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Looking at opening a repair/body shop


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Hi Noah Harrison! You didn't speak much about your experience in auto service/repair or body work - so that could be a problem. Look, you don't have to know HOW to do the work yourself - but you DO have to  know what a good job is and what isn't a good job. Without knowing more about you, you have to start at the beginning. 

1) Selecting a location is important and being sure that you comply with local by-laws, that you can obtain permits and things like that. 

2) Staff - again, depending on what you're trying to do - staffing usually is a problem. That means not only getting the staff that knows what they're doing - but that you can work with. Additionally, you'll need to know what experience you'll be looking for. There's a huge difference between an oil change tech and one that can do electrical diagnosis on import vehicles. 

3) KNOW YOUR NUMBERS - When you get close to opening (or you have a plan) what is it going to cost you on a DAILY BASIS. This get's the numbers down to the nitty gritty. When you know your costs that well, you'll know how much you'll have to do just to break even - nevermind profit. 

4) Where are you going to get customers... because there won't be a rush of customers just because you opened.

That means you better have a marketing plan to start "working" your area - and I'll tell you right now, getting new customers is going to be the MOST EXPENSIVE thing you'll do in your business. 

There's a ton more I would be willing to share, but it's a little hard not knowing anything about you, your experience and what you're trying to accomplish. 

Let me know and I'll do the best to steer you in the right direction!

Hope this helps!

Matthew
"The Car Count FIxer"

P.S.: Join me on YouTube at Car Count Hackers! FREE Help to grow your Car Count, Income and Profit!

P.P.S.: Like and Follow Car Count Hackers on Facebook

P.P.P.S.: Have you registered in my FREE Training? "How to Double Your Car Count in 89 Days - The Complete Roadmap to a Million Dollar Shop!"

 

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Mathew,

Great start to a list of suggestions.

Noah, that was generous of him.

Body work is way different from mechanical repair. Spray booths are an event to make happen.

I've met only one shop owner who was not a former mechanic/technician. Before I knew that, I could tell something was off. I carried that thought to the whole shop, that they were just ok.

Elaborate, and a bit more specific.

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  • Have you checked out Joe's Latest Blog?

         13 comments
      Most shop owners would agree that the independent auto repair industry has been too cheap for too long regarding its pricing and labor rates. However, can we keep raising our labor rates and prices until we achieve the profit we desire and need? Is it that simple?
      The first step in achieving your required gross and net profit is understanding your numbers and establishing the correct labor and part margins. The next step is to find your business's inefficiencies that impact high production levels.
      Here are a few things to consider. First, do you have the workflow processes in place that is conducive to high production? What about your shop layout? Do you have all the right tools and equipment? Do you have a continuous training program in place? Are technicians waiting to use a particular scanner or waiting to access information from the shop's workstation computer?
      And lastly, are all the estimates written correctly? Is the labor correct for each job? Are you allowing extra time for rust, older vehicles, labor jobs with no parts included, and the fact that many published labor times are wrong? Let's not forget that perhaps the most significant labor loss is not charging enough labor time for testing, electrical work, and other complicated repairs.  
      Once you have determined the correct labor rate and pricing, review your entire operation. Then, tighten up on all those labor leaks and inefficiencies. Improving production and paying close attention to the labor on each job will add much-needed dollars to your bottom line.
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