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Home business idea with minimal investment
Let's clarify right away that a small team of our site has made a certain product, which will be discussed below, and has been successfully sold. Naturally, they did not do production on a stream. Just curiosity.
Also, to be extremely frank with you, we add that all the necessary equipment was provided by our friends. But this does not mean that it is necessary to spend a large amount to purchase it, you can simply contact specialized firms and use their services. Do not save up money to purchase it yet.
Why did we choose to name this article a home business idea? Yes, sweat that everything can really be done at home, now you will be convinced of this. By the way, the niche is practically not filled, or rather, filled with ordinary stampings, but not exclusive ones.
The essence of the idea is simple, to produce exclusive spare parts for large-scale models of cars, tanks, aircraft, special equipment, etc. What's new here you ask, how many of them are sold. Several pieces for each model.
Auto parts store, especially focused on foreign cars, has fundamental differences from most retail outlets. The owner has to professionally know cars as a technical object, since the goods sold by him at retail or in small wholesale affects the safety of vehicles.
“Despite the fact that manufacturers are responsible, the problems can be very serious,” says Andrey Mikhailov, director of the Avto-Nosorog store. - I happened to have threats in my address for the fact that I sold allegedly counterfeit, which caused an accident. Therefore, I do not advise amateurs to go into this business, if only because they will not be able to prove their case. "
On the other hand, many experts consider this business to be an interesting business that guarantees stable income in most cases. So, we will figure out where to start selling auto parts, and what you need to know to make your business successful.
In order to be in demand, a product must be in demand. This axiom fully applies to the sale of parts and assemblies for cars. This is evidenced by the annual 10-15% growth in the capacity of the Russian market in this direction. Experts are confident that, despite the growth in the value of the currency, in two or three years, auto parts worth $ 65 billion will be sold in Russia.
“This is a huge and dynamically developing segment of the economy, which attracts more and more participants every day,” says Michael Wales from Great Britain, specialist of the Automotive Russia project. "We can safely predict the opening of new stores."
In other words, from the point of view of macroeconomic indicators, owning an auto parts store can be considered a profitable endeavor. I wonder what the sellers themselves think about this? Here is one of their opinions:
“In Russia, especially in the provinces, there is a cult of cars. Now there is a demand from customers from the first and second waves of mass purchases of foreign cars. These are the people who purchased their imported "iron horses" in 2021-2021. It’s time for them to either sell the car cheaply in a diving economy, or put the existing equipment in order. Most often they do the latter. The demand for auto parts is growing steadily. "
Thus, there is every reason to believe that the business idea "Your own auto parts store" can be considered relevant.
Specialization and Marketing
This is the first. Second, experienced marketers strive for diversification and believe that retail should cover 70-80% of turnover, and the remaining 20-30% should be tied to small wholesale contracts:
It is not uncommon for entrepreneurs to think about the car business. This is because there are more and more vehicle owners every year, and as you know, cars like to break down, need constant inspection and maintenance. One of the most profitable ideas in this area is to open an auto parts store, and you can choose the direction that the businessman likes. When opening a business, you can choose a concept - to provide services and provide parts for Russian cars or foreign cars, arrange a mixed business, buy the rights to a franchise, or create a business from scratch.
When choosing any option, an entrepreneur cannot do without a well-developed business plan containing all the main stages of creating a business. Only after a thorough analysis can you proceed directly to creating a case.
The main nuances of the idea
Before opening an auto parts store, an entrepreneur must understand all the nuances of the case - ideally, a businessman should independently understand cars, have experience working with parts.
The main subtleties of business include:
- There is a stable demand for car parts - it mainly increases at the beginning and at the end of winter.
- Selling all existing parts for machines is simply impossible - you need to choose a direction and develop in it. Over time, the assortment of the store can be supplemented.
- Do not sell the same parts - originals and copies, because this will narrow the store's already small assortment.
- It is important to sell related products such as motor oil.
- Such a business will always have a high level of competition, especially in big cities.
- It is required to hire specialists who can not only sell, but also understand the topic - they can advise, suggest how the components are installed.
Is it profitable to open a store that sells auto parts?
To understand the answer to such a difficult question as whether the business will bring benefits, you need to do your own research, and start with your future competitors. If the business is thriving, clients are constantly coming to them, then we can conclude that the business is going well.
We need to try to figure out all the details - from the suppliers they work with to what the salaries of their employees are. Fortunately, there will be many competitors in such a business, which will make the collection of information easy.
The demand for auto parts is not falling, as the number of motorists is not decreasing, even despite the constantly rising price of gasoline and other factors. To open a successful business, you need to fully understand the future business, understand what competitive advantages your store will have, weigh the pros and cons.
What competitive advantages can you leverage?
Currently, many people are interested in car dismantling as a business. This is a very profitable business. The owner can receive income from one disassembled car that is one and a half times higher than the cost of the car. Auto-breakdowns appeared in ordinary garages. Previously, anyone could start providing such services. Today, large firms and companies are engaged in such business, since it is a very profitable business.
In this review, we will take a closer look at autoparsing as a business, the pros and cons of this case, as well as its main features.
The process of disassembling vehicles for parts for the purpose of their further resale is one of the ingenious ideas for generating a stable income. Today, such a business as auto dismantling is developing in all countries of the world. This market is currently in great demand among both clients and specialists in this field. For example, more than 20 thousand people are involved in the showdown in England. Many European communities make good money from the maintenance of auto breakdowns. There are even specialized supermarkets in Holland.
Why is auto-parsing as a business idea so popular? Prices for new parts required for repairs are very often prohibitively high. People are simply not ready to spend such amounts. In addition, there are often situations when it is not possible to find the right part for the simple reason that it is simply no longer produced. In this case, there is only one option - to go for disassembly. There is always a good selection, and the prices are quite democratic. Most often, owners of old cars use the services of auto dismantling. It is on such vehicles that it is most difficult to find parts.
What could be an auto dismantling business? There are two main types, which require different start-up capital and differ in the way they do business.
The first is the garage disassembly. The principle is as simple as possible: a faulty or damaged car is bought at the price of scrap metal and disassembled into parts that can be sold separately. The profitability of the business can be as high as 300 percent. For example, having bought a car in disrepair for 50 thousand rubles, it can be sold for spare parts for 100-150 thousand. The advantage of this type of business is also the minimum initial capital. It is enough to have a garage and 45-50 thousand rubles. It is best to start with the cheap segment: Japanese and German cars of the 90s. It is also profitable to buy domestic cars, such as the GAZelle. Business autoparsing may gradually move to other categories of cars. If you are going to engage in this type of activity officially, do not forget to indicate the OKVED code when registering.
Garage disassembly has its drawbacks. It is difficult to predict the payback period for one vehicle. Spare parts can lie in the garage for years. Also, in the future, one room may not be enough. It is advisable to enter the market if you have the opportunity to rent a warehouse or several garages at once. In addition, there will still be spare parts that cannot be sold.
The second option is the supply of auto parts to order. This direction at all times was considered elite. Business profitability can be up to 1500%. The idea is this: you receive an order to supply a part from Japan or Europe, buy it at a low price in the "car graveyard" and sell it at a premium. This kind of business used to be very profitable. Many Europeans scrapped cars in very good condition. Even so-called "transshipment" points for Russian buyers of spare parts have emerged in the border areas.
Today, this business is gradually dying out. The reason is mainly due to the emergence on the market of a wide range of new parts from China at a low cost. Plus, automakers have changed the way they do business. If in the 80-90s cars were designed for millions of runs, then for cars in the 2021s, 400-500 thousand mileage will be the limit. In the coming years, this resource is expected to fall to 250 thousand. Soon there will simply be nothing to disassemble the cars. For vehicles manufactured after 2021, depreciation by 15 years will approach 100%.
The economic crisis has seriously affected the activities of overseas auto dismantling. After a sharp drop in the ruble in 2021-2021, the average prices in rubles for engines and other parts for cars from Europe and Japan almost doubled.
Prices and Demand
The topic of selling spare parts is popular and is of interest to many, despite the high competition. For those who are ready to work in difficult conditions without a guarantee of results, there is a chance to try.
The issue of competition has become easier, now the car market has:
- official dealerships;
- Internet portals;
- small businesses.
How to compete with dealerships is clear - their prices for spare parts are always high. Online stores competing in price reduction, as well as small companies that already have experience and their clientele, will have to resist.
This is a risk that you need to be aware of. But if you look at the situation more positively, then you can take into account the fact that crises give an opportunity to rise, this chance can fall even to a beginner with the correct organization of the auto parts trade.
According to statistics, the demand for imported cars has slightly decreased. On the other hand, interest in repairing existing machines has grown. Thus, we can conclude that the crisis situations affected the auto parts market least of all. There is a tendency to expand it.
Along with requests for original spare parts, a steady demand has emerged for auto parts similar to branded ones, which are sold at low prices, and used parts. This applies to owners of domestic cars and foreign cars older than 5 years.
Trade in auto parts for expensive cars has not changed. The demand for them does not fall, since in this case the owner tries to avoid problems with repairs after installing a lower-quality analogue.