I want to know whats the deal, how much cheaper are items for the business owner. Please give exapmples

 

what kind of business?

 

Most items are marked up 2-3x what a dealer pays for them. Say for instance you own a parts dealership, you get a part from the manufacturer that cost you $100. You will in turn try to sell this same part for $200. Now before you all get a brain cramp and start thinkin you can just start a business and get all your parts and atvs for 50% off think again. Theres a little thing called overhead. That building that you will have to build/rent/buy to house your business will cost $$, then add in the insurance ( health,labour,fire/theft etc) then figure on spending $50,000 minimum to stock you business with 'parts" and other things to sell. Im assuming you are thinking of an ATV dealership? Figure on having to stock at least 6 atvs ( 6x5000??=$30,000), parts for ALL six plus current and older models ( think at LEAST $15000), you will want to hire at least one mechanic/salesman/yardape to help you out.( they make wages ! of which you will pay over and above for employment insurance/benefits etc so figure a MINIMUM or $15,000 )
What I'm getting at is if you think you want to open a business just so you can get a $500 part for $250, you are in for a rude awakening. If however you want to start a business and be in it for profit, you are in for a rude awakening LOL be prepared for 70hr work weeks, sleepless nights, rude customers etc etc.

 

plus. you don't usally recieve the cuts in the cost of parts until you buy big quantities or move lot's of parts.

 

Damn that really a eye full, I was thinking of more like a service shop, and stocking a few popular parts, pipes, jet kits, oil, maybe some tires and who knows what else. My place has a nice shop that I could probaly utilize in that manner. Theres only one stealership around here and they are^#&%$&%* outragous. I steadily have a bike here that im working on, make a few bucks here and there, mostly topends, clutches, adjustments{chain, throttle, etc}. I have put several pipe and jet kits for folks. The thing is I or they have to pay way high prices for the stuff and get charged an arm and a leg to install it. I really think I have a market here for it.

 

you could make a little money from that but it would probably be better to just keep it a backyard type shop. it you open a full out shop you will need insurance for it which can be pretty high. also with a repair shop you will have to keep very good records for tax purposes and believe me they like to audit small shops.

 

When you learn and experience what being in business is like, you'll quickly appreciate WHY that "stealership" charges what it has to charge. I've been in my own service oriented business for over 15 years and lots of customers think WOW! when I cut them an estimate for work. Then they say "you must be making some serious bank in your job".....I laugh and shake my head and continue to wonder how I'm gonna pay my employees this week.....and my insurance bill....and my directory advertising bill.....and my fuel bill.....and my phone bill.....and that new piece of equipment I had to buy last week to get that one job completed....and on and on...... You get the picture!
Even a little Mom and Pop shop or a back garage operation can nail you. What happens when you peak and tweak that dudes bike that was in last week and he goes out and kills himself on it? Maybe your work had nothing to do with the accident but I gaurantee your *** will get dragged through the mud by the slimey bottom feeding attorney that takes on his case for his Mommy or Girlfriend. You better have some pretty righteous insurance regardless of your "small" arrangement. My Worker's Compensation Insurance for my line of work is 100%. That means if I pay a worker $17 bucks an hour to climb trees, in addition to half his Soc Sec, Medicare, and other taxes that I pay, I (in theory) write a check to Worker's Comp for $136 dollars EVERY DAY, just for that ONE employee! Multiply that times 4 or 5 depending of course, on how many employees you have.

Sorry if I come across a little harsh, it's not my intention to discourage anyone from their own business. I get a little excited when people complain about the cost of goods and services with out understanding what makes it all tick. I just want to help you realize what you can and will expect.

First rule: Don't jack up your credit rating and have a good relationship with your local banker!

 

That's good info TreeDoc for those who don't know what it takes to run a business. Dealerships have to charge high prices to even come close to covering the outrageous costs of having that business open. I started selling Max amphibious 6x6s ATVs about eight months ago. This dealership is much easier to get over one from Polaris or Honda. I've been six wheeling for over ten years and sell the vehicles as a hobby. It is a good deal for when I need my own parts/accessories, or fix someone's machine. I make money on labor and parts since I get dealer prices. At the same time, I have about $20,000 worth of vehicles and parts. It's hard to say I'm SAVING money on parts!

 

get some friends in the industry, or offer a reach around when you get bent over! lol.

 

Dont forget the wonderful state tax forms, fed forms, work comp insurance, w-2s I 9s 1099's
Inventory software. Building maintence, ups/fed ex contracts.

Buisness TAX ID NUMBER and then go to your city council and try to get them to rezone for your back yard shop. THAT IS NOT IN A BUISNESS DISTRICT.

Property insurance that will tripple now that you "invite" people to your "back yard shop"

And then the first wonderful 10,000 dollar pc of machinery be it truck, car, atv, boat that you have to replace because they say you forgot to put the oil plug in tight.

And then after all this Crap, youll have a huge line of buddies that think you can get them new stuff and parts at dealer cost. and that you should fix,detail,lubricate,trouble shoot, there trucks cars atv's etc.... for free or at your cost.

Tried my own buisness once. All i can say is bless the persons heart that has the heart to stick with it.