Hi! I'm looking to open a new automotive repair shop and I could use some help assessing a specific opportunity from the experts here. To put this in perspective, I would be a new owner without prior repair shop experience, however, I understand repair work and have done almost all of my own work on my personal vehicles for nearly 30 years. The scope of work I have personally performed included transmissions swaps, suspension, brakes, ignition systems, fuel systems, computer diagnostics and so on. My formal training is in science and management and I've been in corporate positions for 20+ years. I also have experience running my own real estate rental business. I've always been interested in auto repair and I believe this business would be a very good fit for my aptitude, skills and experience. I would plan to operate as the business owner and bring in skilled staff to handle repairs and customer engagement under my leadership.
Here is the scenario I could use help with. I found a 10,000 sq. ft. building which is split up between 6 existing bays (3 front and 3 rear), office space and retail area. The section with the bays has about 5000 sq. ft. , about 1000 sq. ft. of office space and another 4,000 sq. ft. of retail area. The property has not been used for auto repair in a long time but could be converted back very quickly along with opportunity to do something interesting in the retail area. I have many potential ideas for the property. I am running into two primary challenges in evaluating the opportunity. The first is the competitive landscape and the second is how quickly I could ramp up the business along with how much business I would likely do from the location after ramp up.
The property is located on a main road with 20-40k total vehicles/day depending on the day of week. About a mile up the road, in a cluster, there are 6 name brand auto dealerships. On the same road, within just a few miles from the site, there are three tire shops, one local and two name brand, along with a Midas and another local 6 bay garage. Think of this as 5 competitors, each with 6 bays plus the new car dealers. There are a handful of smaller local shops with 1-2 bays locally as well. Also, there is a State DMV location, with inspection services in the same zone. The overall geographic area is in a town that contains a Wal-Mart, Lowes, BJ's and a Costco plus restaurants, etc.. These stores are all within 10 minutes from the potential new location. The next closest big retail areas are 30 minutes north or 40 minutes south of the target area described. The demographics of the area skew affluent and population density is moderate - this is not a big city - however people are drawn in from at least a 30 minute drive time radius due to the shopping and other resources.
I have a few ideas to differentiate my business from the rest in the area although on Google, it appears that most of the competing businesses have decent reviews overall. My shop would do all types of repairs including the heavier stuff and the bays are very tall so we could potentially accommodate trucks too.
So, my questions are:
Is this an opportunity worth considering given the competitive landscape? If I were to open a shop, how quickly should I expect business to ramp up? I am really looking for solid feedback from folks with deep experience in this industry to help me evaluate if this is a business proposition worthy of consideration at this location.
By Nevil Jay
I'm currently looking into a business acquisition. It's a wheel repair shop based in South California. I have questions in terms of profitability and also, the expenses involved within the business.
I have profit and loss statements of the business. They currently operate 24/7 and have 30-35 employees. I am looking for someone who has experience in this sector that may be able to give me some unbiased advice. I also wanted to somehow come up with a valuation of the business. It operates out of a leased building, but consistently profits the owner a large amount of money. Who should I look for to verify these numbers? Will any CPA be able to understand?
Thanks in advance,
By Joe Marconi
If you have a repair shop business in New York State that you are looking to sell, please let me know. I will keep this strictly confidential. Criteria required, shops with 6 plus bays. Other details to be explained. Please email me: [email protected]
Hello Everyone! Hope you enjoyed your Thanksgiving as much as I did. I wanted to bring this topic up because of PEP BOYS recent "expansion" into launching their "mobile" service. I was interested in your thoughts. Are mobile mechanics a threat to your shop in any way? What are your thoughts? Do they/can they provide the service that today's cars need?
Or, on the other hand, do you operate as a mobile tech? What are the struggles you face. From what I am hearing, people "seem" to expect mobile to be cheaper.
Only trying to start a discussion about this - and really because, from what I am seeing, there's a lot of buzz around the Pep Boys effort.
Comments? Really interested to know your thoughts.
"The Car Count Fixer"
PS: Join me on YouTube and check out this totally FREE on-line course I'm offers- "How to Double your Car Count in 89 Days!"
Our current supplier for shop supplies just announced a 25% increase on nitrile disposable gloves (Ouch), as well as a 10% increase on wiper blades and metal spin on filters. I have limited to no choice in forwarding these increases to customers. However, I am in the market of seeking other suppliers. What companies do you currently use for such stocked inventory? Any recommendations?
What are your thoughts in asking the techs to supply their own work gloves? Perhaps a non disposable nitrile grip?
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By Joe Marconi
Each year at this time I advise shop owners to set aside time to look back at the current year and start planning for the year ahead. The more due diligence you perform, the more successful you will be. Below is a short list of things you need to do. Remember, the time you spend now, will pay off next year.
Review all your numbers, year to date - Did you hit your goals? Arrange a meeting with your accountant and review your projected sales and determine any tax implications Speak to your accountant about investing in any end-of-year equipment purchases or any other large purchases in order to save on taxes. Please do not listen to your tool truck guy or equipment reps. Sometimes having cash reserve is much more important that reducing taxes Have a meeting with your key employees; determine what you will need in the coming year and begin to create a budget Set your new goals for 2018 and beyond, both personal and business Create a Wish List, those things your would like to accomplish, both in business and personal - This will help keep you focused Consider needed future training for all employees Review all insurances: Life insurance, liability, etc. Perform a facility inspection: Identify any needed work, upgrades, OSHA concerns, etc Create an emergency crisis plan in case something happens to you or a key employee; and make sure your loved ones and family have a copy of the plan
By Joe Marconi
The day to day operations of running a business can take its toll on anyone. To be a business owner means to address problem after problem and finding the right solutions. Sometimes the decisions we make will be the right ones, sometimes not. If we are not careful, this emotional roller coaster we call being in business, can make us focus too much on the negative, and not the positive things that happen in our lives.
With nearly 4 decades as a business owner, I can say with certainty that one of the basic building blocks of being successful in business is having the right team of people around you and getting yourself in the right frame of mind.
You need to find and hire great people. But once you have them, you need to do all you can to take care of them, train them and make them successful in order for you to be successful. Is it easy? No. But it is essential.
Most important; you need to treat each day as if it were a gift from the heavens and base your entire perspective from a position of strength and remaining positive. I know it’s not easy, but I can tell you, it works.
By Joe Marconi
Got your attention? Good.
I often hear shop owners say, "I wouldn't ask any employee to do something that I would not do." While this may appear to be effective leadership, lets dig a little deeper.
Lets say you had an illness that required a specialist. You make an appointment to see the doctor and the day you walk into his office you find him scrubbing the toilet bowl? In defense of his actions, he says, "I can't ask my employees to do something I am not willing to do."
I use this ridiculous analogy only to prove a point. Effective leadership does not mean performing every required task in your company. Nor does it mean that the only way to get others to perform what's expected of them is to also perform their duties.
Effective leaders do go the extra mile and mentor the people they lead, but leaders also know what their true role is. And that is to coach their employees, set the goals, work on the business plan, and to ensure the success of the business.
As shop owners, clearly define your role as the leader of your company. Delegate tasks when needed and manage your time by working on the tasks that define you, the leader.