Business plan for the wholesale trade of motor oils. Not an auto oil franchise from the "river of oils"

Background of business creation

In May 2016, I was left without my main job. My favorite job, which has faithfully fed me over the past 10 years.

To be honest, I never thought that having graduated from the law faculty of one of the most prestigious universities in the country with honors, I would ever find myself in such a situation. That I will go to interviews and look for a job myself. And that I will receive letters like these:

“We have carefully reviewed your resume, but are not yet ready to make you an offer...”, or the following: “You are too overqualified for our vacancy.”

Well, it’s clear that I didn’t want to go to work for 15-20 thousand hryvnia. It's not even 500-800 dollars now. And I’m already too old for this shit - too old to work for someone for that kind of money.

Well, it was time to step down from Olympus, remembering those ancient times when I, a very green and young lawyer who had just graduated from university, was invited to work by 5 companies at once. And I could choose where to go.

Times change. Now I was forced to look for companies to offer them my services.

Life is a very unpredictable thing and you never know where to lay the straw and where you can take a certain risk. The twists of fate are unknown to us and we can only adapt to objective reality, whatever it may be.

That is why I urge all citizens not to be lazy and have. So that if one source ceases to exist, the rest will cover you.

But I, by nature, am an optimist and always look at the next problem with a challenge. Always - philosophically, with humor and faith in a cloudless future! Only this way and no other way!

Has life decided to play cat and mouse with me? Test my fortitude?! Well, I was willing to take the risk and see who won! I happily accepted the proposed rules of the game.

I had a strange feeling the first few days. Feeling empty. Everything I was doing before suddenly no longer mattered. This was unusual for me. New.

I had enough time to think about it in a calm environment, look around and realize a few simple things.

Firstly, that our native Ukraine is in a deep... hole. Ukrainians have become poor. The number of unemployed has increased. Competition has become tougher. Small businesses are creaking and trying to survive.

Vladimir Borisovich Groysman knows what to do with this whole disaster. I really hope he knows, because it’s time to start boosting the country’s economy. It’s time to lend to small and medium-sized businesses, because if this is not done, we will continue to compete with Zimbabwe in terms of wages for a long time.

Business is done by the state, not by the state - business. Business gives taxes. Business develops the economy. Doesn't anyone at the top understand this?

What do I hear in the news from advisers of various ranks? Tighten taxes. Cancel the single tax. And other, excuse me, nonsense.

In general, the time when you have already been fired, but have not yet found a new job, is a very interesting time. Useful, I would even say. Because new horizons and opportunities open up before you. You stop living in your usual rhythm and can see seemingly the same familiar things from a completely different angle.

How did the idea of a business selling motor oil for cars come about?

I'm the kind of person who doesn't like to sit idle for a long time. And while I was sending out resumes to law firms and going to various interviews, the thought arose in me: “Why not open a new business?”

Of course, it was possible to focus on the business my wife and I already had (as I wrote about how we organized it) and continue to develop it.

But, firstly, my wife coped and copes with this task very well, and secondly, what kind of man am I if I don’t have my own business?! My own brainchild, which I will organize, nurture, and force to bring us additional (or main) income?!

At first I wanted to open my own law firm (I believe that almost every lawyer with many years of experience thinks about this sooner or later). However, there were many different pitfalls, the main one of which was - where to find clients?!

After all, you can open a law firm tomorrow. Register an LLC or private enterprise. Rent an office, buy a laptop, connect to League and humbly wait for clients. But what's the point?

The current economic situation in the country is such that it is now simply unrealistic to find large clients for an unknown company. Good (monetary) clients have long been dismantled and retained by large Ukrainian law firms from the TOP-50.

A foreign company or large plant will not come to a company without a name.

And dealing with all the little things, like registering enterprises, obtaining certificates, permits, licenses, etc., has long been uninteresting for me. After all, this is more technical work, which any graduate of Taras Shevchenko National University of Kyiv can handle. Especially now, when the Ministry of Justice has made it possible to register companies and receive many documents online, without leaving home.

Previously, I met with several partners I knew who had gone into free swimming and opened their own law offices. So, even their lawyers (in a firm that was already several years old, with a certain established client base) earned up to 15,000 hryvnia per month. The partners, of course, had a little more, but not much (pay taxes, office rent, staff salaries, how much will be left?!).

Times are tough now, to be sure.

On the other hand, I wanted to move a little away from jurisprudence and try myself in something new. Moreover, there were good, reliable partners who had been offering to join their business for a long time.

How we started a business selling motor oil for cars and trucks

In general, after consulting with my wife, I decided to open a new business not related to law, while simultaneously continuing to search for work in my specialty. Still, I love law and it holds a special place in my heart.

In just a few days, “Luigi’s Garage” appeared on the Internet - an online store selling motor oil for cars and trucks.

I decided not to bother and for now open an online store on the Prom.ua platform. This turned out to be cheaper than creating a separate website and promoting it (the simplest tariff with minimal basic promotion will cost about 3,000 hryvnia per year).

For comparison, to create a separate website now you will need at least $300. You will pay another 3,500 hryvnia per month for its promotion.

Prom.ua, in our case, was quite suitable as a launch pad to attract the first customers. In the future, depending on how things go, it will be possible to create a separate website.

It was also very useful for us that the wife is an officially registered private entrepreneur who has the right to trade wholesale and retail in almost all goods for which it is not necessary to obtain a license in accordance with the Law of Ukraine “On Licensing Activities”.

It also turned out to be useful to have an office, which, of course, was used for the main business, but which could also be used as a warehouse for motor oil.

Why Luigi's Garage?

When I came up with the name for the store, I proceeded from the fact that the Italian auto industry has always been famous for its quality, sophistication and beauty. Ferrari, Lamborghini, Alfa Romeo - these are the cars that need no introduction. They just make you crazy. They have passion and soul.

In this I am impressed by Italian masters. They are truly great professionals in their field. And also, unlike the excessive German pedantry, Italians are always a little adventurers, following the lead of passion and feelings.

The character “Luigi” from the cartoon “Cars” also played an important role in the name of the store. It was a nice Fiat 500 - a repairman.

I wanted to breathe soul into the name so that it would become unique, have its own story and, perhaps, a character. And, of course, it did not contain any boring prefixes, like: auto (auto-moto, auto-house, auto-garage, chic-auto, etc.).

I didn’t think about the logo for a long time either. I chose an ordinary old car (Fiat, by the way) and wrote an inscription under it.

It turned out quite nice.

Why did you decide to sell motor oil?

Well, firstly, our partner is engaged in the supply of motor oil and auto parts for trucks (i.e. the goods are almost always in stock), and secondly, there are more and more cars every year in Kiev and Ukraine.

And I bet that no driver will refuse to buy motor oil from us at good prices, even if the old Flint parrot is the same.

I will even say more, “Luigi’s Garage” boldly competes with such a giant as “ATL”.

Our prices are actually cheaper!

What kind of motor oil do we sell?

We sell modern synthetic and polysynthetic motor oil for gasoline and diesel engines of the following brands: WOLF(Belgium), ELF And MOTUL(France).

Available in 1, 4 and 20 liter packs.

You can get more information on motor oil and its advantages over other types of oil by visiting the official website of Luigi's Garage.

Well, our next business experiment has started. The store is launched. Clients are slowly appearing.

So, if you need to please your iron friend with modern, high-quality motor oil, contact us!

P.S. After a month of being unemployed, I was invited to cooperate with one of the leading law firms in Ukraine. This means that Luigi's Garage will be run primarily by his wife. I have no doubt that she can handle it!

That is why everyone has the opportunity to open a motor oil store. Of course, the idea is not suitable for everyone, since for such a business idea you need to have many promising ideas that will significantly influence the success of your business. So let's look at some factors that may influence your business to develop successfully. 1. The first thing you need to pay attention to when opening a motor oil store is competitors.

G-energy service

G-ENERGY SERVICE is an international project of the Gazpromneft - Lubricants company to develop a network of authorized service stations. All stations are united by working in accordance with advanced international standards of customer service and the use of high-quality lubricants from the G-Energy and Gazpromneft brands. assistance in designing service stations in accordance with the high standards of the program; assistance in purchasing high-quality oil change equipment; uninterrupted supply of premium lubricants to the station; personnel training and development programs; global advertising and information support for the project.

FRANCHISE of the network of oil centers "Oil-Market"

"Oil-Market" is a well-known and popular Federal trading network, which ensures customer loyalty, high customer traffic and stable revenue, i.e. You are joining a ready-made, reliable and successfully operating and growing business. The Oil-Market franchise gives you the opportunity to become the owner of a store under a well-known brand with minimal costs and risks, and open a profitable and stable business with well-established technologies.

Franchise motor oils

You don’t need to create an online store from scratch, order design and layout separately, buy an “engine” for work, etc.

Spend money on buying or renting a server, renting spare parts catalogs and connecting additional options.

You do not need to hire a programmer to maintain and support the system.

With "DvizhOK", you can start selling spare parts an hour after signing the contract. We have almost 10 years of experience in the field of auto parts sales.

Opening a car oil store is easier than it seems

Trading motor oils is a business that involves a number of hidden nuances, so it is necessary to think through the plan down to the smallest detail.

You can hardly read about how to open a car oil store in any literature, because this area requires a unique approach.

This area of business, namely the sale of motor oils, is quite promising, because every year there are more and more cars.

Affiliate program GUMMILAGER

The affiliate program is based on the principles of franchising. We invite entrepreneurs from all regions of Russia to participate.

Each partner is assigned a territory.

There is a down payment. There is a grace period and special working conditions. Online store with flexible functionality.

Competitive prices and a wide range of products. Current original catalogs.

Support and training.

Open your own business as a franchisee of the REAKTOR regional auto complex network

REAKTOR is a dynamically developing company with many years of experience, and this is more than 12 years of successful work. Proof of this is the constantly increasing sales volumes, the number of vehicles serviced and the expanding range of services. Our franchise will allow you and your team to work actively, efficiently, quickly and smoothly, increasing profits.

If you are reading this text, then undoubtedly the time has come to do something and develop.

Business selling motor oil in bottling

There is unprecedented competition in retail trade today; it is already difficult to find a product that is not represented in your city in sufficient quantities. Motor oil is no exception in this sense.

It is sold everywhere - in stores, service stations, service centers, even on the roads.

However, today a new format for trading such goods has been opened - bottled motor oil. Car owners immediately found benefits from purchasing such a product.

How to organize a business selling auto products

Every year the number of cars is growing; not only large cities, but also small towns are subject to this trend.

A true car enthusiast cares about his car, which means he is ready to invest money in it to ensure its normal operation.

And, of course, many car owners want to show their individuality or simply decorate the car the way they want. In this regard, there has long been a huge variety of car accessories on the market.

Trade in motor oils is one of the most profitable areas of retail trade in automotive products. Spare parts are needed only in case of breakdowns; owners of new cars often do without purchasing spare parts at all, having the car repaired under warranty at a service center. Additional equipment and other goods, for example, covers, are not purchased by all car enthusiasts and not every year; in addition, these goods are sensitive to economic crises: they are the first thing people save on.

But every car owner needs motor oil: regardless of whether the car is new or old, it goes through forty thousand a year, ten thousand, or even sits in the garage, leaving it once a month. At least once, and sometimes 2-3 times a year, the engine oil is changed in every car. Therefore, no shortcomings, the main one of which is their classification as excisable goods, can be considered sufficiently justified for a store not to have motor oils in its assortment.

Motor oils are sold in two forms: packaged and bottled. It is a common misconception that an excise tax is required to be paid on the sale of bottled oils, as opposed to packaged ones. It is difficult to find the roots of this misconception, but it is possible that it is associated with the activities of certain dishonest tax inspectors. There are no special instructions in the legislation regarding taxation when selling bottled motor oils: accordingly, the requirements are the same as for packaged oils. Moreover, to sell bottled oil, you do not need any special quality documents compared to packaged oil.

There is another more significant reason why auto shop owners do not want to get involved in selling oil from barrels. The manufacturer's packaging is a guarantee that the store does not bear any responsibility for the quality. The store will not accept any claims from a buyer whose engine seizes due to oil, and no ZPP department will make any claims against the seller either.

In addition, bottled oil has a very bad reputation, which is why the demand for it is lower than for packaged oil. A dishonest seller has the physical ability to dilute expensive oil of foreign brands with cheap Russian ones, and only an examination can prove the fact of such fraud. The effect of such a mixture on the engine is unpredictable: the interaction of some incompatible additives from different oils can, when heated to operating temperature, turn the oil into an acidic or alkaline liquid, due to which the engine will become unusable. After this, the car owner is provided with major repairs, and the store owner is provided with an inspection and a subpoena.

And finally, one more disadvantage: oil in barrels needs to be stored somewhere. When there are at least five or six brands of oil in stock, and a barrel of each occupies about 1 m2, it is clear that the sales area of 8-10 m2 will be very small, visitors simply will have nowhere to turn around. Although car enthusiasts are not picky about the design and internal logistics of a car store, this is part of the reputation, and it is necessary to take care of it.

The main advantage of bottled oils is the economic benefit from their sale. Now we are not even talking about “black” methods of earning money. Oil in a barrel will cost an entrepreneur on average one and a half times less than packaged oil per liter. Thanks to this, the markup on it will be significantly higher.

For example, the purchase price of Elf oil in a 4 liter package will be 1000-1100 rubles (250-260 rubles per liter), and it will be sold for 1500 rubles (375 rubles per liter). After deducting taxes and other expenses, the net income from one package will be about 350 rubles.

The purchase price of a barrel of the same oil is 40,000 rubles for 216 liters, that is, 185 rubles per liter or 740 rubles for 4 liters. This oil is sold at a price of 300-320 rubles per liter or 1200-1300 rubles per 4 liters. The net profit will be at least 500 rubles, that is, selling bottled oil is 40-50% more profitable than packaged oil. When selling cheap oil, the difference is even more noticeable: up to 80%.

Whether to sell oil in barrels or not is a choice exclusively for a specific entrepreneur: the economic plus is really significant and equalizes all possible minuses. Moreover, if you treat your work honestly, buy oil in barrels only from trusted suppliers and control its quality, there should be no complaints from dissatisfied customers.

Currently, every second resident of the country has a car, often even more than one. That is why the business associated with the sale of spare parts and other components for cars is very profitable and relevant today.

The complexity of such a business is quite specific, since it is unidirectional. But, nevertheless, most auto oil stores also offer related services, thereby expanding the range and increasing the profit of the enterprise.

Competition will be a huge problem in the development of such a business, because this market niche is almost crowded. One way out would be to find a good location for the store, in places with very busy motorist traffic. If there are already similar ones in the area where your store will be located, then try to supplement its assortment rather than repeat it.

The main task of your business is to offer the buyer as much choice as possible of high-quality automobile oil. Take care of your advantages over competitors, develop a more efficient service system in your enterprise.

You will not have any problems in organizing the business itself, just choose the organizational and legal form of business and register your enterprise. As for capital investments, in this case they will be small, this is due to the fact that your activity will be mainly trading. According to statistics, the project can pay off within six months, given other positive conditions.

In order for a business to develop successfully and bring tangible profits, you must first take care of drawing up a business plan. You can see some examples below in our article.

Registration aspects of a business project - contains guidance on opening your own car oil store. A theoretical description of the nature of the activity as a whole is presented. Consistent stages of creating and implementing a business have been developed. A list of documents required for registration and state registration of a business is presented. Particular attention is paid to complex and specific issues that require special requirements. The highest priority directions for further development of the project have been developed.

An effective enterprise management strategy is presented.

Feasibility study of the enterprise - a business plan for a car store is presented, which also specializes in the sale of various oils. Contains a brief description of the VostokAvto store. The table shows the staffing table for employees by profession. A list of advantages in running an auto shop is presented. The distribution of job responsibilities of the enterprise personnel is clearly formulated. A SWOT analysis was carried out, a comparative description of the store with its competitors was presented, and their strengths and weaknesses were highlighted. The main technical and economic indicators for the project have been calculated.

Calculation of the main financial indicators of the project - a business plan for the Maslon enterprise was developed. Unlike the business projects described above, this one pays special attention to the organization’s marketing policy. A brief description of the enterprise has been made, and the organizational management structure of the enterprise has been developed and schematically presented. The main indicators of the financial and economic activities of the project are described. The tables calculate cash inflow and outflow indicators. The diagram shows indicators of the financial stability of the enterprise, including the current liquidity ratio, the provision of own working capital and others.

Buy motor oils wholesale and auto chemicals wholesale

MaslaOptom.ru - Oils Wholesale, car oils (automotive motor oils wholesale, transmission oils, hydraulic oils, lubricants) coolants (antifreeze, antifreeze), auto chemicals, car accessories, auto cosmetics ABRO, BODY, Turtle Wax and much more wholesale in Moscow and the region.

We have been selling automobile oils, auto chemicals and auto cosmetics for many years and can competently advise on all questions regarding the range and technical characteristics. But, as practice shows, those who buy auto chemicals and oils in bulk understand the product no worse than we do.

Our advantage is prices

Wholesalers are primarily interested in prices. The quality of the purchased product is also important, on which your reputation as a seller (including ours) ultimately depends. Therefore, offering to buy motor oils, antifreeze, antifreeze, auto chemicals and auto cosmetics wholesale, we have relied on high quality products, developing a flexible pricing policy to make it a pleasure to work with us.

Why are our prices for motor oils lower than those of many competitors:

We work under direct contracts with leading manufacturers and distributors of motor oils and auto chemicals, which allows us to significantly reduce the financial costs included in the price of the goods;
We buy oils in bulk (our prices are also pleasantly low). The same rule applies to car accessories, cosmetics, and chemicals;
Large warehouse areas allow us to maintain a constant supply and ensure 95% availability of the assortment at the time of order.
Being ready to ship any shipment of goods saves your time (and money, respectively).

That is why (and because we are just good people and share all the problems of motorists) you can buy chemicals, cosmetics and motor oil in bulk from us with tangible benefits, cheaper than from many well-known large suppliers.

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We work with professional calculations. But in a human way

95% of catalog products are in stock. If the required product is not in stock, established direct deliveries allow you to quickly respond to the order and deliver it as soon as possible.

Each client has a personal manager who will answer all questions and take charge of completing the order from start to finish. All our specialists are competent in matters of price, assortment, properties and chemical characteristics of oils and auto chemicals, and are always ready to help choose the optimal delivery method, orient the buyer on shipment dates and order delivery time.

About delivery.

Today you bought car oils, car chemicals, car cosmetics or car accessories wholesale from us - tomorrow we will deliver your order! The offer is valid for buyers from Moscow and the surrounding Moscow region. We also work with regions, but delivery times and costs are negotiated individually.

Oils wholesale and only?!

You can buy antifreeze, antifreeze, coolant from us, and offer a favorable price for any auto chemicals and cosmetics wholesale and retail. The priority activity of our company is, of course, the wholesale sale of automobile oils and auto chemicals. Automobile shops, car markets, maintenance services, gas stations and specialized enterprises are our main clients. However, we will always find time for those who want to buy high-quality motor oils, even if only one canister with a capacity of, for example, 4 liters.

We continue our series of articles on starting a business in a narrow niche and today we will touch on the topic of cars. Most of us are motorists, and we know very well that replacing consumables for a car is a common thing. We change the engine oil at least once a year, usually every 10,000 km. In this article we will talk about how to open a motor oil store in your city and where to scale this business in the future.

Business Features

We can say for sure that it won’t be possible to sell only oil; you definitely need to sell filters and other auto chemicals. Only in this case will you be able to make a profit, and when launching a niche store in this direction, you need to gradually move into the field of auto parts sales. We can say that oils can be the starting point in this line of business, after which you will need to think about increasing turnover and auto parts are a great option.

Go ahead. Now let's talk about competition. Of course, it is high, since almost every auto store sells these consumables. In this regard, you need to wisely select a place for retailing motor oil. We'll talk about this below. To stand out among competitors, you need to have a good range of these products, which would cover different price segments. You can also organize the sale of oil on tap. To do this, metal barrels with taps are installed in the store, and with the help of a watering can you can sell motor oil of any volume, both a liter and five liters.

Another point is that you or your salesperson must understand this product so that you can advise the client on the right option for him.

Selection of premises and equipment

Since competition in this area is high, you need to look for places where your main target audience is concentrated. In big cities these are car markets. It is quite difficult to rent a place there, but you can be sure that sales will come, since such markets are usually well-promoted, and with an adequate targeting policy, each outlet there receives its regular customers. And if you organize a system of discounts, you can lure away most of them.

If the town is small, you need to look for shopping places near markets or in the city center. People there usually buy everything near the markets, especially those who come from the village, they will not look for your oil store somewhere on the outskirts of the city.

The area of the retail space can be from 10 sq.m. and higher.

In terms of equipment for selling motor oil, you will need:

racks.
showcases with shelves.
equipment for selling oil on tap.
If there will be a sale of components, including filters, then computer equipment will be needed to correctly select them from catalogs.
furniture for the seller's workplace.
cash machine.

Rules for trading motor oils

Now let's talk about what documents and type of taxation will need to be completed and what permits to have in hand.

Here is a basic list of everything you need:

you must be registered as an individual entrepreneur.
indicate OKVE. For Russia this is 50.30.3, 50.30.2, 50.30.1, 50.30 50.30.3, 50.30.2, 50.30.1, 50.30, 50.50. For Ukraine - 46.90.
have on hand all quality certificates for the product.
obtain a trade permit from the SES and fire service.
decorate the buyer's corner.

Range

The next step in opening a motor oil store is compiling an assortment of products. So, you must indicate all the positions, while you can analyze your competitors and sit on specialized forums to decide what is the more popular solution in this direction.

motor oils;
gearbox oils;
technical fluids;
auto chemical goods;
filters;
accessories and more.

Over time, this list can be expanded.

How much starting capital is needed?

To decide how much money you need, you need to consider many factors. Since all these factors will vary depending on your location, we have provided only a basic list of the costs of starting an oil sales business.

Room rental – $150 – $200
Taxes - $150
Salesperson salary - $200
Initial purchase of goods – $5000 – $7000
Purchase of equipment – $800 – $1000
Purchase of advertising products and signs - $150
Transport payments - $60.

How much profit can you expect?

Everything will depend on whether you can rent good retail space, offer customers more choice or a lower price point. In each individual case, these indicators will be different.

Average markup on motor oils:

— draft oil – 90% – 100%;

– packaged – 40% – 50%.

For accessories, there is also a markup of about 40% - 60%.

We indicate only these numbers and with the help of them you can roughly draw up a sales plan for the store to become a plus.

Conclusions. Opening a motor oil store can be a good first step towards launching a full-fledged large auto parts and auto chemicals store. One of the difficulties is choosing a location.

Are you working in this market segment? Give some tips for readers of our site.