Parts Refurbishing: A Viable Business Concept?
It’s often easy to purchase new parts for various purposes. You can usually research the part you need online and find a wealth of suppliers. You might even find several local suppliers if you require something urgently.
The thing is, some parts don’t get manufactured anymore. One way of capturing such a market is through a parts refurbishing business. Such a company aims to refresh existing parts, making them as-new or even better than when they were new originally.
One question remains: is parts refurbishing a viable business concept compared with standard manufacturing? In short, the answer is yes. Here’s why:
The first point to consider is that it’s significantly cheaper to refurbish existing parts than create new ones from scratch. That’s because you don’t have to pay for any tooling costs, such as molds for creating the parts or the equipment to make them.
Instead, the only costs you must bear are labor and the individual components that complete the parts that are getting refurbished.
Equipment and machinery costs are also low. For instance, you may only need an air compressor and an air compressor air gun for sandblasting items and a mechanical press for inserting or extracting bearings and bushings.
Niche Market Capture
One of the most prominent areas where parts refurbishing can be most profitable is the vehicle parts niche market. Older cars like classics and vintage vehicles, for example, won’t have a ready supply of brand new parts compared with today’s latest models.
Existing vehicle owners will need parts to replace wear and tear items, and so a parts refurbishing business can captivate such a market. The parts could be anything from small suspension components to large engine blocks and cylinder heads.
It’s no secret that most people are thinking about the impact they have on the environment. When you purchase new items, the manufacturing process for those items will have used many natural resources and had a detrimental effect on the environment.
However, when you buy refurbished items, much of the original part still remains. Yes, some brand-new components might have got used during the refurbishment process. However, the environmental impact is considerably lower than for all-new equivalent parts.
In some cases, parts refurbishment only involves stripping off a layer of paint and rust and then applying a new protective coating. The process may not require any additional new components to become a useful part once more.
Plenty of Scope for Expansion
Lastly, a parts refurbishing business has a lot of scope for expanding into other areas. For instance, a car parts refurbishing business could expand into other vehicle marques or cover different types like light and heavy trucks or even railway trains.
A business that refurbishes mobile phones could expand into other areas, such as tablets, laptop computers, and televisions. The list of possibilities is endless, but one thing’s for sure: a parts refurbishing business is a lucrative enterprise and a viable concept.
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