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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