Dairy equipment parts and supply shop

Dairy farmers and farm managers within driving distance, plus nearby farms with mixed livestock that use similar supplies.

Margin on parts, consumables and equipment sales, plus service labor and delivery charges. Regular supply orders add repeat income.

• Knowledge of milking systems and parts
• Inventory management and purchasing
• Selling and building long-term farmer relationships
• Basic bookkeeping and sales tax handling

• Inventory ties up a lot of cash, so start with fast-moving parts and order the rest on demand
• Dealer agreements may limit territory or brands, so read them carefully
• Check your state's rules on sales tax and resale certificates for parts you buy and sell
• General liability, property and product liability insurance, plus workers' compensation once you hire
• Dairy farm numbers vary by region and prices swing, so check local demand first
• Revenue figures are sales, not profit; parts margins are modest, so a new shop may sit at the low end for the first year or more

Startup costs are typically around $60,000 to $250,000, depending on your premises and how much stock you carry. Inventory ties up a lot of cash, so consider starting with fast-moving parts and ordering the rest on demand.

Read dealer agreements carefully, as they may limit territory or brands. Check your state's rules on sales tax and resale certificates for parts you buy and sell, and arrange general liability, property and product liability insurance, plus workers' compensation once you hire.

Estimated monthly revenue is typically around $10,000 to $40,000, depending on stock, local demand and prices. That is sales, not profit. Parts margins are modest, so a new shop may sit at the low end for the first year or more.