What are the pros and cons of owning your own auto repair shop and what’s your likely profit margin in california?
how many auto shops around the area. or if u under cut other people u will make heaps. can u help me. how do u put a fuel pump in a vr wagon. do u need to take out the fuel tank. email me if u can help. thanks
A lot depends on location and policy. If in a good upscale neighborhood, and all work is cash, then you have a better chance. To make a go by yourself will be tough. You will need all kinds of permits and licenses. OSHA, CalOsha, EPA, recycle verifications, storage for recycle, insurance for you and the property, expensive specialized tools and diagnostic equipment, facility rent, utilities are a few things to give an idea of cost and add in a lot more for taxes if you have someone working for you. Now can you stay busy enough to meet this kind of onerhead and still make a profit?
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I’m going to be vague here because I think there’s no specific answer. The income range for ANY type of business will be $0.00 to an unlimited number of $. There are rich owners and poor owners. It depends on so many factores, like the type of area in which your shop will be, what type of of customer you’ll be attracting, what type of repairs you’ll be specializing in.
Profit margin, no matter what state you’re in, depends of many things, including our customer base and the type of work you’ll be specializing in. I own 2 shops, both surrounded by other shops. The shops that operate on thin margins are the ones that do sloppy work and attract cheap customers who aren’ t concerned with quality of work. The shops that have high margins are able to charge more because they do quality work and have developed a good reputation. In certain cases, you’ll have no choice but to run a cheap shop on thin margins, like when you’re located in a low income area where all the customers are cheap customers who just want the bare minimum done so that their car barely runs.
The profit on individual parts varies by a great range. You can mark up brake pads 100%, but an A/C compressor might be marked up 40%. But it’s the labor that brings in teh most profits. Labor cost wil depend on what type of labor force you’ll need. Specialized work, like transmission repairs will need technicians who earn $15+ per hour. Simple oil changes transmission flushes, radiator flushes, etc. can be done by a kid earnign minimum wage.
The cons are worth the pros. Don’t let anyone tell you that you can’t make a living after taxes, licenses and paperwork. Every business owner has to deal with those things. It’s just a fact of life. Someone who’s afraid of dealing with those things shouldn’t be running a business of their own. I think anyone who has the opportunity should try owning a business. Even if you fail, it’s worth the journey. Pick yourself up, get your composure and try again. Some people will be successful the first time. For others, it may be the 10th try.
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i thought about opening a shop but after researching it, i decided to go mobile. all profit no overhead. i’m in Louisiana and i average about 1200 a week working only 30-35 hours a week. if i was in cali i could easily double that. so go mobile
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July 6th, 2009 at 9:33 am
how many auto shops around the area. or if u under cut other people u will make heaps. can u help me. how do u put a fuel pump in a vr wagon. do u need to take out the fuel tank. email me if u can help. thanks
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