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So we are looking at moving our shop to a really nice shop here in town that has some amenities that we are very excited about but I got to talking with the landlord about the past few shops that had been in there and he told me that he didn't think this location could sustain a $70-80 labor rate. He thought that was probably why the last shop didn't stay busy enough to keep the doors open.
I have always thought that while location can be a great plus that it really truly depends on how you package things and how well you do with marketing and advertising. Ive always seen that good customers will travel a little bit just to come to a shop they like.
What do you all think? How much value should I put in what the landlord was saying? How much does location truly have to do with a shops success? How far will customers travel to come to a good quality shop they love?
By Jay Huh
Long story short, been in business about 2 years and started mobile. Current location for about a year, just opened up a second location about 3 weeks ago- HUGE step for me.
In my area, auto shop locations are REALLY REALLY RARE. There'll be months before a single shop will pop up for lease.
Well.. I was looking for auto equipment on craigslist and stumbled upon a listing of a shop moving and selling all his lifts. Found the location on loopnet- 5 bays, previous business extremely successful, great location, great price too....
1st location hit record sales this past week, 2nd new location held its own (divided by week, came out on top after expenses). I got both stores running self sufficiently. I am pretty much maxed out and I hate taking out loans but I have a line of credit available.
Am I crazy to want to do this?
Dear fellow Repair People,
We are in need of an additional closeby location to our current shop, mostly to service some of our fleets and overload for the time being. ( We will start reorganizing and a major update on our shop sometime in the next 12 months, so we will definitely use the 2nd location more during that time). I believe we can live with 2 bays and 6 additional parking spots. We will NOT open at night or Sundays or weird stuff like that. We have excellent reputation and the team that will work in this remote location has been together for over 5 years now, they are super knowledgeable, nice and honest people. We will never interact with your customers or techs, and same is expected from you. Whenever you need help, we will be happy to help!
We will sign a lease/sublease for 12 months with 2 six month options. Who knows, we might keep it even longer depending on the fleet work.
If the bays do NOT have lifts, that is NOT a problem! We can purchase&install lifts as long as the floor is solid enough for 9K-12K lifts.
Location: has to be within a few miles of 92627 Costa Mesa, preferably in the west side, the closer it is to our main location, the better. It MUST have Auto Repair zoning and all other necessary permits. We will add this location to our BAR, OSHA, insurance etc accounts.
Price : depends on location, size and terms. We have been in the same location for 7 years with excellent reputation with the landlord and customers and neighbors, you are welcome to get reference checks.
Move in date: we can sign the lease sometime in June, and I don't know when we will actually start using the location, I just want to have it ready soon.
Occupation Frequency: we will use it from time to time OR keep at least 1 tech there all day (currently undecided), between hours of : MON-SAT : 8:00-19:00 (we do NOT plan on doing any work outside these hours)
Size: MUST have at least 2 bays inside, and at least 6 additional parking spots around it. I will be happy to pay extra for a small/medium sized office too. NO waiting area necessary for the time being, BUT a small one with 3 chairs would not hurt.
Utilities: as long as there is electricity, we can make it work. Air, New & Waste oil tanks etc are nice to have, but NOT a must.
Please let me know if you have something available with details on location, pictures, availability, price and any special terms.
Thank you very much
By Jay Huh
Hey guys, my shop is becoming pretty successful and it runs pretty well without me being there (most of the time), should run flawlessly if I hire another advisor for when I'm not there.
Owner of a building of a 5 bay garage 1995 sq/ft contacted me to see if I want to rent it out for $2400/mo. Currently leasing a 3000 sq/ft 6 bay garage about 20 miles away for $4100/mo. I have a reliable employee that recently quit bc of the distance he was driving and the new location is only 15min away so I have people to work lined up and this one is 10min from my house oppesed to 45 min for my current shop. My current shop has a 5 yr lease so not planning on giving anything up.
I have a good brand image and a strong reputation. Google alone 82 reviews 4.9 rating.
Profitability wise I just got to the point of being able to pay myself salary. Is it too risky? Headache worth it? Thoughts?