Seeking Investors for Classic Mercedes Parts
MBZ Parts is looking for investors who will buy a stake in large inventory purchases.
You own the parts, we sell them for you.
While many business are failing during the pandemic, our sales are booming.
We launched our new website right before stay-at-home orders were issued and the reception has been excellent. We are looking to hire more staff as we are operating at capacity. I started this business because parts for classic and luxury vehicles is a solid industry minimally impacted by the ripples and waves constantly affecting other aspects of the economy. In part this is because a large portion of our customer base is not financially impacted by these economic shifts. Also, our customers' classic Mercedes restoration projects are their passion, their solace. The more stressful the times become, the more time is put into the restoration, and the more parts are purchased.
Competition in the Market for Classic Mercedes Parts
With such a solid industry, you would think that competition would be fierce, but this is not the case. Many of our competitors have been in the business for quite a long time and are retiring from the industry. Others are struggling to keep up. Even Mercedes-Benz itself is lagging behind, in part due to their franchise model and a lack of centralized parts sales. The reason? E-commerce. It’s a tough nut to crack if you don’t have the experience, and it’s a far cry from the systems that classic auto parts retailers have relied on for decades—primarily phone orders and individual knowledge. Online shopping is not only the future, it is the present and the recent past. Most consumers want to easily make their purchase on a website and get their parts shipped directly to them with minimal customer service. Companies that require personal contact ordering are falling behind very quickly. The problem with making the transition to e-commerce is that it requires a massive amount of catalog development work—shifting individual knowledge to institutional data. This is very tough in particular with classic cars for which interchange data is incomplete when it is available at all.
Enter MBZ Parts
For the past two years, we have been working tirelessly on launching our new website and developing a new catalog system. Our website is now live, and our catalog system is 70% complete. Once our catalog system is complete, adding new parts to our catalog will be extremely efficient and minimizing the labor of those with specialty knowledge. I expect the size of our online catalog to increase three-fold over the next year. Within two years we should have every significant classic Mercedes-Benz part listed in our catalog, and then we will expand to late model parts. The bigger our catalog, the more customers we bring in and the more we retain.
We have branded ourselves as a “One-Stop Shop” for Classic Mercedes parts, as we offer used, new and rebuilt parts. Very few retailers offer a combination of salvage, rebuilt, new OEM, new aftermarket and NOS parts all in one place. This broad selection means that we can fill in the gaps for retailers who offer only one or two types of parts, and because consumers don’t want to spend hours shopping around we have a lot of large orders and repeat customers.
Investing in Expansion
So, I’ve outlined why and how MBZ Parts is poised to dominate the industry, as well as why this is a solid business to invest in. If all that’s true, why would we be seeking investors? I started this business in 2012 with $500 and an iron will. The success that we are now experiencing is primarily a result of investment into our catalog, website and marketing. All of this investment without major outside capital means that we have little to invest in purchasing inventory, which is the next major way we can expand. As our competitors retire, wholesale lots of used and NOS Classic Mercedes Parts are offered for sale at relatively low prices. We’ve got three potential purchases lined up, waiting. There is little competition in making these purchases because of the challenges in selling the parts as discussed. Well, MBZ Parts has got that covered and we’re looking for investors to take on the easy part—purchasing and housing the inventory.
What Does Investment Look Like?
You own the parts. You warehouse the parts. We do the rest. We will take care of the catalog work, the marketing, the sales, the fees, and possibly the fulfillment as well. You get the majority percentage of the sale price. Your business operates as a separate entity, so our only legal entanglement is our commission sales contract. “You” could be a single investor, or a group of investors who pool resources and own the inventory together. We believe that the best location for this warehouse would be in Southern California, where half of the surviving Classic Mercedes in the country are located.
In addition to pure financial investment, for qualified candidates there may be opportunity for management positions in the company or buying into ownership at a later date.
My name is Sheila Heaney. I’m the sole owner of ReInvent The Wheel LLC, operating as MBZ Parts. I have over 20 years of e-commerce experience and 14 years working with Classic Mercedes-Benz. If you’re interested in this opportunity, please email me and tell me more about your experience, interest and capacity.