Hardware Stores Revenue Benchmarks
The average hardware stores business in the United States generates $3.7M in annual revenue, according to the U.S. Census Bureau Statistics of U.S. Businesses (SUSB 2021). There are 9,310 hardware stores businesses in the U.S., employing 148,732 workers with an average profit margin of 4.0%.
What Does a Hardware Stores Business Actually Do?
Neighborhood hardware retailers selling tools, fasteners, paint, and household repair supplies. Compete with big-box (Home Depot, Lowe's) on convenience and expertise.
Who buys: Homeowners doing repairs, contractors buying small quantities, gardeners.
Average Revenue
$3.7M
per year
Profit Margin
4.0%
industry average
Revenue / Employee
$231K
per year
Total Businesses
9,310
in the US
Est. Owner Income
$147K
small business avg
Labor Cost
14.0%
of revenue
Avg Employee Wage
N/A
per year (BLS)
Market Saturation
2.8
firms per 100K people
How Much Do Hardware Stores Charge?
Neighborhood hardware stores mark up 40–100%, competing on convenience and expertise vs big-box.
| Service | Typical range |
|---|---|
Small hardware/fasteners | 50–100% markup |
Paint and finishes | 35–55% markup |
Power tools | 20–35% markup |
Delivery/rental service (per day) | $50–150/day |
Ranges based on industry rate surveys and typical published pricing. Actual quotes vary by city, business size, and job complexity.
Complete hardware stores business plan
A 12-section data-backed business plan for a hardware stores business — executive summary, market analysis, competitive landscape, revenue model, 3-year financial projections, operations, marketing, staffing, funding request. Pre-populated with real Census, IRS, and BLS data on this industry. Free to view.
Cost Structure — Where Every $100 in Revenue Goes
Approximate P&L breakdown for the hardware stores industry. Labor share and net profit are grounded in Census SUSB and IRS SOI data. Other lines are split using sector-typical ratios.
| Category | Per $100 revenue | Per typical business | What's in it |
|---|---|---|---|
Cost of goods sold | $61 | $2.3M | Wholesale cost of merchandise purchased for resale. Retail's biggest expense. |
Wages & benefits | $14 | $516K | Payroll for all employees at the business (owner comp not included for small owner-operators). |
Rent & facilities | $8 | $302K | Rent or mortgage on business location plus utilities tied to the space. |
Marketing & advertising | $4 | $151K | Google/Meta ads, SEO, print, referral fees, event sponsorships. |
Other operating costs | $8 | $302K | Utilities, POS fees, shrinkage, insurance, store maintenance. |
Net profit | $4 | $147K | What remains for the owner or shareholders after all business expenses. |
Directionally accurate for a typical business in the industry. Individual businesses vary widely — a franchise may run a very different cost mix from an independent, and older established businesses often have lower labor share than newer ones.
Average Revenue by Business Size
Industry Dynamics (Census BDS 2023)
New Business Rate
4.62%
openings/year
Closure Rate
4.43%
closings/year
Net Job Growth
-0.87%
annual
Businesses Closed
1,831
in 2023
Firm Count Trend
Should You Start a Hardware Stores Business?
Startup Cost
$75K – $400K
Break-Even
19 months
5-Year Survival Rate
48.0%
Related Industries
Frequently Asked Questions
- What does a hardware stores business do?
- Neighborhood hardware retailers selling tools, fasteners, paint, and household repair supplies. Compete with big-box (Home Depot, Lowe's) on convenience and expertise. Homeowners doing repairs, contractors buying small quantities, gardeners.
- How much do hardware stores charge?
- Neighborhood hardware stores mark up 40–100%, competing on convenience and expertise vs big-box. See the pricing table above for typical rates by service type.
- How much does the average hardware stores make per year?
- The average hardware stores business generates $3.7M in annual revenue, based on U.S. Census Bureau data (SUSB 2021). After expenses, the estimated owner profit is $147K per year at a 4.0% profit margin.
- How many hardware stores businesses are there in the US?
- There are 9,310 hardware stores businesses operating in the United States, employing a total of 148,732 workers.
- How much does it cost to start a hardware stores business?
- Startup costs for a hardware stores business typically range from $75K to $400K, with a 5-year survival rate of 48.0%.
Industry Growth & Survival
The hardware stores industry is relatively stable — with a net job growth rate of -0.9%. Entry and exit rates are balanced at 4.6% and 4.4% respectively.
Approximately 80% of hardware stores businesses survive their first 5 years. This is above the national average (~50%), making it a relatively safe industry to enter. In 2023, 1,831 firms in this industry closed permanently.
Industry Trend (2000–2023)
The hardware stores industry has declined 38% since 2000 (from 48,298 to 30,090 firms).
See full historical statistics →Compare Hardware Stores revenue with other industries: