These types of customers are price shoppers and may actually cost the shop money. The worst type of customers may be the one-time customers who take advantage of special discounts. Ongoing service contracts ensure steady income for the shop and reduce cash flow problems both in the short and long-term. The best types of customers are those with a service contract. Who is the target market?Ĭlients for auto repair businesses are unique in that they all have one thing in common: a broken or serviceable vehicle. Overhead and supply costs vary, but may cost a shop between $10,000 and $20,000 per month, depending on the size of the shop. Insurance can cost shop owners $4,000 per year. Mechanics can be paid anywhere from $25 flat rate per hour up to $100 per hour. Ongoing expenses for the business include shop rental (unless the business owner owns the shop building), insurance, and labor costs. What are the ongoing expenses for a car repair shop? Mechanic’s tool set with specialty tools: $15,000.
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It will help you map out the specifics of your business and discover some unknowns. STEP 1: Plan your businessĪ clear plan is essential for success as an entrepreneur. Exploring your options? Check out other small business ideas. These steps will ensure that your new business is well planned out, registered properly and legally compliant. We have put together this simple guide to starting your car repair shop.
There is more to starting a business than just registering it with the state. Get the Necessary Permits & Licenses for your Car Repair Shop.Set up Accounting for your Car Repair Shop.
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