Is there money in openning an all Jeep retail store?
#1
JK Newbie
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Is there money in openning an all Jeep retail store?
Where I live 4 wheel performance is the best place to go the people are friendly they're knowledgeable however I wanted to go splurge on little things Mesh Top, Mirrors to take my doors off and drive up to the mountains for Amateur off road stuff....I had to wait to place orders which can take anywhere from 3-10 days.....I'm wondering if there is money to be made to open a shop where you can get things of this sort?? Any shop owners or people who feel the same way????
#2
There is lots of money...sunk into inventory. I think this would be an especially difficult form of retail, almost near impossible without a great service shop included.
#3
JK Junkie
Seems the little things are best left to Northridge or Quadratec, free shipping and only a few days wait. I've never owned a business, but I can only imagine the overhead would be steep.
#4
JK Newbie
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Im self employed own a bail bonds business so I know what it takes to manage a business and I own property to run the business out of as far as mechanics I'm not that gifted but my dad is a great mechanic.....just asking about it is all
#5
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The idea is to start small, low overhead, and "DROP SHIP".
The Internet has killed the hopes of starting a small biz. It has made the profit margins so
tight, that it is only sheer volume that makes you money. Certain companies will help you
do this so they can reach more customers and move more product.
Big ticket items (suspension kits, bumpers, wheels, ect) will only bring a 5%-15% profit, where as
smaller accessories (bumpstops, poly spacers, interior accs., ect) can net you as much as 30%-50% profit.
The key is to get to the point where you can buy at the highest MFG. discount, for example..
if you can purchase $30k worth of Rough Country equipment (just an example) they will sell it to you
at the highest discount, which in turn will help you make a higher margin.
Of course it will take you a while to be able to do that, and that is why you start small... carry almost no inventory... and
drop ship! For instance, you get an order for a set of wheel spacers, you call the manufacturer and order it and have it
shipped straight to the customer. Your profit for this will be small, but you did not have to stock it or ship it.
It is a hard game to play, but if you are savvy enough you can succeed.
The Internet has killed the hopes of starting a small biz. It has made the profit margins so
tight, that it is only sheer volume that makes you money. Certain companies will help you
do this so they can reach more customers and move more product.
Big ticket items (suspension kits, bumpers, wheels, ect) will only bring a 5%-15% profit, where as
smaller accessories (bumpstops, poly spacers, interior accs., ect) can net you as much as 30%-50% profit.
The key is to get to the point where you can buy at the highest MFG. discount, for example..
if you can purchase $30k worth of Rough Country equipment (just an example) they will sell it to you
at the highest discount, which in turn will help you make a higher margin.
Of course it will take you a while to be able to do that, and that is why you start small... carry almost no inventory... and
drop ship! For instance, you get an order for a set of wheel spacers, you call the manufacturer and order it and have it
shipped straight to the customer. Your profit for this will be small, but you did not have to stock it or ship it.
It is a hard game to play, but if you are savvy enough you can succeed.
#6
I would agree it would be tough to compete with the established stores with free shipping or discounts. I would say you would need to do installs to make any money. The sad part is you would have to cater heavily to mall crawlers as most of the serious wheelers do their own work.
#7
JK Newbie
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I agree with both your ideas it was just discouraging that I finally willing to spend the money to get small items but had nowhere to get them from to get out trails like "yesterday" but in the economy were in it is what it is