revenue != profit.
take the Fiero guy...sure 2 mil is impressive...but car parts are expensive...and his profit margin is most likely only 7%(seems to be the average for car parts)...which turns his 2 mil into $140K.
take the Fiero guy...sure 2 mil is impressive...but car parts are expensive...and his profit margin is most likely only 7%(seems to be the average for car parts)...which turns his 2 mil into $140K.
Which is a long way of saying that I have exactly one data point for the profit margin of a particular niche auto parts business. Suffice it to say that -- after you deduct shipping, duties, and cost of goods -- it is still higher than mine, and all I do for order fulfillment is a SQL call. (Quote: "If they don't like my prices, then they can either learn to speak Japanese or sod off.")
The Fiero example is different, since it's an "iconic" car, which means there are plenty of aftermarket suppliers/vendors who sell this stuff(usually other enthusiasts), so he can't really gouge.
Plus, since its a GM product from the 80s/90s..everything is interchangeable...which means he can't really charge a premium for Fiero stuff, since those exact parts can be found in any number of other Chevy, Pontiac products.
For example the 4 cylinder that came in the Fiero, also came in Chevy Astro, Camaro, Citation, Lumina, S10 and Pontiac 6000, Phoenix, Celebrity, Grand Am, Firebird, as well as Buick Century, Somerset, Skylark and Oldsmobile Cutlass and Omega.
If the Fiero parts guy is primarily selling to end users (which it looks like he does), his profit is probably closer to 33% per item. Standard markup for auto parts to private customer is 1.5x
Source: Family run auto repair shop for 20+ years.