how to make money in auto repair business

6 Ways to Increase Auto Repair Shop Profits

1. Take a Disciplined Approach to Your Finances. No amount of tips or secrets will increase your profits if you don’t...
2. Schedule Appointments. Reducing idle time in the garage is key to increasing profitability. You’re already paying for...
3. Inspect Every Vehicle. My mother-in-law took her car to the local shop for a...

Full Answer

How much does it cost to start an auto repair business?

Every auto shop’s fees are different. If you run an independent shop, you will likely charge your clients between $70 and $100 per hour, whereas a shop at a dealership may charge between $80 and $150 per hour. Many shops also have flat rates for certain routine services, like tune-ups and oil changes. Top Businesses to Start this Year

How profitable are auto repair shops?

How profitable are auto repair shops? It depends on how closely you watch your bottom line and whether you’re taking every step to care for your customers and your business. Keeping costs down is a big part of how to run an auto repair shop at a healthy profit margin, but customer service is where the rubber really meets the road.

Why is it important to have a good auto repair business?

This is very essential because the earnings of an automotive garage depends significantly on the amount of repeat business the garage can acquire. Some auto repair shop owners work out of a home-based garage, which reduces overhead expenses and is convenient for family life.

How to make money from the automotive industry?

Sale of Engine Oil, Break Fluid and Hydraulic Oil etc, is a profitable and highly thriving business venture an entrepreneur who is interested in making money from the automotive industry should consider. The fact that vehicle owners subject their vehicles to be serviced at regular intervals creates markets for lubrication oil products.

How profitable is a auto repair shop?

Average Profit of a Auto Body Shop In general, a larger auto body shop can earn $100,000 per year, and mechanics themselves can make between $30,000 and $50,000 per year. BizStats offers a breakdown of costs vs revenues. This, of course, will vary depending on your location and area of expertise.

What is the most profitable auto repair?

Brake jobs A car's brakes are one of the most critical. A full-service repair shop that offers brake adjustment, repair, and replacement services will never run out of brake job customers.

How can I grow my auto repair business?

6 tips To Grow Your Automotive Service BusinessAn Automotive Industry-Wide Problem.1) The importance of Top Tier Customer Service.2) Show your customers some love.3) Tech Is taking the industry by storm.4) Get Social.5) Newsletters & Content Creation.6) Word of mouth advertising.

How do I run a successful auto repair shop?

How To Manage An Auto Repair Mechanic Shop?Increase Mechanic Productivity.Use Automotive Management Software.Reduce Employee Turnover Rate. ... Give Discounts And Introduce Sales Offers. ... Offer Guarantee & Stand Behind Them. ... Display An Ethics Statement.Store Budget.Reward Your Loyal Customers.

What is the biggest automotive repair company?

Almost all of the auto repair franchises saw growth this year. Big O Tires tops the list in sales growth at 7.2 percent, with Tuffy Tire next up 3.6 percent. The rest of the companies saw 1 percent or less sales growth this year.

Are body shops profitable?

The 2016 FenderBender KPI Survey shows dealer-owned body shops had the highest percentage of respondents (32.4 percent) generating an overall net profit of 16 percent or higher. But independent, single-location shops are also holding their own these days, especially in comparison to MSOs and franchise shops.

How do you attract customers to auto repair?

6 Marketing Ideas for Auto Repair Shops to Keep Customers Coming BackA Car Advice Blog.Social Media.Coupon Advertising.Customer Referrals.Customer Loyalty Programs.Service Reminders.

What is the highest paying job in the automotive industry?

Highest-paying automotive jobsQuality testing engineer. These engineers are responsible for testing every component of a vehicle. ... Automotive designer. ... Process engineer. ... Automotive sales manager.

How can I make my auto repair shop more profitable?

6 Ways to Increase Auto Repair Shop ProfitsTake a Disciplined Approach to Your Finances. ... Schedule Appointments. ... Inspect Every Vehicle. ... Reduce Fees on Card Transactions. ... Invest in Current Customers (and Employees) ... Generate New Customers with Local Coupon Advertising.

Is auto mechanic a good job for the future?

Becoming an automotive technician is a good career option, especially if you are passionate about cars, love working with your hands, and wish to start earning as early as possible. Becoming a mechanic is also rewarding in terms of pay, as technicians can earn more than $65,000 annually.

How can I make my auto repair shop more profitable?

6 Ways to Increase Auto Repair Shop ProfitsTake a Disciplined Approach to Your Finances. ... Schedule Appointments. ... Inspect Every Vehicle. ... Reduce Fees on Card Transactions. ... Invest in Current Customers (and Employees) ... Generate New Customers with Local Coupon Advertising.

How much can a body shop owner make?

According to Chron.com, the average annual salary for an auto body shop owner is $101,000, although this varies by region.

Are muffler shops profitable?

Starting a muffler shop business can be an excellent entrepreneurial activity. With muffler installation experience, you will be able to parlay your background into a profitable business.

Are auto shops profitable GTA 5?

They can bring a profit of around $160,000 to $170,000 for each mission. Exotic Exports: After completing their first Contract, players can unlock a list of cars on a blackboard inside the Auto Shop.

How to increase profits in auto repair?

To increase your auto repair shop profits, follow these rules: Reduce Exp enses. It never hurts to look through your expenses and cut extra services that aren’t contributing to your bottom line. For example, some shop owners cut their monthly trash pickup bill in half by switching to an every-other-week schedule or switching to a smaller dumpster. ...

How to get new customers for auto shop?

One of the best sources of new customers is your current ones! Encourage a referral program for your auto shop that rewards customers with discounts or gifts. Often the only barrier to getting referrals is just a quick question as they are checking out, “Do you know anyone who could use an expert oil change?”

Why schedule repair appointments?

Scheduling repair appointments helps control labor costs. Make more accurate predictions of who needs to be in the shop and when, order parts in advance, and control your work mix.

How to reduce your expenses?

Reduce Expenses. It never hurts to look through your expenses and cut extra services that aren’t contributing to your bottom line. For example, some shop owners cut their monthly trash pickup bill in half by switching to an every-other-week schedule or switching to a smaller dumpster. Other shop owners have cut the expense for off-site storage by selling off old items. And still, others have reduced expenses by price-matching their laundry services.

How to retain employees?

To retain employees, invest in training and tools to help your technicians be more efficient and improve their work atmosphere. This can reduce turnover and improve the productivity of each employee.

Why is it important to reduce idle time in garage?

Reducing idle time in the garage is key to increasing profitability. You’re already paying for the lights to be on all day, so if you don’t have cars in bays, you’re spending money without getting anything in return.

Is it possible to spend money on advertising and increase profits at the same time?

Is it possible to spend money on advertising and increase profits at the same time? Absolutely! The key is to find an advertising program that is low-cost and incredibly effective.

How much does it cost to start an auto shop?

The overhead prices will, of course, vary from shop to shop, but that and supplies can generally cost an auto shop between $10,000 and $20,000 per month. While the costs to start an auto shop will vary, according to this article, the general costs include: Business License: $50 to $100.

How much does an auto shop charge per hour?

If you run an independent shop, you will likely charge your clients between $70 and $100 per hour, whereas a shop at a dealership may charge between $80 and $150 per hour. Many shops also have flat rates for certain routine services, like tune-ups and oil changes.

What do you need for a car detailing shop?

For a detailing or customizing shop, you will need to have paints, tints, stereo upgrades, and more. None of this is common in a repair shop, and you will not need a lot of the equipment that is usually found in repair shops.

Do you need to rent a shop?

You do not necessarily need to rent a shop, you can buy your own steel building and customize it to fit your business. Steel buildings can easily be expanded later too, as your business grows, allowing you to grow without moving locations. General Steel’s building kits can help you customize your business from the beginning.

Is owning an auto body shop profitable?

Owning an auto body or repair shop can be a profitable endeavor , especially since it is something that cannot go “out of style” and it is something needed year-round not seasonally. For many auto shop owners, they began as mechanics and eventually decided to transition to the owner, starting their own shops.

Why is it important to own an auto repair shop?

However, owning your property protects you from rent spikes that could hurt your bottom line.

How to keep your auto repair shop from being slow?

Paying fair wages is a start, but you also need to make sure that you’re getting the most out of those wages. Having people on the clock when your auto repair shop is slow wastes money. Keep your labor costs in check by having customers schedule appointments so that you can anticipate how many employees you’ll need and when you’ll need them. Use reminder calls or texts so that you don’t have to deal with no-shows.

Why is leasing equipment important?

Equipment leasing can be a good way to get the current, reliable equipment you need to offer your customers a quality repair job.

How to get repeat customers?

It makes sense, then, to start by marketing to customers who already patronize and love your business. Consider sending repeat customers exclusive offers by email. Giving deep discounts can cut into your profit margin, but other deal programs, such as loyalty programs or bundled packages, can be a cost-effective way to entice repeat sales. Use a customer management system that sends service reminders to help busy customers care for their cars.

How to attract new customers to your business?

Attracting new customers is important, too, and every business should create a digital and social presence . Ninety percent of customers find local businesses and services online, Bright Local says, so make it easy for prospective customers to find you. Create a Google listing for your business. Make sure, too, that your website is search engine friendly. Most customers search the city name along with the service they want, so sprinkle applicable keywords and phrases — such as “Denver oil change” or “Chicago tire repair” — throughout your website content.

What percent of customers read online reviews before making a purchase?

Eighty-two percent of customers read online reviews before making a purchase, Bright Local says. You might be worried about opening yourself up to criticism, but it’s important that you add your business to review sites and maintain control of the conversation.

How does marketing help your business?

Marketing. You could also boost your bottom line by honing your marketing strategy. Marketing is an important part of your business plan, and it’s an investment that can build and maintain your customer base. Maintenance and repairs cost car owners nearly 9 cents per mile, AAA says.

How to market a mobile mechanic repair company?

So, when you are drafting your marketing plans and strategies for your mobile auto mechanic repair company, make sure that you create a compelling personal and company profile. Aside from your qualifications and experience, it is important to clearly state in practical terms what you have been able to achieve in time past as it relates to the auto mechanic repairs industry. This will help boost your chances in the market place when marketing your services.

What is the best business structure for a small scale auto mechanic repair company?

Ordinarily, sole proprietorship should have been the ideal business structure for a small scale mobile auto mechanic repair company especially if you are just starting out with a moderate start-up capital. But people prefer limited liability company for obvious reasons.

What is the target market for a mobile mechanic repair business?

As a matter of fact, the target market for a mobile auto mechanic repair business should involve households, haulage companies, transport companies, auto sales garage/car dealership shops, corporate organizations, and schools amongst others.

How to avoid mobile mechanics?

The only way to avoid this challenge is to create your own market; concentrate on households, individuals and also start-up transportation companies, haulage companies and start-up businesses who need the services of a mobile auto mechanic repair company from time to time.

What is auto mechanics?

The auto mechanics industry provides mechanical and electrical repair and maintenance work for cars, trucks, vans, trailers et al. Players in this industry include self-employed mechanics, auto repair shops, garages and car care centers established by automobile manufacturing companies.

What does a mobile mechanic do when a client calls?

When a client calls a mobile auto mechanic, it is the responsibility of the mobile auto mechanic to quickly ask useful questions that will help him know the tools and perhaps spare parts to carry along when going to the location where the client wants him to come to.

Why is it inevitable to repair cars?

This is so because daily, fleets of cars are being added to the garages of people and corporate organizations and so whether it is a brand-new car or a fairly used one, you can be sure that sometime in the future car repair would be inevitable because of the mandatory wear and tear of machines.

How much does an auto mechanic make?

Another study estimated that the median annual salary for all automotive service technicians and mechanics is $39,550 as of May 2017, yet many auto repair owners are more experienced and may be more likely to earn incomes at the top end of the pay scale.

Why is auto repair important?

An automobile repair business is one very essential business in a city because people would always need to have their cars fixed when they have a breakdown. An auto repair business can prove to be quite successful if the owner delivers dependable vehicle repairs and high customer service. This is very essential because the earnings ...

How much do auto garage owners make?

Automotive garage owners might make $100 or more per hour for their work on custom vehicles. However, because parts for hot rods might be scarce and most work must be done by hand, automotive garage owners might spend part of their income on unforeseen problems in the build process.

How much does an auto body shop make in 2021?

How Much Do Auto Repair Shop Owners Make in a Year in 2021. According to experts, the average annual salary of an auto body shop owner is $100,000, although this varies by region. As an auto repair shop owner, you should note that your income is likely to reflect the size and scale of your auto repair business.

How many hours does an auto garage owner work?

The work week for an owner of an automotive garage is typically longer than the standard 40-hour week for most other employees. Automotive service demands many labor hours for the garage to be profitable. Additionally, the automotive garage owner must oversee the general operations of the business. During the end of fiscal periods, for example, garage owners might spend much of their time organizing invoices and receipts for tax purposes.

How much do the top 10 percent earn?

The top 10 percent earn more than $65,430, while the bottom 10 percent earn less than $22,610. The lower end of the pay scale is likely to represent what you could make while learning the trade, rather than what you will make as a shop owner.

Do you need a college degree to work in automotive repair?

Owners of automotive garages do not necessarily need a college degree in automotive repair to work in the industry. However, they need experience in automotive repair and working knowledge of automotive systems. Additionally, automotive garage owners must have some business knowledge to run the logistical side of operations.

What is the business of spraying cars?

Another profitable business an entrepreneur who is interested in starting a business in the automotive industry is automobile spraying and branding business. When the body of a car is worked upon or when there is a dent or patch on car, there is likelihood that the owner may want to have the body of the car re-sprayed, in order for the car to look new and presentable.

What is the business of car tracking?

Another trending and highly thriving and profitable business in the automotive industry is car tracker installation and repair business. Global statistics show that the need for car tracking systems in cars is on the increase. This is because of how efficient it has proven to be, and as a matter of fact most transport operating companies wouldn’t allow their cars to start plying the roads until they are installed with a vehicle tracking system. Since the car tracking systems came into existence, it has become very easy for fleet operators to comfortably manage their fleet of vehicles.

Is auto locksmith a profitable business?

The Auto locksmith business is yet another highly thriving and profitable automotive business that an entrepreneur should consider starting. If you have ever been locked out of your car, home or office, as a result of having misplaced your keys, then you just would appreciate the services of auto locksmiths.

Can you start an automotive business without knowledge?

No doubt these are great money making automotive business ideas; however, it is very needful that you do not start any of these trades haphazardly without the right and adequate knowledge, failure to do this means that you may be headed for failure. So you need to garner all the knowledge and experience so that you can be successful.

Is it cheaper to start a car wash business?

For instance; it is pretty much cheaper to start a car wash business and it is very expensive to set – up a car manufacturing / assembling plant or an airline service business. In essence there is business opportunity for everybody in the automotive industry no matter their financial status. If you are a car enthusiast, a car lover ...

Is the automotive industry still open?

And the truth is that, the industry is still opening up with a whole lot of invention. The automotive industry is indeed a very large industry; it covers the automobile, locomotive and the aviation industries. Those who have found a business in this trade know that this industry is a lucrative one by all standards.

Is drone repair business profitable?

It is important to state that establishing a drone repair business can be capital intensive, but it is highly profitable because the industry is still very fresh. It is expensive because of the fee you get to pay to acquire the training, and the money required to purchase the repair tools. Drone technology is rapidly gaining prominence in the globe beyond the military circuit.