Auto Service

This industry’s economies of scale and regular changes have to be followed carefully to survive. For instance, recycling oil is one of themethods auto dealers, manufacturers and automobile storesapply to help with preserving the environment. In addition,auto repair businesses employers possessing all the crucial skills and experience to serveauto stations will likely always be in demand.If you choose the right location along with attracting high-qualified staff, the filling station (a.k.a. service station or SRT) will bring revenue in the shortest possible period.

There are three types of filling stations:
1. Authorized services. This type isapparently built on cooperation with official dealers or manufacturers.
2. Single services. They do not require accreditation, but the competition is very sharp and hardline! It is the "Golden mean” as far as incomes vary within $2,000 -$12,000.

3. Individual services.

It’s better to register as an individual entrepreneur. Concerning the location documentation, sanitary norms and other legal moments, it is better to consult lawyers to avoid any penalties at the initial stage. An entrepreneur has to be especially aware ofauto service taxation policy.

Hint: To obtain the maximum profit from scratch the owner should concentrate on the most profitable types of auto servicessuch as car’s body repair, tiring, automotive painting, wash.

Hint #2: To save time on the organization and promotion, it is advisedto purchase an existing company. The average cost of this business is about $60,000.

To sum up, the success and profitability of the organized car service is determined by the following criteria:
* the range of provided services;
* target audience;
* production area;
* qualified staff.

On the whole, the pros of this type of business are:

-          Huge, constant demand;

-          Potential for communication channels development;

-          Attractive profitability level.

Except for the rent expenses, the future filling station or auto service will need certain equipment:
one elevator - $1,400-$3,300;

engine crane -$1,300 - $1,500;
oil filter – the same as above;
disc brake mount facing - $5,000;
ventilation – roughly the same as above;
diagnostic tools - $1,600-$3,000;

parts washers - $800 - $1,000;

car jacks - $1,200 - $2,500;

car lifts - $5,000 - $19,000;

air compressors - $2,000;

wheel balancers - $1,000 - $2,500;
other instruments– up to $3,000.

Some of the best manufacturers are:
Nussbaum (Germany);
Rotary (USA);

AceDeals (USA);
OMA (Italy);

AutoServ (India);

StAutoMaintanance (China).

On the whole, an owner of a filling station/auto service has to invest more than $55,000 into the purchase of equipment.

The total costs for auto service/filling station raw materials are approximately $2,500. Filling station raw materials consist of chemical resources, various inventory (rags, sponges, pads, etc.), and funds for equipment repair.

From rubber to metals, no matter which materials your service uses,you as an owner have to ensure that they all meet the requisite standards.

For your repair station, you will need to purchase some auto parts:

Brake discs - $500 per unit;

Brake pads - $5 per unit;

Air filters - $70 per unit;

Fuel filters - $30 per unit;

Glow plugs - $35 - $50 per unit;

Wiper blades – up to $3 per unit;

Engine oils - $15 - $40 per pack;

Anti freeze - $50.

Automotive (Switzerland) and Michelin (France) are both perfect examples of auto service raw materials manufacturers and suppliers. Purchase only high-quality goods for your station.

One of the main criteria of filling the station popularity is definitely its location. In particular, the owners of the garages, which are located at the check-out points near the busy highway, find the client base much easier. Those whose filling stations are located near the car market, auto showrooms or garage cooperatives are unlikely to have problems with customers as well. If the filling station is located in a standard garage boxing, it will hardly maintain more than one machine. Therefore, such workshop will lose customers who require urgent car repairs.

If your company is focused initially on small body repair work, look for places that are close to the “hot spots” (look for the accidents statistics).

If you aim to run more serious repairs, for instance, transmission or engine, which involves the delivery of cars with the help of a tow truck, you can settle your business within the industrial area.

Small workshops should choose a place in their neighborhood orsimply the roadside. A filling station owner needs to know where the access roads and competing stations are located. 300 square meters is the optimal area for fueling cars services. The rent of a corresponding premise varies from $4,000 - $5,000 per month.

Once a place for the station is found, an entrepreneur needs to meet the requirements permitting private body to open the car station. There are some strict requirements to meet before launching this kind of a start-up: i.e., it is forbidden to place the car closer than 50 meters to the residential area. In addition, it is critical to consider all of the potential problems with the sewer system.

While talking about this type of business, you will face a staff shortage. You will have to work hard to assemble a team of professionals, but the resultsare worth of it. What is meant is that not too many people are capable of handling auto repairs at a high level. Moreover, different brands, especially luxury ones, require particular approach and more care. That’s why the worst issue for car services and filling stations owners is the question of wages.

In today’sstandard practice, the employeerelies on 30-50% of the total cost of thevehicle services that he provides.The fixed salary, however, is quite small.As a rule, it is no more than $400 (!) per month.On the whole, an owner of auto service won’t have to spend more than $6,000 on a salary.

It is necessary to have:

2-3 constantly working masters;

6 – 8 locksmiths;

1 – 2 inspectors.

It means that 4-6 people need to be hired on a daily basis. The manager can be an employee as well as the owner of the service.The personnel necessary to serve thestation with an average of 5 workplaces consist of6-8 locksmiths and 1-2inspectors.