How to open a business selling car parts at a service station

Are you – the owner of a car repair shop? Looking for a new level of income? Consider opening a department that sells parts and accessories for car repairs.

• Firstly, it's an additional service for customers, because they don't have to spend time searching  and visiting other outlets
• Secondly, it is a good addition to the profits of the service station.

What you need to open a car parts shop, read below.

Business Plan for Opening a Car Parts Store

Any successful business requires clear planning, from generating a business idea to allocating a budget.

So, start by thinking about what direction you're going to take:

• selling parts for domestic, European or Asian-American cars
• selling original spare parts or analogues, etc.

When choosing a direction, it is best to focus on the car brands of regular customers of your car service, otherwise the demand for the proposed product may be low.

It will not be superfluous to expand the range of products, offering motor oils, auto chemicals, accessories.

It is not superfluous to expand the range of products, offering motor oils, auto chemicals, accessories.

You can also open an auto parts shop online. This way, you'll draw more attention to the physical point of sale and generate revenue through online sales.

Facilities and staff

So, since we are talking about an auto parts shop at a service station, you have two options for organising your workspace: to allocate part of the usable space for the point of sale in the checkout area or waiting room (because that's where customers are most likely to be), or to equip a separate building for the shop. What to give preference – choose you. The main thing is that the customers themselves pay attention to the point of sale.

If you will be selling not only auto parts, but also flammable, explosive liquids (fuel, auto chemicals, etc.), take care of a high level of fire safety of the shop.

For the auto parts business to make a good profit, you will need experienced salespeople. It is a good «salesman » will be able to properly advise customers who will definitely come back to you, and at the same time advertised to their friends and colleagues. Also hire a responsible and attentive cashier, purchasing manager, security guard.

Search for Suppliers

Selling any product, including auto parts, involves finding suppliers. To make your business profitable and not a headache, it is important to deal with responsible partners who will ensure quick delivery of quality goods at attractive wholesale prices.

Sourcing

Sourcing suppliers

For your business to be profitable and not a headache, it is important to deal with responsible partners who will ensure quick delivery of quality goods at attractive wholesale prices.

If you aim to sell original car parts, work with authorised dealers of manufacturers. This way you will avoid counterfeiting, get the necessary accompanying documentation, and be able to legally use the logos of the brands you work with.

By doing so, you will avoid counterfeiting.

With profitable partnership agreements, you will be able to take products on a sale or instalment basis.

Opening costs

How much money you will have to invest in opening an auto parts shop depends on the region of the Russian Federation in which you operate.

Estimate of the main costs:

• Documentation for business services;
• rent or construction of the premises (if it is a free-standing building);
• equipment of the point of sale (renovation, shelving, racks, display case, office equipment, interior and exterior decoration;
• purchase of goods;
• procurement of goods;
• payment of utilities;
• paying taxes;
• offline advertising (production and distribution of printing, use of mass media, etc.), online advertising (website maintenance, placement on trading platforms, context, etc.);
• staff salary.

Also take into account that at first the shop auto parts will work in the minus, so you need a reserve of cash for monthly payments and unforeseen expenses.

Profit

When trading in inexpensive auto parts, you can safely put a markup of 100-120% on many items. On the sale of original car parts you can earn 25-30% for one unit. However, before setting prices, be sure to research competitors' offers so that you don't inflate the average market value of the goods on offer.

So, think through the business plan and safely open an auto parts shop at the service station. It will not only bring a significant income, but also with competent management will cover the downtime for non-seasonal works of the car service.

All of the above.