Ideas are a dime a dozen, and today I’m going to give you my latest business idea. It’s easy to say I came up with this idea (I’m probably not the only one) and I could possibly make decent money from it, but the reality is that it won’t go anywhere unless I do something. Again, ideas are a dime a dozen, execution is 99% of the battle. And I can honestly say that in this case there won’t be any execution. Even if it was the best idea I just don’t have the time or resources to execute on it. So if you’re interested in pursuing this idea, please by all means take it and roll with it. It’s all yours!
Today there is a large discrepancy in the price of new car for the same model between Canada and the US. The difference is large enough that people are taking trips to the US with only the intention of buying a new car. Even after taking into consideration the loss of the warranty, the costs of the time, lodging, dinning, export fees, currency exchange, and so on, you can come out quite ahead. For example I recently saw the same new car advertised for $40,000 CDN and $25,000 in the US. When you consider that the CDN dollar is worth more than the US dollar right now, that’s crazy! $15,000 goes a long way to paying repairs in the first 5 years of ownership, more than your warranty will ever cover.
So the business idea is not to buy and sell cars, that’s too complicated and there are already tons of car dealerships doing that. Rather what I’m proposing is a delivery service, much like FedEx. The business is composed solely of picking up a pre-purchased car at a dealership in the US and bringing it to a specific location in Canada for pickup. A simple delivery service. It would include going through customs and paying the appropriate fees, but in essence it’s just a very niche delivery service taking advantage of a limited time price difference.
Again, this is simply a delivery business. Nothing more. You don’t buy the cars, your customers have already done this. At no point do you ever own the car. You’re just picking up a parcel, in this case a new car, and bringing it to another location.
Why would someone pay for this? Well if you charge a reasonable amount it’s worth it. You’re basically saving your customers the hassle of a road trip, the time to wait at the border for customs to process your car, etc. The advantage for you is that if you do this with a car carrier truck you don’t just bring one car at a time, you can deliver a small fleet of cars at once. You get the advantage of economies of scale. Not very large, but large enough to make a pretty good profit margin.
Of course this business opportunity won’t be around forever. Eventually the new car dealerships will have to adjust their prices. That’s just a matter of time. But if you’re willing to make the effort and execute on the idea then I’m pretty confident there’s profits to be made for at least several months. If you charge somewhere between $2,000-$5,000 per car, that should easily cover your expenses and give you a decent profit margin.
Since this is a limited time business opportunity, you also don’t want to grow too big. Therefore I would suggest local advertising, possibly something even as simple as classified ads. If you’re even more ambitious you could definitely get some media attention. I can easily envision seeing this on the nightly news.
So there you have. A free business idea. Will it work? I don’t know for sure but I’m pretty confident there’s profit to be had here. The idea does have a lower barrier to entry, anyone can come up with it and execute on it. The question is how many people will actually do it. Ideas are a dime a dozen!