Production of awning pavilions

With approach of a warm season, the street and the yards of the cities are instantly filled with numerous and various open cafes, trade tents, summer trading floors and so forth. Many of them, to be exact those who for one reason or another do not wish to build capital structures use awning pavilions. Such pavilions are rather cheap, externally attractive and are quickly mounted. It should be noted that many businessmen do not even get awning pavilions, and rent them. For this reason it is not surprising at all that the new type of business – production and leasing of the most different awning pavilions was born. This type of business is very demanded and perspective that is confirmed by existence of considerable interest in this field of activity from foreign operators and producers. For example, today production German, the Estonian companies which offer clients awnings, as for sale, and for rent is presented at the market. Level of profitability of this type of business can reach and even to exceed a mark of 100%. However at the same time investments of money, in case of the organization of full production, can be more than 100 thousand dollars. It should be noted that the statement that awning pavilions are in the maximum demand during the summer period, is incorrect. Practice shows that many businessmen and in a cold season lease the most different tents. Thus, it is possible to claim safely that the number of orders for rent of awning pavilions is approximately identical years at all times. During the summer period the bulk of customers is made by those who are engaged in the organization of various actions in the open air, for example, businessmen who construct summer cafes. For other seasons rent of awning pavilions is characteristic of the organization and carrying out family celebrations and corporate holidays. One more category is sale and transfer to rent of shelters for sports grounds – basketball, tennis, football pass fields and platforms for other sports. During the period from late fall to early spring such platforms need awning shelters. In other time they function under the open sky. The price of the awning pavilion is depending on that material from which it is made. The cheapest are tent and awning fabrics, the most expensive material – PVC covering, protecting during the whole year from influence of the sun and bad weather. PVC represents material which density makes 630 g/m ². The kapron court consisting of eight on eight threads on one centimeter of length is its cornerstone. PVC is waterproof and steady against influence of an ultraviolet, and also keeps the operational properties at air temperature from-30 to +70 degrees Celsius. The main suppliers of PVC on the market are domestic producers, and also producers from Germany, Korea, Belgium. It should be noted that the scope of temporary designs is not limited only to awnings for summer cafes and trade pavilions, and the range of the offered awning coverings is very wide. They can be the most different sizes and contain the whole set of various design decisions and a delicacy. Actually really to establish the awning pavilion of any size, beginning from 12 and up to 2 thousand square meters. And the design can also be the most different: from ascetic and constrained to the most real architectural masterpiece. The rent in three days of use of the awning pavilion can fluctuate ranging from 10 to 18 Euros for one square meter depending on complexity, existence and a variety of options. And rent cost in most cases is established in an individual order and depends on the term of rent and volume of the order. Today the most different companies differing both by the amount of business and on the specialization are presented at the market. This sphere of business with identical success includes absolutely different in the orientation and financial opportunities of firm. Conditionally they can be divided into four groups:
The first group is represented by producers of awning pavilions which are interested in sale of the production to a large extent, but not in its hire.
The second group includes representative offices of the foreign companies.
The third group includes the companies which main specialization is service of different events which are held in the open air.
And, at last, the fourth group is presented by firms or individual entrepreneurs who carry out the small orders arriving from private and corporate clients. Clients of the companies offering awning pavilions can also be divided into several types. First, it is big customers such as, for example, combines, beer factories and so forth which order production of the big lots of products reaching sometimes not one hundred pavilions and awnings at once. The awnings intended for this category of clients contain logos, names of the customers and intend for installation in outlets and summer cafes. Secondly, it is firms and the individual entrepreneurs buying ready awning pavilions for the outlets and cafe. Thirdly, it is firms and businessmen who take part in the organization and carrying out different actions in the open air, such as exhibitions, fairs, festive and musical festivals. Depending on specifics of the work they can act as as buyers, and tenants of designs. However most often owing to an irregularity of carrying out similar actions more favorable option is rent of awning pavilions. Fourthly, one more category of clients is represented by the individuals getting awning pavilions and tents for creation of comfortable, convenient pastime at the dacha or outdoors. The minimum volume of capital investments necessary for opening of the enterprise is the sum of 1 thousand dollars. And return of these investments is limited for a period of two-three months. It should be noted that the fundamental moment determining success of business by sale and hire of awning pavilions and capable to attract as much as possible clients, the creative and individual approach to each specific customer is. It should be noted that such approach and is used by the majority of the firms functioning today in the market. Otherwise, risk to lose clients not to avoid. Moreover, creation of various programs of loyalty for clients who regularly rent awning pavilions is important. For example, it can be granting discounts which size increases every year.
The main scopes of awning pavilions are:
• garden arbors;
• trading floors and street cafes;
• awning coverings for cars and a water transport;
• tents at fairs and festivals;
• mobile outlets;
• the markets and large trading floors which are placed not in capital structures;
• the awning pavilions intended for carrying out the presentations and exhibitions;
• protection of sports constructions;
• structures for the organization of corporate celebrations and holidays.
The income of the firms which are engaged in awning pavilions is formed for the account:
• sales of awning pavilions;
• delivery of tents for rent;
• branding of awnings;
• repair and servicing of temporary structures;
• hire of the accompanying stock.
Total turnover of the market of hire and trade in awning pavilions exceeds the sum of 500 million dollars today. The main share of the market that is quite natural and explainable, is the share of the large companies which managed to get solid customers. Nevertheless, the considerable share is the share also of small firms and the companies. Very high level of profitability is characteristic of this type of business. However, than larger is the company which is engaged in sale and prokty awning pavilions the this level is lower. It is connected with the fact that the big amount of business means the bigger size of the expenses connected with payment of a salary, rent of warehouse, purchase and service of the motor transport, repair of stock and so forth. Nevertheless, it is that type of business in which the profit can reach the sums from 7 to 10 thousand dollars a month. One more indisputable advantage of the business connected with sale and hire of awning pavilions besides the high level of profitability is need for the insignificant volume of the starting capital. The main item of expenditure here, in fact, is acquisition of pavilions. At the same time without special work it is possible to keep within the sum about 1 thousand dollars which will leave on acquisition of 5-7 small tents. If business is planned to be developed in larger scale, from 20 to 30 dollars are required already. It will allow to get wider range of the offered production and except small tents to offer clients to sale and hire a wide choice of production intended for holding exhibitions, the presentations, office parties. As for an other expenses, in comparison with purchase of awning pavilions, they are not so considerable. For example, it is possible to store awning pavilions in unassembled form and in the available utility room or garage, to transport by means of hired motor transport, and to be engaged in dismantling and assembly independently. The starting capital for the organization of business for sale and hire of awning pavilions can make more than 100 thousand dollars. However such bag will be required only if the organization of own full production is planned that will demand rent of the production shop of the room, purchase of the necessary equipment, and also creation of own vehicle fleet corresponding for placement. Of course, depending on scope of business and volume of capital investments also the business payback period depends. So, if the starting capital made the sum about 2 thousand dollars, business will pay off in only two-three months of work, but at the same time and the got profit will turn out small. Capital investments in the amount of 20 to 30 thousand dollars are capable to pay off for term of half a year till one year. In case of creation of own full production of awning pavilions the payback period of business will reach two-three years.

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