Opening a Car Accessories Shop in Shimla (H.P)

[Savitoj]

Hello Friends, i am planning to open a new car accessory shop in Shimla(H.P). I don't actually have much knowledge about the accessories or the brands to start with but i like this business concept very much.

I have a space for the shop near the city with a plus point of two service centers nearby with whom i can get in touch with for the marketing of our products.
So, What i exactly want to know is that how can i start this business?

There are a few questions, to which i think the answers would be very beneficial.

1. What type of products should i start with?
2. Should i start with the local products or the branded ones?
3. What would be the initial budget for the business?
4. What are the profit margins that i can expect from this business?
5. Is it necessary to register the shop as soon as i open it or can i wait for the business to take off? (As according to my knowledge the products are going to be all VAT paid)
6. Should i approach the local distributors or directly the respected companies for the stock?
7.I have also inquired about the Galio product range and Senior companies distributors in the city. Are these brands good enough to start with?

I would really appreciate if some of you could help me in the above context.:

 

[himalayan3009]

Hi there and welcome to TAI buddy. Please if you dont mind may i know in which part you live. Happy to see one new member from hills.

 

[Savitoj]

I live in Bemloe, Shimla. I am planning to open the shop in the same place.
Do you have any suggestions?

 

[jarpickle]

Companies will direct you to their local distributors unless you want be to a Dealer cum distributor.

The margins are pretty huge on some products and little on others.But if you do honest business, you will do more business which will make you more profit.You want people to approach you as the first choice and not the"if everything else fails"choice.Good ethics will take you far.

About products, do a market research.What kind of products are more in demand in the area.What kind of clientele would you deal with.You need to know the demand to be able to supply.

 

[Savitoj]

Thanks a lot for giving some time to reply to this post jarpickle.

I am doing the research work here at my end. According to my research i have got to know that the brands that are very common here are Suzuki, Hyundai, Tata, Mahindra and Toyota, Ford and Chevrolet are also pacing up in the market. So, i think that these brands would be the one's to whom i have to cater to.

Talking to a local dealer here, i got to know that, initially i should work on the basic necessity of each and every car, i.e. Floor mats, Mud Flaps, Head lamps, Car care and cleaning kits etc.

 

[jarpickle]

You're welcome.Wish you success in your business endevour.Just remember to give us "The Automotive India"members a special discount

Don't forget to store engine flushing liquid and carb/throttle body cleaning sprays.Pidilite,3M and ABRO make some good products.You can have cleaning liquids and polishing products LED bulbs etc for the DIY people.

Stereo installations are also a good prospect.JBL's main distributor is Sahil International.I am not sure about Pioneer.Most companies have their main distributors in Delhi.

 

[Gurrala74]

@Savitoj

Welcome to TAI !! nice idea to start a accessory shop, I think we have a member with ID as Ilango who had a shop and hopefully he may help you in proper way on this, please send a PM to the member or take the help from moderators

 

[himalayan3009]

Basically we have alot of maruti800 and alto here. More than 50% of the vehicles are smaller ones and rest is distributed among sedans and SUV's of all the other companies like Hyundai, Ford, Toyota, Tata and so on.

Prospected Customers: As you will be setting up your business near to Bemloe you will have two dealers within 2km radius i.e Cheverolet
Rajvir Motors & Anand Toyota. Customers from Goyal Motors- Maruti will also be under your radar as that road is a highway.

Threat: One accessory shop is already doing its business in that area from last 10 years and have strong hold upon customers of that particular area.
Kachighati is also not too far from that place where atleast 15-20 accessory shops are already running

Successmantra: Genuine & competitive rates. If you want to survive in this segment your rates should be competitive. I have seen many accessory shops opening and then shuting down within 6 months here. Reason was high rates and low grade products.

Start with the basic accessoris and if you have sufficient capital in your hand also start to deal in car audio and central locking etc.

Rest you will find everything taking shape sooner you will start your business.

I will be your 1st customer from TAI and expecting a handsome discount on my purchase.

All the best bro.

 

[Savitoj]

You're welcome.Wish you success in your business endevour.Just remember to give us "The Automotive India"members a special discount

Don't forget to store engine flushing liquid and carb/throttle body cleaning sprays.Pidilite,3M and ABRO make some good products.You can have cleaning liquids and polishing products LED bulbs etc for the DIY people.

Stereo installations are also a good prospect.JBL's main distributor is Sahil International.I am not sure about Pioneer.Most companies have their main distributors in Delhi.

Thank you very much for your warm wishes.

Yes' i'll make sure to give some special discounts to the members.
Well' i am in touch with the local distributors of 3m and ABRO products, as i have used them myself, i feel that they have got a good customer satisfaction and a goodwill in the market too.

About the stereo installations: The same distributor can supply me with this stuff too but he says that the margins in these products are very low and on that i have to hire a special guy to do this job.

@Savitoj

Welcome to TAI !! nice idea to start a accessory shop, I think we have a member with ID as Ilango who had a shop and hopefully he may help you in proper way on this, please send a PM to the member or take the help from moderators

Thanks alot for the suggestion, i'll talk to the guy soon.

 

[Savitoj]

Even i am looking forward to the smaller car segment, as i wrote earlier in my posts and i will be dealing in quality products.

Well, i'll be having a plus point here at this place, as Gurraj motors and Mirza Service centers are very close to this place and these people hold a good reputation in the city, so i'll be getting in touch with them as i already know them for making a customer base.

I will also keep in mind about the competitive rates to start up.

I'll let you know about when am i going to start the accessory shop Himalayan3009.(Don't worry about the discounts).

 

[Tornado]

Hello Friends, i am planning to open a new car accessory shop in Shimla(H.P).

Shimla ! It was my honeymoon destination.My dad disallowed me to take tour fiat UNO to shimla hence came there by train and bus. If I happen to visit it again ,this time in my car ,would love to get some simla special accessories from you.

I don't actually have much knowledge about the accessories or the brands

Buddy,it is very important for you to learn and get trained about the instillation and utilisation of the accessories.IMO there are no schools for this hence you will have to depend on the distributor for the same .Don't start the shop before you get trained.Depending solely on the so called skilled boys would ruin the bussiness capital.Someone has said somewhere that 'think,work and discipline is not our culture!'

1. What type of products should i start with?

Please start with the products which doesn't void warranty of the car.eg perfumes ,seat covers etc.
Read the accessories section threads throughly ,clear your dobts there ,enlist the brands with good and bad reviews.

Also , do not store items which increase width of the car eg. buldging wheel plates as roads in Shimla are narrow IMO.

Also store some attractive take away type shimla /HP special products which can be purchased by tourists coming from all over the India.

Afa electrical products such as ICE ,bulbs , talk with the dealers nearby to know which products can void warranty of their cars.and stay away from such accessories especially the accessories which involve cutting of car's wires.

. Should i start with the local products or the branded ones?

Start with both , but never forget to explain the customer about why one is costlier than other.However ,you can start with 'only branded productsif such special shop doesn't exist alread nearby.

. What would be the initial budget for the business?]

I don't know.
But find out the branded distributors who give the bussiness on credit.

Also local products from Jharkhand , Uttarakhand enjoy relatively good tax benefits from the concerned govts ,as a part of political move to upgrade their states in Industrial growth.

What are the profit margins that i can expect from this business?]

40to90 percent.Long lasting and wheather proof items give lesser margins while volitile items perfumes ,seat covers etc give higher margins.






5. Is it necessary to register the shop as soon as i open it or can i wait for the buess to take off? (As according to my knowledge the products are going to be all VAT paid)
It is always better to start with registration . One raid from sales tax officer or shop act inspector can make a big hole in your pocket unless you have good contacts with higher ups. Raiding officials get tips from your competition who could suspect your unregistered status if you happen to give extraordinary discounts to the custemers .

Best of luck.

 

[Savitoj]

Hello there 'Tornado', well the reply to the thread above seems to be really useful.
I'll keep in mind the points you suggested.

You guys are always welcome to Shimla. (Dont worry about the accomodation, i have a guest house opening soon in the city, will arrange a room if you want me to)

Cheers

 

[Petroholic]

I think these are the points you should keep in mind

1 make sure that the fitters you employ are very experienced.In smaller cities it is very difficult to find good fitters.Customers like me are always willing to pay a little extra if their cars are treated with respect ( no OEM wirings r cut ,no scratches etc , no dangling wires etc ).Stress on the quality of installation always.
2 Delhi is not too far off so you can very easily source /take order for products not available in shimla and source those products from there
3

Start with both , but never forget to explain the customer about why one is costlier than other..

good strategy

4 you can advertise and sell some excellent products which will not be available in shimla such as
paint protection films
OEM connectors
clay bars and branded but cheaper (like turtle wax) detailing products

5

I don't actually have much knowledge about the accessories or the brands to start with but i like this business concept very much

do gain some knowledge and be active on online forums.Keep an eye for products people are using in bigger cities and are not available in shimla.

I have seen that accesories shops in smaller cities stock a limited no. of products.The owners dont even know of products you want if you are asking for something other than the usual stuff.The fitment methods are horrible and do long term damage to cars.
you can use all these points to your advantage to open a one of a kind shop in shimla.

 

[vijay]

Every new venture in whatever field you choose to, need to have the basics know, its details for the dealers,distributors, vehicles sold most in your area,the staff for electric fittings which needs tobe trained people to do this job, yes usually you would find the bunch of people working for all the accessory market, but need to know who are they, the market charges for the job done and charges taken from the clients.
There is a huge list of accessories that goes in for cars, mostly are basics of mudflaps, mattings, idols, perfumes, car care products, ranges and brands of ICE setup, for ice you need to have the knowledge and taste which would allow the buyer to have faith in your suggestions, seat covers though in most of the markets its the storage guy where accessory guys gets them, but basic covers are needed.
I have many friends in automobile dealerships, accessory market and just sharing what i know from them as well as the needs to setup, you need to know the things right, yes measures as well as risk one surely needs to take but also proper understanding ,pros and cons as well right.
Ill get some more information taking the margins, and ICE investments.

 

[dharmesh]

Just one suggestion form me, ask your workers to treat cars as baby not like a thing and customers would surely turn back to you. Remember in business you are not successful if you get more customers, you become successful when the same set of customers come back to you again. So provide service that please the customers.

All the best mate for your venture.