Buzz
Currently, motorcycles remain the most extensively used means of transportation in the market. Therefore, delving into the motorcycle spare parts business continues to attract considerable attention. However, this business sector demands specific market knowledge.
How much capital is needed for the motorcycle spare parts business?
Based on the experience in motorcycle spare parts business, the capital required to establish a store in this field is divided into 5 main categories: space, mechanics, replacement parts, product display space, and store maintenance costs.
Business Space Costs for Motorcycle Spare Parts
To address the question of how much capital is needed for the motorcycle spare parts business, the crucial investment to consider is the business space cost. If you already have a space, you can skip this part. However, if you need to rent, the amount spent on the rental location can be quite significant.
Rental prices for spaces for selling motorcycle spare parts are usually higher compared to other fields due to the inherent risks in this business category. During repairs and installations, potential dirt or damage to the surrounding area may result in landlords factoring in asset depreciation when calculating the rent.
Space for selling various types of motorcycle spare parts and repairs
Business Space Costs for Motorcycle Spare Parts in Major Cities
If you plan to open a business in major cities and the area is around 20m2, the amount you need to allocate for this would be approximately 7 – 8 million VND per month. If possible, negotiate with the landlord to split the payment into 3 or 6 months to optimize costs.
Import Costs for Repair Parts
To calculate the import costs for repair parts, you need to analyze two factors: whether you choose the right target products and the scale of your store.
Expenditure for repair and replacement technicians
Another cost to consider when answering the question “How much capital does a motorcycle spare parts business need?” is the salary for repair and replacement technicians. Not everyone can both run a business and repair/replace motorcycle parts, right?
On average, this cost will be around 6-7 million VND/month/person. If you want to optimize this cost, you will need to study the profession, then work at motorcycle maintenance and repair centers to practice additional skills. Eventually, you can open your own business.
Cost for motorcycle repair technicians
Cost for storage space of spare parts
The cost to help you build and design a storage space for spare parts will be around 10 million VND.
Cost for installing shelves for displaying and storing products
Cost for maintaining the store
Capital for sustaining the store is crucial in this type of business. In the initial period, as the business may not be flourishing and stable, the revenue might not be sufficient to offset expenses or plans such as advertising, promotions, etc. So, you need this fund to sustain routine activities. Allocate around 20 million VND for this sustaining fund.
Latest business experience in motorcycle spare parts 2022
After calculating the capital needed to open a spare parts store, it's essential to understand the latest business experiences in motorcycle spare parts for optimal business performance. This includes:
Identifying the target customer base
In the realm of business experience, whether specifically in motorcycle spare parts or any field in general, it's crucial to identify the target customers you're aiming for. This helps determine the types of products to import for your business, avoiding risks of stocking items that don't align with customer needs.
Define target customers to import the right products
Search for sources to import products
You can establish business partnerships with major motorcycle brands and manufacturing companies for spare parts. Sourcing from these entities ensures quality, genuine origin, and reasonable pricing. Consider the consumption patterns of each motorcycle model to import suitable quantities.
Promotional policies and benefits for customers
When starting your business, offer incentives and promotions to attract customer interest. This is a strategy to expand your customer base and tap into the psychology of consumers.
Design the spare parts store logically
Manage the store rigorously
Store management here doesn't just refer to handling employees or expenses for the store. Instead, it involves managing the inventory to prevent losses in business, controlling risks, and calculating the store's monthly revenue.
Common approaches to motorcycle spare parts business today
There are three common approaches to motorcycle spare parts business today: online motorcycle spare parts business, collaboration in motorcycle spare parts business, and selling used motorcycle spare parts. Dive deeper into these three business approaches below:
Online motorcycle spare parts business
In the era of advanced information technology, online shopping is no longer unfamiliar. Hence, many people are turning to online motorcycle spare parts business to reduce costs related to physical stores. For those with physical stores, it's a way to increase profits.
If you decide to venture into online motorcycle spare parts business, you can explore one of the three major e-commerce platforms in Vietnam: Shopee, Lazada, Tiki.
To expand your reach to customers, consider building additional social media channels such as Facebook, Instagram, a website, etc. These are widely used social platforms in Vietnam and are effective for sharing product information and promoting your store.
Sell motorcycle spare parts online
Collaborate in motorcycle spare parts business
When engaging in collaborative motorcycle spare parts business with renowned brands, you can trust in the product quality, dealer incentives, and pricing. Consider well-known brands like Honda, Yamaha, etc. Decide on the quantity to import based on the volume of products consumed. Diversifying your product range will help you reach various customer segments.
Sell used motorcycle spare parts
Choosing to sell used motorcycle spare parts initially might be challenging in finding suppliers. However, the community of vintage motorcycle enthusiasts in Vietnam is substantial. If you are determined to open a store selling used motorcycle spare parts, it's a highly promising business area.
FAQ
What procedures are needed to open a motorcycle spare parts store?
The required documentation for opening a motorcycle spare parts store includes:
For a small to medium-sized motorcycle spare parts store, what amount of capital is typically needed?
Posted by: Quốc Khải
Keywords: Earning abundant profits in the motorcycle spare parts business
