Marketing research of an auto parts store should answer the main question: how profitable this business will be and how quickly investments in it will pay off.
An auto parts store business idea can be the start of a big business of your own, or it can lead an entrepreneur to ruin if the market opportunities are not properly assessed.
Marketing research: where to start?
First of all, in marketing research, you need to find the answer to the question for whom the new store will supply spare parts. It is highly desirable to find statistics on the number of certain brands of cars. For example, in small towns with bad roads, car brands with good suspension are popular: Renault, Ford, Niva, Chevrolet.
Then it is necessary to identify the level of competition and the degree of satisfaction of motorists with the supply of spare parts. A lot of information can be obtained from car service masters who are well aware of local needs for spare parts and their sources of supply.
After that, you can decide on the choice of auto parts store specialization and car brands for which spare parts and accessories will be sold. In addition, you need to decide on the range of spare parts for sale, since the size and layout of the store will depend on this. For example, for the sale of motor oils and tires, you will need a large room and an accompanying warehouse. And for the sale of auto electronics and auto chemical goods, a lot of space is not needed.
The main thing in retail is the choice of the location of the outlet
The next step in marketing research should be choosing a location for the store.
Based on the range, you can pre-estimate the size of the room and its layout. As for a place for an auto parts store, you need to take into account the need for convenient access and parking so that the driver does not have to carry large parts on himself for two blocks. Very advantageous for locating an auto parts store can be the proximity to a car service, from where the main flow of orders will come.
Auto parts store: what will you have to invest in?
As for the store equipment, everything is much simpler than in other types of business. It is enough to equip racks for bulky goods and purchase display cases and shop equipment for small spare parts.
Spending a lot of money on the design of the room is not necessary, but good lighting must be provided.
It is essential to have a stock management computer program to quickly locate parts by part number. It is also advisable to have an Internet connection in order to search in doubtful cases.
The initial cost of setting up an auto parts store will consist of:
— the cost of purchasing, repairing and equipping the premises;
— purchase and installation of commercial equipment;
— purchase of the initial batch of goods;
— cash registers, computers and software.
In the initial costs, it is also desirable to take into account the cost of advertising a new store.
The running costs of an auto parts store will include staff salaries, transportation costs, rent and utilities, and advertising.
The initial investment in implementing an auto parts store business idea can range from $800,000 to $3,000.
More accurate will help to get a marketing research and a detailed business plan .
Operating expenses, depending on the specialization of the store, range from 500 thousand to 1 million dollars. The profitability of an auto parts store is about 20%, however, it is better to order a more accurate calculation and a ready-made business plan on our website .