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

 

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

 

Check your local area for small business groups that can lend advice/support. This is a site that can help as well, but a local or state business association would be best.

http://www.sba.gov/

 

usually you need money to make a large enough purchase to "buy-in" to most product makers lines or distributors. Some times you have to conform to their market regulations (not be in an area already saturated with their product, must abide by their pricing guidelines etc) You best best is to contact the makers of the product themselves or regional suppliers to ask how to get into being a vendor for the products you want to carry. It is vastly different for each maker and distributor.


Hope this helps a bit

 

Get a job working for a company that does what you want to do. Learn how they do it.

A building suitable for storing inventory, an ability to deliver merchandise to retailers, and a sales staff capable of selling the products to retailers is a requirement for distribution. A "college student in an under-served area" doesn't quite equate.

You might only need a garage, a phone, and a pickup to do the job, depending on the product and situation. Are you looking to be the middleman simply drop-shipping to the customer? Then go out and sell parts, spend your own money on purchase and shipping, and pocket the profit. But be prepared to deal with "billing address does not match shipping address" issues. Or have it shipped to you and deliver it yourself. You will undoubtedly see problems with damaged or missing shipments. You need to learn how to deal with UPS, Fed-Ex, and USPS claims.

The manufacturer has a product to sell and therefore requires someone to sell it. Anyone who has an investment in stock wants assurances that they aren't going to face competition from the place down the road prior to making any investment in inventory. You want as sure a deal as can be before making any investment in goods for resale. IOW, a local monopoly on the brand.

Typically there is an agreement between the distributor and manufacturer that guarantees the distributor a geographic region free from competition. For example, Illinois might be divided into a southern and northern region, with only two distributors for Grain Belt beer in the state. Any store wanting to sell Grain Belt needs to deal with the distributor in their region.

People don't buy from a guy who calls himself a "distributor," they buy from a person that sells to them. If you want to distribute, you need to sell. You don't need permission for that. It's a lot easier to make a sale if you have all the paperwork in order and represent a professional organization vs. a "college student."

"Not too much competition" is a good thing for everyone involved. Supply is funnelled through a few outlets. Each outlet has a chance to make a profit without worrying about market saturation or being undercut by the guy across the street. Consumers can choose between a few providers based on service, product line, and price. And as a general rule, if the market would really support more providers, there would be more providers.

Get a job working for a company that does what you want to do. Learn how they do it.