[my07_335i]

I've been thinking about starting my own business over the last year or so, and have only gotten more serious about planning out details on how to go about doing it over the last few months. I don't have everything figured out yet, but before I waste a ton of time on something that may not even be marketable, I'd like to get some opinions.


I'm thinking of starting a DIY auto shop, similar to Tech Shop/, except only for cars. Think of it as a full service mechanic...without the labor rates and parts markup. People could schedule a time to bring in their car, and have full use of any tool they need. Lifts, air tools, wrenches...whatever.

I know I'm probably not the only person that wishes they had a lift in their garage, or didn't have the right socket size, or torx bit, or wanted a quicker way to change their oil. Not everyone has an air compressor and impact wrench. I've seen this done on military bases, and it's pretty successful, but there doesn't seem to be anything in the civilian world equivalent to this.

I'll probably end up posting this on a number of car forums to get some idea of possible interest in such a shop, but I'd love to hear comments/ideas you guys might have.

My initial thought was to charge around 20-30$ an hour for full use of a bay (initially 4, maybe 6 bays available), and to book people by estimated time to do a job (30 minutes for an oil change, 4 hours for suspension, etc.) Possibly doing something like a membership plan where you could buy a set # of hours at a discount rate ( buy a block of 20 hours 15-20$ an hour...for example)

Anyone think this is a good idea, and more importantly, if you could have your own repair shop, for 20$ or so an hour, would you do it? I'd really like to gauge interest from the various enthusiast communities to see if this would be a viable service that people would use.

[KwlAznKid]

I think it's a good idea but for $30 an hour it's a bit high IMO, the tough thing about this is pricing it so obviously it's worth your while but still making it cheap enough for people to consider it as an alternative to those "craigslist mechanics" I know tons of those craigslist guys who will install coilovers (with their own tools) at your house for like $100 -$120, so if we use that same example, coilovers take like what. maybe 2-3 hours if you know what you're doing? that's 60-90 bucks, I would rather pay someone $120 and keep my hands clean and supervise to make sure they are doing it right, of course this is different story if you're one of those car guys who don't let anyone else touch your car, jus sayin, good luck

[#Tee]

I like the idea, the only problem i see is when a small task becomes a large one. example: guy brings in his car for a suspension /bolt on engine upgrade and something breaks/leaking fluids... a part needs to be ordered to remedy the issue and the car needs to be towed or sits in the shop as it will takes space maybe weeks/months. how will he be charged? now multiply this by 3 or 4 times a month. your parking lot will look like a junk yard as ive seen this happen to many shops.

one of the harder thing is when the groupies ends up making friends with the owner "homies" where do you draw the lines of i wont charge him cause hes bringing me business but now all of his homies cars are stuck in your lot.

i know this is the worse case but its something to consider. I would pay and use the shop if a TIG welder is provided :P

[to_riffic]

Also have to figure how much your leased space would cost each month and model/project it based on your average monthly users and their associated fees. If you have slow turnout one month and a great the next, it'll be more stressful than it is making that small profit.

[X1 Trojan]

Look up Garage Liability / Insurance...will be necessary.

[DanielGonz]

Tools will be EXPENSIVVVVE! What about air compressor + lines + electricity + welding gas/tools (if welder is on site).

Best of luck.

[Delusive]

There's already a shop like that in Santa Clara, CA. So if you plan on opening it up there you'll have competition with Pit Row The Do-It-Yourself Auto Shop.

But if you plan on opening it up somewhere else closer to the Bay or down near Socal close to Los Angeles then you'd be golden because i'd consider taking my car to a DIY shop providing everything if it was 5-10 mins drive from me since Santa Clara is pretty far also what #Tee said is a great idea since alot of people would like to do custom exhaust jobs or weld things etc.

But I suggest people who would want to use the welder should at least have certain hours of experience in order to use it.

[my07_335i]

Thanks for the replies so far, I haven't decided on a location yet, was thinking mid-bay, such as milpitas, fremont, or south around San Jose. Eventually possibly opening a second shop in So Cal, as I know theres a big community down there.

30$ was a high-side price, I'm working on a project with a start-up gym that is paying around 2k$ a month for their spot, which could EASILY hold 8-10 spaces, but I've figured that in. Ideally Target is closer to 20$, so a spring install might cost you only 60-80$ tops, vs 700 at a shop.

Initially I'd probably look for a set of vacant autoshops that already exist, so that I wouldn't need to source ALL the parts, but I was initially looking at around 300-500K in financing for the first 3-5 years to get started, hopefully being profitable after the first 2-3 years. If i didn't have to buy lifts, air compressors, etc , this would obviously bring down my costs.

As for competition, Thanks for the mention of the shop, as I live in Santa Clara and had no idea such a place existed, I'll need to check them out to see what their up to.

The craigslist comment is a valid point. I'm sure there will always be people who would rather pay someone else to do a job for them, but I know a lot of people get satisfaction from doing the work themselves, and if you saw my post about what a shop did to one of my shocks, you'd understand why I'd love to have a place to lift my car up and do whatever to, and while say it might take someone 4-6 hours to do something in their drive way, it might only take them 2-4 if they could get under the car and do it.

I didn't think about LA, since I'm from nor cal, but I'll keep that option in mind when I start looking for an industrial location to rent out.

Last but not least, I'd have to hire someone to run reception or whatever, and possibly hire a mechanic or two that could assist in teaching people how to use some of the tools, but the basic concept would be geared towards people who already know how to do certain things (meaning your sister wouldn't come to the shop).

I'm still planning things out, and I'm trying to get insurance plans put together along with exploring the legal options (so some idiot doesn't try to sue when he misuses a lift and drops a car on his foot), but its good to get some initial positive feedback. Keep it coming!

[edirtaynine]

have you run a business before?

just asking cuz some of the numbers and logistical situations you stated don't seem like they're founded by hard data, but more of "that'd be nice". I'm not trying to discount your idea or research, just saying my first impression after reading the post.

every start up business should have obviously a start plan, but also an exit strategy in case things don't go as well as planned. at the end of the day, doesn't matter what business it is, a business comes down to numbers to stay alive. tee's hypothetical situations are a really good reminder of what types of stuff to look out for to help create a solid plan.

on that note, have you thought about what to do if people start stealing the tools?

[Eagle1oh7]

Definitely for what you pay on bases, at Travis AFB you pay $8/hour with full tools so to make it work, you'd have to charge at least twice that and at most 4 times as much.

[edirtaynine]

just read your last post... for financing, you'll have a really difficult time finding a lender/investor to let you borrow $300-500k without anything but an idea. At the very least, they will want some collateral to tie their money to. And another thing to keep in mind, if you do come across money to borrow, if the business can't (different from won't) be able to repay the loan by the 3rd year, it's not a good investment (one of the big reasons it'll be difficult to find a lender unless you prove them otherwise). just a couple more things to keep in mind.

[my07_335i]

Originally Posted by #Tee

i know this is the worse case but its something to consider. I would pay and use the shop if a TIG welder is provided :P

If you know how to use it, then yes it would


I was thinking of a full service shop, so tire rotation, possibly alignment machine, as well as anything needed to weld parts on (or take things off, like grinders, saws, etc. I don't know if I'd include things such as pipe bending equipment, as the only place I've seen that is in exhaust shops, but everything from full tool boxes, air drops, impact wrench/sockets, screw drivers... possibly even a place to wash your car.


need to start looking at what's available industrially to find a suitable location.

[DanielGonz]

If you supply the shop with tools, how do you keep track of inventory so that mechanics/customers don't accidentally have a few sockets/wrenches land in their tool boxes?

[#Tee]

That would be a nice addition! you would at least like you said need 2 shop foremans to over see the tools and how to's while making sure these diyers are competent let alone steal your $ tools. Eye protection signs needs to be put up or some type of liabilty waiver "play at your own risk" and ppl will bleed lol.

The one thing i can think of that will constantly bring money will be basic maintenance (oil/tire/brakes). Every car on the road NEEDS it vs banking on car enthusiast to "upgrade" pimp out their rides so the shop can survive. Ive worked at a couple import/tuner shops, a sand rail fabrication shop and a benz dealership so i have a small idea of what goes on.

Nowadays with social media tools fb/ig along with word of mouth can sky rocket your biz but can also take it down asap with a few mishaps. With that said i would support your shop as i love helping out a small business.

[Eagle1oh7]

Originally Posted by DanielGonz

If you supply the shop with tools, how do you keep track of inventory so that mechanics/customers don't accidentally have a few sockets/wrenches land in their tool boxes?

Normally you take their information down since they have to sign for the lift or whatever it is they're using upon entering the garage.

[Eagle1oh7]

Oh, besides just making it a shop, you can make it a learning center too, nothing too crazy though. Offer classes on tire changes to people who are clueless about mounting a spare tire or measuring tread depth, make it free so then you also promote the shop.

[TTurbo335]

There is a shop that recently opened near Evolution Racewerks in Baldwin Park called Your Dream Garage.
So to answer your question. Yes there is a market for it, If its profitable I couldn't answer that.. The overhead with insurance / rent / tools / some kind of employees will make it very difficult to make a profit at the end of month / year. It can very well be done as there are shops like this.. Many people love to work on cars but there are those who at times can't "finish' the job. You would need a master tech there that customers would be able to pay to complete the installation or ask for help.

Competition in business is always a good thing but I would recommend to keep a nice distance from the "other" DIY Shops.

Good Luck!!

[ladius]

Originally Posted by my07_335i

Anyone think this is a good idea, and more importantly, if you could have your own repair shop, for 20$ or so an hour, would you do it? I'd really like to gauge interest from the various enthusiast communities to see if this would be a viable service that people would use.

Yes, I think it's a great idea and I would go if there was one closer to where I live. I'm just the kind of guy who would use this kind of garage. I live in a condo where working on your car is frowned upon at the building. Things like simple oil changes, brake replacement, etc., easier diys is what I would use it for as that's about my skill level.

what's that line, "build it and they will come?" well come and build one in LA, prerferably west side or san fernando valley.

[Snaggletooth]

20-30 is fair if you can keep the doors open. I'd prefer a lower price, but if you have someone overseeing the DIY's and offering mechanical knowledge to projects I could see this paying for itself for customers over time.

[RonDeezy]

There is a DIY shop already in Baldwin Park. They charge 25/hr, tools, lifts, tire changer, balancer etc are all included.

http://losangeles.craigslist.org/sgv...844954551.html

check it out

[smares21]

I'm probably the only one on here with the experience that you are looking for, in so much as that I owned one in San Diego. KEY WORD: OWNED.

Let me tell you, its not really profitable, so I shut mine down and here's why:

1. Your liability insurance will run you about $2500/month. Its high risk with customers working on their own cars on lifts and insurance companies price it accordingly.

2. If you have 2 lifts and you are open 24 x 7, for arguments sake, you have approximately 1400 available lift hours per month. But, you won't be, and you won't have people on the lifts at all times. So, realistically, you are open 40 hours/week (probably like 3-10pm) which gives you 320 lift hours per month. At $30 per hour, that's $9600/month, if you are an amazing businessman and have enough jobs lined up to take advantage of every possible lift hour while you are open.

3. You take your $10k/month, subtract insurance, subtract the $1000/month minimum for rent, water, electricity, random shop supplies, taxes, CC fees, etc, and you're at more like $6k/month profit. But, you don't make 10k/month on the lifts, because there is dead time. So, you were at more like $7k/month, and suddenly your profit is $3k. You still haven't taken into account what you had to shell out for your tools, lifts, and keeping money aside for the times when stuff breaks. Not really enough to live on and not really worth the tremendous amount of time you are putting into this thing because you need to be there with the key to open and close; otherwise you have an employee expense too...

4. So, what do you do? Well, you find some guys that REALLY know cars. They work at the dealership during the day, but want to make some extra cash on the side. You tell them that customers will bring in bigger projects and you'll charge them $75/hr, which they'll love because everyone else they know is charging $100+. The tech will get $30/hr and you'll keep $45, because after all, you invested all the capital and your neck is on the line. Its great now, because people are starting to hear about you and bring in big projects for your mechanics. But, they are jobs that can't be completed in one day. Now, your lift is occupied by one car for multiple days, and its cool because that lift is making you $45/hr instead of $30, but the customer doesn't pay until its done, so you are carrying them "on the books" for a week or more. You aren't turning cashflow. Still, no big deal, cause you're getting 50% more per hour.

5. 50% more on one lift is good, but 50% more on 2 lifts is better. So, you're really no longer a DIY shop, you're now an after-hours independent mechanic shop. You might be profitable, you might not. But, you've lost the point of the endeavor.

That's my story. After closing up shop and selling everything off that I didn't want to keep, I ended up netting about $40k over an 18 month span. It was good money for being a side project, but it killed me in sleep deprivation, and I wouldn't do it again.

I don't touch any business now unless I can make at least a 20% ROI and be an absentee owner.

[VTECaddict]

Originally Posted by smares21

I'm probably the only one on here with the experience that you are looking for, in so much as that I owned one in San Diego. KEY WORD: OWNED.

Let me tell you, its not really profitable, so I shut mine down and here's why:

1. Your liability insurance will run you about $2500/month. Its high risk with customers working on their own cars on lifts and insurance companies price it accordingly.

2. If you have 2 lifts and you are open 24 x 7, for arguments sake, you have approximately 1400 available lift hours per month. But, you won't be, and you won't have people on the lifts at all times. So, realistically, you are open 40 hours/week (probably like 3-10pm) which gives you 320 lift hours per month. At $30 per hour, that's $9600/month, if you are an amazing businessman and have enough jobs lined up to take advantage of every possible lift hour while you are open.

3. You take your $10k/month, subtract insurance, subtract the $1000/month minimum for rent, water, electricity, random shop supplies, taxes, CC fees, etc, and you're at more like $6k/month profit. But, you don't make 10k/month on the lifts, because there is dead time. So, you were at more like $7k/month, and suddenly your profit is $3k. You still haven't taken into account what you had to shell out for your tools, lifts, and keeping money aside for the times when stuff breaks. Not really enough to live on and not really worth the tremendous amount of time you are putting into this thing because you need to be there with the key to open and close; otherwise you have an employee expense too...

4. So, what do you do? Well, you find some guys that REALLY know cars. They work at the dealership during the day, but want to make some extra cash on the side. You tell them that customers will bring in bigger projects and you'll charge them $75/hr, which they'll love because everyone else they know is charging $100+. The tech will get $30/hr and you'll keep $45, because after all, you invested all the capital and your neck is on the line. Its great now, because people are starting to hear about you and bring in big projects for your mechanics. But, they are jobs that can't be completed in one day. Now, your lift is occupied by one car for multiple days, and its cool because that lift is making you $45/hr instead of $30, but the customer doesn't pay until its done, so you are carrying them "on the books" for a week or more. You aren't turning cashflow. Still, no big deal, cause you're getting 50% more per hour.

5. 50% more on one lift is good, but 50% more on 2 lifts is better. So, you're really no longer a DIY shop, you're now an after-hours independent mechanic shop. You might be profitable, you might not. But, you've lost the point of the endeavor.

That's my story. After closing up shop and selling everything off that I didn't want to keep, I ended up netting about $40k over an 18 month span. It was good money for being a side project, but it killed me in sleep deprivation, and I wouldn't do it again.

I don't touch any business now unless I can make at least a 20% ROI and be an absentee owner.