Posted: Tue Jan 01, 2008 10:38 pm Post subject: Future Shop has questions
Let me start by saying thanks to whoever created this forum.
I am getting ready to open up my own repair shop in a few months and have some questions. I already have my land for the shop and am getting ready for construction for my building within the month. IS there any tips anyone wants to give me for getting started, I am ver knowledgable and need no help on diagnosing or repairing vehicles, just need some advice on getting my business up and running. I live in a smaller area and there are a few shops around already that stay absolutely packed, so business shouldnt be a problem.
Should I start out my labor prices lower than most other shops around?
Any hidden cost on getting started that you guys think I may have missed?
Joined: 15 May 2007 Posts: 774 Location: Baton Rouge, LA
Posted: Wed Jan 02, 2008 7:40 pm Post subject: Re: Future Shop have questions
futureshop wrote:
Let me start by saying thanks to whoever created this forum.
I am getting ready to open up my own repair shop in a few months and have some questions. I already have my land for the shop and am getting ready for construction for my building within the month. IS there any tips anyone wants to give me for getting started, I am ver knowledgable and need no help on diagnosing or repairing vehicles, just need some advice on getting my business up and running. I live in a smaller area and there are a few shops around already that stay absolutely packed, so business shouldnt be a problem.
Should I start out my labor prices lower than most other shops around?
Any hidden cost on getting started that you guys think I may have missed?
Hi, welcome to the forum and congratulations on the upcoming shop. I think one of the wisest things a shop owner can do is learn to calculate "true cost" and determining their own service rate. This will help establish you as a leader and put you in a much stronger competitive position.
This link is to two articles I have written on pricing. Please read through them and see if they help with your questions. If not please let me know, I have written a good deal on the topic.
Joined: 19 May 2007 Posts: 206 Location: Camp Verde, AZ
Posted: Wed Jan 02, 2008 11:01 pm Post subject: Re: Future Shop have questions
futureshop wrote:
Should I start out my labor prices lower than most other shops around?
NO! If you do use the "survey other shops method" set your rate on the high end. It is best to do as Louis says in his articles. Figure out what it costs you to be in business and set your labor rate from there.
futureshop wrote:
Any hidden cost on getting started that you guys think I may have missed?
Not sure, but here are some things to ponder.
Get some management / shop owner education! Learn about the financial side of the business. More money is made in the office than out in the shop.
I was once told that how you get customers is how you will keep them. If they come to you because you are the cheapest, the minute someone else is cheaper they will go there. If you offer great service, fix things properly the first time, and give good, value people will stay with you. These are things that are harder to do, so not every body does them.
If you are going to be a one man shop you will only be able to bill for about half the time you are there. Plan on only working 40 to 50 hours a week. If you cannot make it in that amount of time you will not make it working 90 hours a week.
You know how to be a tech, learn how to be a business owner.
Install the best quality parts that you can and price them accordingly. Explain to your customers why you do, lowest overall cost.
Keep your debt as low as possible. Always put some money in a saving account, you will need it some day.
Have the cleanest, neatest, brightest, best organized shop in the area. Look and act like a professional.
Buy a good computerized shop management system (point of sale program). Do your homework before deciding on one, it took me 1.5 years to find one that I liked.
Read the recommended reading books that Louis has listed someplace on this site. After those, read WAYMISH by Ray Considine and Ted Cohn, Selling the Invisible by Harry Beckwith, and The EMyth revisited by Michael Gerber.
Learn how to run a business, so you are not just working at a stressful job.
Good luck!
_________________ David Wittmayer
Owner / Manager
Hansen Enterprises Fleet Repair, LLC
Camp Verde, AZ
www.hefrshop.com
From your post it sounds like you are in the same situation Im in except Im building in a rapidly growing small town that is lacking a good repair shop. With my shop about half way finished I have a couple of hidden items that surfaced.
-I had a $10.000 budget for paper work however my municipality quickely added another $5,000 to that number and 7month delay in plans,permits and application fees.Plus tack on the cost to carry the property almost a year.Depending on your location these may not apply to you.
-Avoid building in cold weather if possible,everything costs more.(depending on your location)
-We have specific building codes or criteria different types of buildings have to meet.Many of these codes change without public notice and you only find out when the building inspector shows up.In my case,during the 7month delay, I was now required to add fire walls,rigid insulation,emergency lighting full handicap access all of which were never priced on estimates.So try to know and stay on top of local regulations.If more show up I will let you know!
Thanks for bumping it up Bud!
_________________ Jason Clark owner/tech
Clarks Automotive
Wellington Ontario
Canada
Joined: 15 May 2007 Posts: 774 Location: Baton Rouge, LA
Posted: Mon Jan 28, 2008 8:18 am Post subject:
Jason wrote:
-We have specific building codes or criteria different types of buildings have to meet.Many of these codes change without public notice and you only find out when the building inspector shows up.In my case,during the 7month delay, I was now required to add fire walls,rigid insulation,emergency lighting full handicap access all of which were never priced on estimates.So try to know and stay on top of local regulations.If more show up I will let you know!
Thanks for bumping it up Bud!
Hi Jason,
Thanks for the reminder. I watched in horror as the City/Parish increased the cost of my project about 30%. Traffic routing, site drainage improvements, additional handicap access, additional structural bracing, etc. This was all after the architect and engineers had signed off and said everything was in compliance. Government, you got to love em.
Joined: 19 May 2007 Posts: 206 Location: Camp Verde, AZ
Posted: Wed Jan 30, 2008 10:42 pm Post subject:
One of the best things we did, when building, was to hire a project manager. He knew the codes, the inspectors, what needed to be done and what not to do. By knowing the loop holes he saved us much more money than his fees.
He purchased the land that we wanted, put up the building that we roughly designed and then sold us a completed project. The banks like loaning money for finished buildings much better than doing construction loans.
Another benefit, we could keep doing what we do best. We did not have to take time off, to work on the building.
_________________ David Wittmayer
Owner / Manager
Hansen Enterprises Fleet Repair, LLC
Camp Verde, AZ
www.hefrshop.com
Joined: 17 May 2007 Posts: 38 Location: New Iberia, La.70560
Posted: Tue Mar 11, 2008 10:05 pm Post subject:
Hi Futureshop!
Congratulations! May God Bless Your endeavors.
My wife and I opened our shop 5 years ago. This seems like a long, long time ago. One thing for sure we have not wanted for anything else to do for a while.
Briefly
1. Have the purpose of your repair shop firmly fixed in your mind. Know what your intend to deliver to your customers that they can't acquire some where else. The opposite theory might be to open a shop believing in your skills and depending on your share of the work that is floating around out there.
Answer this question concerning all aspects of your future shop. By what method? (Ex:I will keep a neat orderly shop. then you ask, by what method? and then be able to answer.)
2. Have good plans concerning every aspect of your future business.
a) Your location (yes I did see that you already have the property) Question yourself concerning the location, is this the optimum location for this endeavor.
b) Your building. Be sure to invest wisely in the foundation and the roof.
c) Your building orientation. Forget everything you know concerning how other shops are layed out. This is the time to explore new concepts for the way the shop will be layed out. Your plans in this area should support what you are trying to accomplish, "The Aim". Better yet, contact Louis and beg him to allow you to visit his shop. I am not suggesting you build what he has, only that you see what is possible with thoughts and plans.
d) Your future staff. What skills do you anticipate hiring? Once you have decided on this. You can develop job descriptions for those positions. You might want to consider what personal traits you want future hires to have. Develop as much as possible a career path for those employees. You might want to make decisions concerning time off. Then you can began talking to people about employment.
e) Your Marketing Strategy. In these plan ideally you would start as soon as possible (long before the open for business date) this applies to (f) as well.
f) Your advertisement and promotion methods.
g) A method to adjust when plans need to change. PDSA
h) Your finances. Avoid small thinking. You can succeed at your "Aim" without adequate financing, but it is extremely difficult.
i) Your time. Believe it or not most of us don't do well without rest and relaxation.
j) All other to numerous to post. Short-term plans, intermediate plans and long range plans are needed. Planning or thinking though all the processes in the business.
k) Please don't misunderstand. Your would want to Pareato the planning process. In other words, work on the critical few. (80/20 rule) Don't kid yourself there is plenty in the 20%
3. Have the resolve to see the endeavor though. Even with the best of plans, being in business can be difficult. Knowing that you have made the commitment and you are staying with it will bring a sense of peace in adversity.
4. This forum contains more than a wealth of information on sound management practices. I believe that you must be the Captain of your ship. Having said this most of us need assistance bridging those gaps in knowledge and experience that we do not have.
5. When I think of the successes I have enjoyed, I become very humble and grateful to unselfish friends in this business who have given of there time, money and more importantly of themselves to help these successes come about. Having Louis and the others on this forum sharing from their store of knowledge and experience is an incalculable advantage when starting and running a "futureshop"
I would be glad to discuss and share the many things that have made it more difficult. Please call or contact me with any questions. 337-364-8056
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