Industries · Trade & Manufacturing

Construction materials

Construction materials move in bulk on thin margins, with long credit to contractors and prices that follow the building season. Receivables and transport cost usually decide the year more than sales volume does.

The questions that decide the numbers

What a construction materials business needs answered.

  1. 01How much of the margin is spent on freight and handling?
  2. 02Which contractor accounts are at risk, and how much credit is too much?
  3. 03Does the business hold cash for the off-season?
  4. 04Are VAT and TDS on large site supplies handled consistently?

Across trade & manufacturing

Margin here is decided before a single sale is made, in landed cost. Customs duty, freight, LC charges and the exchange rate on the day of payment all sit inside cost of goods, and most businesses price off invoice value instead. Add inventory financed on supplier credit and the result is familiar: profitable on paper, permanently short of cash. The work is usually product-level costing, then pricing and working capital built on top of it.

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