Performance Auto Parts Shops Are Much Bigger Than You Think
Performance auto parts shops are smaller niche stores that serve the needs of professional drivers and racers. It is involved in the sale of power parts that make your car compete and perform to their top-level. Although there are few selections of parts in performance shops compared to all-purpose shops, the former also has the potential of reaping great profits. Because it is able to concentrate on products that are so specific and targeted to a unique market of consumers, this type of store can obtain a solid client base. Especially if this is the industry you truly love, you have a good chance of reaching financial independence while enjoying your work.
Tips for a Successful Performance Shop for Car Parts
1. The first tip is of course to register your business. It may be best for starters to file for sole proprietorship rather than LLC since it simplifies the entire application process. It just requires that you complete the application form and pay the necessary fees. However, if you want added liability protection than LLC is the best choice.
2. For you to operate legally in the state you're planning to sell, you need to secure a business permit. Usually, performance shops do not need additional licenses to be obtained.
3. Hunt for the best performance part suppliers and distributors. For you to establish a strong inventory, you have to create lasting relationships with suppliers that are able to give your orders in 24 hours or less. For you to price your parts competitively to your buyers, you need to purchase performance products from the original manufacturers of auto-parts themselves. They can guarantee the best price offers and product warranties.
4. Find the best location for your store. It is best to set-up in an area where there's visible people traffic. To add, you need to be aware that you are a niche shop. Being one doesn't necessarily need a big crowd since your potential buyers usually hunt for stores like yours over the Internet and over the phone. In this regard, you have to devise an effective external marketing strategy.
5. Because more and more buyers are shifting to e-commerce, you should create your own website equipped with shopping tools. This helps you reach more customers here and abroad. Even if you only have one branch in a remote location, you still have a high chance of getting noticed by international customers if you have strengthened your online presence.
6. Carefully assess your inventory. This includes knowing what products are of highest demand, rarely sought, and purchased by huge volumes. Once you have this information, you will know where to concentrate your efforts. For example, it may be very helpful if you have more performance tires than transmission mounting bolts as the former usually runs stronger in demand. After which, you have to further narrow down your specifications and know what tire styles and sizes are mostly ordered. This way, you'll have a stronger auto parts inventory.
by: Kurt Ross