lbhsbz
Well-Known Member
- Joined
- Jan 11, 2010
- Messages
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Not real happy with the manner in which the new owners of the company I work for are handling things...so I decided to make a change. I know the automotive brake aftermarket wholesale business pretty well, so I decided to start a business selling parts to fill in the holes that I've been taking calls about for years that the large companies don't seem to give a shit about. I'm not leaving my day job, and since I'm not competing, and am actually a customer of the company...I don't see any problems with what I'm doing. I've had a business acct with them for 15 years, but gave up my resale number 12 years ago and mostly use it for hooking up buddies with parts. I'm setting up an S-corp through LegalZoom...should have all my docs (resale, tax ID, business license, etc...) early next week.
I'm starting with a single part number. I found the actual manufacturer that produces the part for the vehicle manufacturer...and they'll sell me at a cost less that's about 1/10th or less my best cost through other inside channels...blew my mind when I got the reply to my RFQ. The specific vehicle...which is painted gray and everyone sees at least a few driving through their 'hood every day require 10 of these parts with every brake job....which happen frequently due to the nature of the business in which they are driven. I have an initial order in for 20K pieces, expected to ship in 6 weeks. At a margin of 900%, I can still supply US made product at a wholesale level and come in less than the wholesale price of the only competitor who is supplying a chinese made "equivalent"...so I'll likely go for a 1100-1200% margin since I'm supplying better quality true OEM parts. I have commitments for more than 1/2 my initial stock order already after only a few phone calls. I'm tempted to call early next week and double the order because I'm afraid I'll run out....and in this market, those with stock can charge whatever they want. I've put a minimal effort into finding customers and despite that, have several more insane deals lined up. Been doing cataloging and putting together marketing and sales info all week.
I've purchased about 20 domain names in the last couple weeks and I'm setting up a website through Shopify....
I'm concentrating on a very narrow range of applications...delivery vans and a few others who issue trends I've become aware of over the years...and have developed solutions for. That keeps cataloging simple and sku numbers at a manageable level...at least that 's the plan. I have a few more products that I manufacture in my home shop (and currently keep good stock on hand and sell) and will be targeting the web forums that cater to these platforms with retail priced "complete service packages"....one part number to order give you everything you need for a complete and correct brake job.
Future plans to branch out into GM ABS module repairs and all types of caliper rebuilding/repair, as well as targeting some OE type parts interchange "upgrades" that I've figured out.
Wish me luck.
I'm starting with a single part number. I found the actual manufacturer that produces the part for the vehicle manufacturer...and they'll sell me at a cost less that's about 1/10th or less my best cost through other inside channels...blew my mind when I got the reply to my RFQ. The specific vehicle...which is painted gray and everyone sees at least a few driving through their 'hood every day require 10 of these parts with every brake job....which happen frequently due to the nature of the business in which they are driven. I have an initial order in for 20K pieces, expected to ship in 6 weeks. At a margin of 900%, I can still supply US made product at a wholesale level and come in less than the wholesale price of the only competitor who is supplying a chinese made "equivalent"...so I'll likely go for a 1100-1200% margin since I'm supplying better quality true OEM parts. I have commitments for more than 1/2 my initial stock order already after only a few phone calls. I'm tempted to call early next week and double the order because I'm afraid I'll run out....and in this market, those with stock can charge whatever they want. I've put a minimal effort into finding customers and despite that, have several more insane deals lined up. Been doing cataloging and putting together marketing and sales info all week.
I've purchased about 20 domain names in the last couple weeks and I'm setting up a website through Shopify....
I'm concentrating on a very narrow range of applications...delivery vans and a few others who issue trends I've become aware of over the years...and have developed solutions for. That keeps cataloging simple and sku numbers at a manageable level...at least that 's the plan. I have a few more products that I manufacture in my home shop (and currently keep good stock on hand and sell) and will be targeting the web forums that cater to these platforms with retail priced "complete service packages"....one part number to order give you everything you need for a complete and correct brake job.
Future plans to branch out into GM ABS module repairs and all types of caliper rebuilding/repair, as well as targeting some OE type parts interchange "upgrades" that I've figured out.
Wish me luck.
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