How you can be a successful motor spare parts dealer

Motor spare parts business in Nigeria flourishes owing to the large number of motor vehicles on the roads. It is said that movement of goods and people in Nigeria is over 90 percent dependent on the road. As a result of heavily vehicular movement on some bad and narrow roads, vehicles easily wear and tear. Motorists therefore constantly look for mechanics and new motor parts thereby making the business of motor parts sale very lucrative.Mr Eugene L. Anekwe, a graduate of Political Science has been into motor parts sale business since 1989. His shop, Divine Heritage Resources Ltd, located along Nyanya Karu road is well patronised by both motorists and mechanics who need one motor part or the other. His chat with our reporter revealed a lot that make or mar the motor parts business.

Getting started...

For one to start the business reasonably, one needs at least N2 million. This money is for renting of a shop and ordering of stock. Also, Having the knowledge of mechanics is a requisite for being a successful motor parts dealer.

Anekwe explained, “Though I did not read mechanics, since I’m into this business, it is better for me to know the nitty-gritty of this business so I can effectively counsel my customers. I’m not only here to collect money from them. I also educate them on how they can manoeuvre and control the excesses of mechanics.

“You have to know that this plug is specially made for injector engine, it cannot work for a carburettor engine. If you don’t know the difference, you may fix an injector plug on a carburettor engine and when it fails to work, they will say it is fake. It is not fake.”

Challenges

Motor spare parts business is one aspect of the economy that government cares less about. But is one business that not all can delve into. According to Anekwe, “One must pass through some training process which is like going to a polytechnic because it takes a minimum of a school certificate to qualify. Those who are not educated cannot work in motor spare part business.

“The way the world is going, the business does not accommodate illiterate persons because there are so many things involved. You need to know how to communicate effectively with people. In an urban centre like Abuja, you are dealing with educated people and those in the middle and upper class. Majority of the customers are educated people.

Another trouble is retailers receive pressure from both importers and consumers. Being in the middle of the demand and supply chain, motor parts sellers are the ones that go between importers and consumers. If there is a product that is giving problem, it is the dealer that passes the information. All this places heavy burden on the retailer. The dealer must therefore, be literate enough to carefully and professionally take stock of complaints and forward same to importers.

Capital as problem

Anekwe said, “The capital is problem. Some of the boys serving, by the time they finish, if you give them N300,000 or N500,000 they cannot effectively start the business. Some plazas charge for as much as two or three-year rent. If you calculate, it is about N2million. If you go to the open market, it is the same problem. That is why most of them end up buying motorcycles or hawking all those fanciful things on the roads. That money cannot rent a shop for them and get those goods in the shop.

“How to source the goods is another problem. Luckily, with the advancement in technology, you can send an SMS from your cellular phone or through the internet and the list of what you want will get to the suppliers. They will buy the goods and send them through organised bulk transport system and the goods are delivered to you. You send the money to them through their bank accounts—in-house bank transfer is easier. If it is inter-bank, it takes three days to be cleared.”

Quake mechanics as burden

Quake mechanics are a major stumbling-block to smooth motor parts sale. Abuja, being a growing city harbours all kinds of quakes. Anekwe lamented, “The so-called mechanics are not helping matters. This is what motorists don’t know. Some of the mechanics will not learn the work. Motorists trust the mechanics more than the dealers. When they come to buy parts, they give signals to the seller so as to inflate the price. If you don’t cooperate with them to cheat the motorist, they will condemn the goods and whatever they tell the car owner stands.”

He called for strengthening of the existing regulatory bodies or establishing of new ones to regulate activities of mechanics. “There is no spare part that can cause accident. The problem is with the mechanic. In a situation where the mechanic does not tie the wheel board properly, is it the fault of the motor spare part? In a situation where the break hose will cut and the vehicle will fail brakes, is it the spare part? Not that there are no substandard products but mechanics should be supervised by a government body,” the dealer reasoned.

Substandard goods

He wondered why despite presence of regulatory bodies [the Nigeria Customs Service, the Standards Organisation of Nigeria] substandard goods still find their ways into the market. He said the simple solution of making the relevant agencies do their work properly. Anekwe who has travelled to exporter-countries like China, Taiwan He maintained that there is nothing wrong with Chinese products.

“The major reason is unsteady economy. The middle income earner cannot project from January to December how much they can earn and spend to plan their lives. Due to inflation and fluctuation in business and policies of government and lack of job security, one might want something cheap to be able to move on with life. Goods that sell most in Nigeria are the cheap ones. That is the purchasing character of Nigerians is they want cheap goods. If you provide quality goods that are expensive, they will not buy. They will remain there—your capital being tied down,” he explained.

Suggestions

He urged government to recognise the critical role spare parts dealers are playing in the transport sector of the economy. According to him, “Soon there will no more be boys to learn. Just like mechanics, it is gradually facing out because everybody wants their child/ward to go to formal school. Electricians are phasing out.

“Soon, what we will see are graduates from polytechnics who will take over the industry. And they will do well because even the cars being produced now will soon send all the old mechanics out because they are not updating themselves and the system of cars now is more of electronic. They are not computer literate so they cannot diagnose the cars. Manufacturers are facing out most of the cars now.

“Government should open a training centre for them so they will learn the new trends in motor mechanics. Government should get auto engineers to check motor mechanics and evaluate them. Because not all of them are mechanics. Some of the boys will train for two weeks, three weeks and look for a place in the city, hoist a beautiful signboard, wear a jacket, and start duping motorists.

“Something we sell for N5,000, a mechanic will tell a car owner it is N15,000. A man came here for a gear-box for a BMW. My boy told him N27,000. The man said somebody collected N60,000 from him and the worse thing is that it is not working! They will not buy anything, they will repair the old one and tell the motorist they had bought a different one. If they see that the motorist is being smart, they will tell him the second-hand one is better than the new one.

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