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Hi, everyone

 

I just opened an auto repair shop about 4 months ago, but I'm still working my full time job as a tech therefore I open the shop from 4 pm until 9pm M-F and 8-5 on Saturday. I'm starting to build customers but most are from referrals and neighbors I don't get much traffic cars. I'm starting to think that the hours I'm open don't really work for the auto repair business seems like after 6 everything dies. Has anyone worked this kind of hours or what do you guys think about this odd hours.

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Hi, everyone

 

I just opened an auto repair shop about 4 months ago, but I'm still working my full time job as a tech therefore I open the shop from 4 pm until 9pm M-F and 8-5 on Saturday. I'm starting to build customers but most are from referrals and neighbors I don't get much traffic cars. I'm starting to think that the hours I'm open don't really work for the auto repair business seems like after 6 everything dies. Has anyone worked this kind of hours or what do you guys think about this odd hours.

Maybe you start doing some face to face marketing in local businesses that close around 5 and pickup some work from the folks who cant make it in normal hours? I never tried odd hours but I can see how it would be a struggle. IMO this is a wors of mouth business and sometimes that just takes time!

 

Sent from my SCH-I605 using Tapatalk 2

 

 

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Thanks for reply NC. I will look into talking to local shops that close earlier and just give it time until I feel I can do it full time.

If I can ever help let me know. Where are you located? I might have resources I can helo with, heck if nothing else I can refer customers that are up here on vacation to you.

 

Sent from my SCH-I605 using Tapatalk 2

 

 

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Thanks NC. Well I'm the only one working the shop and I'm the only one supporting the family. My current job pays the bills and I don't think I can live of the shop yet. I'm just curious how did you guys do it when you first started in this 4 months I've barely made my over head.

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Do you own the shop or are you renting? Seems to me you would make more money if your shop was open during regular business hours, so maybe leaving your current job and opening your personal shop would serve you better.

 

I almost did the exact same thing you're doing when I started my shop, but I decided to dive in head first and do my own thing full time. I'm so glad I did and never looked back.

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Just keep in mind, if you keep building these after hours clients. When you do go full time you will probably lose a lot of them if you don't stay open for them late. Double edged sword. Ill tell you that when I first started there is no way I could have made it if my fiancée hadn't of supported me personally. She kept me afloat while the business grew to a point where it could then cover me. That was just over 4 years ago. Now I have four full time employees, it was a scary ride but its been fun.

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Thanks Xrac. I'm going to look into that. See if there are large fleets around here.

 

Fleets are an excellent idea for how you are currently setup.

 

Be careful on how you structure your fleet invoicing. As a lean start-up, you probably are not going to have the cash reserves to float the net 30 to 90 days worth of invoices that many fleets will be expecting. Here's an article that will help you get started in it (link).

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Keep in mind that 95% of small businesses fail within the first 5 years. Another thing is that wrenching is by far the easiest part of the business. You will also do 3 times the work for less money.

 

Not trying to deter you, but I'm sure you have a family that depends on you so you should know EXACTLY what your getting into.

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When i started 5 years ago, I was the only income for my family, and it was really tough for the first 6 months. But 5 years later, I own 2 shops doing around 2 million in sales, and still growing. It was not easy, but we were determined. I would recommend that you give some serious thought to whether you want to be a business owner, and dont dabble in it. Either get determined that you will do what is needed to make it work and dive in with both feet, or decide to stay with the safety of a job. You can not continue with the schedule you have right now. It is not good for you or for your family, and will not last long term. You will get burnt out. If your overhead is only $1700/month, it will not take long to offset that and generate income for yourself. Assuming that you are working 40 hours at your other job, and 34 at this business, if you take and put 74 hours a week into your business, you should have no problem growing your clientele rapidly enough to support your family. You can always go back to a J-O-B if this doesnt work out, but just decide what direction you want to go, and then figure out a plan to get you there. Most everyone here has been in your shoes and had to face the same fear you are dealing with. It is scary, but once you get to the other side, you will be glad that you did. And like others have said, learn to be a business owner, because fixing the cars will be the easiest part of your job. Message me if you would like to talk about it more in detail. I would be happy to help.

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  • 4 years later...

I did the same thing you are doing.  Kudos.  I also did Sundays too.  Three months of that and I finally just quit my job and went headfirst.  You can do it alone man!  Plan on spending any down time on getting business education.  Learn and implement marketing(not advetising) first then focus on learning reading financials next.  You will grow so fast  you will wonder why you ever worried.

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You are getting some great information.

Start encouraging online reviews. Even referral customers check your online reviews.

In CA it's Yelp, which is free. I say, "Hey, if you liked my service, please go online and leave me a review."

I'd heard that the simply satisfied customer doesn't refer you. it's after you do something special for them.

Victor

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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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