Cheap Sheds – How much do they cost?

Posted on : January 9, 2015

What makes a cheap shed?

The old saying you get what you pay for is definitely true for Sheds.  There are shed companies that will cut corners (the key removing as much steel as possible – the lighter the shed the cheaper it will be) and then there are those that will not compromise.  There are strict regulations and building guidelines stipulated in the BCA (Building Code of Australia) but like all products there are those that will do the absolute minimum to meet the standards and there are those that pride themselves in exceeding them and creating excellent products.

So why should you care?  Some of these shortcuts will translate to a reduction in quality, watch out for the following

  • You might get 0.40 TCT on the roof sheet  – that is in this case a 0.40mm thick Total Coated Thickness or the equivalent of 0.35mm BMT (Base Metal Thickness). So this is 0.07mm thinner than the normal roof sheeting that should be installed for a domestic shed. It’s cheaper and many people don’t know the difference!  This thickness of steel is easily damaged and usually can’t be walked on.  You can find more detail on the difference here.
  • There are three major types of sheds and all of these will have different pricing (C-Section is usually the cheapest).
    • Cold Rollformed portal frame shed (constructed using C-Section steel).   This is what the largest manufacturers usually provide and are usually limited to a span of 18 meters.
    • Structural fabricated steel shed (constructed using H section, I beam or C channel).  This type of shed has a high strength joining system and while it can be assembled more quickly it usually reserved for greater than 18 meter spans.
    • Steel  Stud framed sheds.  These are identical to the steel stud framing used in housing.  This has an advantage of providing additional internal area over C-Section construction.
  • Sheds cost more if you buy them on finance, see the article here for more information
  • Is the steel imported or from a local steel manufacturer.  The line is getting blurred here as the likes of BlueScope have massive manufacturing capacity overseas now.  The question should probably be changed to “has the steel be tested to meet Australian standards”.  Not all steel is of the same quality as can be seen here.
  • Some shed packs are complex to put together and will cost more to erect (often the cheaper sheds).
  • There are lots of additional tricks (and sometimes costly mistakes) that will save steel and reduce the price.

Please beware and make sure that you understand the difference when buying a shed, as not all sheds are the same!

Now to the cheapest of the cheap, accurate as of the 1/2/2015.  These have been sourced from various companies providing portal frame sheds (C-Section) that are known within the industry to have the cheapest sheds and garages.  Note that these prices do not include delivery, erection, windows, personal doors, insulation or automatic door mechanism or plans in some cases!  In addition, they do not advertise what components they are using or what wind rating they are rated too, so this could go up significantly if you are in a high wind zone or an area that can get snow.

Caution: These are advertised prices without much about the actual components in addition this does not include buidling, you must see the detailed shed specification before you can make a true and accurate comparision.

 

Single Garage Cheap Prices

with Roller Door 2200h x 2770w or 2500h x 2770w 

 $2,400 : $2,730 – 3.6 meters x 7 meters x 2.4 meters high

$2,600 : $2,900 – 4.2 meters x 7 meters x 2.4 meters high

$3370 : $3,710 – 4.2 meters x 9 meters x 3.0 meters high

Double Garage Cheap Prices

with 2 x Roller Door 2200h x 2770w or 2500h x 2770w 

 $2,950 : $3,415 – 6 meters x 6 meters x 2.4 meters high

$3,650 : $4,060 – 6 meters x 7 meters x 3 meters high

$5440 : $5,950 – 7 meters x 10 meters x 3.0 meters high

There is no doubt these prices are from internationally sourced steel, just remember that you must compare quote for quote and all details must be included so you can fairly compare.  Do not buy the shed until you have seen the detailed specification of your shed or garage.  Not to mention you will want good service as often components will be missing or damaged.  Lesser shed companies will have one out of every ten sheds with damaged or missing parts, you need a distributor that provides great service when things go wrong.

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Shed Seller Statistics – 2011

Posted on : January 25, 2013

So what does this all mean?

The shed game is a competitive business to be in, there are lots of big players that have purchased steel sales and compete with the independents.  There is clearly a saturation of shed sellers in some areas and not enough in others.  This analysis attempts to show where Shed Sellers are clustered and to explore some variables that effect shed sales in these areas.

There are some variables that have an affect on shed sales and shed prices for that matter

  • Lot sizes
  • Population Growth
  • New housing construction
  • Average income
  • The number of Shed Sellers

So take a look and drill into your area for more details (all of the above).
 

Population growth within 200km of a Shed Seller

View Population growth within 200km of a Shed Seller in a full screen map

 

Average Lot Size within 50km of Australian Shed Sellers

View Average Lot Size within 50km of Shed Seller in a full screen map

 

Average Lot Size within 200km of Australian Shed Sellers

View Average Lot Size within 200km of Shed Seller in a full screen map

 

Number of new developments within 200km of Australian Shed Sellers

View in a full screen map

 

Average Income within 200km of Shed Seller

View in a full screen map

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Shed for Rent!

Posted on : August 9, 2012

London Shed for Rent!

A SAVVY homeowner is making a bit of extra Olympics cash — by renting out her SHED to Games guests.

Grandmother-of-four Tricia Jones has transformed the hut at the bottom of her garden into a mini sports stadium, and is offering it out to tourists over the coming weeks.

The unique getaway in Leytonstone, East London, is just two miles from the stadium, and comes complete with a bed, heater and mini fridge.

Tricia has also gone the extra mile, kitting out the shed with a mini running track and a full-sized winners’ podium, along with a host of Union Flags and Olympic memorabilia.

And with hotel prices in the capital up 69 per cent during the Games according to TripAdvisor, Tricia’s quirky alternative is a snip at £40 a night.

The 64-year-old said: “I just wanted to be part of the Olympics in some way, it’s going to be a very exciting few weeks.

“I didn’t have any rooms spare to let out, but I heard that people were camping in gardens and I got a bit carried away with my Olympic shed.

£40 a Night

 Go straight to this article in The Sun , as it is very entertaining – the comments are even better!

  1. The flag is the wrong way up also!
  2. Flower pots are not toilets!
  3. And many more classic comments!
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Giant Cattle Shed.

Posted on : June 15, 2012

New cattle sale yards at Scone to be covered!

These cattle yards are at Scone and Upper Hunter, the saleyards are already considered among the 10 best facilities in New South Wales and are currently receiving tender to construct roofing over the facilities. Here are the details for the tender:

Upper Hunter Shire Council Tender – Design and Construction of Roof Over Part Of The Scone & Upper Hunter Regional Saleyards (NSW)
Tenders are invited from appropriately qualified and experienced contractors for the following tender
Tender No 05i2011 – Design and Construction of roof over part of the Scone & Upper Hunter Regional Saleyards including water harvesting and lighting
Initial roof area of approximately 2376sqm with possible secondary stage of 3.158 being a total area of 5.535sqm
Tender documents for Tender No 05/2011 will be available in electronic format only Interested contractors can register their details at Council’s et endenng portal http i!wwwtenderlink co/upperhunter to download the tender documentation
Site inspection arrangements and any enquiries relating to the proposed contract should be directed to Council’s l1anager Technical Support Services
Coleen Pinkerton on 026540 1115 or
Email c pinkerton@upperhunter, nsw gov au
The closing date & time for tender submissions is 4pm Friday 29 June 2012 Tenders will not be accepted after this time
Daryl Dutton
General Manager
Closing Date 29-06-2012
Source The Sydney Morning Herald Tuesday May 22. 2012

The roof area for this giant shed is in two parts and covers nearly 5,500 plus square meters. Still small in comparison to some of the giant cattle yards around Australia. A very large one – the Carcoar Saleyards have some impressive statistics mentioned below: These facts come from their website CTLX Facilities.

  • The sheep pavilion roof is 224m long and 82m wide, and the cattle pavilion 144m long and 109m wide.
  • The roofs are clad with site manufactured Aramax sheet which was developed in Carcoar, and is manufactured by Brice Engineers. 
  • The cattle pavilion roof sheets are believed to be the longest single length sheets manufactured and erected anywhere in the world. 
  • The 15,600 square metre cattle pavilion roof was manufactured and erected in ten days.

The sheeting also looks like aluminium as Zinc Alum and Colorbond are not suitable for this type of animal enclosure. See the Intensive Animal Farming Technical Bulletin CTB-22. It was manufactured by Brice Engineering and is marketed under the name of Aramax – they are now owned by Fielders Steel and their website is Fielders Aramax. Here’s a snap of the sales yard at Carcoar:

Carcoar Sales Yards - Aramax Roofing

Shed building on a giant scale – it’s good to see the commercial and industrial side of metal sheds still travelling in the right direction.

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Men in Sydney do anything for a Shed!

Posted on : May 14, 2012

Sheds are a must for Sydney Men!

This article is on the new growing trend for men in Sydney to buy strata titled sheds in complexs complete with power, phones and even windows in some. The article is by Bronwen Gora From: The Sunday Telegraph  April 29, 2012 12:00AM called

“Sydney Men Go Crazy for Big Storage Sheds”

This is Mick Tsolakis and Garry Constanti, inside their huge shed at Alexandria this week, say they are delighted to have the extra room. Picture: Sam Ruttyn Source: The Sunday Telegraph. Its a great alternative when you haven’t got room in the backyard – and also a good investment! But it’s not the same as walking into the backyard to your own steel shed!

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Steel shed price Rise

Posted on : September 19, 2011

Steel Price Rise Due in next 3 to 7 Weeks

BlueScope Distribution has notified customers of an impending two tier price rise in the coming weeks. It involves a base steel rise of between $60 to $120 per tonne on most product groups. As well they will be implementing specific surcharges to recoup key costs. These surcharges will be provided shortly.

 

Steel Shed Prices will rise with Australian Steel?

 

This comes after a significant bonus of over $3 million was paid to Key BlueScope Management (11 people) as a reward for leadership – not profit incentive? The notification states that volitilty in steel prices, rising labour costs, rising freight costs, rising processing costs, rising warehouse costs, and a rise in general utilities are the reasons. Along with the iron ore and coal price increase that has caused the steel price rise – the others will be included in the additional surcharges.

They state they have begun to receive notice from their steel suppliers (BlueScope Steel) of pending price increases. This does not look good for further sales of BlueScope Steel in the shed industry. With imports on the rise at cheaper prices currently – this price rise will further erode steel sales by BlueScope.

It will also follow by a notification by One Steel on its price increase – so many of the big shed manufacturers will be importing direct to keep competitive in the shed industry. Many of the big reseller shed companies will want to lock in prices for as long as possible to avoid this increase. Negotiations are already occurring between some of the big rollformers and BlueScope, along with talks between rollformers and shed companies.

 

Have you been told of this price rise?

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Shed Prices to go down

Posted on : September 5, 2011

Shedeye has it on good authority that imported Steel is being used for the structural steel in more and more sheds sold in auastralia.

Is this a bad thing, take a look at the previous article, if the product is of the same quality and meets the Australian standards should the consumer care?  Especially with the impending steel mill closures in Australia, australian steel will be a thing of the past soon in steel sheds.

 

Cold Rolled Zinc Coil

 

Do you care where the steel is coming from, or simply that you will get the cheapest price for you steel shed with good assurance that you are getting a good product?  Shed buyers are very focused on the price, they understand the difference in $$$, but not in the quality of the shed.

Lets hope the shed buyer is soon armed with the knowledge and understanding of the difference between a good shed and a cheap shed!

The shed below is a BAD shed 🙂

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How to cut your garage or shed prices!

Posted on : April 20, 2011

There are many tips and tricks that you can use to reduce shed prices, without compromising the engineering of the shed.

One such trick, to reduce your garage or shed prices, is to make sure the length of your shed takes on the largest dimension.

 

9 m x6 m x2.4 m

three car garage doors on side 3 by 3 bays

6 m x9 m x2.4 m

 

Shed Buyers will often increase the width of the gable (span) as per the first picture in preference to the length of the side as per the second picture.

The wider you go on the gable end the more effect you will have on the structural engineering requirements, meaning more steel and a bigger shed price.  If you want cheap shed prices, increase the number of bays (length) of the shed, as you will not be  modifying the basic structural engineering requirements.

What do you think the difference in shed prices is between the two above sheds?  Remember they have exactly the same room in the shed (54 meters squared). The shed price difference is a marked 5-9% difference, by simply increasing the gable end (top picture) over the length (bottom).

If you want to keep you shed prices down, make sure that you increase the length over the gable.  Kit Sheds are designed to be extended in bays, indefinitely length wise.

An additional examples is

A 7 meters wide x 9 meters long x 2.4 meters high shed, compared to a 9 meters wide x 7 meters long x 2.4 meters high shed.  There is approximately a 3-6% difference in shed price.

The amount of shed price variation will vary according to the shed seller (as they all have slightly different engineering), however you can rest assured there will be an increase in shed price if you select a larger gable, no matter the shed seller you choose.

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Interest Free Shed and Garage Prices

Posted on : March 16, 2011

Interest Free, the joke is on you!

In Summary

  • There is no such thing as interest free finance; the finance company will make money on any deal.
  • You are paying at least 7.8% interest and you are paying most of this upfront.
  • If you pay one day late outside of the fictional interest free period you are up for up to 27.8% interest
  • If you are extremely disciplined and pay off the loan in full before the fictional interest free period is over, then it is actually quite a reasonable interest rate.

The details

There is no such thing as interest free when buying sheds and garages, and in fact it is beyond Shedeye’s comprehension how this practice is allowed, given our strict Trade Practices Act.

The interest free deal is touted by many of the major shed companies in Australia and is little different to the tactics that major retailers use.

The first thing you need to understand is that you can usually only get finance for the Shed Kit price, as the cost of erecting the shed, the slab and site preparation is not covered.

Let’s say you are offered a $5,000 shed kit price and the Shed distributor is offering this as a 12 months interest free deal. You are definitely paying interest, and in fact you are generously paying the interest up front, and here is why:

  • The distributor has to pay a “Fee” to cover the interest free period of approximately 5%-6% for the total 12 months upfront. In dollars this means approximately $239-$284 paid up-front.
  • There is a $65.00-$120.00 “Establishment Fee” paid up front to take out the loan.
  • There is a $5-$7 “Monthly Account Keeping Fee” for the duration of the loan.

Does this look interest free to you?!  This equates to an additional $364 to $488 on top of your shed price. This means that the distributor will charge you this amount to cover their costs and label it interest free.

You should have been able to get the shed for a price of $4,522 – $4,646 without signing up for the interest free DEAL! To put it another way, you’re paying between 7.8% and 10.8% on top of the price of your shed.

There is no such thing as an interest free period, you simply pay more for the shed!

As far as getting finance for your sheds, garages or carports, this is the second cheapest option after drawing down on the equity in your house. However, if you do not pay off the entire balance of the loan before the interest free period lapses, you’ll have to pay approximately 20% interest on the entire outstanding balance (the same way credit cards operate). For example, if you pay off the balance on the first day AFTER the 12 months interest free period expires, the shed will now cost you $6,000.00 and you would have paid a massive 27.8%-30.8% interest rate.

If you don’t plan to pay the loan off within the interest free period, you must consider different options. In order of preference, redraw on your existing home loan, get a line of credit for any property you have or take out a personal loan, secured if possible. If all of these are out of the question, then do not buy the shed!

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Carbon Tax to Send Shed Prices Sky High

Posted on : March 1, 2011

Shed Photo compliments of Alibaba LTD

How do you think the shed industry will be after you study the ramifications below?

What will be the implications on shed prices of the current governments carbon tax of approximately $20 per tonne of carbon dioxide along the supply chain of manufacturing, delivering and erecting a shed on your property. Just to explain carbon tax simply – is if you look at your electricity bill – it will show how many tonnes of CO2 you have put into the atmosphere simply by living and doing the normal things everyday. Approximately 4 tonnes of CO2 is expelled into the air if your bill is around $500.00 per quarter.

To manufacture, process, deliver and erect your shed is also putting this CO2 into the atmosphere and will be calculated accordingly, adding to shed or garage prices. The basic principles of economics will apply to all industry, transport, offices etc, so in dollar terms, you will be hit with an additional Carbon Tax amount relative to the location, power usage in all areas and the construction of your shed.

Indicators so far are expecting in manufacture and transport of 16% increase plus the additional charges the shed resellers, manufacturers, transport companies and administration will charge to cover these costs anywhere up to 20% increase in shed prices . BIG, BIG BIG and will get bigger – but don’t worry it will be on everything from roast lamb, fuel, holidays, restaurants, etc etc. Shed and Garage prices are not alone and if you are looking to save money – purchase your shed (and everything else) before the introduction of Carbon Tax but if you want to stop CO2 entering the atmosphere you must wait for the introduction of Carbon Tax!!!!!!

Will this make substitutes such as wood and brick more price competitive?  Are steel price rises in conjunction with the carbon tax going to make shed prices too expensive for the backyard shed?

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Shed Prices Rise, again!

Posted on : February 22, 2011

Just when you think that there can be no more steel shed price rises, you can think again, shed prices are on the rise again, and the steel manufacturers have stated that there are some more significant rises to come in 2011.

Shedeye showed that the January shed price rise was insignificant and for a standard 6 meters wide * 6 meters long * 2.4 meters high shed or garage you were in for less than a hundred dollars shed price increase.

The March price rise is set to hit the shed price a great deal more as it will directly impact the price of everything excluding colorbond products (January only effected colorbond products)

The list of effected products are

  • TrueCore – Roof Battens
  • Galvanised – Formwork, Accessories, Purlins
  • Zincalume – Roof and Wall Sheeting, Accessories, Top Hats, Flashings, Downpipes and Gutters.

The average price rise is approximately 10% and as these products make up most of the weight of a shed, you are going to see bigger shed prices or garage prices after March.  The shed price is all about the weight of steel that is used to construct them.

As has been previously shown Bluescope has a virtual monopoly within the shed industry, and the question needs to be asked,  is Australia paying too much for its steel sheds as a result?

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Man’s garage too short!

Posted on : February 14, 2011

This article in the Herald Sun just goes to show how important it is to do your own measurements and explain to your distributor what you are putting in your garage or shed, otherwise you may end up in a legal battle!

Man sues for short garage – Herald Sun

While this was an off the plan brick garage, there are many cases when the Roller Door Clearance and length of steel kit sheds have been incorrect, causing hassle for both the distributor and the customer. The Garage is useless if you can’t fit in your cars or Caravan and access your storage and workspace areas!

If you are going to put two cars in your garage, then make sure you measure them, or look at the car specification sheet for your make and model. A standard Holden Commodore (VE) model is approximately 4.9 meters long and 1.8 meters wide. If you wanted to put two of these in your garage and pack them like sardines, end to end, you would need slightly over 10 meters in shed length, however you also have to allow for lost space inside the shed due to the frame.

In reality, you really would not go less than 12 meters as this would give you a little bit of additional room at a low shed price increase (providing you are not increasing the gable end of the shed, an extra meter can add quite a bit of cost depending on how wide your shed already is).   The extra two meters allows for the frame inside the garage, some room at each end of the shed and some room between your cars, this is if you have the space, of course!

You also need to consider if you want space for a workshop at the side or end of the shed, or storage room.  If so, an allowance must be made, not just for your workshop or extra storage room but also to allow you access to the space itself.

So if you want to use your new Shed or Garage to put in your 4WD, your caravan, your truck or your Hum-Vee, make sure you measure and then give yourself some additional room to get in and out of the motor vehicles.

The case above is not as rare as it should be.

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The Shed Duopoly Monopoly

Posted on : January 27, 2011

Shedeye has conducted analysis[1][2] on Australia’s Shed Distributors, and their link to wholesaler’s and manufacturers.  The results are surprising and show that while there is a good degree of competition in the distributor[3] and wholesaler[4] sector, the manufacturer [5]sector is exclusively tied to Bluescope as a source of their steel.

The graph below shows that Bluescope has dominance on the shed distribution chain and hence will have significant pricing power.   The “Unknown” comes from ambiguity in some of the manufacturer company reports as they source some of the Cold Rolled steel from Bluescope, however it is not clear how much they source from China or elsewhere, it could be the “Unknown” quantity falls to Bluescope.  As you can see there are few distributors that do not directly or indirectly source their products from Bluescope.

This graph shows that even in Roll Forming Bluescope has significant market dominance across the distributors of Australia.  This again shows that the competition is almost limited to a duopoly and the barrier to entry is very high due to the vertical integration of the supply chain and the high capital costs associated with this process.   Titan Sheds and Garages has made successful inroads into this arena, using its distributor network in QLD and NSW to successfully become a specialized shed roll former in their own right.

This looks much more promising from a competition point; however when you take a closer look into who actually owns the largest distributors, some layers of the onion start to unfold…..  Stramit owns both Fair Dinkum Sheds and Garage World, while Lysaght (Bluescope) owns Ranbuild.

This shows that the independents own just less than 50% of the distributor market and the two big players have slightly over 50%.

An extremely interesting market when you look at this.  Bluescope has vertical integration from the production of their Cold Rolled Steel, Roll Forming to distribution.  However, nestled in each stage of the supply chain they have a wholesaler division that is servicing other companies.  A very interesting and a very powerful pricing position indeed.  Micheal Porter would be proud of Bluescope for ticking off each one of his competitive advantage points!

There are quite a few things in Bluescopes favor regarding price rises and sheds

  • Sheds are still a multiple cheaper than the substitute products of brick and steel.
  • Steel is well suited to Australian climate
  • The supply chain with steel sheds is sophisticated and impressive
  • The simplicity of erection is hard to beat and results in quicker time to completion.

Does this indicate that sheds are more expensive than they need to be?  Are Steel price rises that are being passed onto the distributors reflected in the international steel prices and even iron ore spot prices?

Do you want more detailed analysis than this report provides?  Shedeye has a detailed report that gives state and geographical information on the shed distributor market in Australia.  Please contact support@shedeye.com.au to request this report.


[1] This report is based on the number of distributors and may not accurately reflect true steel volumes.  For example one distributor may be selling as much as 3 distributors by volume.  Comprehensive steel volume data is not available and is very difficult to ascertain accurately.  That said analyzing the links in the supply chain to distributors does give you a very good idea of market control and dominance.

[2] This applies only to custom designed sheds; prefab sheds such as Abasco and Spanbuilt are not included in the analysis.  Even though they do represent a good percentage of Shed sales in Australia.

[3] Distributors are the retail outfit of the Shed Wholesalers.

[4] The Wholesalers are the Brands or buying groups (Fairdinkum, Ranbuild, Garage World, Sidach, Titan) and they handle the sourcing of shed components, ordering from the manufacturer, the software and engineering.

[5] Manufacturers are defined as a company taking the raw Cold Rolled Steel product and Roll Forming it into a product.  Also commonly called Roll Formers.

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Steel Shed Price Rise – Buy NOW!

Posted on : December 16, 2010

Hold on, read this before you make that decision.

Unlike the previous hefty price rise (September 2010), this price rise (January 2011) is approximately 5% and is limited to colorbond products only, the main product being the cladding, not the frame.  There have been roughly 3 price rises per year over the last couple of years, and until Iron-ore prices stabilise, shed prices likely to rise over the next 24 months.  Shed Prices should stop rising with a great deal of additional ore capacity coming on line, however it is also dependent world demand staying constant.

For a standard 6 meters wide * 6 meters long * 2.4 high you are talking of a price increase of less than a hundred dollars. You should be able to negotiate a discount to cover this amount if you wish to buy after January.

The price of steel sheds is still far more economical than substitute products, and if global demand does not increase further, the continual price rises should taper out.
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