If you are thinking of starting a motor spares business in South Africa, you need a strategic business plan. In this guide, we’ll give you tips on the best way to start your motor spares business.
It all starts with a name. Select the name of your company that’s easy to remember or unique. Once you have chosen your name Registering in a PTY (LTD) is preferable as this gives you extra protection in your personal capacity in the event of any legal issues.
Items You Need For Running Your Business
For your business procedures, you’ll need internet, a computer, shelves, a cash register, racks, and other fixtures. Design and style the shop correctly and spares ought to be organized in a fashion that is straightforward to locate. For example, in one area of the shop, you can put the body parts along with another section you can put electronic parts. Place small names underneath the parts for immediate recognition
Choosing A Business Location
The position of your motor spares business is really important. You should be in a street that is well-traveled by motorists. This is where you can display your bold signage and the vehicles you are stripping for spares. When potential customers drive past, they will notice the smashed cars and this will attract attention. If your business position is a bit out the way and not in the best position, then there are other ways for you to attract customers. (See the tips below for attracting customers). You also might want to have a local scrap metal business close by, as you can sell damaged parts and body parts to them.
Traditional Marketing
The reason why plenty of businesses fail is they are lacking effort in marketing their goods or company. Even with an auto parts store, you will have to market correctly. Distribute flyers with the information on your parts. You may also distribute business cards to vehicles that go by the shop. Using the contact details on the business card, your clients can very easily reach you.
Additionally, you should have a sufficient understanding of the various auto parts so that whenever a customer is searching for a particular spare part you can quickly advise the customer and help them find the product.
Online Marketing Tips For Motor Spares Businesses in South Africa
Any business in South Africa will benefit from the following tips. Here are xx tips for online marketing your motor spares business.
How To Get Stock (Parts) in South Africa
- Sign up with Engine Finder to receive offers from South African vehicle owners selling their cars for parts.
There are another two popular ways where you can source your stock. You can buy replacement parts from certified suppliers or you can find accident-damaged cars for sale on Gumtree or from auctions.
Buying Accident Damaged Cars From Auctions
In the old days, you had to be present at the auctions. Nowadays you can bid online! So if you are based in Cape Town, it is possible to purchase a vehicle in Johannesburg or Durban and vice versa. Once you bought the vehicle, you only need to arrange delivery, (usually on a flatbed truck). Chat to one of the staff at the auctions for recommendations and costs for delivery. Note it may take a couple of weeks for the vehicle actually arrives in your scrap yard. Expect a bit of paperwork!
For Buying Accident Damaged Vehicles from auctions see:
- SMD
- Salvage 4 SA
Stripping Parts
Once purchased the most expensive parts of the vehicle need to be stripped, tagged, and stored safely away. In this way, you prevent potential weather damage and theft of those smaller parts that are easier to conceal.
Prepare Your Yard
You need to prepare your yard before the vehicle arrives. A designated stripping spot should be made each time a new vehicle arrives. This should behind a secure fence or wall and within the confines of your yard that is secure from the street.
Ensure your staff is properly trained in stripping the parts, too many times careless actions lead to parts getting unnecessarily damaged. Ensure the correct power tools and overalls are available for them to use. Assign each stripper to different categories of parts. e.g. Let one stripper start with the body parts e.g. headlamps, tail lamps, and bumpers, and another on engine parts. In this way, this should reduce parts from getting dirty from engine oil, etc.
Once the parts are stripped make sure they are cleaned before being tagged and then stored. For engine parts that are subject to oil leaks. You can use a little bit of petrol to help clean the oil and grime off. For body parts, you can use sunlight liquid and a cloth. Make sure your cloth doesn’t have any dirt or sand as this can scratch surfaces.
After your vehicle has been completely stripped, ensure your yard is clean and tidy. I have a Hyster pick the shell up and store it out of the way.
Tagging Your Stripped Parts
All parts should be tagged before storage. You tag the parts with a black marker pen. All tags should be attached to the parts with a string. Each tag should include the Year, Model, and Make of the vehicle and along with any important part numbers. Purchase tags, permanent markers, and strings from any stationary store. Have these items in an easy-to-reach place for your staff to easily access.
Storing Car Parts
Your scrapyard should be neat and tidy! If you want to promote trust in your business, you need to make sure your scrap yard is in a neat and orderly manner. On top of that, you don’t want customers waiting too long when they come to buy spares. So make sure you designate zones within your scrap yard for certain vehicle makes. Then within each zone subcategorize by different parts e.g. body parts, electronic parts, and engine parts.
Are auto parts stores profitable?
First, sales of factory replacement parts are highly profitable: In 2015, General Motors told investors that its aftersales business had profit margins of 30 to 40 percent. Car companies also insist that factory replacement parts ensure better fit and vehicle performance than aftermarket parts.