The verdict in three sentences
A builders' merchant with 5 branches, 12,000 SKUs and 2,500 trade accounts does not lack software: it lacks real-time visibility of stock spread across yards, and negotiated trade prices that every counter salesperson applies their own way. A merchant ERP costs roughly GBP 25,000 to 70,000 (EUR 30,000 to 80,000) to implement in 2026, plus licences; custom software for multi-branch stock, account pricing and a trade portal is, at Kolonell, a complex application of 7,000,000 to 15,000,000+ FCFA (10,670 to 22,870+ EUR). Plan 5 to 7 months, and aim first at cutting stock-outs from 4 to 8% of lines to around 2%.
The real cost of stock-outs and loose discounts
Across Greater London or the Dublin commuter belt, a tradesperson who cannot find an item at the counter at 7:00 goes to the competitor down the road, and may not come back. The two main leaks of a regional merchant are easy to quantify.
| Leak | 2026 order of magnitude | Impact on GBP 16M turnover |
|---|---|---|
| Lines out of stock at the counter | 4 to 8% of lines | GBP 260,000 to 640,000 of lost or delayed sales |
| Off-grid discounts granted | 0.5 to 1.5 margin points | GBP 80,000 to 240,000 |
| Untracked inter-branch transfers | 2 to 5% of transfers | stock count variances |
| Stock not sold for 12+ months | 10 to 20% of value | tied-up cash |
| Time to quote a site job | 30 to 60 minutes | quotes lost to faster rivals |
| Trade debtor days | 45 to 70 days | working capital strain |
The figure that matters is margin. Half a point of unnecessary discount across 2,500 accounts costs more every year than the most complete software.
Merchant ERP or custom
| Criterion | Market merchant ERP | Custom tool by Kolonell |
|---|---|---|
| Implementation | GBP 25,000 to 70,000 / EUR 30,000 to 80,000 | 7,000,000 to 15,000,000+ FCFA (10,670 to 22,870+ EUR) |
| Licences | GBP 70 to 170 / EUR 80 to 200 per user per month | no licence |
| Maintenance | 15 to 20% of licence per year | 75,000 or 120,000 FCFA a month (114 or 183 EUR) |
| Accounting, payroll | included or integrated | interface to your accounting package |
| Complex trade pricing | configurable, sometimes rigid | modelled on your real terms |
| Trade portal and counter app | optional modules | built around your workflows |
| Timeline | 6 to 12 months | 5 to 7 months |
A market ERP is strong on accounting, purchasing and tax compliance (Making Tax Digital in the UK, Revenue requirements in Ireland). Custom wins when value is created at the counter and on site: multi-branch availability at a glance, net account price calculated instantly, goods reserved from the tradesperson's phone. A common compromise keeps accounting in a standard package and hands stock, pricing and the portal to the custom tool.
The scope of a multi-depot merchant tool
The functional core has five blocks: an item master of 12,000 lines with selling units (pallet, linear metre, bag), stock per branch with reservations and transfers, a pricing engine combining list price, product-group discounts, account terms and job prices, a counter and yard app for picking and collection, and a trade portal where customers see their prices, availability per branch, invoices, and reserve online.
Second-tier features follow: replenishment suggestions based on turnover, dead stock alerts, site delivery tracking, margin by salesperson. Data migration (item records, account terms, balances) usually takes 3 to 5 weeks. See our custom web application offer and, for the merchant's showcase site, our website offer.
Mini case study
Declan, managing director of a 5-branch merchant outside Dublin, turns over EUR 18M at 24% gross margin. Stock-outs hit 6% of lines and he estimates half become lost sales, i.e. 3% of turnover: EUR 540,000 of sales, so EUR 129,600 of margin.
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Bringing stock-outs down to 2% recovers two thirds of that margin, EUR 86,400. Cutting off-grid discounts by 0.5 point through the pricing engine adds EUR 90,000. Annual gain: EUR 176,400. Against a complex project at 15,000,000 FCFA (22,870 EUR) and maintenance at 120,000 FCFA a month (183 EUR), the investment is covered in under two months of operation, even if the gain is halved.
FAQ
Can we keep our current accounting software?
Yes. The custom tool exports invoices, credit notes and receipts to your accounting package, with daily reconciliation. That avoids an accounting migration on top of the project.
How do you handle 2,500 different price agreements?
The pricing engine applies a hierarchy: list price, group discount, account terms, then job price. The calculation runs in under a second at the counter, and any off-grid discount requires a logged approval.
How long until we are operational?
The full project takes 5 to 7 months. A pilot branch can run after 12 to 16 weeks, then the other four roll out in 4 to 6 weeks.
Will tradespeople really use a portal?
Experience shows 20 to 40% of active accounts adopt it in year one if branch availability and net prices are visible. Firms with 5 to 50 staff use it most to prepare orders.
What if we open a sixth branch?
Adding a branch is configuration: stock, pickers, delivery zone. Any specific rules are quoted separately.
Let's scope your project. Share your number of branches, SKUs and trade accounts plus your current tools, and we will propose a phased plan with a pilot branch over 5 to 7 months. Detailed quote within 48 h. WhatsApp +221 77 596 93 33.
Mohamed Bah
Fondateur, Kolonell
Passionate about digital and entrepreneurship in Africa, Mohamed has been helping Sénégalese businesses with their digital transformation since 2020. Founder of Kolonell, he believes every SME deserves a professional and accessible online présence.
