Quantcast
Jump to content


Recommended Posts

There is so many factors that go into selecting the "right" business for "me"

I have searched on the site and could not find a definitive (or close to) answer to my question.

 

Maybe someone has general formula for evaluating the business.

 

For example:

 

If the business does ~ $$$$$k gross a year and the parts mark up is %%

then the net should be $$$$$, the car count should be ### with ARO $$$, and the brake-even should be $$$

 

If the actual shop deviates from the formula a %% it's a go/no-go or re-evaluate.

 

I realize this is overly simplified, but at least it gives me idea what to look for when evaluating.

 

Thank you,

Share this post


Link to post
Share on other sites


Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

  • Similar Forum Topics

    • General Liability / Garage Keepers Insurance Quotes... What do you pay?

      I have a 2 bay facility that I rent and one employee plus myself. I was quoted about $2346 per year for both general liability and garage keepers from Liberty Mutual(using CoverWallet as the broker). - General liability was $1,032 per year if paid in full for $1,000,000 limit and $2,000,000 aggregate - Garage keepers was $1320 per year if paid in full for $75,000 coverage Does this sound right? I am in the process of getting other quotes but wanted to see if I am in the right ballpark. This is my first time getting insurance for the business and it seems like some places don't want to insure you unless you have history. Shop size: Employees: Location: Own or rent: Coverage: Insurer:   Thank you

      By [email protected], in Auto Repair Shop Management Help? Post Here!

      • 1 reply
      • 208 views
    • Article: Challenges Of The Auto Repair Business

      As the auto industry moves on into the modern age, repair centers all around the country are experiencing pressure with the tech world and our world colliding. We are all trailing nationwide franchises and dealerships that have endless resources working at their disposal. For most smaller auto repair businesses there isn’t enough time, money, or energy to attempt to constantly and actively secure the new business. We’re mostly worried about attempting to maintain the existing business we have, which has newer cars and increasing demands. Most of our time is now spent adjusting to the learning curve of advanced vehicle systems. However, that’s just a shop problem. The front office of your shop has its own issues to contend with that didn’t exist 15 years ago. Make no mistake about it, our industry is in the middle of a revolution and with 3D printing knocking at the door… the amount of balls to juggle are going to be considerable and it's all just getting started. Today’s auto repair businesses need to worry about the following: Location – Securing a proper location and the authorization to conduct business there over the long term ensures survival. Tools – Without the proper tools, we just can’t work on today’s vehicles. Training – Without the proper training, we put ourselves and our customers at high risk. Employee Engagement – Keeping your employees as interested in your success as you are is critical to the elements that keep people returning and employees from leaving. Employee Advancement – Providing an environment where employees know they can grow with your business, whether financially or moving up within the organization, is the key to keeping and securing talent. Marketing – This is the most complicated element in today’s world. It involves a mix of a strong web presence, good advertising ethics, social media profile, and following up with customers. Advertising – Can be expensive and very confusing. The best method to start is to get your feet wet with small budgets that keep your name in front of your potential customers, constantly. Software – Without good software, it is difficult to run any business. Good software is and always has been subjective. Our experiences indicate that good software saves you time and builds trust with your customers. Most importantly, it should work for you and not against you. This article originally published in CAR's News Section
      View full article

      By CAR_AutoReports, in AutoShopOwner Articles

      • 0 replies
      • 77 views
    • Best Scanner for General Repair

      Hello,  We're in the market for a new scanner and figured I'd ask fellow shop owners their ideas and experiences. I did search the board archives and didn't see much within the past year or so.  We are a general repair shop servicing most anything, according to customer attitude. Any suggestions would be very much appreciated.   Thanks in advance 🙂

      By Extracareman, in General Automotive Discussion

      • 5 replies
      • 467 views
    • Shop Owners: You don’t have to answer every question for your employees

      As shop owners, we sometimes feel that we need to answer every question and handle every situation. While you need to be proficient as a business owner, you also need your employees to think for themselves.  Empower your people to solve problem.  Ask them for their opinions and don’t be too quick to jump in on every situation.  The more you jump in and solve their problems, the more they will rely on you. This is not to say you don’t have their back; but a team functions best when everyone takes ownership of their position and takes responsibility to take care of problems. Will employees make mistakes? Yes.  But there isn’t a shop owner on this planet that has a perfect record at making decisions.  We all make mistakes. As a shop owner; teach, mentor and coach.  Include your employees in on decisions that relate to their job position.  When employees feel you trust them, they will begin to solve their own problems. This will set you free to work on the things that will bring you greater success.

      By Joe Marconi, in Joe’s Business Tips For Shop Owners

        
      • 2 replies
      • 329 views
    • Business management training

      Have any of you attended classes or seminars put on by a company called ATI automotive training institute ? Was considering signing up for a 1 day class.

      By Bob K, in Workflow Management

      • 9 replies
      • 1,426 views
  • AutoShopOwner Sponsors

  • Similar Tagged Content

    • By Ron Ipach
      It's finally time for you to enjoy less stress and take more time off, all while putting more money in your pockets.
      Would you like to know how? After helping over 6567 repair shop owners achieve the shop of their dreams, I've put together my most anticipated Webinar yet:
      What The Top Auto Repair Shop Owners Know That You Don’t: 
      How a Small Minority Are Pocketing Six-Figure Incomes
      I'm Interested - Sign Me Up! Need More Incentive?
      On This Free Online Training Webinar, You’re Going To Discover: 
      The 4-step business model that’s been quietly converting struggling shop owners into multiple $100,000+ per year earners, while enjoying their businesses more than they ever have before… How making a few important shifts in your business RIGHT NOW will protect you from being swallowed up by the massive changes coming in the industry… Why most advertising efforts by shops today are a total waste of money…and where you should be focusing all of your efforts right now to attract the best high-quality customers to your shop… A simple process for converting those annoying price shoppers into paying customers…and selling your services at higher prices than your competitors… And much, much, more! Don't waste any more time, take the steps to change your life, and better your business!
      CLICK HERE TO REGISTER
       
       
    • By [email protected]
      OK. Not to start another parts markup thread but I would like to look at this from another angle. What percentages do you aim when marking up parts when you look at the part categories? 
      Just an example below:
      Brakes 70%
      Struts 30%
      Shocks 50%
      Tires 15-30%
      Maintenance, etc ,etc
       
      The reason I ask is because even a standard parts pricing matrix can blow certain items out of reasonable sale price. I am aware that less expensive items can net larger profits, which also makes up for more expensive items but I am trying to see a base line of what parts markup looks like with these categories.
      Thanks
    • By Ron Ipach
      This is something that I'm hearing from shop owners constantly when we're talking about car count levels in their auto repair shop:
      "Car count is down in my shop because cars are made better."
      If I've heard it once, I've heard it a thousand times, and chances are you've probably said it yourself. Look, I'm not going to tell you cars aren't made better because that would be sheer stupidity.
      The fact is that cars are made better. Cars are made to last much, much longer than they used to.
      But... That's not the reason why car count is down in shops.
      How do I know that? Well, a recent study came out that said the average car on American roadways is over 14 years old.
      Let me say that again... The average car is over 14 years old. That's not a new car. The average. That means for every brand new car out there, in order to have an average of fourteen years, that means there's a car that's 28 years old. There is a balance there.
      If the average car is 14 years old, those are the cars you work on. Right? 14 years ago the cars weren't made as good as they are now, and even if they were, they're 14 years old right now, odds are that they're going to need a lot of maintenance now or in the near future. It's important to make your shop available for those repairs.
      Don't get caught up in the thinking that the car count is down simply because cars are made better. Those cars that are made better are not your business. Those aren't the ones that are going to give you more cars in your bays and increase your profitability. The most of a shop owner's profits is going to come from the cars that are older, and the average car is much older than it used to be.
      Clear the "cars are just made better" excuse out from your mind, understand that there are plenty cars out there, it's just up to you to go focus on your marketing and attract more customers to your shop.
      -- Ron Ipach (a.k.a Captain Car Count)
      President/Founder of Repair Shop Coach More articles and content like this and originated through Ron Ipach's Car Count Daily campaign Auto Repair Shop Owners, Managers, and Automotive Industry Professionals are invited to join 'Car Count Daily Boosters' LinkedIn group to provide resources and gain insight on boosting car count DAILY and filling up the bays in their shops.    
    • By Elon Block
      Hi eveyrone!

      As a result of the some of the recent changes, I'm preparing to hold a special webinar just for Goodyear tire dealers.
       
      Please send me a private message if you would like to be notified when this has been scheduled.
       
      Thank!

      Elon
       
       
    • By Joe Marconi
      Legendary College basketball coach John Wooden, would always preach to his players that it’s the details of the game that matters most. That worrying about the score was futile if the execution and the details of the game were not performed with consistency and to the best of everyone’s abilities. In other words, the score will take care of itself and the wins will come if every detail of the game is consistently executed properly.
       
      In the shop environment, only worrying about getting the car done, without performing all the steps properly will lead to an eventual breakdown in your workflow system. It will lead to higher comebacks, lower profits and poor customer satisfaction.
       
      To have a properly working workflow system, that minimizes comebacks, improves overall quality and improves customer satisfaction, requires paying attention to the details of the workflow process in a consistent manner.
       
      Is the customer write up process done properly each time? Are the technicians following the workflow process and every checklist done properly every time? Are the technicians short-cutting the process in an attempt to book hours? And, perhaps the main killer of the shop environment and workflow: a sloppy shop.
       
      Yes, a sloppy shop leads to a breakdown in the system. Disorder in the shop equals disorder in the workflow, which equals increased comebacks, increased chances of people getting hurt, unhappy customers and lower profits. Time is wasted finding tools and equipment. People tend not to care enough about the condition of the customer’s car because the shop does not put an emphasis on neatness and order in the shop. Cars will leave with grease marks, dirty floor mats and job details forgotten.
       
      The first step in any process is the shop environment and that means shop organization. You cannot have an efficient workflow until you have shop order. Everyone must be held accountable for keeping order. And it starts with the tech’s work space.
       
      Want to improve production, profits and customer satisfaction? Pay attention to the details, focus on quality, create a well-defined workflow process and maintain order in the shop.


×