the store every day is only 20-30, which may seem small, but the transaction rate is as high as 87%.
To put it simply, if 10 people enter the store, 8-9 will pay for it.
On the other hand, for ordinary clothing stores, 100 people entering the store can close 5-8 orders, which is good, but the transaction rate is only 5%-8%.
This is the first core of the hardware store: making money is “accurately needed” money, not money “just watching the crowds”.
The desertedness you see is just a superficial illusion. Everyone who enters the store comes with clear needs, and there is almost no hesitation in closing the transaction.
Let’s look at the profit issue that everyone is most concerned about: the hardware store sells cheap goods such as screws, nails, and water pipes. How much profit can it make?
In fact, it’s just the opposite. Hardware stores are typical of “small commodities, high gross profit”. The profit of many small items is much higher than you think. If you add up, the profit will be considerable.
Let me give you some calculations about the real purchasing price and retail price of the industry in 2026, which are the real situation of physical stores:
- Ordinary faucet: purchase price is 20 yuan, sell for 50-80 yuan, gross profit margin 35% – 45%;
- Lock cylinder: purchase price is 30 yuan, sell for 80-150 yuan, gross profit margin 60% –
70%; - Ordinary sockets: purchase price is 5 yuan, sell for 15-25 yuan, gross profit margin 60%-70%;
- Screws and nails: purchase price is calculated by kilogram, how many yuan per kilogram, when sold, it is calculated by the unit, each sold for 1-2 yuan, gross profit margin 100% –
200%; - Special model accessories (old water pipe joints, non-standard screws): hard to find online, always available in stores, gross profit margins of 100% – 300% are common.
Some people may think that earning 1 yuan from a screw and 30 yuan from a faucet are both small money.
But don’t forget, hardware stores have many categories and thousands of small items. If you sell a few of each kind every day, it adds up to a lot of money.
Moreover, hardware consumables have no shelf life, so there is no fear of expiration and loss, and the inventory can be stored for a long time, with little financial pressure.
More importantly, the cost of the hardware store is ridiculously low, which is also the core support for it to “make money quietly”.
More than 90% of the hardware stores on the street are mom-and-pop stores, which is the most down-to-earth and most resistant business model.
How low can the cost be?
Let’s talk about it one by one:
- Labor costs: The proprietress guards the store to see the goods and receives individual customers, while the boss goes out to deliver goods, perform repairs, and connect with customers. The two of them take care of all the work inside and outside the store. Without hiring employees, the labor cost alone can save 50,000 to 80,000 per year;
- Rent costs: Hardware stores do not need prime locations. Most of them are opened at the entrance of the community or in the streets and alleys, with an area of only 20 to 50 square meters, and the annual rent is 20,000 to 20,000.
50,000, which is more than half the rent of milk tea shops and restaurants; - Other costs: no decoration, no marketing, no activities, simple shelves, water, electricity and miscellaneous expenses are only 10,000 to 20,000 a year, almost no additional expenses.
A simple calculation: the total annual cost of an ordinary community hardware store is only 50,000 to 80,000, but the revenue and gross profit are much higher than this number.
Many people don’t know that the real revenue source of a hardware store is not scattered individual customers, but long-term stable orders from the B-side. This part can account for more than 60% of the total revenue and is the core of the hardware store’s cash flow.
What is a B-side customer?
Mainly decoration teams, properties, construction sites, surrounding shops, small businesses, etc.
These customers have one characteristic: long-term fixed purchases, large usage, stable billing period, and high repurchase rate.
For example: a hardware store can stably cooperate with 3-5 decoration teams. The amount of hardware consumables purchased by each decoration team (water pipes, wires, screws, tools, etc.) in a year can reach 100,000-200,000. 3-5 is 500,000-1 million.
Coupled with the daily maintenance of community properties, bulk purchases for the renovation of old communities, and sporadic replenishment of surrounding stores, these B-end orders are stable and reliable, and there is no need to worry about customer sources.
Many hardware store owners usually seem to have nothing to do in the store, but in fact they are secretly maintaining these B-end customers, delivering goods to their doorsteps, at fair prices, and on call. Over time, long-term cooperation is formed, and it is difficult for others to take away their products.
In addition to selling goods, hardware stores also have an important source of profit: door-to-door maintenance + installation services. This part of the sideline income can account for 20% – 30% of the total profit. A good store can earn 50,000 – 80,000 in service fees a year.
Today’s hardware stores are no longer just places to sell parts, but a one-stop service of “sales + installation + maintenance + after-sales”.
For example:
- Installation of faucets, showers, lamps, door locks, and shelves: a one-time charge of 80 – 300 yuan, pure labor cost, and you can earn another sum for parts;
- Pipe clearing, circuit repair, wall drilling, and replacement of door and window accessories: a one-time charge of 50 – 300 yuan
200 yuan, the technical threshold is not high, and the profit is high; - Small repairs of home appliances and temporary treatment of water pipe leaks for old customers: sometimes no money is charged, just to maintain reputation and bring more business in the future.
When residents and shops in surrounding communities have repair and installation needs, the first thing they think of is the owner of the nearby hardware store. He is always available, with fair prices and reliable services. His reputation is getting better and better, and his sideline income is becoming more and more stable.
Many people will ask: Now that e-commerce is so developed, and all kinds of hardware are available online, and the prices are still cheap, why haven’t hardware stores been eliminated?
There is only one core reason: e-commerce cannot replace the immediacy and professionalism of hardware stores.
When buying hardware online, even if it is express delivery in the same city, the fastest delivery time is the next day, and the slower delivery time is 2-3 days.
However, most of the core needs of hardware stores are “urgent needs”: a water pipe bursts in the middle of the night and cannot wait for two days; a door lock is broken and cannot be entered into the house, so it must be solved on the spot; the construction site is short of parts and has to stop work, and cannot afford to wait.
This kind of immediate demand can never be satisfied by e-commerce.
In addition, hardware stores have two advantages that e-commerce cannot match:
- Non-standard parts and old accessories: Online styles are limited. Many water pipe joints, old-fashioned door lock accessories, and non-standard screws for old houses cannot be found online.
Offline hardware stores will keep stock all year round; - Professionality: Most hardware store owners know how to repair, select models, and install. When customers give a rough idea of their needs, the boss can accurately match parts and install them to solve problems. What they sell is not parts, but solutions.
To put it simply, e-commerce can take away the business of standard parts and cheap goods, but it cannot take away the core business of “urgent needs, non-standard, and professional services” from hardware stores.
Having said all that, let’s calculate the real annual bill of a community standard hardware store to see if it is true to earn hundreds of thousands a year. The data are all derived from industry surveys and physical store feedback:
- Annual revenue: 1 million – 1.5 million (B-end orders 60% – 70%, scattered customers 15% – 20%, maintenance and installation services 15% –
20%); - Comprehensive gross profit margin: 40% – 50% (high gross profit for small items, high volume for large items, considerable gross profit overall);
- Annual gross profit: 400,000 – 750,000;
- Annual total cost: 50,000 – 80,000 (rent 30,000 – 50,000 + miscellaneous expenses 10,000 – 30,000, no labor costs);
- Annual net profit: 35 – 750,000
700,000. Most hardware stores that operate stably have annual net profits between 300,000 and 500,000.
Of course, this does not mean that you can make money by opening a hardware store. It also requires hard work, knowledge, and the ability to protect customers: for example, you have to get up early to stock up, deliver goods to your door, stay up late for repairs, understand the models and usage of various parts, and have a good relationship with customers.
But compared to other industries, hardware stores are indeed a good business with low risks, stable returns, and resistance to cycles.
To sum up, the street hardware store business is deserted but not collapsed, and it can still earn hundreds of thousands a year. The core logic is six points: low frequency for rigid demand and high transaction rate; small commodities, high gross profit; mom-and-pop shop, low cost; B-end orders, stable revenue; maintenance services, increased profits; instant professionalism, which is difficult to replace by e-commerce.
It does not rely on traffic or fancy marketing, but relies on the survival philosophy of precise needs, trust from neighbors, and making money quietly.
Today, when it is generally difficult to operate in the physical industry, the fact that hardware stores can survive just proves the truth: the truly profitable businesses are often hidden in the inconspicuous fireworks market.
Today we talked about the money-making logic of street hardware stores. Many people may have different opinions: some people think that hardware stores are hard work and not profitable, while others think that this is a good choice for ordinary people to start a business.
Is there anyone who owns a hardware store near you?
Do you think the hardware store business is still suitable for ordinary people to do now?
If you were asked to open a hardware store, what would be the most difficult thing for you: finding sources of goods, maintaining customers, or understanding technical maintenance?
Welcome to chat about your opinions and experiences in the comment area.
