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New Shop In NY


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Hey,

 

My name is Luis and I am on the verge of opening up my first shop in Monticello NY. I am 30 years old with extensive experience in repairs and shop management. I've spent a majority of my career working at big box repair shops. Started off as a service adviser, moved up to a tech and eventually management. 3 years ago I left my job because I was tired of corporate politics, to start my own mobile repair business.

 

My mobile repair business took off , but, I found myself maxed out half way into my second year. I spent a lot of time driving and not being able to get to my clients fast enough. This resulted in a lot of lost revenue. I even expanded into towing, which I saw a huge increase in revenue. Eventually , I realized I need a brick and mortar shop. I need employees and I am better off managing than trying to do everything myself. Shortly, a shop that I've had my eye on for a number of years went up for rent. It has been my dream shop, for as long as I can remember. It's an 8 bay shop on a busy rd, in a town that is getting a new casino in the next few years. I'm in the process of a trying to negotiate a reduced rent for 6 months, so I can get my feet planted. Things are looking pretty good so far.

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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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