Hot rod parts consignment business would you use it?

[lucky_1974]

So I have been developing a business plan for staring a business that sells and buys hot rod and custom parts and pieces on consignment. The core of the business would be antiques parts not billet or aftermarket. Items such as motors, axles, rearends, trim, accessories, speed equipment, grills, local auto artists' work and old garage stuff, signs, gas pumps and possibly project vehicles and used shop equipment. So I have a few questions for the board.

Would you use or go to a shop like this or do you perfer ebay?

One service I would provide is pickup and delivery of heavy or large items, would you pay or use this service and if so how much?

Does anyone know of a business like this, and if so, what is the commission they charge on sales?

I figured this is a good place to ask if this would work, cuz there are some brutilly honest people here and a pretty good cross section of folks. http://www.jalopyjournal.com/ubbthreads/images/graemlins/grin.gif http://www.jalopyjournal.com/ubbthreads/images/graemlins/grin.gif Hope this doesn't bring a flood of FU man go to hell http://www.jalopyjournal.com/ubbthreads/images/graemlins/blush.gif http://www.jalopyjournal.com/ubbthreads/images/graemlins/smile.gif... Thanks

[sawzall]

well. I guess i'll respond first...

I would have a hard time using this service.. I mean WHO would see the stuff that you were selling?? how would you market the parts you needed to sell.. there are few people who will have the things that I want.

however.. I think a guy with some free time could drive around delivering parts bought and sold through various websites (like ebay) and make a good profit...

so would I use it.. (this service) only if it were geared toward a specific make or model of car.. if your gonna just have "parts" then your not setting yourself apart..


lastly.. for me, I think that the problem with this type of business would be that it would be a HIGH volume, low profit type business. where you would make a few bucks on each piece sold.. (like ebay).. small businesses (at least I feel) should be based on low volume high profit items.. thats why I would never by 10000 of the same thing to sell on ebay... i look for 1 or 2 things that I can make a killing on and thereby do less work for the same profit..

I hope all this makes sense.. I too am intersted in starting a "MORE REAL" business for myself.. but I havent found the product yet...

later

sawzall

[lucky_1974]

Thanks Sawzall-

I agree with some of your points I probably wasn't clear enough on the first post. This would be a store front type shop in Minneapolis, MN. Also I would only have "old parts" Think of it as a antique shop for hot rods and customs. I do think you brought up some good points. And you are correct profit margins would be smaller, but hopefully higher than retail. If you find a "real business" idea let me know and I will open the Midwest franchise http://www.jalopyjournal.com/ubbthreads/images/graemlins/tongue.gif. Thanks again

[DrJ]

It sounds honorable, but it also sounds like a retired person's hobby.
Ever notice that the people running antique stores are quite often as old as the stuff they sell?
If you are going to open a store to actually make a living you shouldn't restrict yourself to only used old parts. You should be handling any car parts that sell.
If you have a used engine for sale you might also have on stock the new spark plugs and oil filter it needs available to make it seem a wise purchase to the customer. See what I mean?
If you offer a pick up and delivery service of "car stuff" from one person's front yard to another's back yard why restrict that, (actually another type of business venture entirely,) to just car parts?
Why not move the old refrigerators and stoves for a service fee too?
Parts is parts!
If you are going to open a business to sell or trade "stuff" trade what ever people want to buy.
Cadillac didn't offer a stationwagon or a truck till lately, (other than Funeral cars and those were outsourced)...but realized that's what they had to do to keep from going away.

[65Luck]

I can walk all day long in a 2000+ vendor swap and find absolutely nothing... the chances of a small consignment shop having something I needed would be hugely slim.

It might be fun to walk through the store a couple times a year, but unlike the antique stores who have people that come in to browse and buy whatever strikes their fancy, generally speaking people looking for parts don't buy stuff they don't have a use for (unless it's so cool you just gotta have it).

I think if a guy did something like that they would have to specialize pretty heavily into one thing. It's an easier sell, it concentrates the momentum of your business into a single focused plan of attack and you become the "flathead guy" or the "chevy fleetliner guy" or the "studebaker guy" instead of the "room full of miscellaneous stuff guy."

I think maybe the drop off and pick up thing might have some potential. There's a number of things I would have purchased on eBay if it wasn't a pain it the ass to get it shipped. If there was a "independent shipping agent" that arranged all the shipping and dealt with the freight company I might have bought it. I don't have the time or the inclination to fight with freight companies and deal with making sure the seller is at home when they show up and etc etc.... it's all a big pain.

Find an underserved niche and fill it. Right now there is probably a fairly good sized niche in being a shipping agent for the large stuff that gets sold on Ebay.

[porknbeaner]

Dale Wilch (KC,KS) did it 20 years ago and made a bundle, so did the guys selling parts.
I like selling and buying on the HAMB but it would be a useful service. Especially if you handle the shipping end of it.
You could probably get ahold of Dale at dalewilch.com.
Please forgive the shamless spam. And pic his brain a little.
The PknBner http://www.jalopyjournal.com/ubbthreads/images/graemlins/grin.gif

[Peter Pan of Chicago]

What a unique idea! I would visit a shop that was set up that way. Especially if it had something new to offer every week.

It could be a clearing house for hotrod stuff for the entire area. not to mention if it was decorated and had a positive business image, it could develop into a place that was an "event" just to go too.

You can probably sell/make money selling proliferal stuff too.

Sounds unique. Keep us/me informed on this.

Thanks for sharing.

Joel http://www.jalopyjournal.com/ubbthreads/images/graemlins/wink.gif

[lucky_1974]

Thanks for all the feedback. I like the suggestions, and am not surprise by the range of ideas. I am still in the planning stages, and these type of discussions help. Thanks.

[enjenjo]

We had one here, and it did very well for a long time. Business changed hands, and went away in a year or so. The fee was 40 percent on small items, and 30 percent on bigger stuff.

[Deyomatic]

I like the idea, whether it is consignment or not, it would be like a swap meet that is always in town. The consignment end of it is good because you would be able to get a wide range of parts, not just stuff that one guy had and couldn't use. I like the idea, and it sounds like the type of place that, if it was close enough to me, I'd check out on a regular basis.

[Corn Fed]

A local place (Des Moines Iowa) tried it with mostly stock car (roundy round) type stuff with some street car goodies there too. But they only lasted a year and even were right on Interstate 80 so they were high profile. Dale's RPM is about the only place I've ever heard of that has made a go of it. I've looked at his stuff alot but never bought because I thought it was too costly. You'd also kinda be in competion with Little Dearborn for the old ford stuff. Sounds fun but nothing I'd bet the farm on. Keep us informed if you do open one. I'd check ya out during BTTF's. Good luck.

[Roadsters.com]

The idea can certainly work. Selling vintage hot rod and race car parts on consignment is somethat that I had planned on doing with part of my shop, but I'm holding off until I move to a better location in a few months. I have some ideas but don't want to give them away right now.

Ten years ago, when Speed Center had a shop here in Phoenix that sold new and used speed equipment, I went in there every week.

And no, you don't have to have a stock of new spark plugs in order to sell an old engine that needs them, nor do you have to specialize in a particular make or model or car. Sell neat car stuff. If something won't move and gets stale, have its owner lower the price or take it back. Make sure that nothing in your shop is stolen, and get to know some of the police in your area. Get a building that's secure, and get some good insurance, if there is such a thing.

Be honest and sincere. Fortunately, those are both pretty easy to fake.

Dave
http://www.roadsters.com/

[lucky_1974]

Thanks for more of your input. I think that the idea I have is closer to Roadsters idea. I want to sell stuff that is cool, unique, and truely vintage. Not rims form an 80's IROC or billet stuff. Little Dearborn is a cool shop, but they are more into repop stuff and have bad hour for a working guy.

The kind of place I want is a place to look at the goods, and hangout at. My hours would be later evening during the week and weekend later. My wife wants to offer coffee, dessert, and a place to BS kind of a clubhouse feel. There is a place that is like this in the cities, but only for motorcycles. I would like the same atmosphere, but with hot rod parts. I realize that I may never get to be a rich man from this, but enjoyment would be worth something.

I am still kicking around options, but I am surprised that more people have not said I couldn't compete with ebay.

[Roadsters.com]

More good points. Ever notice that when you walk into a shop that only sells reproduction parts, it just feels like something's missing? Like something real. Those places (and their equivalent swap meet vendors) are boring.

There's a small shop in downtown Portland that only sells used high end audio equipment. The owners are particular about what they sell. When I lived in Portland I used to go in there regularly because you never knew what might show up. And unlike eBay, you can actually look closely at something before you buy it.

Dave
http://www.roadsters.com/

[63CadGuy]

Hey Lucky, do you remember Racers Exchange? They were in Bloomington or Richfield and sold used parts, but mostly for race cars. I like the concept, but pricing needs to be reasonable. I like the idea of a place to hang out at. Maybe a Friday night car show with BBQ or something.

[lucky_1974]

This is exactly the kind of place I want...I remember racer exhange, but never went there. Prices are a big thing, but should be workable.