OVER 9000!

Hi guys, forgive me if I'm posting in the wrong forum, but I am wanting to make money doing something that I would actually enjoy and be motivated to succeed at. I am basically wanting to become an aftermarket parts distributor for my area as there are not very many performance shops nearby, so not too much competition and demand for parts is high. Does anyone know if I should send propositions to certain parts manufacturers, online businesses that are already distributors for a manufacturer, or what? I am a college student without any debt and I currently have a job that I am fairly neutral about, so this could be something I do on the side or something that replaces my current job. I love talking about cars and parts, I am a business major (still learning of course), and have good customer service skills (addressing peoples' needs, responding quickly and courteously, etc), which is why I think I would be good for this. If any of you can point me in the right direction I would greatly appreciate it. Just let me know if you have any questions or need more information. Thanks!

Zeke

OVER 9000!

So far I've found this website that connects wholesale suppliers with distributors (Wholesale Directory) and from what I've found out, it looks like I will need to get a resale permit and some sort of tax ID (may be a part of the permit). I have not been able to find a website that gives a definite list of requirements to become a distributor. Any info is greatly appreciated

3en

Ive done this and its a lot of work for very little money. Here is what youll need to get started though.
Tax/registration wise-

Federal id/EIN- Easy to get you can get it on irs.gov. It takes about 10 minutes.
State business registration- You'll need to decide if you want to register as a sole propietor or LLC(limited liability corporation). Both have their plus and minuses. So research both to see what works for you.
Local/city licenses- Youll need to check and see what licenses you'll need for the area you live in. Most places I lived in just require you to register the business.

You can use websites like legalzoom to do most of this. They charge rape money, but they do take the headache out of all of it. Also get a good accountant to help you with taxes. Visit your small business development center at your local college. They have a bunch of useful info!

Getting set up with vendors is another tricky part. If you are starting out small and dont have a bunch of capital to invest, most manufactures will make you use their distributors. Find what companies(Hks, Greddy, AEM, etc...) you want to sell for and call them to see how much their buy in is to be one of their distributors. Most companies are at least $10k+ with most being around $50k+ to start out working directly with them and cut out the middle man. If you cant foot that bill then ask who they're top distributors they recommend. Ive tried a few different ones and turn14.com is my favorite to use. Their back office is very easy to navigate and they have awesome customer service and communication. That will get you started with acquiring the products to sale.

Now you have to acquire customers. The hardest part at first is getting peoples trust. If you live in a place where there is a big local car community then make yourself very visible at the meets and car shows. Let people know you care and want to be their parts guy. It will take a little bit of time. But then once you get their trust they will start referring their friends and you can start making money. If you dont live in a area that has a big car scene. Then you are in for even harder time. Its very hard to get peoples trust on the internet. And you deal with a bunch of crazy people who freak out if you dont respond to their messages within an hour of sending it or some other rediculous thing. There is so much competittion on the internet that it is near impossible to make good money, unless you have an amazing website and know how to work the google seo system.

The next issue you will have is time. Working two jobs is tough and this will become a 2nd job. You will get calls all during the day and night. You will get the same questions over and over and over. You have to deal with peoples ego's and constantly be stroking them. You have to watch who you work with and sell to. Watch out for the guy who trash talks every business/shop/company at the meets and car shows. This guy is easy to find, ask him about any business in town and he will shit talk the hell out of it. Try avoiding doing business with this guy at all costs, he is never satisfied and his money is rarely worth the headaches and problems he will create for you. On the flipside to that. Keep an eye out for the gravy guy. He is usually more quiet. Has a nice car but isnt loud or a cocky about it. These guys are the ones that if you treat them right, they will come back time and time again with money and are easy to please. They are the ones that know that this is real life and not everything goes to plan. Stuff gets damaged in shipping, parts go on back order, etc. They realize shit like that happens, but as long as you are honest with them and treat them right. Youll have a customer as long as they own the car.

Good luck man!

OVER 9000!

Thank you so much for the write up! This is exactly what I was looking for. I can definitely navigate my way through the paperwork and licenses, the only part I see as a potential problem is the initial investment. I definitely don't have 10k in capital, so I was hoping to find a small business to distribute for, that would let me place small orders and work my way up to larger bundles of goods. One that I think might be a good one is Chemical Guys since there are not many (if any) shops around that sell good detailing products and we have many car meets that cater mainly to the "hellaflush" crowd, so I think that might be the place where I would be able to sell most of my product if I got on with Chem Guys. Do you have any other recommendations for small businesses that wouldn't require more than $1k in capital to invest right off the bat? Once again thank you for the write up! It was very helpful

3en

Thats not a bad idea. You could also get into oils. Amsoil is a good company that you can sell for. They have a great product and easy to sign up for. Everyone who has heard of amsoil knows its good quality stuff.

You could also sell squash. A couple guys here did that. They just sell squash out of the back of their car. Their business is called jdm fresh. Orex Motorsports is a wholesale company you can get a lot of different scents and brands from.

Any product that needs to be constantly replenished is a good product to sell and will help maintain a constant customer base. Fluids, filters, brakes, air fresheners, lights, etc.

Contact turn14.com. They dont require any initial deposit and they carry many of the big name brands.

OVER 9000!

The only problem I see with Amsoil is that you can get it for the discounted price for only $10 and a few of my friends are already members and buying it for local s2ki members at the discounted price. If my wholesale application gets accepted by turn14 I'm thinking about sticking to parts that I already have on my car that I have tested and will be able to prove that they work. A good one that comes to mind is the Hawk HP+ brake pads since I have tracked my car with them and can easily prove that they work (for S2000's at least). Also do you know if it is acceptable to sell wholesale products on craigslist?

riegerm3

You can sell auto parts on craigslist. They have 2 options, 1 for items for sale by dealer, and one for sale by owner.
Just make sure you stick to Jobber pricing or MSRP so you wont step on any toes.

rob-2

It's hard to sell physical goods with only $1k to start.

You'd be better to take your love of cars and build an phone ap. The cost to get start will be about $3k and you could make millions.

DC5Angelo

3en u cant recive any messages wanted to ask you some questions. do you have an email i could reach you at