sberry
Banned
I wanna revisit this scenario in a year.
New Auto Repair Garage..need help
- Thread starter krismoriah
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krismoriah
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Here are the facts in my area..
1)The shop will be located 5 miles from a Wal-mart which does tires and oil. They do not do alignments or brake work.
2)The local garages are as follows.
a)1 bay garage- no tire sales. no advertisement of oil change. If you pull up prepare to be told to come back next week or in a few days.
b)3 bay garage- this is within 100 feet of the above garage, they are side by side- no tire sales, no advertisement of oil change. They do overflow of what the first guy cant do.
Neither do alignments, tires or oil change volume.. they mostly do repairs or replacement of parts. I have yet to see any fleet business in either.
The demand is there if someone doesnt beat me to it.
1)The shop will be located 5 miles from a Wal-mart which does tires and oil. They do not do alignments or brake work.
2)The local garages are as follows.
a)1 bay garage- no tire sales. no advertisement of oil change. If you pull up prepare to be told to come back next week or in a few days.
b)3 bay garage- this is within 100 feet of the above garage, they are side by side- no tire sales, no advertisement of oil change. They do overflow of what the first guy cant do.
Neither do alignments, tires or oil change volume.. they mostly do repairs or replacement of parts. I have yet to see any fleet business in either.
The demand is there if someone doesnt beat me to it.
79firebird
Well-known member
A brake lathe is worth getting if you work on a lot of trucks or real old cars that the rotors and drums cost more. For a compressor if you have 3phase power there go for a screw style compressor you can never have to much air as most tools run on air. grinder for cuting off a stuck bolt, impact tire changer a lot of them run on air now etc. and yes get atleast 2 lifts if you are still in the process of building in put a pit in as they work real good for oil changes and what not.
STClurker
Well-known member
just my 2c, give a few min thought on how you are going to get dead cars into the shop. alot of shops here have a little electric pusher thing or will you have enough room for a wrecker to put them in the shop. you likely don't want all your mechanics to stop what they are doing to push a car in.
toolnut
Well-known member
If the price is right on a brake lathe than it's worth having. Having options for the customers always ends in a positive result and sells the job. Shopping around for equipment is the way to go and knowing when they had it serviced last.
krusty the clown
Member Emeritus
good luck. the auto repair business is tough for an experienced owner/tech. i think you should talk with some other shop owners in a near by town and crunch some numbers with them. around here most shops last 1 to 2 years before they run out of capital. if you have cash to invest there is probably better ways to make money with less headaches.......read some threads on this site about how most feel about technicians. most feel we are all crooks.
as far as the lathe, buy used. you cannot tie up a rack waiting for the parts store to turn your rotors. besides as mentioned you'll be replacing a lot of rotors since they are thin to begin with and you find that a lot of them will be under specs after resurfacing. no sense tying up $6000 in capital that will take forever to return the investment when you can buy a good useable one reasonable.
as far as the lathe, buy used. you cannot tie up a rack waiting for the parts store to turn your rotors. besides as mentioned you'll be replacing a lot of rotors since they are thin to begin with and you find that a lot of them will be under specs after resurfacing. no sense tying up $6000 in capital that will take forever to return the investment when you can buy a good useable one reasonable.
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krismoriah
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For used equipment I found http://www.allstates.com/ I prefer to go new but they do have some pretty good equipment for cheap.
I think a lathe will pay for itself regardless.. to not offer it I will lose business. To offer it..I just have to wait for the customer to deny buying new and charge accordingly.
I see new 2 post lifts from $1500 to $5000 Cheapest is Prokar.. most expensive Apache.
Alignment is a huge investment. $25000 for unknown brand equipment to $35K for Hunter.
I did the math and came out with 1 alignment per day will pay for the equipment in about a year..that is not counting my cost for labor. To not offer alignment I will lose business I think.
The biggest tire dealers around here all do their work in the lot on floor jacks. They dont even have an area for lifts. So I am not worried about losing bays to tire changes if I am busy.
Thanks for the info on the compressor. I am learning as I go.
I think a lathe will pay for itself regardless.. to not offer it I will lose business. To offer it..I just have to wait for the customer to deny buying new and charge accordingly.
I see new 2 post lifts from $1500 to $5000 Cheapest is Prokar.. most expensive Apache.
Alignment is a huge investment. $25000 for unknown brand equipment to $35K for Hunter.
I did the math and came out with 1 alignment per day will pay for the equipment in about a year..that is not counting my cost for labor. To not offer alignment I will lose business I think.
The biggest tire dealers around here all do their work in the lot on floor jacks. They dont even have an area for lifts. So I am not worried about losing bays to tire changes if I am busy.
Thanks for the info on the compressor. I am learning as I go.
Your not a mechanic by trade, but..............................
Unless you find some good master mechanics, you will be in WAY over your head. Once you are in business you will learn you cannot undercut your competitions prices and still afford to be in business. Insurance for an auto repair garage is expensive, as well as workman's comp. insurance, shop upkeep, tools, pay roll,etc...........etc..............you might be surprised how little an honest garage makes even at what you percieve as high prices. You need talent, you cannot make any money if don't really know what you are doing, you will lose money. Be careful with your money, you are building a big carriage, with no horses.
I wish you well, good luck!
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krismoriah
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This area lost 5 dealerships that sold new cars and serviced. Those cars still need service somewhere..and I will be the only 'new' garage within 10 miles that I know of.
I have business relations with several used car dealerships that I am going to offer "service after the sale" since they do not offer service. Each customer will get a flyer with our information if anything goes wrong down the road with their used cars.
I have business relations with several fleets and my parter has relations with at least the same.
I have a relationship with the wrecker services locally.
I am not at all worried about opening a dead shop.. in fact we cannot even fathom how we are going to work in the drive ins from the street..since we already have the used car service and the fleet.. not to mention we will grow that aspect as soon as we are operational.
I will admit that I am ignorant in this business which is why I am here trying to learn. The fact is that my area needs this service. I am trying to provide.
I am asking questions because there are so many options. I can list 10 compressor brands, 10 lift brands, 10 of just about any thing. I can even ask which of the 10 brands of oil and get a debate started.
Here is my shopping list:
1)2 post lifts
2)4 post alignment lifts
3)brake lathe
4)alignment machine
5)tire changer
6)tire balancer
7)air compressor
8)time estimation guide
9)invoice software
I have business relations with several used car dealerships that I am going to offer "service after the sale" since they do not offer service. Each customer will get a flyer with our information if anything goes wrong down the road with their used cars.
I have business relations with several fleets and my parter has relations with at least the same.
I have a relationship with the wrecker services locally.
I am not at all worried about opening a dead shop.. in fact we cannot even fathom how we are going to work in the drive ins from the street..since we already have the used car service and the fleet.. not to mention we will grow that aspect as soon as we are operational.
I will admit that I am ignorant in this business which is why I am here trying to learn. The fact is that my area needs this service. I am trying to provide.
I am asking questions because there are so many options. I can list 10 compressor brands, 10 lift brands, 10 of just about any thing. I can even ask which of the 10 brands of oil and get a debate started.
Here is my shopping list:
1)2 post lifts
2)4 post alignment lifts
3)brake lathe
4)alignment machine
5)tire changer
6)tire balancer
7)air compressor
8)time estimation guide
9)invoice software
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krismoriah
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True about needing experienced mechanics. I plan on hiring 2 ASE mechanics 2 helpers and 2 regular mechanics.
We already have 2 mechanics working for our excavation business that we are going to move to the shop. One guy was a military mechanic for 6 years and can work on anything diesel or gas.. the other guy has been a mechanic for 25 years.. we pay both of them $10 an hour and they are extremely happy.
Helpers are $8/hr here all day long.
We already have 2 mechanics working for our excavation business that we are going to move to the shop. One guy was a military mechanic for 6 years and can work on anything diesel or gas.. the other guy has been a mechanic for 25 years.. we pay both of them $10 an hour and they are extremely happy.
Helpers are $8/hr here all day long.
back2class
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You will need 10 of thousands of electronic equiptment. You will also be COMPLETELY dependent on hired help and you muct have never owned a biz before because that is a horrid position to be in. Dreams are great, but can you afford to loose all the investmen? I do not own a shop, but I do own a small retail company and at one time owned a restaurant. I know how a dream can cause tunnel vision and I am seeing that in your posts. I know you are thinking worst case it fails and you are landlords and rent the building to another and sell the equ. No huge loss right? But to have a quality place it needs to be so from day one. You will be paying thousands a week in labor and possibly only doing a few hundred. Also, generaly small non dealer shops are becoming a thing of the past. Not all will die, but the push is to have dealers service their own products. Hence the extremely high cost for electronic and other specialty tools.
Sounds like you would do much better just to do three bays and do only Tires, alignements and oil changes and focus on that. DO it well and be less dependent on skilled labor or super expensive electriconic tools. Biz 101..find a specific thing you do well and focus on that. I see alot of places that are very well run doing a dortune in biz on what I just described but few general repair shops doing that kind of volume. Your location and background seem perfect for such a venture.
At most keep one bay to dabble in the fleet repairs and just see how that works with one of your $10hr guys.
Sounds like you would do much better just to do three bays and do only Tires, alignements and oil changes and focus on that. DO it well and be less dependent on skilled labor or super expensive electriconic tools. Biz 101..find a specific thing you do well and focus on that. I see alot of places that are very well run doing a dortune in biz on what I just described but few general repair shops doing that kind of volume. Your location and background seem perfect for such a venture.
At most keep one bay to dabble in the fleet repairs and just see how that works with one of your $10hr guys.
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krismoriah
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I am curious on the $10s of thousands of electronic equipment? The garage that I personally get all of my work done only has virtually no electronics except for an OBDII scanner. He will do everything except for tires/alignments.
The local garages that I am competing with are below his shop.. so what electronics will I need?
I currently own several businesses, just not an auto repair shop. I am dependent on labor at those with equipment operators, drivers and mechanics.
I do not doubt that the labor is what drives any business.. without good labor nothing will work.
The local garages that I am competing with are below his shop.. so what electronics will I need?
I currently own several businesses, just not an auto repair shop. I am dependent on labor at those with equipment operators, drivers and mechanics.
I do not doubt that the labor is what drives any business.. without good labor nothing will work.
sberry
Banned
Just curious,,, what is your age?
back2class
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I also owned contract companies. Construction and Property Mgmt. The reatil world is a completely another. I never paid people to stand around all day when I was in contract work waiting for something to do. I was not trying to be mean, just be alert to the human nature of having blinders on. Post a worst case here for the machanic types to see and then let them add the ones you missed. This site will be a great tool to pick peoples brians for that. Good luck and I wish you well.
hidollartoys
Well-known member
Kris: CONGRATS on your business expansion venture. If the naysayers had any balls they too would be working for themselves.
An important aspect to fleet repairs is downtime. These customers will want their vehicles turned around in less than 24 hours. Keep this in mind when determining what equipment you purchase. Used equipment is good if you can repair it yourself. Most of the auto equipment is not rocket science to repair. Parts are available from the manufacturer, something you will want to consider when purchasing. New is nice but purchase new after you have exhausted all used avenues. Watch out for the little stuff especially the disposable items, these will add up fast and get used up quickly. On site parts is something to consider(tires, filters, oil, valve stems, wheel weights, spark plugs, etc) that fit your fleet customers vehicles. Shop inventory is an issue that is usually volume sensitive and suppliers will want minimum order quanities. Do you have inventory sources that are within 30 miles or less of your location?
As you are aware, there are thousands of details that should be considered. If you have a financial stream that will fund this venture you are ahead of the pack. However, you might want to consider running this by your banker, tax adviser or insurance broker so they can evaluate your business plan. This is good if they have clients in this type of business or have experience with this type of business. Either way they can assist you with the business details.
An important aspect to fleet repairs is downtime. These customers will want their vehicles turned around in less than 24 hours. Keep this in mind when determining what equipment you purchase. Used equipment is good if you can repair it yourself. Most of the auto equipment is not rocket science to repair. Parts are available from the manufacturer, something you will want to consider when purchasing. New is nice but purchase new after you have exhausted all used avenues. Watch out for the little stuff especially the disposable items, these will add up fast and get used up quickly. On site parts is something to consider(tires, filters, oil, valve stems, wheel weights, spark plugs, etc) that fit your fleet customers vehicles. Shop inventory is an issue that is usually volume sensitive and suppliers will want minimum order quanities. Do you have inventory sources that are within 30 miles or less of your location?
As you are aware, there are thousands of details that should be considered. If you have a financial stream that will fund this venture you are ahead of the pack. However, you might want to consider running this by your banker, tax adviser or insurance broker so they can evaluate your business plan. This is good if they have clients in this type of business or have experience with this type of business. Either way they can assist you with the business details.
Steve from Socal
Well-known member
I owned a shop that I started with a friend from the ground up for 5 years, he was a finance dot.com guy and I was a pilot. We both had some prior experience in the auto industry. I will say that we had a very narrow target market; one make and near dealer pricing. It is a tough industry and while labor in your area is cheap you may find without highly skilled mechanics a lot of comebacks and quality control issues. All makes and all model shops are hard to start from the ground up just in the shear number of special tools and diagnostic requirements.
Parts inventory is another issue, you can start out by using a warehouse with delivery service but sooner or later you will have a rather large amount of parts inventory and you will want some type of dedicated parts department. An electronic inventory is almost a must with parts and supplies. If you plan on selling tires you will need a large area to hold take offs in addition to new inventory and don't forget a waste fluids storage area as well.
Liability and garage keepers insurance is very expensive and has a high deductible, be prepared to have a few pay outs per quarter on little things. Each state has their own laws however, knowing how to correctly write a repair order is essential, it is a contract. Yes you can staff the shop with whom you please however, if you are faced with a law suit, documentation and accreditation of staff go a long way.
As far as equipment goes, you are sweating the small stuff in many ways. Air compressor? Buy from a local vendor who has good support, same thing with most of the general items. A brake lathe is "nice" to have but unless you are doing a lot of drum brakes it is not needed. Alignment rack, most efficient is a drive on with a partial pit. For tires and brake work a scissors mid lift is very fast.
If you are relying on employees to manage and run the shop you will be at their mercy. It is possible to have honest and skilled people who are capable of the task, I have never seen them work for 10 or 15 dollars an hour. The stakes here are high, from loosing money out the back door to having faulty work injure or kill somebody.
Wish you all the best,
Steve
Parts inventory is another issue, you can start out by using a warehouse with delivery service but sooner or later you will have a rather large amount of parts inventory and you will want some type of dedicated parts department. An electronic inventory is almost a must with parts and supplies. If you plan on selling tires you will need a large area to hold take offs in addition to new inventory and don't forget a waste fluids storage area as well.
Liability and garage keepers insurance is very expensive and has a high deductible, be prepared to have a few pay outs per quarter on little things. Each state has their own laws however, knowing how to correctly write a repair order is essential, it is a contract. Yes you can staff the shop with whom you please however, if you are faced with a law suit, documentation and accreditation of staff go a long way.
As far as equipment goes, you are sweating the small stuff in many ways. Air compressor? Buy from a local vendor who has good support, same thing with most of the general items. A brake lathe is "nice" to have but unless you are doing a lot of drum brakes it is not needed. Alignment rack, most efficient is a drive on with a partial pit. For tires and brake work a scissors mid lift is very fast.
If you are relying on employees to manage and run the shop you will be at their mercy. It is possible to have honest and skilled people who are capable of the task, I have never seen them work for 10 or 15 dollars an hour. The stakes here are high, from loosing money out the back door to having faulty work injure or kill somebody.
Wish you all the best,
Steve
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krismoriah
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hidollartoys,
Every business that I have has taken money and venture. I have lost my *** a couple of times and have been well rewarded on others. For the guy that asked I am 36 years old.. my business partner is 35.
There are many points I am missing..I know. A building with tools and mechanics doesnt make a garage. It is a harmony of good labor, good tools, and management that will sink or swim the ship.
I mentioned earlier that this was a childhood dream. My father had no mechanical skills..and always drove junkers even though he had money to buy new whenever he wanted. It was a weekly ordeal in the 70's going to garages with my father. I was always amazed at the amount of business that those old greasy block buildings would bring in.. I went to college in the 90s owning a 1965 Mustang that was a rolling restoration project. I spent every penny that I had or made keeping that thing running. I think I replaced everything twice MYSELF.. you dont need to be a mechanic to work on those cars.. just have a set of tools and patience. Anyway I had a motor installed and replaced the transmission during college.. The biggest garage in town had 8 bays and was owned by a TYRANT of a man..whom I became fishing buddies with shortly thereafter. He told me he knew enough about working on cars to keep his guys in line..but he said dealing with the customers is the most important aspect of the business. He had a full crew of drunks and drug addicts working for peanuts.. and one super mechanic that kept them all in line.
I never wanted to be a TYRANT like he was...but I always wanted his business model. He took care of the customers to the fullest. He paid the men what they were worth.. and he enjoyed his profits.
Sure I could do 100 other businesses...but this one has deep roots with me. I will be in there changing oil, putting on brakes, and learning the business from guys who have been doing it all their lives.
Every business that I have has taken money and venture. I have lost my *** a couple of times and have been well rewarded on others. For the guy that asked I am 36 years old.. my business partner is 35.
There are many points I am missing..I know. A building with tools and mechanics doesnt make a garage. It is a harmony of good labor, good tools, and management that will sink or swim the ship.
I mentioned earlier that this was a childhood dream. My father had no mechanical skills..and always drove junkers even though he had money to buy new whenever he wanted. It was a weekly ordeal in the 70's going to garages with my father. I was always amazed at the amount of business that those old greasy block buildings would bring in.. I went to college in the 90s owning a 1965 Mustang that was a rolling restoration project. I spent every penny that I had or made keeping that thing running. I think I replaced everything twice MYSELF.. you dont need to be a mechanic to work on those cars.. just have a set of tools and patience. Anyway I had a motor installed and replaced the transmission during college.. The biggest garage in town had 8 bays and was owned by a TYRANT of a man..whom I became fishing buddies with shortly thereafter. He told me he knew enough about working on cars to keep his guys in line..but he said dealing with the customers is the most important aspect of the business. He had a full crew of drunks and drug addicts working for peanuts.. and one super mechanic that kept them all in line.
I never wanted to be a TYRANT like he was...but I always wanted his business model. He took care of the customers to the fullest. He paid the men what they were worth.. and he enjoyed his profits.
Sure I could do 100 other businesses...but this one has deep roots with me. I will be in there changing oil, putting on brakes, and learning the business from guys who have been doing it all their lives.
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krismoriah
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Steve in SoCal,
My parts stores will be within 2 miles.
The garage that I used to go to has a pretty good setup for waste. I would go to them now if I hadnt moved 20 miles from where I used to live. They burn their waste oil in the winter. For tires they resell 50% of takeoffs. Actually they are free. They have an area where they keep them and you can pick out the tire you want..just pay $5 per tire to mount. There is a used tire place about 10 miles away that will take tires for free..since they retread and resell only used tires.. I have to look into that.
The tire distributor I will be using is 5 miles from the location. They deliver every morning. I will probably have a small showroom for the tires and warehouse on site.
We subcontract with a builder that I went to high school with..so building storage and the shop is going to be ultra cheap.
My parts stores will be within 2 miles.
The garage that I used to go to has a pretty good setup for waste. I would go to them now if I hadnt moved 20 miles from where I used to live. They burn their waste oil in the winter. For tires they resell 50% of takeoffs. Actually they are free. They have an area where they keep them and you can pick out the tire you want..just pay $5 per tire to mount. There is a used tire place about 10 miles away that will take tires for free..since they retread and resell only used tires.. I have to look into that.
The tire distributor I will be using is 5 miles from the location. They deliver every morning. I will probably have a small showroom for the tires and warehouse on site.
We subcontract with a builder that I went to high school with..so building storage and the shop is going to be ultra cheap.
SpiderGearsMan
Banned
10 an hour wasn't enough 25 years ago
krooser
Well-known member
Talk to an equipment supplier in your area... one who sells lifts, alignment equipment, tire machines, etc. They always have good, used equipment for sale at fair prices. Lots of shops going under so they have repos, too.
nothing wrong with buying good used equipment.. after all once it's used once it's used...
nothing wrong with buying good used equipment.. after all once it's used once it's used...
sberry
Banned
One of the best in my area is the "brake and front end shop". Good idea with specialization, keeps the pain in the rear "no starts" and drivability problems at arms length and they dont have to compete with the oil change places, they also dont have to compete with several tire joints. Lets them focus on what they do best, helps with marketing and they can keep to what they do best. Also separates them from muffler shops that do brake work. Nothing says we are specialists like an oil change special,,, ha. I see a transmission shop here that has a sign,,, brakes, shocks and exhaust work, kind of like an orthodontist advertising a 49$ teeth cleaning special.
Steve from Socal
Well-known member
Brake and front end shops like sberry mentioned are great, I know of a couple that do frame work as well. In an area where you have several shops a niche like this is what makes you competitive. You could do fleet work if you have the contacts but that is done at a price point, you have to be very lean to make any money at that. Something that distinguishes your shop from the rest is where you make a market. You have to ask yourself; IF the auto repair business is so good why aren't there more around? The market may be saturated. You said several dealerships closed, do you think the clientele from the factory stores will grace your shop or, well they just have to drive to the next town or dealer to have their cars worked on.
It may take a while to find the right mix of staff and with little or no hands on experience you will find the learning curve can be quite steep. While it is not rocket science it is a demanding business model. You will find many disagreeable types in both employees and customers, a fair amount of paperwork and government regulation, all for a modest return.
If I were a investor looking to put some money in a auto related business as a past time/ hobby I would look at full service car washes.
Steve
It may take a while to find the right mix of staff and with little or no hands on experience you will find the learning curve can be quite steep. While it is not rocket science it is a demanding business model. You will find many disagreeable types in both employees and customers, a fair amount of paperwork and government regulation, all for a modest return.
If I were a investor looking to put some money in a auto related business as a past time/ hobby I would look at full service car washes.
Steve
dolfans
Well-known member
If you have done/doing research about this type of business and you still want to do it go for it. I worked at a tire store in the mid 90's and made minimum wage and so it a lot of people there.In todays job market people will be happy to make $10.00 a hr.One thing you may want to think about if you have a community college talk to the body shop teachers and see if they have any students to recommend to hire,etc.good luck
The only mechanic you can get for 10/hr. is the type that gives the business a bad name. There are NO high end mechanics that would take a leak in a garage for 10/hr.........................it is 2009 people! Jeez
nate379
Banned
Exactly!
Sure if you get the real cheap rotors you can be at $20-30 each on some small cars, but are brakes something to be cheap on?
The rotors on my truck are around $200 each... no way I would consider new ones if a resurface is all they need. Plenty of material on them for a few turns. Every shop I have worked in had a brake lathe or sent them out if they didn't have one.
As far as the rest of the stuff, I wouldn't spread yourself too thin. Some of the best mechanics I know work in a 2 bay shop out of a small toolbox with maybe 20-25k of tools and equipment.
Sure if you get the real cheap rotors you can be at $20-30 each on some small cars, but are brakes something to be cheap on?
The rotors on my truck are around $200 each... no way I would consider new ones if a resurface is all they need. Plenty of material on them for a few turns. Every shop I have worked in had a brake lathe or sent them out if they didn't have one.
As far as the rest of the stuff, I wouldn't spread yourself too thin. Some of the best mechanics I know work in a 2 bay shop out of a small toolbox with maybe 20-25k of tools and equipment.
nate379
Banned
back2class
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Nowhere in this country! I live in a poor part of the south. Does not get mor poor than that and $10hr. for a mechanic......something is wrong. Keep that guy!!!! But do not expect to replace him for that.
nate379
Banned
Yes in this country. Where I grew up for example. (northern Maine). Now I'm not saying that $10/hr is top pay or anything, but it wouldn't be looked down on for most blue collar jobs, that's for sure.
Cost of living plays into it so much.
Can buy an average house for $40-50k. $175-200k house is way high end.
Here 200k is an average house... or go to Anchorage and it's closer to $300k.
Labor rate? $30-35/hr at most shops. Around here $70-80/hr isn't that crazy.
Cost of living plays into it so much.
Can buy an average house for $40-50k. $175-200k house is way high end.
Here 200k is an average house... or go to Anchorage and it's closer to $300k.
Labor rate? $30-35/hr at most shops. Around here $70-80/hr isn't that crazy.
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krismoriah
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I did not mean to insult anyone with the $10 per hour. In this area $10 per hour is 'pretty fair' right now. A CDL truck driver wage is $8 to $12/hr. Mechanic is $8 to $10 an hour at the job service. The best mechanic that I know personally works at a used car dealership that a friend of mine runs. He gets tossed every thing you can imagine that they bring in from auctions. From changing motors to installing dashboards that are laid in the trunk. He has been a mechanic for 30 years and he makes $400 a week. Its just the way it is here.
I like the idea of specializing.. but there is a true demand for honest work and fair prices here. I am not hoping for new car warranty work, nor the high end diagnostics.. I just want to build relationships with the average joe that didnt get to do the Cash for Clunkers program..and has to rely on his 15 year old car to get to work every day to feed his family. The $44.95 oil change guys need to rethink the economy.
I like the idea of specializing.. but there is a true demand for honest work and fair prices here. I am not hoping for new car warranty work, nor the high end diagnostics.. I just want to build relationships with the average joe that didnt get to do the Cash for Clunkers program..and has to rely on his 15 year old car to get to work every day to feed his family. The $44.95 oil change guys need to rethink the economy.
JOHNMAN
Well-known member
My advice on alignment equipment is to contact some of the used equipment dealers who also service the equipment. Ask them about good condition used equipment to get you started in alignments.
It is a HUGE waste of money to invest in new equipment when you have no techs that can do the work to make it profitable. Once you get your techs up to speed doing alignments you can make the decision to upgrade to new equipment. As far as the alignment rack goes, it will typically be a specialized 4-post lift (one with turn plates in front and slip plates in rear). That lift CAN be used for other repairs, but it is by far from optimal.
One of the on-going expenses with the alignment equipment is keeping it up to date with the latest vehicle alignment specs.
To re-iterate, I would look for good used equipment that a servicing company will support.
As for tire equipment, I would also look to the used market. With all the dealerships closing, there is a bunch of service equipment out there going for cheap. Some to most of it is in good condition.
As a bottom line, I would try to limit the initial investment in a start-up and upgrade as you go (and start to make money).
But I'm sure you probably already know all this........
It is a HUGE waste of money to invest in new equipment when you have no techs that can do the work to make it profitable. Once you get your techs up to speed doing alignments you can make the decision to upgrade to new equipment. As far as the alignment rack goes, it will typically be a specialized 4-post lift (one with turn plates in front and slip plates in rear). That lift CAN be used for other repairs, but it is by far from optimal.
One of the on-going expenses with the alignment equipment is keeping it up to date with the latest vehicle alignment specs.
To re-iterate, I would look for good used equipment that a servicing company will support.
As for tire equipment, I would also look to the used market. With all the dealerships closing, there is a bunch of service equipment out there going for cheap. Some to most of it is in good condition.
As a bottom line, I would try to limit the initial investment in a start-up and upgrade as you go (and start to make money).
But I'm sure you probably already know all this........
I have always wondered this, how does a grown man making a lousy 400(325.00 after taxes) bucks a week, support anything....................It is 2009, groceries and house consumables for a family of 4 is about 700 to 800 bucks a month, that is just at the grocery store. WTF.........................................there is nobody over the age of 21, with marketable skills, that would work as a mechanic for a measely 10 bucks an hr., unless they are naive or ignorant.
45 bucks for an oil change is not that bad these day for cars like Saab, Volvo, Toyota.......they all need per OEM, synthetic blend oil, of specific wt., no more 10w30 barrel oil fits all, those days are over.
Oh well, I'm not trying to rain on everyones' parade, I just want to know what planet they live on, where this makes sense. I have been self-employed for so long, maybe I have forgotten, but the pay rates sound like an insult to me.
In 1987, as a teenager, I made 10 bucks an hr. cleaning pools, I cannot imagine any man, 20+ years later being paid so little.
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e-tek
Well-known member
You don't know much about finance OR business, do you? lol! Even if he had to put $1Million into it (way doubt it!!) and instead put it in a GIC at 5%, he'd only make $50K a year. I'm pretty sure you could make more than $50K owning a busy shop!
When I left University, the first job I took - because of the money - was manager at a body shop. The owner had NO experience, but was a "businessman". We had 5 office staff, 7 bodymen, 2 painters, 1 FT Certified mechanic, 1 prepper and a janitor. The owner leased a CTS Caddy through the business and leased cars for me and the accountant too. He spent his days out on his yacht, coming in on payday to hand out the checks and pay his 10K a month in rent. We had the best equipment too: 2 booths, computerized mixing equipment, an alignment rack, the works. I was paid $65K a year, the journeymen $28.00/hr. Everyone did well. I'm guessing the owner made close to $100K/yr.
I call it all a RobertG!
Good one - but RobertG would have already bought all the equipment, had several Mercedes and Porsche Fleets to service, argued his way to free rent and equipment and would be bragging about his 150K salary!!!!!
Oh well, I'm not trying to rain on everyones' parade, I just want to know what planet they live on, where this makes sense. I have been self-employed for so long, maybe I have forgotten, but the pay rates sound like an insult to me.
In 1987, as a teenager, I made 10 bucks an hr. cleaning pools, I cannot imagine any man, 20+ years later being paid so little.
I'm kinda with Autoace here. As I said above, the journeymen mechanics we had made $28/hour - AND THAT WAS 15 YEARS AGO!!!! But maybe Kris lives in Mexico!!!
sberry
Banned
Between this and the guys you will run out of business in the depressed economy I think you should double the size of this shop right off the bat. You will need a couple more men of course.
OP
krismoriah
Active member
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- Aug 21, 2009
- Messages
- 39
I talked to one of my prospect hires this weekend. He has 20 years experience as a mechanic. He is currently making $400 a week. He asked if I would give his son who is 25 years old a try. He explained that his son is as good if not better than him. He said that if I would hire his son on at $8 an hour he would be happy. He is currently making $8 an hour working as a mechanic for a car lot. We have a state run agency called Workforce that is online. I did a search as if I were looking for a job and found 8 job listings for mechanics at $10 an hour.
Do I plan on following this trend? No. Will I fill my shop up with these guys? No.
Will these guys that are busting knuckles for $10 an hour be happy to just change tires and brakes and do oil changes? Yes. Will I give them raises based on performance and work ethic? Yes.
Do I plan on following this trend? No. Will I fill my shop up with these guys? No.
Will these guys that are busting knuckles for $10 an hour be happy to just change tires and brakes and do oil changes? Yes. Will I give them raises based on performance and work ethic? Yes.
Alowes2837
Well-known member
- Joined
- Aug 20, 2008
- Messages
- 51
I am currently in the process of trying to buy an existing auto repair shop and am concerned about a whole raft of things, and the place I am looking at has an existing customer base and equipment. As for trying to start from scratch it does seem a huge mountain to climb especially from a non mechs start point. However fair play to yourself and good luck.
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krismoriah
Active member
- Joined
- Aug 21, 2009
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Alowes2837,
Welcome to my problem somewhat. If the guys dont mind how about we start a new thread fresh instead of rehashing all of my questions?
My situation is all new place in an all new location with NO customer base, except for a few fleets I have in waiting.
I debated your situation, there was a garage in another area that was the perfect size for what I want to do..it wasnt in the greatest location..but that wasnt the problem. The problem was that this garage was in decline. While you do inherit the existing customer base..you inherit all of the customers that the garage lost. So unless you change the name and put a sign up saying new management..you may not get those clients back.
My questions to you..why are they selling? What are you going to offer that they dont? Is it cheaper for you to take it over than to buy land and build from scratch?
Welcome to my problem somewhat. If the guys dont mind how about we start a new thread fresh instead of rehashing all of my questions?
My situation is all new place in an all new location with NO customer base, except for a few fleets I have in waiting.
I debated your situation, there was a garage in another area that was the perfect size for what I want to do..it wasnt in the greatest location..but that wasnt the problem. The problem was that this garage was in decline. While you do inherit the existing customer base..you inherit all of the customers that the garage lost. So unless you change the name and put a sign up saying new management..you may not get those clients back.
My questions to you..why are they selling? What are you going to offer that they dont? Is it cheaper for you to take it over than to buy land and build from scratch?
Alowes2837
Well-known member
- Joined
- Aug 20, 2008
- Messages
- 51
After researching into this I think that a lot of shop owners are selling due to the poor ecomony and yes they are in bad way and may be losing money and or customers.
However if you look into why this is and how it can be overcome you will realise that a lot of existing owners are of an older generation and have been doing things in a certain way and may be unwilling or not able to change. As any business owner knows its not just about what you offer it's also about knowing what the customers want and how you can accomadate their needs.
With regard to customers leaving and finding new places you have to look at how people choose thier repair shops. Most use word of mouth recomended shops untill they become unhappy. If you do provide honest and good value (which the customer will never think it is) work the news will get round. Obviously this will not happen as quickly as a bad reputation travels.
The main advantage of buying an existing shop is that you get all the equipment and customers but do inherit any bad reputation as well. It is debatable as to whether it is a good time to go into this field or not, but my belife is that there is no better time as dealers are shutting down, good techs looking for work it all makes sense. I agree with most on here that it would be highly advisable to hire good ASE certified techs.
However if you look into why this is and how it can be overcome you will realise that a lot of existing owners are of an older generation and have been doing things in a certain way and may be unwilling or not able to change. As any business owner knows its not just about what you offer it's also about knowing what the customers want and how you can accomadate their needs.
With regard to customers leaving and finding new places you have to look at how people choose thier repair shops. Most use word of mouth recomended shops untill they become unhappy. If you do provide honest and good value (which the customer will never think it is) work the news will get round. Obviously this will not happen as quickly as a bad reputation travels.
The main advantage of buying an existing shop is that you get all the equipment and customers but do inherit any bad reputation as well. It is debatable as to whether it is a good time to go into this field or not, but my belife is that there is no better time as dealers are shutting down, good techs looking for work it all makes sense. I agree with most on here that it would be highly advisable to hire good ASE certified techs.
OP
krismoriah
Active member
- Joined
- Aug 21, 2009
- Messages
- 39
The economy hasnt changed the fact that people still drive their cars.
Who remembers $4 per gallon gasoline? Sure people were tight for a little while but it didnt last.
Cars need oil changes, tires and brakes. Alternators go out, waterpumps, timing belts need changed. Are people going to buy their own tools and change alternators in their apartment parking lot?
If anything the dealers will see the hit.. i think people will start calling around for 'good deals' on the general maintenance items.
Who remembers $4 per gallon gasoline? Sure people were tight for a little while but it didnt last.
Cars need oil changes, tires and brakes. Alternators go out, waterpumps, timing belts need changed. Are people going to buy their own tools and change alternators in their apartment parking lot?
If anything the dealers will see the hit.. i think people will start calling around for 'good deals' on the general maintenance items.