auto spare parts shop

Discussion in 'Growing and Managing a Business' started by muhdthufail, Oct 19, 2010.

  1. muhdthufail

    muhdthufail
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    im planning to start an automobile spare parts shop. I wanna get an idea of the following;

    1) How much will it cost me to fill a small scale shop with auto spare parts of all types of cars mainly japanese models
    2) What is the area of room space required for a small size auto spare parts shop
    3)Does a mechanic essential to be appointed to fix the parts into the customers cars

    Awaiting your feedbacks
     
  2. Fergal

    Fergal
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    muhdthufail Welcome to Business Advice Forum, thanks for joining and posting your business questions.

    What country, city or state would you be setting the business up in?

    Have you any experience of working in this type of business? If not, do you plan on hiring someone with that experience?
     
  3. GekiDan

    GekiDan
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    What makes you enter this kind of business?
    Do you have a good knowledge and experience in cars?
     
  4. typierboots

    typierboots
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    May be you can start online shop?just a idea.
     
  5. youngkia1

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    Nice to know that we have the same field. I'm into auto parts/spareparts business. At first it was starter on my community with small capital of $500 for the supplies. I'm just renting space and i must say that i got a good place. It was in the middle of school and market which a lot of passers by. With your question.

    1. Japan model are quite expensive but it is very click to the market. On my case like what i've said i just start $500 but that was few years ago. Minimal stock of supplies and those everyday supplies are my target such as tire, knots etc. ITry to check which is the most sellable on your place so that you would know or you will got an idea with your target.

    2. You can start even a small place, you can rent or build your own. A room type of space is good enough for the beginner. Like on my case,I only have a minimum capital so expected that minimum supplies i can sell, so if i will going to rent a very big space for minimum supplies it doesn't make any sense right? If you have a big capital for supplies then its good to go for a big spaces. One tip i can give with regarsd to place, check the background history and look for a place tht very accessible in the market as well as electricity/water supply. Those are the primarily thing that need to consider when putting up a business.

    3. If you have a lot of knowledge and know for your self that you can handle it then that's good to go, hiring another mechanic wil increase your budget snce your just starting up. But on my part i hired one mechanic because when i enter this business i only have few knowledge bout it.

    Hope those tips help you. Good luck and welcome to the community.
     
  6. muhdthufail

    muhdthufail
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    @Fergel and @GekiDan : -
    I'm residing in Abu dhabi of United Arab Emirates. I dont have prior experience in auto spare parts business but i do have a fair knowledge of auto spare parts since i own a car. My decision to start a spare parts shop is because here in UAE, the local citizen have extreme passion for cars and 4WDs and also 75% of expatriates have their own cars. So i guess there would be always demand for such business and it would be good decision to start this business. Since i do not have thorough knowledge of the spare parts and about this business i would prefer to hire a sales man or an experienced person in this auto spare parts shop to start the business with.

    @Youngkia1:-

    Thanks a lot for your detailed reply.
    Here in Abu Dhabi (Capital of United Arab Emirates), Japanese vehicles are found mostly on roads. Typical Autospare shops sell mostly items like brake pads, engine belts, batteries, headlight bulbs, air and oil filters and so on. So i guess i will also sell the same items. Tyres are sold by tyre shop.So i guess tyres cannot come in this catagory. Since i dont have thorough knowledge of autospare parts and im only a beginner i guess i will hire a sales man. Please advise me on the following based on my above points;

    1) Will selling only be enough for smooth business or is it essential to do repair & fixing of these parts by appointing a mechanic ?
    2) What would be the approximate cost to purchase and fill a small size shop ? .
     
    #6 muhdthufail, Oct 24, 2010
    Last edited by a moderator: Oct 24, 2010
  7. Fergal

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    muhdthufail the fact that you have limited experience in the business would mean that you will really need to involve someone else in your business who has the required knowledge. Would your preference be to take on a business partner or do you have the budget to employ someone with the necessary knowledge and experience?

    Another option would be to consider starting the business in a small way. For example you could decide to start supplying parts for one type of car only, become known as the main supplier of those parts in your area. Once you have gained knowledge and experience of running the business you could branch out into supplying parts for different types of businesses.
     
  8. youngkia1

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    Muhdthufail I'm agree to Fergal if you think that you really need someone to accompany you with your business it is adviceable for you to hire a mechanic. With regards to yours questions:

    (1) You can actually decide that on your own by observing the market on your place. Monitor your market place just like what I've said before. On that way you will going to get an idea which will you go to. For example if you If you found that your target market needs a mechanic for extra service then it is adviceable. If your competitors has an extra service giving by their mechanics well you have to go along with them. As much as possible don't let you competitors lead the market. If you can give extra service then it is much better especially for the beginners. Freebies and free service are the trends to catch the attention of your customers. If you satisfied your customers, that is your start to gain a loyal customer and with luck those loyal customer will help you gain another customer by word of mouth cause of your good service.

    (2) Every country has a minimum or standard rate for renting space but with your country I don't have any idea with the pricing or rent quotation. But with mine i started renting space for about $300 per month. Try to bargain with yours, they might give you a good deal. ;)
     
  9. GekiDan

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    I just wanna add that it's better if you hire someone you personally trust and know that's knowledgeable in the job.:)
     
  10. youngkia1

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    I'm agree with you, you need to hire a trusted person because nowadays there are a lot of people who help you for a reason. It's either good or bad reason. So it is better if you are at ease with the person the you are hiring to. :)
     
  11. muhdthufail

    muhdthufail
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    Your advise is really helpful. thanks

    Thanks again.
     
    #11 muhdthufail, Nov 1, 2010
    Last edited by a moderator: Nov 1, 2010
  12. Kay

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    Great suggestions! The idea of building a reputation around one particular type of car is a good solid one that you don't want to overlook. Find out what's for example the ten most popular cars and from there look at which one is the hardest to obtain parts for locally. When you find the gap, step in and fill it.
     
  13. youngkia1

    youngkia1
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    Good luck to your up coming business Muhdthufail, hope you will updates us with regards to that. Cheers. ;)
     
  14. muhdthufail

    muhdthufail
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    Nice suggestion

    This is indeed a good suggestion. I will do a study based on this suggestion

     
  15. William King

    William King
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    I think it depends upon the area in where you want to start your business because the costs pf property and raw material depends on this factor
     
  16. tomwiller

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    It depends on what type of cars your are focusing on. The larger the cars the larger the place and I think it is expensive. Also manpower is needed if more customers are getting their car fixed. :D
     
  17. cltwhite

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    First of all you need to make a proper survey. Check out other car parts dealers and whether the location you are starting is well for business. You can also refers to some big car parts dealers and check out there strategy. Visit as a customer and see there working. You can get car parts dealers near your location here check out Drnew.com Also check out for your budget and where you can get all goods in cheaper rate. You will also need workers for fixing the parts on cars.
     

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