Every year the number of cars is growing, this trend affects not only large cities, but also small towns. A true car enthusiast takes care of his car, which means he is ready to invest money in it to ensure its normal operation. And, of course, many car owners want to show their individuality or simply decorate the car the way they want. In this regard, the market has long existed a huge number of various automotive accessories.
This may include mandatory warning signs and jacks, and all kinds of interior decorations that do not have any practical benefit, but satisfy the aesthetic feelings of the owner. But this whole huge list has one thing in common - a person who does not have a car, all this luxury seems like an unnecessary waste of money.
The market of auto accessories, of course, does not lack supply, this niche has long been mastered, and there are plenty of players. It is sometimes very difficult to open your own car goods store, especially if you choose the location of the outlet incorrectly. But nevertheless, it is also not necessary to say the impossibility or hopelessness of such an undertaking; a person with entrepreneurial talent can succeed in many areas of business. Here, in addition to searching for a good place, you should turn to the assortment range of competitors and compare it with the list of all possible automobile accessories invented by mankind. The nearest potential competitors may not have any positions, and you can bet on any new product. If you attract a customer with a novelty, he will buy the usual things immediately, without leaving. And after that she will return, because she has positive experience and positive emotions. However, even without some special and outlandish goods, you can successfully enter the market and build your own profitable business, because the main thing is to be able to conduct business. Even if it will not be easy at first.
So, the most important moment in such an undertaking is the place. A car goods store should be located in passable places, preferably in the central areas of the city or near gas stations, service stations of shops and the like. The lack of competitors nearby will allow you to quickly build up a client base and from the first months to work with normal income indicators. If there is fierce competition on the market, then an active advertising campaign will be necessary, and not only outdoor advertising, but also sound clips on the radio, and possibly local television advertising, will have to be involved. Here, the primary task is to attract the attention of a potential customer, to make sure that he visits the outlet. Of course, the percentage of those who simply “drove along the road” to the store will be high if they are well located, but they need to influence the target audience and make it be bought in their store.
As mentioned above, a wider assortment will allow to retain a client than other sellers; if it is not available, then at the opening you can make good discounts. If funds allow, advertising agencies will arrange a good store promotion with the help of innovative ideas and a creative approach. Such an undertaking is very prone to the likelihood that it is competition that will not make it possible to stretch even several months. Therefore, it is best to compile a detailed SWOT analysis to immediately see all the difficulties in your own case that you have to deal with.
The situation changes a lot if you rent a point of sale in the car market. In large cities, this is the main congestion place for motorists who often go there for many goods at once - from a unique auto part to a simple flavor. It would seem that competition in car markets is even higher than just in the city, but for visitors, all auto goods stores will be indistinguishable outlets. The client, in search of the thing he needs, will visit all sellers until he finds it, and due to the huge flow of people, buyers will visit all stores to approximately the same extent. Of course, advertising will play a role, a beautiful sign will also attract attention, but here all the marketing tricks are still slightly less effective than when working in a separate store.
Work in the car market is unlikely to become the largest seller of auto products, at the entrance to which crowds are crowded, but it has less risks and relative stability. You just need to immediately find out about the possibility of placement in a specialized automotive market, because there may not be free space for rent, and the construction of your own is not supposed to be the owner of the market square.
Car accessories fundamentally differ from auto parts in their versatility. Spare parts are suitable only for a certain model (and sometimes even only for one modification) of a particular brand, car accessories can also be installed in any car. Or at least in a wide range, which saves the owner from complex classification and compilation of an ordered catalog. Regardless of the cost, the country of manufacture, the age of his car, the client can find the things he needs in the auto store.
For the client himself, all automotive products can be conditionally divided into two categories: which must be purchased and the purchase of which is not required. The first includes motor oils and lubricants: engine and transmission oil, brake and coolant, and power steering fluid. Mandatory should also include a jack, terminals and other means of assistance in an emergency. The second category includes all kinds of jewelry, improvements, additional technical devices and just nice little things like trinkets. There is a third category - conditionally mandatory, which includes first-aid kits, fire extinguishers, warning triangle and other products to comply with traffic rules, but drivers stubbornly neglect them. It is important for the seller to understand all this in order to accurately form his product range.
Trading in auto chemicals generally falls into almost a separate category, many stores are engaged only in its sale. Any motorist is aware of such a sacred concept as “10 thousand kilometers” - the time for replacing engine oil. True, this figure may vary depending on the carelessness of the car enthusiast, but sooner or later, any owner of the car changes the oil (if it is too late, it changes the engine, and ceases to be a customer of the car shop), and these expenses are obligatory for him. However, for specialized stores, the difficulty arises in the fact that oils sell services for the replacement of motor oil, the vast majority of which produce it for free if you buy lubricant at your outlet. This saves the motorist to buy oil separately. A specialized auto chemical shop, of course, has its own sales of motor oil, but their level is much lower than if the service stations did not practice such work. The rest of the lubricants and automotive fluids should also be changed according to the regulations, but car owners sometimes forget about them, rolling many kilometers without a planned replacement. Separately, it is worth noting the coolant and windshield washer fluid. But the first is inexpensive, and its sales will not become a very serious source of income, while the second is completely replaced by water in the summer.
You can seriously engage in car chemistry, having a huge list of oils from different manufacturers and in any price segment - in this case there will be customers who really seriously care about the operation of their engine, and simply those who fill in rare engine oil of a certain brand and with certain characteristics (there are cars that are sensitive to oil other than that specified in the service book). In this version of business development, the main competitive advantage is assortment and quality. If there is no desire or opportunity to engage in purposefully only fuels and lubricants, then you can have a certain list of top-selling automotive chemicals in a regular auto goods store. In general, this group includes:
Engine oils and filters to them
Transmission oils (for automatic transmissions and manual transmissions they vary greatly)
Coolants
Brake fluids
Power Steering Fluids
Additives
Glass washer fluids
Solvents (including distilled water)
Fine chemicals (defrosters, greases, etc.)
Antifreeze is not a separate species - it is the trade name for a radiator-cooling fluid. It stands for “Technology of Organic Synthesis” with the addition of the -ol ending characteristic of alcohols. Antifreeze is also often understood as antifreeze in general.
As for the rest of the auto products, their supplied nomenclature is highly dependent on consumer preferences. The list can be quite large and divided into separate blocks. There are goods that must be in the automobile goods store, and some appear there only because of the demand for them. ABC or FMR analysis carried out after the first months of work will help you figure it out, which, based on sales, will make it clear on which positions it is worth concentrating. It is better to divide the store into departments, in each of which there will be goods of the same type - this is convenient not only for the buyer, but also for the seller, who will know exactly where and what lies.
The room should be spacious enough and in addition to the retail space to have a warehouse, because it is unlikely that it will be possible to put on display all the products. For example, if it is supposed to trade only in auto chemical goods, then 20 m2 is enough, but for a full-fledged car accessories store it will take no less than 50 m2. You can turn around in small areas, but it will be inconvenient for the client, and the assortment cannot be made large. It is also necessary to pay attention to the fact that at the checkout itself there should be inexpensive little things like key rings or batteries, the client may not even think about buying such goods until he snuggles into them. By departments, you can distribute auto accessories as follows:
Car Cosmetics
Window cleaners
Car shampoos
Polishes
Detergents for car washes
Protective sprays
Waxes
Cleaners and gels for cleaning the interior
Napkins
Flavors
Cleaning brushes
Wiper Blades (Wipers)
Safety devices
Jacks
First-aid kits
Adapters and child car seats
Tools
Emergency Stop Signs
Fire extinguishers
Seat belts
Reflective elements
Ropes
Electrical equipment
Car Antennas
Cigarette lighter chargers and splitters
Fans in the car
Batteries
Bulbs of all kinds
Circuit breakers
Terminals
Flashlights
Sound signals
Parking radar
Equipment
DVRs
GPS navigators
Registrars
Breathalyzers
Radio
Vacuum cleaners
Accessories
Key rings
Mud flaps
Steering wheels and braids on them
Moldings and lining
Wheel covers
Armrests
Room Frames
Gearbox anthers
Antistatic
Cup holders
Hangers and curtains
"Cilia" on the headlights
Tint film
Covers
At its core, these are products for completely different purposes and different price segments. The most expensive will be the department of machinery and electrical equipment, the margin in it is unlikely to be more than 15%. But the rest of the little things, especially often redeemed cheating can reach 100%, but you need to conduct your pricing policy with an eye on competitors. Indeed, in the case of the purchase of a DVR, for example, the client will surely travel around several sellers to choose the best value for money. It should also be noted that there can be much more types of products if you buy any parts for common models. A good example is the deflectors, which are an accessory, and not a necessary part, but at the same time they are made for each model, they are not universal for any car. The same list shows those goods that will be purchased by a person, regardless of the make and model of his car. But it is also worth paying attention to the fact that some accessories have many varieties and yet are specially selected for the car. Example: a battery that should be suitable not only in charge capacity, but also in size.
The entrepreneur himself can work in a small store, special knowledge is not required, you will only have to study the chemistry to be able to tell the client what he needs. All this information is in the relevant documentation and literature, so it is better to spend some time, but in the end provide a good service with advice. If the store is large enough and divided into departments, then you can think about hiring another one or two people as assistants.
It is better to shift all other expenses to outsourcing; having your own accountant will cost 4-5 times more expensive than transferring accounting to third-party companies. The seller should also be well versed in the features of all products, but almost any motorist with experience is a good consultant in itself. Difficulties with hiring staff should not be, because the work is not complicated and does not require special education.
To open your auto store you will need the amount of starting capital equal to 370 thousand rubles:
Registration of a business entity ((OKPD 2) 45.32 Retail services for automotive parts, assemblies and accessories, you can choose any form) - 20 thousand rubles.
Rental of premises (depending on size and location - market or city) - from 20 thousand rubles.
Advertising campaign (depending on the methods of informing the public) - from 30 thousand rubles.
Salaries to employees (if one person is taken) - from 20 thousand rubles.
The equipment of the premises (purchase of a computer, cash register, purchase of applications for maintaining a database for it, arrangement of shelves and shelves; a small shop will not require serious investments, but divided into departments should be equipped for a considerable amount) - from 50 thousand rubles.
Outsourcing (in addition to accounting, you may have to order the work of IT specialists and cleaning companies) - from 5 thousand rubles.
Utility payments and burglar alarms (before starting work, the alarm must be installed, after which the amount will significantly decrease) - 25 thousand rubles.
Purchase of goods (the minimum amount of orders for wholesale purchase from different suppliers varies, but is unlikely to be less than 30 thousand; however, it is best to purchase a large and varied assortment) - about 200 thousand rubles.
Monthly expenses range from 50 thousand rubles. The average mark-up for all goods is about 50%, i.e. if it turns out in a month to sell goods purchased for 200 thousand rubles, then the income will be 100 thousand. Less expenses, operating profit of 50 thousand rubles remains. Profitability in this case is about 20%, but if sales volumes are increased, then due to the invariance of fixed costs, it will grow. The payback of such a project is unlikely to be more than a year, and in the case of successful advertising, it can be even several months.
Matthias Laudanum(c) www.clogicsecure.com - a portal to business plans and guidelines for starting a small business 08/18/2019