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KMS

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Posts posted by KMS

  1. The problem with those sites I have found is that we have only had a handful of customers come from them in 11 years, which means they are not doing anything to advertise for us. Not only that most of them advertise for dealerships also. I haven't had any success with those sites, and from the membership letter we received from godocauto.com it sounds like they know what they are doing? It gave us a list of things to do to help with SEO. It is cheaper and specified by Make. This website, from what I see, is only for independent shops.

  2. I used to. You can make a lot of money doing this as long as their are good body cheap cars in your area. Always use used parts for big ticket items, and don't try to hit a homerun on each vehicle. You want to buy cheap, fix cheap, and sell quick. You want to do volume and I recommend not selling them at your shop. Good luck.

    • Like 1
  3. Ya from the sounds of it the previous guy didn't really have a good vision for the business. He started selling cars and then was not super into the mechanic side and I have heard he simply didn't want to show up sometimes. I guess the only thing I was worried about was the landlord saying that location could only handle a $50-60/hr labor rate because our business plan is built around roughly $80/hr.

     

    I would be too worried about the other business. There could have been multiple contributing factors for why it failed. You will have to test your labor rate anyway. You also can't only base your business on price alone. People will pay more for great customer service.

  4. From my experience, as long as the shop you are looking at is in a decent area. Middle-class minimum, and the retail areas around it are clean, the higher end customers will come. We are in a area where about 2% of our customers are within 15min of our shop. You will have to advertise a lot to get the customers you prefer. Most of our customers come from higher-end areas even though we have no amenities around. It can be done, but it will take a lot of cash and patience.

  5. I would like my pay plan in close ratio without too much deviation from my overall profit. Basically a close to set % of profit. I an trying to see what everyone else does. I do not like the idea of straight salary. Either 100% commission or small guarantee + incentive.

     

    If you don't mind me asking what is your yearly total sales average? (Example: Total Sales - $1,000,000, pay SA 5% of total sales = $50k/yr)

  6. They are way to many shops out there worrying about how to profit correctly. Just charge what you need to charge. You will be higher, lower, and equal to other shops. My rule of thumb is find a profit margin you are most comfortable with. Try not to piss customers off though. My goal is 60%. Some jobs are more and some are less. Just play around with it and see what is working best for you.

    • Like 1
  7. You always have to take the good with the bad when it comes to reviews. How else do you work on your flaws? There is a such thing as good criticism. Yes, some reviews can be absolutely ridiculous. Always comment on all of them if possible. Customers will be amazed to get a thank you. They will appreciate it greatly.

    • Like 1
  8. I don't care for partners. I would get a good service advisor and a top tier tech. I would give the technician a weekly 40 hour guarantee to start with, and an incentive over 40 flat rate hours. A good service advisor can run the front counter while you get a feel to how this type of business flows. You will need start-up capital banked to keep your head above water until you get a customer base. Good luck.

  9. KMS, keep us posted on the results. I think it will be a winner. I like the strategy of previous recommendations because those seeds are planted, and the discount just starts them thinking about those items all over again.

     

    Got three back already with an ARO of approx. $720.00. So far, so good!

  10. That is one of the dumbest things I've ever heard. You can charge whatever I want. You think the bottle of water you buy at the store really costs them $1.00 and they sell it to you for $2.00? I bet it costs them around $0.05, maybe! Almost every business owner would be in jail.

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