14 replies to this topic

[Minis_Rule!!]

As part of uni :smartass: Electronics course at UWIC :wales: I have to do a business plan on setting up any business. Of course I had to do something to do with Minis! :grin:

So do you think there would be a market for mini parts in the South West?

Cheers :grin:

[Jammy]

I'd vote yes, as long as you stock square wheels!

[Bungle]

:fear:

[Minis_Rule!!]

I'd vote yes, as long as you stock square wheels!

Im sure I could for you jammy_basturd :smartass:

[miniT]

Yes please! - this would be ace!

[Bungle]

Yes please! - this would be ace!

you want square wheels as well

[miniT]

Yes please! - this would be ace!

you want square wheels as well

Round? Square? makes no odds when driving round back roads with pot holes!!

[Jammy]

Ok, I feel guilty now for taking your topic of course, especially when its uni work. I'd say there probably would be a demand for a supplies place in the south west. I know of places in almost every other part of the UK, but no the south west, but then again I don't live there. Bungle, Jimbo_Edmundo, Millsmini, Brawlyrox should be able to tell you whats down that way. Maybe even ask Cornish Mini Club (backwards lot they are though! :tongue: )

[Bungle]

jammy in new moderator mode

there isnt any mini shops in the south west i get all my bits mail order or shows

[Minis_Rule!!]

Cheer guys :grin:

"there isnt any mini shops in the south west i get all my bits mail order or shows" thats why i thought it would be a good place to set up a mini shop.

"Round? Square? makes no odds when driving round back roads with pot holes!!" that is true, so off the roads are rubbish on the south west

[pikey7]

If you use the guestmap above (what a great idea that was! :grin: ), and calculate a catchment area, then use the numbers of people in that area, divide that by the total number on the guestmap as it stands (around 100 ATM), then find out the figures on the number of minis on the road in the UK, and use the same percentage. Assume then that some of the custom will come from people outside that area as mail order, then that's your customer base! (oh, and add 10% 'because everone on here'll know you're going to give them a TMF discount! :grin: )

Especially if you get a good supply of square wheels.......

[mini1071s]

I would say definitely not unfortunately, (but see below for a possible solution!), For several reasons. (I have looked into doing this as well).

1. Suppliers. You are never going to be able to undercut the likes of minispares, even when you include postage costs. They buy in vast bulk. You will be buying stock for more than their retail prices in most cases. Add to this the fact that anyone can walk into a motor factors and purchase all service parts at trade prices.

2. Cost of space. The SW has the most expensive commercial rents in the UK outside of London. I know as I've tried to get space for a similar business. An industrial unit in cornwall starts from £11,000, plus rates and no one will find you, or a high street shop in falmouth will set you back £50,000 a year and you are stuck with a population of 12,000 of which I know of 19 minis in a 10 mile radius, 5 of which are mine

3. Range. You will never be able to afford to stock the range demanded/expected. To stock the complete range of common hard parts will set you back some £300,000. Have you got this in the bank? No, then you borrow the money at 8 % + if you're lucky and a bank will extend a line of credit with no security for it to a business with no track record. On top of this people will expect slow moving items like wheel of several styles in 10, 12 and 13".

4. If you did have that money, you would make more leaving it in the bank...

5. Margins. Your gross margins are going to be 5 - 20% tops, less on items like wheels and tyres. Lets be generous and say you have a 20% margin and you pay yourself minimum wage. Bare in mind that the 8% interest comes off this as well.

Industrial unit 11k
Wages incl employer NI contributions and liability insurance £17k at min wage.
Bills easily 7k
+ business rates, shop van, VAT, accountant, diesel, interest payments on stock, delivery, etc etc.

Easily 34K. Now work out your turnover based on breaking even at minimum wage you will pay yourself whilst working 7 days a week....

£3269 worth of sales per week (assuming you open 52 weeks per year no days off) at a 20% margin, (too high), to get minimum wage. But don't you need a new year sale as well and a holiday? Small business is a horrible game to be in.

So say there are 500 minis in the SW and all of us use your shop because we like you We all have to spend £340 each with you per year for you to break even. You would be better off working for macdonalds

Add to that if you set up in bodmin in the middle of conwall, I would have to drive 80 mile round trip taking 2 hours total costing me a tenner in petrol to buy anything, plus two hours lost wages or leisure time and you can see it's a waste of effort. Or I could make a cup of tea and surf the net and 24 hours later have my parts then spend an extra 3 hours of the weekend playing with my mini, going out with with mates or surfing.

Before you dispair though, you can make it pay if you run a specialist Mini garage AND the parts business, as your parts business should cover rent and basic costs leaving you to make a fair living employing good mechanics for 20k a year, say 2 of them, chargine the going rates of £50 per hour and sticking a funky 50's style diner in the place for good measure to pick up on the tourist trade and give your customers somewhere to go while they wait for their cars.

I calculate this would make you about 33k per year after costs, but you are looking at a massive amount of capital investment to get it off the ground, which, again, no one will lend a business with no track record . Your only chance here would be to buy an existing garage business on finance and put in 30% then develop it along the lines above.

There are better ways to make a living I think. Keep this in mind next time you visit a Mini shop!

[Jammy]

But then thats not answering his question of would there be a market, I thinks its allowed in uni coursework to investigate something, find theres a market, but then find out there are other reasons for it not being viable.

I think you bring up a valid point as to why there isn't many supply businesses in the south west, there just isn't the road/rail networks in place to support them!

[Minis_Rule!!]

Good points and bad points, but that’s good because with all business adventures there’s advantages and disadvantages!

Cheers for all your help :wink: , now I just got to type it up in 2000 words

[mini1071s]

Hi, sorry, that came accross as a bit negative and I really didn't mean to be. I hope it helps your CW anyway.

To answer the question then in my opinion is, no, there is not a viable market for a mini spares shop in the SW but combined with another business it could be made to work