Trade in auto parts in Russia is a highly profitable business, the success of which is accompanied by several factors. The number of car owners is growing year by year; it is always necessary to maintain the “iron horse” in technically sound condition; wear and tear and failure of various parts and mechanisms constantly occur.
The stable income of the owner of an auto parts store is facilitated by the love of our car enthusiasts for their brainchild, which goes beyond all boundaries. They are ready to get the necessary parts for crazy money, just so that the “swallow” runs like new and is in no way inferior to the neighbor’s.
Such observations push many businessmen to the idea of getting seriously involved in the auto parts trade. They immediately face the question: how to open an auto parts store? What nuances should be taken into account so that the business does not go bankrupt? Let's figure it out.
Where to begin?
Conduct market research
Explore the car market in your region
It is important to know the brands of cars that are in demand in a particular city or area. Find out which cars locals prefer: domestic or imported. Research data says: in large cities, premium-class foreign cars predominate; in the provinces, the share of imported and domestic cars is almost the same. Among foreign cars, budget versions of Chinese and Korean cars and used cars from European manufacturers are in demand.
Assess the solvency of future clients
A metropolis and a provincial town with a population of 150–200 thousand residents usually have different income levels. Give priority to dynamically developing regions with developed infrastructure and good indicators of growth in gross income per capita.
Assess market capacity
It is known that a fifth of the Russian population has their own car. When a town has a population of 150–200 thousand, the number of cars will be about 30 thousand. If we take into account that the population density decreases with distance from the capital, this figure will still be real: the niche is filled by residents of surrounding villages who come to the city to buy spare parts for their cars. There is room to develop.
Assess your competitors
Take the time to get to know your competitors' stores. Evaluate their location, assortment, niche that each of them occupies in the market, price level and bonus system, if one exists, facade design, interior, types of advertising they use. Of course, this project is quite difficult to implement in a large city. But, in medium-sized and small cities, a visual inspection of retail outlets can be done in 1–2 days. The addresses of car dealerships are easy to find on the Internet. After analyzing the work of your competitors, you will understand what to focus on.
Choosing a location for an auto parts store
In large cities, it is advisable to locate the store in the center, where there are always many owners of expensive foreign cars. Convenient access roads are required.
On the periphery, the options for locating a future trading enterprise are different. If you decide to open an auto parts store for foreign cars, the central part of the city, where the offices of large companies, banks, and government agencies are located, where the public with money gathers, will be a suitable place. The “Red Line” with its dense traffic flow is always attractive for locating business facilities.
Another option: create a similar business project on the outskirts, next to which there is a busy highway. Every car enthusiast passing by should notice your window display. Only in this case will you have clients.
Business plan
After studying the market in a given region, create a detailed business plan for opening an auto parts store. Contact an experienced economist who will develop a detailed business plan taking into account your opinion and the specifics of a particular city, district or region. If you do not have enough personal funds at the time of preparing to open a shopping complex, contact the bank’s credit department. Credit funds will not be provided to you without a clear action plan and detailed calculations.
Important: such a detailed description of the preparatory process is necessary for a businessman to take possible risks seriously and realistically assess the prospects of opening another auto parts store in his chosen region. It's no secret that some businesses fail. The main reason is neglect of market capacity research and overconfidence.
Yes, this is a troublesome task. Be prepared to work around the clock at first. The better you test the waters, the better your decisions will be. It’s not enough to just say: I want to open an auto parts store. You need to make an effort, show interest, and the costs will pay off.
Prospects
You have conducted a preliminary market analysis and decided that there is a free niche. What does the auto parts trading business promise?
This business is profitable. The gross margin ratio ranges from 25 to 75%. What does it mean? After deducting all costs from the revenue, you will still have a decent profit. Having invested about 1.5 million rubles in your business, with a well-organized trading process and a sufficient number of buyers, you can receive up to 300 thousand rubles every month. arrived. The investment will pay off within a year.
Are these numbers real? Certainly! Trade margins are often 20–100%. Remember how much spare parts cost. Their owners spend up to 15 thousand rubles a year on car maintenance. Spare parts account for a significant share of costs. Multiply 30 thousand motorists in a provincial town by 15 thousand rubles. Get about 400 million. It’s possible to grab a few million from the total pie.
Preparation of documentation
What documents are needed to open an auto parts store? The package is standard.
Your steps:
- Register your business activity. Obtain a certificate of state registration of a legal entity. If you do not plan to carry out large wholesale supplies of parts and components, (IP).
- Get codes from Goskomstat. First of all, “Spare parts”.
- Contact the tax service and receive a certificate for tax registration.
- Conclude agreements: for renting the selected premises and for garbage removal.
- Get a report from the fire inspectorate that your store meets fire safety requirements.
- Pay for a patent to open an auto parts store.
Financial expenses
The initial capital is at least 1.6 million rubles. Components:
- payment for rent of premises - 40 thousand rubles. monthly;
- inventory in the warehouse and on the sales floor - 1 million rubles.
- purchase of retail equipment (racks, shelves, display cases), computer equipment, connection to the Internet, arrangement of the premises and its repair - up to 500 thousand rubles;
- staff salaries (two salespeople, an accountant). Monthly from 40 thousand rubles;
- utility bills - up to 15 thousand rubles;
- other costs (advertising, promotions, office, unforeseen expenses) - up to 100 thousand rubles.
The size of the trade margin is set by the owner based on a comparison of this value among competitors. By lowering your prices a little, you will increase your sales volume. The minimum markup is 25%. Sellers often increase the markup to 40–50% or more.
Recruitment
Get ready for the fact that at first you will perform the duties of director and purchasing manager (supply manager) yourself. There is a positive aspect to this. You will not only save on payroll, but also delve into all the intricacies of the business.
Mandatory staff:
- sales consultant (2 people). Salary level – from 15 thousand rubles. per month. The piecework type of remuneration increases the quality of work and interest: rate (from 5 thousand rubles) + percentage of sales;
- accountant. Until sales volume reaches the planned level, use the services of an invited specialist. Salary – from 5–6 thousand rubles. per month.
Requirements for sellers:
- knowledge of the entire range of spare parts offered for sale;
- It is advisable to have your own car so that the consultant can give practical advice on replacing parts (if the buyer hesitates in choosing) or offer an alternative option;
- grammatically correct speech. If the seller is well versed in the design of the car and can advise the client inside and out, then at first you can turn a blind eye to the vernacular or lack of knowledge of terminology. But a specialist who does not want to improve his literacy level will, after a while, begin to irritate some clients. A culture of speech must be developed.
Auto parts suppliers
Reliable suppliers are a guarantee of successful operation of the enterprise. If you have friends who supply auto parts, that’s great. If not, look for suppliers' addresses on the Internet. Read reviews about them, collect more information.
Specify:
- supply details;
- payment procedure;
- guarantees;
- availability of bonuses and discounts.
Where to buy auto parts?
Options:
- from intermediaries;
- directly at the manufacturer.
The second option involves lower prices. At the same time, intermediaries for regular customers establish a system of discounts and offer bonuses for the volume and number of orders. When purchasing large quantities of goods, the benefits can be significant.
- after studying the market, decide: you will open a company store selling spare parts for one brand of car or offer customers parts for cars of different brands;
- perhaps you will occupy a niche of spare parts for foreign or domestic cars, Japanese, European or American cars;
- dumping is a good option. But, don't go overboard with price cuts. Competitors will become angry, and customers will begin to doubt the quality of the products supplied. Better - small discounts, but with every purchase. A cumulative bonus card for regular customers is a rational solution;
- Place information about the store on billboards and banners along the roads so that the car owner’s eyes are caught during trips. Distribute brochures and leaflets. Newspaper is not the best option. Over time, reviews from satisfied customers will be your best (and free) advertising.
- do not spare money on buying or renting a car to deliver spare parts to the garage or to the client’s home. "GAZelka" is an acceptable option. Fast delivery is a definite plus in your piggy bank.
- ensure the availability of popular, in-demand spare parts in stock;
- organize work according to the catalogue;
- create a website for your store on the Internet. Sales volumes will increase. Remember that additional investment will be required. In this case, fast delivery of goods is an important condition for the positive image of your company.
Consider the recommendations that will help you open an auto parts store from scratch. A competent strategy, perseverance, instinct, and quick response to fluctuations in demand will help make your trading enterprise one of the best in the region.
The number of cars is constantly growing, and this happens regardless of the economic situation. Therefore, auto parts are always needed, and this need grows along with the number of vehicles.
So this business has prospects, especially if our roads continue to be suitable only for tractors.
Auto parts store: is it profitable?
One of the best sources of information is the experience of competitors, albeit potential ones.
Moreover, it is necessary to study it exactly where you plan to start your own business.
At the same time, we must remember that the personal enterprise itself will be opened a little further - where the number of car service points is smaller. This will make it possible not to get lost right away, at the first stage.
That is, the area of study should be large enough, and the conclusions should be somewhat generalized, with a tendency to formulate patterns.
You can immediately notice that there will be many competitors. This is good for collecting information, but not so much for doing business.
Having more or less decided on the area where the future source of mega-income is supposed to be located, you should study the demand market. You need to look at the assortment in existing stores, what products are scarce, and which manufacturers are the best to buy.
In general, this should be taken seriously; you need to be interested in everything: from suppliers to salaries to staff. Particular attention should be paid to ways to promote your services and advertising campaigns.
When analyzing the experience of already established businessmen, you should also pay attention to how a thriving or at least simply successful store is located. Surely there is a parking lot or gas station or garages nearby.
Even if there is no obvious source of buyers, you should try to figure out which contingent mainly buys in the store; perhaps the assortment will help you understand what kind of cars and what kind of people. This is necessary in order to have a relatively clear understanding of exactly where and how to ensure an influx of consumers into your store.
- Prices are noticeably lower (because a lot of time was spent searching for suppliers and lucrative contracts were concluded with them).
- Store advertising is set at the highest level available at this stage.
Advertising boards are everywhere where there are motorists: in parking lots, near garages, at gas stations, somewhere near a competitor’s point.And also in stores whose products may be of interest to car enthusiasts of all levels.
And on every billboard, on every sticker there is detailed instructions on how to find the store. - Attractive discounts, savings cards (but such that you can actually save up something), promotions and sales.
- Helpful and competent staff.
- Not only the entrances to the store are convenient, but also the approaches.
Every car needs repair and maintenance. Even the best cars break down from time to time; in addition, they require oil changes, brake fluid, brake pads and much more.
Most car enthusiasts are constantly improving and modernizing their cars, so the demand for modernized technical parts, advanced audio systems, air conditioning systems, alarm systems, and video recorders will only stop with the disappearance of the last car.
How much does it cost to open an auto parts store?
If you just dryly calculate the expenses that a novice entrepreneur will have to incur, then the amount will not be fantastic, no more than 1.5 - 2 million rubles. However, we must remember that stable profits will only come in a year or two, so we must count on a fairly long period of stay in cramped circumstances.
The main costs are:
- Renting premises. (depending on the location of the store)
It cannot be cheap, since the store must be located in a profitable location.
- Room renovation.
The premises themselves must be prepared for trade and be sufficiently presentable and attractive.
In addition, it must provide minimum comfort for personnel who will be at work all day, or even 24 hours.
- Trade equipment, furniture.
- Purchase of spare parts themselves.
- Staff salaries.
- Payment of utilities and Internet.
- Expenses for marketing activities and advertising.
- Payment for parking spaces for clients.
It is worth keeping in reserve an amount equal to at least half of the funds spent on completing the tasks listed above - just in case of an emergency!
Auto parts for Russian cars or foreign cars
At the initial stage, the easiest way to reach the buyer is to organize a trade in spare parts with specialization by car brands. These could be domestic “Volga”, “Zhiguli” or “Gazelle”.
Our cars need repairs and quality spare parts, and here you can look at India. There, people happily and proudly buy and use their Mahindra and Maruti cars, have them repaired cheaply and affordably (manufacturers provide this opportunity), and as a result, the domestic auto industry is thriving.
But in our country, so far we are promoting the prosperity and strengthening of only foreign brands.
It is important that trading domestic spare parts requires less money to start, while purchasing parts for foreign cars will require significant investments.
Find out how to open an auto parts store from scratch in the video.
What spare parts are in great demand?
First of all, these are body parts. This is the part of the car that suffers the most from an aggressive external environment and is damaged as a result of collisions and accidents.
The most vulnerable are doors, mirrors, and bumpers. Then, they have an expiration date, after which they should be replaced.
Windshields, headlights, trunk lids also require replacement periodically, and this is only on the outside.
As long as there are bad roads, the demand for repair services will not decrease. Potholes most often damage suspension and chassis components.
Engine parts are also in demand, and electronic components are also in increasing demand - cars are becoming more and more intelligent.
One of the most important spare parts is the brake pad; it is replaced not even when it breaks, but when there is the slightest sign of a malfunction; not only the degree of traffic safety, but also the life of its owner sometimes depends on this part.
The demand for air and oil filters will never fall - engine performance depends on them.
In addition, car tuning elements are in increasing demand.
How to open an auto parts store (registration)
Having decided to start working for yourself, you should register as an individual entrepreneur; this is a standard start of a business from scratch and simpler in terms of interaction with the law (including the Tax Code).
To begin, submit documents to the tax office:
- application for registration of an individual entrepreneur.
- passport and its photocopy.
- TIN and a photocopy of it. If a TIN has not yet been assigned, then you should write an application for the assignment of a TIN.
- receipt for payment of state duty.
There is no need to waste time submitting documents to citizens who were declared bankrupt less than a year ago; there are other restrictions on filing such a petition with government agencies.
In general, in this matter, you can contact a law office, they will help you collect and prepare all the necessary documents for registering an individual entrepreneur, and will also advise you on opening an account, printing and other organizational and legal issues.
This will take about a week.
Where should your store be located (selection of premises)
When gradually deciding on the specialization of the future store, one should not forget about selecting suitable premises for trading. To begin with, you should count on renting, preferably long-term.
If the business is successful enough, the premises can subsequently be purchased (this condition must be provided for in the lease agreement).
Standard advice: locate the retail outlet in a place where there is heavy traffic, not only vehicular traffic, but also pedestrian traffic. You should immediately include the possibility of parking for customers, if not nearby, then at least close to the store - some spare parts are quite large.
The cost of premises in places that are optimal for trade is high, so there is no need to strive to rent a huge premises, but you should pay attention to the condition of the electrical wiring and water drainage system, whether there is ventilation and how possible it is to install it if there is none.
First, the chosen location should be carefully examined for the presence of nearby competitors. If they exist, and other placement options do not stand up to comparison, then we must take into account that the proximity to a retail outlet with a similar focus will have an impact on the business and the assortment.
The location on the ground floor is better, although this condition is not the main thing. Sometimes people are not very willing to go up to the second floor.
And if you manage to open a point near a car service center, then you can consider it a success.
The store must have a sales area of at least 20 square meters. m., the warehouse is much larger. Some parts and components take up a lot of space, so the warehouse in any case should be larger than the sales area.
So, if you want to save money, then it’s not worth it, but you can completely do without a management office and an accountant’s office.
If the warehouse is located in another location, you will have to organize courier delivery, or provide the buyer with the opportunity to stop by and pick up their purchase themselves.
Naturally, the premises must comply with fire safety standards, for which you will have to obtain a conclusion from an inspector from the Ministry of Emergency Situations, and you will also have to obtain a conclusion from Rospotrebnadzor (previously called SES).
Along the way, you will immediately need to find out how garbage is removed from the rented premises and worry about where and how much to pay for this service.
Trade equipment for an auto parts store
Such issues as the correct placement of goods and the overall attractiveness of the store’s appearance, although it seems secondary, nevertheless have an impact on the success of the trade as a whole.
Racks, counters and display cases, which can be found in abundance in relevant stores or online, can help with this.
Products may be large:
- doors;
- bumpers;
- wheels;
- engines, etc.;
and small ones:
- gears;
- components for the brake system, ignition system;
- various gaskets;
- wheel arch liners, etc.
There are also a number of products that are required:
- various tools;
- oils;
- antifreeze;
- car care products.
For large assortments, the racks must be strong enough, and small items must be visible and attract attention. After walking through the store, the buyer should get an idea of the range of spare parts and related products offered.
We should not forget about hanging systems, this will save space and display the product in the best possible way.
Glazed display cases on an aluminum frame are quite durable and provide a good overview of the goods on offer. Small counters made of profiles or laminated chipboard will help to properly group goods and prevent the buyer from getting lost in the assortment.
For premises with a specific layout or if you wish to create an individual store design. Equipment can be made to order.
If you want to save money, you can find a sufficient number of offers of used equipment; in any case, you need to consider such product categories as:
- counters for small spare parts;
- racks for small spare parts and related products;
- hanging elements;.
- display cabinets;
- durable racks.
Where to get goods for an auto parts store
You should start solving the problem of choosing an assortment by studying the supply market. What exactly is in constant demand among car owners, products that are recommended to each other, car maintenance products that are sold out immediately - this information should be accumulated and used in planning your own business.
In addition, there are products that a car owner always needs, which means these products should be in the store in various configurations, in different price categories, in the form of sets and individually.
Of course, the selection of products offered will only truly be adjusted once the store starts operating. It will be immediately clear what exactly goes away immediately and what sits on the shelves.
Constant updating and expansion of the assortment, constant changes in supply will allow you to step by step bring the list of goods into line with demand in the given conditions (and for your own store specifically). A flexible assortment, constantly adapting to fluctuations in customer interest, in which you can find both familiar and beloved products and new items, will definitely begin to successfully generate profits.
You should carefully study the list of suppliers and not only in terms of price. A high-quality product and the ability to deliver it on time are the components of successful cooperation with a product supplier.
And there should not be one source of goods, it is better to have several suppliers in stock, this will ensure the flow of goods to the store under any conditions and fluctuations in the country’s economy. It is better to pay attention to suppliers with a fairly narrow specialization, and even better - to dealers who have official ties with the manufacturer of the product.
Selling a certified product from the manufacturer is always better than selling through a third party, even if the cost of the original unit is slightly higher. But the possibility of receiving a counterfeit is reduced.
The best option is to find the opportunity to establish relationships with manufacturers of spare parts and other goods for cars, including European ones. This incredibly raises the prestige of a trading enterprise.
You can also create a branch of narrow specialization in a store for a certain brand of car; if you have direct contact with the manufacturer, the store sign will also be decorated with the logo of that car.
Before entering into negotiations with suppliers, you should collect information about him, check, if possible, how reliable and binding he is. The profit and reputation of the store, and the success of the enterprise as a whole depend on the correct choice of partners.
Recruitment
There is no way you can run a business alone, so you will have to start recruiting people who, in theory, will grow and get rich along with the enterprise.
So, absolutely necessary:
- manager (concluding agreements for the supply of goods, working with personnel, organizing the work process);
- if the manager or owner has sufficient knowledge and can keep the store’s books, this is great, otherwise, an accountant is simply necessary;
- sellers (or seller).
These should not be just people to be in the room, but professionals.Well versed in the structure of cars, because buyers sometimes don’t even know what this or that part is called;
- if delivery of a purchase to a client is planned, a driver is needed;
- room cleaner.
Marketing and advertising of an auto parts store
The work of promoting goods should be done in such a way that the goods sell themselves, without additional efforts on the part of the staff. The term “marketing” itself means actions that result in recognition and immediate satisfaction of demand and needs in the chosen direction.
Accordingly, it is necessary to be aware of all existing and potential needs for the product, the sale of which is the goal of the enterprise.
There must be a notification about the existence of a store within the maximum accessible radius. Information boards should also be placed wherever this need may arise.
This could be a parking lot, a transport enterprise (here you generally need to try to attract attention, this is very promising), an exhibition, a gas station.
Constant advertising in the first positions in newspapers, especially those with a thematic focus, as well as on radio, television, exhibitions and wherever a car enthusiast’s gaze may fall. Placing flyers in mailboxes will also be beneficial.
A good result is obtained by selling goods at a discount for regular customers or gifts - necessary for a car - when purchasing 2 or more units of goods.
The attractive arrangement of goods on display windows is also important. This is a small thing, but it’s worth paying a little attention to it, because its effectiveness has already been proven.
How to open an online auto parts store
In fact, you can start selling auto parts without a sales floor and staff. This refers to the creation of a trading website with a virtual trading floor.
Savings can be assessed by asking about the cost of renting retail space in the most favorable places for opening a store, as well as the cost of parking spaces, staff salaries and many other points.
Having registered as an individual entrepreneur, or as an LLC, you should start developing an attractive website, by visiting which you will be able to select any part, any product for your car.
If you have the skills to work on the Internet, you can try to make a website yourself, but it is better to immediately contact the experts in their field and order from a web studio. It’s better to post on paid sites, it’s much more respectable, although there are also free resources.
You immediately need to find out how taxes are calculated on Internet income and expand your knowledge in the field of Internet money and existing payment systems.
You need to think about how exactly the buyer will be able to receive the ordered goods. It can be sent by mail cash on delivery or courier delivery can be arranged.
While the sales volume is small, the owner of the online store can deliver the goods personally, this will save money.
But only the trading floor will be virtual. You will still have to search for premises, although only for a warehouse.
The issue of supply of goods and accounting also remains relevant.
In addition, an online store can be combined well with a real retail establishment, or the creation can be considered as a long-term task.
Although, observing the increasing popularity of online shopping, one can assume that perhaps soon this will no longer be so relevant.
You can learn how to open an online auto parts store from the video.
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The business of selling auto parts has a high profitability of up to 25% and a payback period for the initial investment within 1 year. Every year there is an increase in the number of cars in Russia and the CIS by 10-15%, and the auto parts market is growing accordingly. First of all, the number of foreign cars is increasing. The number of sales of parts through online stores is also growing. In this article we will analyze how to open an auto parts store from scratch with minimal investment and give an example of a business plan with calculations.
Analysis of the auto parts market in the Russian Federation and the CIS
The secondary and primary markets for auto parts are divided. The primary market is the sale of parts for the direct production of the car, the secondary market is the sale of parts through services and stores.
In Russia, according to the analytical agency AUTOSTAT, the share of the primary market is 24%, the secondary market is 76%. Auto parts for domestic cars lead the secondary market. Thus, spare parts for domestic cars account for 58%, and for foreign cars 42%.
One of the factors increasing competition in this market is the unification of parts, when the same elements are used for different brands. There are mergers and acquisitions of small companies by larger ones. One of the negative market trends is the increase in the number of counterfeit parts (from 30 to 50%). In addition, there is a large share of gray imports of original parts.
According to the marketing agency DISCOVERY Research Group, the share of buyers (aged 20-50 years) of auto parts through online stores is 15%, while in the UK it is 70%. The annual growth rate of auto parts sales via the Internet is ~25%. This makes the development of Internet commerce promising for the Russian Federation and the CIS. The figure below shows the top 10 global manufacturers of auto components.
According to PwC analysis
Advantages and disadvantages of an auto parts business
Let's look at the main advantages and disadvantages of a store selling auto parts.
| Advantages | Flaws |
| A large number of potential customers, stable growth of cars (foreign cars) in big cities: Moscow, St. Petersburg, Yekaterinburg, Kazan, Novosibirsk | Complex warehouse and commodity accounting of a large number of small parts. Additional costs for storage facilities |
| High profit margins on auto parts ensure high profitability | A high percentage of defective parts can lead to high costs and a decrease in the store’s reputation |
| Minimum initial investment | A large number of large stores |
How to open an auto parts store: business plan
Form of doing business
Taxation of an auto parts store
When an entrepreneur switches to special taxation regimes, all other types of taxes are not paid. To switch to preferential tax regimes, the annual income of an individual entrepreneur must not exceed 60 million rubles.
Retail sale of auto parts is one of the types of activities that are subject to UTII (unified tax on imputed income). It should be noted that an individual entrepreneur is required to switch to UTII if a law on the use of UTII has been adopted in the region. The tax period is a quarter. The declaration is submitted by the owner quarterly before the 20th day after the end of the quarter, and is paid by the 25th. Tax rate - 15%. If there are more than 50 employees, then it is necessary to report via the Internet. It should also be noted that if the activity of an entrepreneur also involves a type of activity using the simplified tax system, then he must keep separate records! In case of further expansion of activities and increase in sales volume, you will need to become a VAT payer. The reporting form will be - 3 personal income tax.
Stages of opening a store
First of all, you need:
- search for contacts of suppliers of the required brand;
- purchase or rent premises;
- register as a private entrepreneur;
- hire workers.
Before opening an auto parts store, it is important to familiarize yourself with some legal issues. It is not necessary to register as a legal entity.
Choosing a location and premises for a store
Choosing a location is a key aspect of success in this business.. Let's consider the main aspects of choosing a location and premises:
Selection of suppliers
Typically, auto stores enter into contracts with two or three large suppliers, mainly with official representatives. The necessary information for finding dealers is available on the Internet. You should read all reviews regarding a specific supplier. In case of frequent complaints about defects or low-quality products from a particular supplier, it is better to look for another. Poor quality products will ruin the reputation of your store.
After selecting your main suppliers, you should decide on specific products that will allow you to differentiate yourself from your competitors. These can be original high quality accessories or rare oil. Usually the highest markup is on accessories, so this item is worthy of attention. It is important to expand the range of auto parts as much as possible to attract more buyers.
Some suppliers deliver goods free of charge when ordering over a certain amount. This is an important additional bonus for you at first, because transportation costs add 2-5% to the cost of the goods. Agree on the possibility of returning defective products, because defects occur even from trusted manufacturers.
Recruitment
You need to prepare to be in the store every day for the first time, playing the roles of purchasing manager and salesperson. Supervision and training of new personnel to the standards of your business is necessary. Often, a buyer coming to a store with a spare part does not know its purpose or name. The seller must learn to quickly navigate and select either an analogue or the same spare part. Therefore, the staff must be experienced and have a great desire to work.
With the acquisition of experience, sales personnel are able to resort to various tricks on how to sell bypassing the cash register using the “left” product. You need to prevent this immediately and decisively. A surveillance camera to monitor trading areas can help here, as well as encouraging workers with decent wages, depending on the revenue received by the store. Create comfortable working conditions to make it more profitable to work honestly. In case of repeated theft, it is better to fire one or two guilty employees.
Calculation of costs for a store with an area of 50 m²
Before, how to open an auto parts store area of 50 m², you need to consider the following costs:
- Documents when applying for legal assistance - 4,000-10,000 rubles. There is no need to save on this, take care of your health and time.
- Retail equipment - per 1 m² of total area, including warehouse - 1000 rubles. In our case, no less than 50,000 rubles. Savings of 20-30% are possible when using used furniture (for example, for a warehouse that is inaccessible to the visitor's eye).
- The initial purchase of goods is no less than 2,000,000 rubles.
- Repair of the premises - about 50,000 rubles.
- Advertising upon opening (flyers, billboards) - 50,000 rubles.
- Signboard - 50,000 rubles.
Total 2210000 rubles. This is the required starting amount to open a store.
We will calculate the required amount of expenses to support the operation of the business, regardless of profit:
- Salary of employees (4 people) - 80,000 rubles. The amount depends on the region and is taken conditionally.
- Rent of premises - no less than 50,000 rubles. If the premises are in Moscow or in the center of a metropolis, then the amount will increase significantly.
- Taxes - 10,000 rubles.
- Utility costs - 20,000 rubles.
Total - 160,000 rubles per month.
Income calculation
The markup on accessories is up to 100%, and on expensive spare parts - from 30%, the average markup is 50%. Having goods worth 2,000,000 rubles in a store with an area of 50 m² in a busy place, you can earn more than 1,000,000 rubles.
Let's calculate the income of an auto parts store:
- Revenue - 1,000,000 rubles;
- Cost - 660,000 rubles;
- Monthly expenses - 160,000 rubles;
- Net profit - 180,000 rubles/month.
So, business profitability is 18% ( net profit/revenue).
We calculate the payback period for long-term investments: divide 2,210,000 rubles by 180,000 rubles, we get a little more than 12 months.
Due to the low barrier to entry into the business and its high profitability, the auto parts market is characterized by very tough competition. Therefore, it is important to choose your own specialized niche, in which you will need to distinguish yourself with high quality service. Examples of such niches:
- right-hand drive Japanese cars (rare parts, can be brought to order);
- foreign and domestic trucks (heavy wear and tear due to commercial use);
- domestic passenger cars (often break down).
The most popular products, regardless of niche:
- engines;
- bumpers;
- side doors;
- brake lights;
- headlights;
- side mirrors;
- hubs;
- racks;
- pendants.
To simplify the work of a sales manager, you can use special programs. The manager will have access to information from a single source. The saving of his working time will be 30-50 hours per month. The payback period for such a program is 1-2 months. One of the good options for such a program is “Auto Business Assistant”.
For a motorist, the most valuable qualities in a salesperson are the competence and ability to help in selecting the necessary part and to adequately assess its quality. The customer will become more loyal if it is possible to return a defective part. When selling, it is important to give it a guarantee, which is provided by law. It is important to create in the client the feeling that he has purchased the best at the best price, and if something happens, the money will be returned to him.
Not the best option is to lure people with penny discounts or low prices. This will alienate those customers who believe that good things don’t come cheap. In addition, your credibility, which accumulates over the years, may suffer.
So, after assessing all the risks and expenses, you can start your own interesting, but difficult business of trading auto parts. Income will gradually increase over the years if everything is done correctly.
- This is a valuable purchase, which, if it breaks, will definitely be repaired. No one is immune from accidents and collisions. In addition, the car needs a scheduled replacement of filters, tubes, pads or spark plugs. Therefore, to purchase consumables, parts and accessories, it is beneficial to open auto parts stores.
The shops are popular with motorists. Here they look for the necessary spare parts and components, come for answers to questions regarding car breakdowns, and look for car cosmetics and accessories. People come to the store to buy additional materials, paint, moldings, covers, floor mats and alloy wheels.
- There is always a demand for spare parts. Every motorist visits a car store at least once a year and buys something. How many motorists are there in each city?
- The choice of goods sold is unlimited. It is not necessary to sell specialized parts. Cars require care, so it is worth selling car cosmetics. Every vehicle requires winter tires, antifreeze and brake fluid.
- An auto parts store does not require a large initial investment. If you do not have start-up capital, but you understand cars and want to sell spare parts, then you can do this from home or via the Internet.
- The downside is competition. There are many people who want to sell spare parts, so proper organization, reasonable trade policy and constant research of the situation on the automotive spare parts market are required. Let's talk about certain subtleties that will help you implement it.
How to open an auto parts store from scratch and take goods for sale?
Start working to order, or take spare parts for sale. To do this, you need to understand cars, the quality of spare parts, know the demand and have reliable suppliers, preferably manufacturers that produce proven spare parts or materials. Open an online store and sell parts through it.
In this case, you will not need a huge amount of money. They will order a part for you, you will buy it from the supplier and resell it. The markup on spare parts is your income. It is important at this stage to have conscientious suppliers, sell quality parts and gradually build a customer base.
You will have to work in this mode for at least a year to earn a reputation, create a circle of customers who trust you, and save up money for a spare parts store. But, when you open a store, you will have a lot of experience, a customer base and good suppliers.
By the time the store opens, you will know what is best to sell and what is in demand in the region. In your business plan, note what can be sold and at what markup. trading, and what positions you will enter later. List the assortment that must be present on the shelves, and how to replace the sold spare parts.
Determine a category of constantly selling accessories or car cosmetics, the sale of which brings a stable, albeit small, profit. Choose the direction of trade, assess demand, depending on the cars used in the area. Calculate how much profit you will make if you sell at least half of the products.
Chat with auto shop and workshop owners. Find out what is in short supply and what parts are constantly being purchased. Agree with auto repair shops so that they advise you to take spare parts from you, or the masters themselves will begin to directly purchase parts from your store. But for this, you must guarantee and constantly monitor the quality of the assortment.
Mandatory business registration
To open a store it is not necessary to open a legal entity. Register as well as register with the tax authorities. As an individual entrepreneur, you will be able to rent, build or buy premises for a store and obtain the necessary permits from inspection services to organize trade. You can collect the documents yourself or entrust them to lawyers.
- Location. It is better to locate the store along roads, car workshops or gas stations, through which a large flow of people passes. So, you will provide spare parts for passing by or random drivers who find themselves in an emergency situation on the road.
- Room. Divide the store area into zones: a reception area, where you will place counters with goods, a recreation area and a storage room with stored spare parts and components. The size of the zones depends on the area of the room and the number of assortments.
- Direction. Decide which spare parts you will focus on in trading, or decide which accessories you will start trading.
The direction of sales directly affects the assortment. Choose reliable suppliers, go for the goods yourself or make deliveries from enterprises. Create a selection of spare parts depending on price, do not exclude cheap analogues, but warn about operational difficulties. Don't forget about quality and durability.
Teach your staff how to navigate the assortment and, first of all, understand what each part sold is for, its features and quality. People often come to the store to look, get advice or ask questions, so choose friendly, sociable and sociable staff. Introduce an incentive system for salespeople to get them interested in selling.
Tell customers about the store. Therefore, it is worth organizing the right advertising campaign.
- Order advertising on television or in newspapers. Don't forget to indicate the main feature of the store. For example, you sell domestic or, conversely, only imported spare parts, sell Japanese car cosmetics or red antifreeze at a discount.
- Hand out paper advertisements, post notices around the city, and spend some money on billboards along the roads.
- Create a website on the Internet. Post messages about new product arrivals, discounts, promotions or price reductions. Sell spare parts through an online store, take orders and increase your clientele.
It is not necessary to have a lot of money to open an auto parts store; there is the Internet for this, and it is not difficult to turn one point into a retail chain with a range of products for motorists. The main thing is desire and interest in cars, which will help you realize your idea and start selling auto parts.
The goods can be taken from suppliers for sale after some time, when they get to know you better and trust you.
Good luck to you!
Similar ideas for auto business:
Nowadays, almost every family has a car and the number of car owners is growing steadily from year to year. This trend will continue to be observed, despite the economic situation. It is not difficult to guess that in proportion to the growth of cars on the roads, the demand for spare parts will also increase. Thus, opening an auto parts store can be a successful investment and a guarantee of a stable income.
Despite the existing competition, there is enough place in the sun for absolutely everyone. Investments in this business can be
the most minimal - to open a business, it is initially enough to have 200-300 thousand rubles, but income can be up to 110%.
Where to begin?
It is advisable that a person who decides to open an auto parts store had a good understanding of the product and the peculiarities of trade. Otherwise, you will have to trust suppliers and hired specialists, which is quite a big risk.
First of all, you should analyze the market: find out whether there is a demand for spare parts, what is in great demand, and so on. Decide on the specialization of your auto parts store.
It is important to identify the distinctive feature of the store being opened so that it is somehow different from its competitors. So, you can specialize in domestic car models. The assortment needs to be thought out in advance at the planning stage.
For cooperation with legal entities (large car depots, taxis). This is also important if you do not want to stop at one store and plan to open branches and other stores in the future.
The next steps are selecting premises, ordering office equipment, recruiting personnel, choosing a supplier of goods, drawing up cost estimates (business plan). They are very important, so let's talk about these points in more detail.
If you have financial resources and if the premises allow, a car wash, tire service and auto parts store can be combined and opened in one place.
Selecting a room
The area of the premises should be determined by the chosen store format, as well as the available capital. If finances are limited, you should not look for large areas. To begin with, you can open a retail outlet of 15-25 square meters. m. and work on a pre-order basis. There is no point in creating a large warehouse of auto parts with limited capital.
So just allocate an area for storing the most popular goods and that will be enough. Thus, brake pads, spark plugs, oils, oil filters, light bulbs, etc. are in demand in any store. Other spare parts can be ordered through the catalog.
Having a store near a service station would be ideal. In this case, there will always be customers, unless the station has its own retail sales departments. The ideal situation is if, even before opening a store, you understand who your potential customers are.
Also good places for an auto parts store are shopping centers in crowded places, office centers or free-standing buildings in a residential area of the city. Do not consider premises with high rent, even if they are located in the city center.
At first, the store may operate at a loss, and high rent will only spoil your mood and place a heavy burden on your shoulders. It is important that there are no stores nearby with a similar assortment as yours. And lastly, try to find a room with parking available for clients.
Selecting assortment and supplier for the store
If we talk about the assortment, you can sell only specialized auto parts, or you can work with both foreign and domestic spare parts. The demand for domestic spare parts is still higher, since there are more domestic cars in our country. In the case of the Russian assortment, it is easier to calculate the minimum configuration.
When choosing a supplier, compare prices and only then make a choice. Compare prices with your competitors; if they vary greatly against you, look for other suppliers. It is advisable to have several partners, this is the key to the stability of the store.
Official dealers do not offer counterfeit products, so it is better to choose them. When collaborating with official manufacturers of spare parts companies, you will be able to use on your sign the logos of the cars for which you are selling spare parts. Your reputation will largely depend on the reliability of the supplier and his work, so before concluding an agreement, be sure to read reviews about him on the Internet.
Advertising and Marketing
In addition, you can distribute business cards, print in advertising pages of newspapers, specialized publications, hold exhibitions, and so on.
Staff
It is unlikely that you will be able to work seven days a week without days off. Try to find an experienced salesman who knows the design of cars and knows how to sell the product well. He must not only know the available assortment, but also visually represent it. It is also important to be able to carry on a conversation, help solve problems and select the right part.
Calculation of a business plan for an auto parts store
You will have significant expenses, and you definitely need to draw up a business plan. It is needed in order not to miss anything and to clearly indicate upcoming expenses. A sample list of expenses would look like this:
- registration of an individual entrepreneur or LLC;
- expenses for renting premises;
- purchase of goods;
- salespersons' wages;
- store equipment;
- advertising;
- taxes.
Online auto parts store
Opening an online store will help attract additional customers and simplify the task of finding suppliers.
All that is required is to create a website, enter the range into a single database and update the information daily. If you create a database yourself, you will have to scan manufacturers' catalogs, recognize texts and create a unified format.
Opening an online auto parts store is not much different from. You will need a website and advertising.
At first, you don’t need an office or a warehouse - this is the main advantage over an offline store.
If you already have a store, then you can get additional customers from the Internet.
