setting up an online business for performance parts.

[JoeRS133]

Is there a market for it or are the large companies like Demon Tweeks etc killing ot?

The reason i ask is because im looking into setting up a business with low risk small scale.
I don't want to be renting out a shop or have a real presence as its a huge risk.

Is there a market for aftermarket parts? If i start off small is it even worth it do you think?

What are people looking for from.an aftermarket parts site?

Customer service?
Price?
Variety of products?
Does fast delivery matter?

 

[Matt]

The only way to make money from "small parts" is to bulk buy from wholesalers. You may hang onto the stock for a while but when it finally shifts you'll be better off than selling fewer products bought in lower quantities.

 

[JoeRS133]

This was my thinking for example buying 100x RS panel filters or brake lines.

Like i say im in the very early stages of everything at the moment. The research phase so to speak and theres so much to look into its unreal. I think the main reason im looking to this is i work my ass off and as an ex soldier if i work my ass off at present yet still receive the same basic wage. If i work for myself to an extent what i put in i get out.

 

[singlespeed]

If that was the case, you would need to be very competitive to tempt 100 RS twingo owners from the larger sellers.

Non car specific obviously has a much larger markes audience but likewise theres more competition :?

 

[JoeRS133]

This.

In my experience the larger retailers

1) Make mistakes and supply the wrong stuff
2) Charge fortune and take ages to deliver
3) When parts need adapting or modifying to fit they don't let you know.
4) They sell krap open induction kits etc that don't work and also offer no advice.

Some of the issues i would like to address

 

[JoeRS133]

Any more thoughts/opinions?

I've got the drive and determination to make it work. The real problem is starting up and getting noticed. Luckily my location means putting flyers on modded cars shouldnt be too hardnlol

 

[the_notorious_C_A_T]

In my opinion it would be best to start off with a really popular car and work closely with an owners club site. But I would say there is a market. If you can do custom stuff that would also be a good selling point.

As now a days the over riding factor for most is price. Although customer service is also important, I bet most folk buy on price before anything else. And as mentioned to get the decent prices means buying a fair few.

 

[TURBO]

The more market research you can do the better, if you are just going to sell bits then prices, competitors, customer base/numbers, shipping costs in and out, packaging costs etc, advertising/promoting, tax( :evil: ), storing the bits, etc etc

Consider who you are aiming to sell to, this might sound daft but eg if you only want to sell gt3rs tuning bits there are only a low number sold each year and they are spred across the whole country so instantly you have given yourself a very small customer base and altho most of your customers will be able to afford most things there will already be a fair amount of other businesses offering what you offer not to mention Porsche themselves (and seeing as they have the heritage and they developed the car people will pay obscene premiums) so already unless you have a one off/outstanding product for sale or are selling at mega cheap deals ur gona struggle or have a very low turn over and have stock sitting for ages if bought in bulk(risk of becoming obsolete)

the best thing you can do is to either aim at a big customer base, (eg ford) or offer things that arnt manufacturer based. (seats etc)
or find a product or service that is rare/amazing. If the product is good it will sell and word will spread.

If you are planning on doing this as a 2nd job it could end up eating away at your life before you even think about seeing a profit.

If you are doing this for your love of cars you could find yourself hating them VERY quickly!!

It can be a very good idea to go in with someone as this halfs the load/risk/stress etc however it can also turn out to be the worst thing if things go wrong (or well and they try and screw u)
so be very careful if you choose this avenue.

If it all takes off and works dont get greedy as it can destroy you much quicker than you could ever imagine



if this sounds negative im soz i dont mean it to be, i wish you all the best and anyone that goes for it full respect from me
with the way the world is now its never gona b easy but if you can do it now you will b laughing if anyone ever manages to sort the place out

anyway il shut up now but u may get a pm when my fingers can type again :lol:

 

[JoeRS133]

I was thinking of sticking with french cars at first and then going from there.
Working with other small companies such as graphics companies etc could be an option.

Either way its going to be a long process as i've just bought another house so need to get all that sorted and have zero savings so its not going to be for a year or so i imagine.

 

[TURBO]

where abouts you based?

 

[JoeRS133]

Southend. Essex.

 

[jra3d]

Wicked idea but realistically you won't tempt people away from a good brand or franchise. IMHO

 

[Kam Racing]

Firstly retail in general is a tough market at the moment so not the best time to start off. Secondly performance parts are a luxury item and as such these are always the first things to be cut back on when people have limited funds such as you get with a recession.

You will find any items that are popular sellers tend to run very small margins as everyone in the marketplace wants to get the sales. The biggest sellers will often be able to get better prices and sometimes will sell cheaper than low tier trade outlets can buy at. In addition many suppliers require a large value initial buy to get trade prices and also have minimum order values - this can quickly sap cash reserves.

When we started many of our competitors had been going for 10+ years - luring people away from established businesses is tough especially when you have no reputation and can only match prices due to low trade discounts from manufacturers..

I don't mean to be overly negative but I think its always best to have as much knowledge before making a decision