Hello to all members,
I came across this forum, and I was happy to see a good supporting community here. I am a Mechanical Engineer, own a limousine business for about 10 years with a fleet of 8-10 vehicles here in Edison NJ. I take my vehicles to Newark NJ, to get it fixed at a commercial repair shop that specializes in Lincoln repairs. Our repair bill is about 25-30k per year.
I can almost do most repairs my self, but not having the tools, lift, and the time, I give all my work to this commercial repair shop. I can do brakes, rotors, all to do with radiators, catylic converters, (brake-coolant-Tranny-engine-differential) all liquid flush, belt change, ac repairs, and many more. Just keeping up my 10 cars as 100% perfectly work horse for 10 years, I have learnt a lot and now I am burning too much time and money.
In my area, there is a huge Indian and Chinese community and there are a lot of Indians who own a repair shop but not a single Chinese owned repair shop. I am kind of second generation Indian, and I see all the Indian repair shop brutally ripping off their own country men, senior citizens and lot more. I would even call them terrorist at repair shop, they are that bad.
Since I have my own work to manage, I am kind of leaning to open my own shop, like 2 bay shop. This will save me a lot of time and I will get things done my way, which will also save me more time and money. I talked to a lot of friends and to get numbers, I have a good 250 cars committed to bring me their work, some are retail, some are commercial vehicles. Once I open, I know I can get that number to 600 cars within 3-4 months. I tend to have good friends who have large organizations.
Now getting to reality.... I can design a differential but can't repair it, that's two different things...I don't want to work on cars personally, I am good at presentation, explaining and convincing clients and more as a manager. I will have to hire technicians and labors to get the work done. Besides that I will buy bays, wheel balancing and changing equipment and many other things. I want to try this for 2 years to see how it works out and I have spared 100k to try this. Rent goes around 2500-2800 for 2 bays around my area... So I assume the rent, equipment, insurance and some small things will suck up my spared fund for this project. For the technician, I will have to earn or brake even to another 60 per year...
I am a very honest and reliable business person, I wouldn't cheat just to make profits like many other shops do. I rather have a good relations with my clients that will go for longer term. I see the community here is open to such business that I plan to establish. My limousine business is profitable, but I am getting tired of it as it is a 7 days/14-16 hour work. I would love to have a 8am-7pm 5 days per week for my remaining life
Should I risk this plan, should I go for it or wait....I would love to have your opinion on this...
Thanks for reading this long post, brain storming, and possible help.
I need some recommendations on learning more about garage keepers insurance. Like basically where to start, how to shop for it, any information would be helpful.
To give you a little background on where I am coming from: My brother and I are taking over the business, our father is 69 and is working his way into retirement. He has done a great job on teaching us how to run a shop, we are both very good service managers, however we have little experience on the business end of things. The reason that I am so interested in insurance is at the end of last year we were dropped by our underwriter, not for too many claims, just because, well I don't really know why. I think it had more to with the insurance company and the direction they were heading. Anyway our insurance guy scrambled to get us insurance at the 11th hour and needless to say we are paying out the nose.
We have 2 locations and do general automotive repair. The kicker is, we also have 2-3 service trucks and do on site tire repair for semi and construction tires. Yes, I know, there is my expensive insurance issue. However we have never paid this much before and I think part of it is who we are dealing with.
With all that being said I am trying to be proactive and learn as much as I can, so that maybe when it is time to renew we can get this expense a little more inline.
Any help and suggestions would be greatly appreciated.
I'm looking at renting a location to open a new shop and the owners are asking me to carry 2 million general aggregate, 1 million per occurence. 100,000 fire damage liability and 5000 medical.
In speaking to a few agent they seem to think it's a bit high.
Can ya'll post what you typically carry on your shop?
By Joe Marconi
The Affordable Care Act (ACA) requirement that large employers (businesses with 50 or more full-time equivalent employees) must offer health insurance to full time employees beginning Jan. 1, 2014, or face a fine, has been delayed one year until Jan. 1, 2015.
Read the entire article: http://www.searchautoparts.com/aftermarket-business/searchautoparts-advanstar/news-distribution/aca-employer-mandate-delayed-until-?cid=95879
What are your reactions? Is this a sign that there is push back from large companies? And what about many unions that now do not support Obama Care? Will this affect us? Your thoughts?