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Hey guys, tear this idea to shreds for me I'm trying to find a competitive advantage (niche) and I came to a automotive shop that specializes in serving small business fleets. Plumbing companies, mowing and lawn companies, telephone companies and even used car lots! What you think?

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We focus a lot on fleets. We have visited about 30 businesses to sell our service. We have about 3 or 4 that bring their vehicles. They have been easy to work with and have had some very profitable jobs. Our only issue is getting more.

 

Seems most small businesses also have other small business friends, and a lot of those are auto repair. But go get some accounts just don't make it your only income.

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http://www.motor.com/article.asp?article_ID=541

http://www.ratchetandwrench.com/RatchetWrench/April-2014/Transitioning-Away-from-Fleet/

 

Those are two articles off the top of my head relating to fleet servicing.

The motor.com article is about selling to fleets profitably, and how to go about doing it on the business side.

The other one is a bit of a warning about what can happen if you focus too much on fleets, and what are some good proven methods of how to turn a good profit with them. This article states that 80% retail and 20% fleet is an ideal setup.

 

I think one of the most important things with fleets, is to offer some kind of discount (maybe not the full fleet discount) to all of the company's employees who want to bring in their personal vehicles as well.

This can be a huge car count booster, and if you do things right, it can still be quite profitable, and it's free advertising. If you do good work, word of mouth from that will spread like crazy.

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We do some fleet service, the phone company was a good customer, we worked on all their trucks and authorization was quick but they just moved to 45 days to pay and an out of state administrator so I'm not too keen on that anymore. Good luck with the used car dealers, typically they are the cheapest of the cheap.

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Fleet service has been good for my business, especially in slow times. I service fleets for a few contractors, an electric motor shop who does a lot of off grid power work and has 8 trucks, a landscaper, a realty company, and a couple snow plow businesses. Not a week goes by that I'm not working on fleet vehicles. Yeah there's some junk to work on but overall it's been well worth it. Got most of it through cold calls on the businesses.

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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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