If you’re passionate about cars and have a business-oriented mind, starting your own car parts business might just be the right option for you. You can offer parts for any type of vehicle, whether it’s a hatchback, saloon or SUV. With a part shop, you can choose to supply retail customers, trade customers, or a mix of both.
Ensure your business has sufficient motor trade insurance
In this practical guide, we hope to equip you with the knowledge you need to start your own car parts business. If at any point you’re handling a customer’s vehicle, perhaps your offering maintenance and repair services as an addition, you’ll need adequate motor trade insurance. Utility Saving Expert, an online comparison site, can easily help you compare cheap motor trade insurance. You can filter policies by features and price, and it doesn’t take longer than 15 minutes to obtain a free no obligation quote. Let’s get back to car parts.
The first thing to know is that your customer base is likely to be a combination of private motorists and motoring businesses such as repair garages.
For retail customers, the type of motorist that will visit and buy goods from your store will largely depend on what products you sell. This could include the following:
- Someone looking to purchase goods that do not necessitate any real mechanical knowledge e.g. engine oil or screen wash.
- Experienced home mechanics that require parts to service and repair their own vehicles.
- Anyone who wishes to modify a stock vehicle e.g. installing a new exhaust system or replacing wheels.
Most customers won’t want to travel long distances to visit your car parts store, so location is important to your business’ success.
For trade customers, you’ll be selling parts and accessories to the motor trade, this is referred to as ‘factoring’. Before getting involved, try to find out how much demand there is from independent garages and other local businesses. You can search online to find out how many different repair garages are available in your local area. Other businesses that require parts and accessories include: car dealers, specialist tyre and windscreen fitters and valeters. It’s worth contacting these businesses to see if they would be interested in making use of your services.
A competitor analysis is another important element when starting a new business, and this also applies to car part dealers. You’ll be able to understand if your potential customers are already well served by existing businesses, or if there is an opportunity in the market for you. Think about the various businesses that you’ll be competing with. This includes large store chains, supermarkets and petrol stations. Visit a few of your main competitors and find answers to the following questions:
- What size is each outlet
- Are they part of a large national chain?
- Where is the store located?
- Are they great places to do business or old run-down warehouses?
- What types of products do they focus on?
What level of service will you offer?
Most customers will expect you and your team to provide a certain level of service. You may be asked for advice on the suitability of a specific car part or accessory, the advantages of using one product over another etc.
Other questions include being asked for advice on car repair and servicing processes. A technical mechanic may want further details about the product’s specifications before purchasing. Essentially, you and your employees need to be well equipped with this knowledge beforehand. If you’re not able to answer a query on the spot, that’s fine, as long as you’re able to quickly obtain the necessary information from the manufacturer or supplier.cheap
As with most motor trade businesses, the retailing space is very competitive. Finding ways to differentiate your offering from your competitors will help you succeed. Here’s a number of services you could be providing to your customers:
- A free reliable delivery service for trade customers
- A car parts or accessory fitting service
- If parts are not in stock, you’ll need to source these as quickly as possible
- Exchange or refund of parts that don’t fit or aren’t needed
One of the best ways to reach customers across the UK or even worldwide is to sell car parts and accessories online. You can do this through your own company website, Amazon or eBay. This will help you boost overall sales.
Your website can also be used for customers to reserve items for collection and see what’s in stock.
With any new business, you must create a business plan. This will outline the financial aspects such as expected income and investment costs. As well as carrying out a market analysis to help you thoroughly understand if your business model is viable. Other aspects to consider are partnerships with existing firms and how you plan to market your car parts company.https://www.gov.uk/write-business-plan
To conclude, starting a new business will be a big challenge for anyone involved. It takes a lot of hard work, planning and perseverance. There is ample opportunity out there and offering great products and a high level of customer service will help you become successful.