Business idea: auto parts store

Business ideas by directions

The constant increase in the number of cars and bad roads are the main factors in the relevance of the auto parts store business idea.
The owner of such a store can be sure that the needs of customers for his goods will never decrease. More than that, the older the car gets, the more parts it needs.

However, the auto parts store business idea is actually quite complex to execute.

This is due to the fact that for qualified assistance to motorists, special knowledge is needed. Safety on our roads depends on the correct selection of spare parts.
As you know, each part of the car has its own unique number, thanks to which you can choose exactly the spare parts that are needed.
However, in many cases, the owner of the car is not able to accurately indicate the part number. In this case, the knowledge and experience of an auto parts seller is indispensable.

Another complication of the auto parts business lies in the huge number of different makes and models of cars.

Manufacturers release new brands of cars every few years, not to mention numerous modifications. Often, the changes made to the design of the car are so radical that the main spare parts even for the same model of different years of production differ from each other.
Therefore, when implementing the business idea of ​​an auto parts store, it must be taken into account that the desire for universality is not the best way to develop in this type of business.
Most experts recommend that auto parts store owners focus on specializing the store to sell parts for certain car models. This allows, firstly, to facilitate the path of the motorist to the store, and, secondly, to ensure the availability of the most popular spare parts on sale.
By the way, the set of the most running parts is very different in different regions. This is due to both climatic conditions and the quality of the road surface, and other operating conditions of the car.
In order to correctly determine the list of models in which the auto parts store will specialize, as well as the list of the most popular spare parts for cars, you need to conduct a marketing research even before starting to implement the auto parts store business idea.

The inventory of the most popular auto parts should be higher than the stock of other goods.

Marketing research will also help to identify the level of competition, the optimal margin and the range of related products that the store will sell.
For a successful start of the project, it is very important to understand what exactly the store will sell in order to correctly allocate retail space and not keep working capital in stocks of slow-moving goods.

The specifics of the auto parts store business idea is that often the purchase of spare parts is associated with the subsequent return of goods.

This can be caused, for example, by the fact that the spare part number was incorrectly specified at the time of purchase, or due to the quality of the spare parts. Therefore, the owner of an auto parts store needs to have reliable and sane suppliers who, in turn, will be ready to accept the return of a low-quality part.
As a rule, contracts concluded on such terms have less favorable delivery prices, however, they allow improving the quality of customer service.

The ideal option for opening an auto parts store is its connection with a service workshop.

In this case, the store receives timely information about the necessary and running spare parts, as well as buyers sent to it by car service masters. On the other hand, a car service has the ability to complete work faster when the spare parts needed for repairs are in a nearby store.
The implementation of the business idea of ​​an auto parts store and a car service at the same time allows you to get positive effects for both types of business and quickly reach the profit zone.
Experience shows that a properly selected range of store products, as well as other parameters determined through marketing research, can pay off the initial investment in an auto parts store business idea in a period of six months to a year.

If an entrepreneur is trying to create a large department store for auto parts, then the size of his initial investment increases several times, and the payback period is delayed by several years. Therefore, it makes sense, in the case of a successful development of an auto parts store for certain brands of a car, to go along the path of creating a network of auto parts stores, and not along the path of creating one large department store.

To choose the right strategy for a successful start of a business idea, you need to conduct a marketing research, prepare a high-quality business plan and make the necessary calculations of the profitability of a business project in advance.

Our experts can help you with this.

On our website you can order the necessary calculations and a ready-made business plan .