setting up a small parts supplier bussiness

[cold.man]

Just wondering if there are any refrigeration engineers on here who have turned there hand to becoming a parts supplier.

I have a friend of the family who is looking at investing money into a business and just doing some research for him.

Basically he is looking at getting a small shop and setting up a small parts supplier business obviously he is a qualfied engineer with many years experience so has the knowledge of the products he would be selling.

Me personally i think he would be crazy with this economic climate at present. Does anyone know of anyone who has done this and made it work or anyone have personal experience from doing this they would be willing to share.

[glenn1340]

Hi cold man,
I`ve no experience of what you`re thinking,of doing, although i have given it plenty of thought, but one thing I do know is you`ll have to be open when people need things. many times I`ve been out on a Saturtday morning and needed something but the Climate Center is shut on that day, also they close at 5pm. Open early 7am at the latest to get the guys going out to jobs and close as late as possible to get the custom from those who want to call in on the way home. A premises near to a main road with easy parking is a must, no good having a unit on an out of the way industrial estate, unless of course you`ll be concentrating on the online side of things
Any way I wish you the best of luck.
regards Glenn

[chemi-cool]

There a lot of things to consider but the most important one is the cost of stock. This a lot of money that lay on the shelfs.
Advertising costs a small fortune, a web site, workers, cost of premises, cars, accounts.

You need to repare a good business plan [find one on the web].
Help from a good accountant is vital.


Thep resent economic climate has nothing to do with it as high qulity spare parts will be needed all the time.

[monkey spanners]

Try starting out selling stuff on ebay, lots of traders on there, one of my capacitor suppliers has a shop on there.
Lower overheads when starting out as you can work from home etc.
Or moblie from a van, go round local markets, etc.
Would depend on what he's thinking of selling though.

[al]

I'm with monkey, ebay is the way to test the market, from my point of view prices must be 20% below what i pay at my local wholesalers.

Whether you go bricks and mortar or clicks and mortar don't give credit, cost of stock is bad enough with out 45 days credit to fund.

al