Spare Parts Shop?

revhead24ads · 31-07-2006, 01:01 PM

Hey guys,
some of you may or may not know that i have worked in spare parts for 7 years now and my life long ambition has been to own my own parts shop. Most shops around here struggle with business so opening a new shop would not work, but i think that selling parts online ie:ebay/own website is definately the way to go. After thourah research i have found two problems, having the parts to sell ie:supplier and catalogues. and cash flow.
Anyone got any ideas they would like to throw around? tips, help, suggestions.

61sg · 31-07-2006, 05:38 PM

are you a registered business yet? contact reps of supliers and try and establish an account even if they are c.o.d and they should supply you with some catalogues.

open a shop within ebay prehaps as a lot of traffic passes through there

Melz · 31-07-2006, 05:42 PM

I would have to agree with 61sg Adam, if you open an online store, it has to be a secure site and have online credit card facilities. At least with ebay you get security and different methods for customers to pay with (ie: paypal, direct deposits, etc)

revhead24ads · 31-07-2006, 05:46 PM

thanks for the input mate, one problem with suppliers is that they will only supply to a retail shop.

ltd · 31-07-2006, 06:44 PM

Do a business plan. Not a cheap napkin style plan but an extensive business plan. This will outline your basic business outline, core strategy, marketing, operations and financials. You should conduct alot of research as far as the marketing goes, and be prepared to take criticism. You should also aim to identify who your target market is, and what they are prepared to primarily buy. Remember, the negative criticism is the most constructive, everyone telling you how great it is will only serve to see you fail. You should also set goals and pitch the proposal to the parts suppliers.
Basically, it is a good idea having a one stop shop that customers do not have to visit, so that will mean you will have to stock an awful lot of parts.
I'd recommend initially setting up agreements with suppliers to ship directly from their warehouse to the end user. This will have the flow on effect of moving their stock more rapidly, whilst opening up other avenues for them. You also might need to have a financial kick through an investor, in order to pay for the basic inventory. In sydney, fastway couriers is a good company to use.

But the most objective advice I can give you is do some extensive research; the need, the competition, the suppliers, the dispatch, payment, finances etc.

ltd · 31-07-2006, 06:48 PM

Actually, your biggest competitor I see will be REPCO, so you have to find a way of differentiating yourself from them. I'd recommend perhaps offering online purchasing of genuine parts, parts that you can send direct from the dealership and straight to the customers location. Nobody does online genuine parts, so don't limit it to one brand either. Ford, Holden, Nissan, Honda etc can be approached as through their head offices and again you should pitch your proposal to them.

snailracing · 31-07-2006, 08:20 PM

Everyone here is making valid comments, there is alot to take in and alot to think about. Limiting yourself to one make, hi perf, etc etc is not necesserly a good idea as it limits your market, You should be prepared to get into everything that can make a dollar. The biggest problem I have with dealing with online suppliers is there lack of comunication - They just don't reply to emails. And I'd say that most others would agree with me. If you can gain a rep of service first and foremost I beleive the customers will come.
One thing that I've always thought would be a good idea is Jap imports globally. Here in NZ we have had to deal with Jap imports for close to 20 years, the rest of the world (Think the UK, Russia etc) are still fairly new at it and they don't have the vehicle knowledge and parts availability over there. I would think a parts procuring company that can correctly identify parts and requirements with a good international shipping arrangement could do well. And just think compaired to the pound and the Euro the Oz dollar is relatitively cheep, and what sounds like alot to an Ozzy once converted into pounds is realititivly cheep. I know of a vehicle here in NZ at the moment, that has been shipped for the UK to be worked on Because A: We have the knowledge (In this case a R33 GT-R Nissan Skyline) and B: $50NZD per hour is nothing compaired to the 75 POUNDS per hour he was going to be charged in the UK.
The market could be there but is the juice worth the squeeze?