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2 Bay Finacal Goals


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Hey guys yoy all been a big help.I,m opening a new shop next month .Its a 2 bay shop and I don,t really know exactly how much I need to do to keep on top.Is ther a goal I could work towards ? I know every bodys over head will differ so this is real general And I don,t know all the expensies that I will occur every month So if I break it down I guess I,m asking what kinda paid outs do yuo occur and what would be your labor goals and how much profit on parts would you expect on that labor generally and if you recomrnd and report articals clases or counsolers?

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Have you calculated what all of your fixed costs are: taxes, insurance, telephone, utilities, rent, etc. How much are wages, employment taxes, any health insurance, etc. What is the bare minium you need to have monthly to survive? As a rule of thumb you should be able to generate $10,000-$12,000 per bay per month with proper staffing.

 

Calculating your fixed costs and variable costs is the best way to start. You need to sit down and start doing some calculations to see what you need to break-even. This number is key because you goal is not to break-even but to make a profit.

 

I suggest sitting down with your accountant to project these costs. It is vital from the very start that you understand and know the numbers of the business. Also, I recommend tracking these numbers.

 

Because this is a start-up, you may not know what your sales will be. Do not fall into the trap of giving the farm away to attract business. This will only bring in the wrong kind of consumer. I do, however, recommend Grand Opening Specials at a discounted price.

 

Are you planning on having a Grand Opening Event? When I opened my new facility last year I had a big grand opening event which actually gave me momentum that lasted throughout the summer.

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Calculating your fixed costs and variable costs is the best way to start. You need to sit down and start doing some calculations to see what you need to break-even. This number is key because you goal is not to break-even but to make a profit.

 

I suggest sitting down with your accountant to project these costs. It is vital from the very start that you understand and know the numbers of the business. Also, I recommend tracking these numbers.

 

Because this is a start-up, you may not know what your sales will be. Do not fall into the trap of giving the farm away to attract business. This will only bring in the wrong kind of consumer. I do, however, recommend Grand Opening Specials at a discounted price.

 

Are you planning on having a Grand Opening Event? When I opened my new facility last year I had a big grand opening event which actually gave me momentum that lasted throughout the summer.

Can you give me some ideals for a grand opening and its specials?

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Have you calculated what all of your fixed costs are: taxes, insurance, telephone, utilities, rent, etc. How much are wages, employment taxes, any health insurance, etc. What is the bare minium you need to have monthly to survive? As a rule of thumb you should be able to generate $10,000-$12,000 per bay per month with proper staffing.

When you say 10-12K out of each bay is that a gross? labor and parts? and rule to follow that may sugest how much part may be sold comaped to labor?

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I average about 10-12 between my two bay garage. One side is the lift and the other side is my alignment machine. Of course, its just me so I am doing everything from answering the phone to talking to customers plus running for parts and everything else so I am very happy with that amount. Keeps my bills paid for now.

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  • 2 weeks later...

I average about 10-12 between my two bay garage. One side is the lift and the other side is my alignment machine. Of course, its just me so I am doing everything from answering the phone to talking to customers plus running for parts and everything else so I am very happy with that amount. Keeps my bills paid for now.

 

 

I have to know why, why are you running for parts? As well could you afford at this point to have a flat rate tech that you can hire? And since it would be just you and potentially another flat rate tech, you could offer an incentive such as "If the job pays four hours, the two of us are both on it together for four hours, you'll still get paid for four hours, but keep in mind I may have to break away to answer phones, order parts, and etc... So plan on possibly doing most jobs by yourself, but as we grow so will your weekly hours, and may turn into salary, etc...."

 

I have one tech who keeps jobs moving along, anything he touches, or makes it possible for us to take on more work, or allows me to write repair orders etc... I'll pay him on. I do majority diagnostics, and oversee most technical and heavy jobs. But he is my life saver, I'm currently hoping to hire another tech or two, and soon promote Mark to a Service Manager or reward him someway for all his great work,effort, and spirit. He is worth every dime, and I find the shop making more money.

 

I am only hesitant on bring on another tech due to the fact of what happens if I run out of work for the two of them, and what happens when we get the next tsunami?

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