Biggest Automotive Shop Expenses

[Joe Marconi]

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[CARMandP]

Insurances and rent are my biggest expenses (beside payroll). Unfortunately these expenses aren't easy to change

[hancock18]

Yes insurance and rent are also our biggest expense. The rent at the older shop is much higher than the the mortgage at the new shop. We pay rent to a family member who still owns the property and so when we are having a difficult time the family member give us a break when she can. Our payroll expense included uniforms which we provide and the usual benefits such as paid sick days and vacations. We still can't afford health insurance but are working toward that goal for our employees. We pay all of our techs and service writers hourly. We cut back on advertising a few years back except for the sports and ROTC fundraising programs we sponsor at the local high school and elementary school. We find most advertising is a waste of money and so work harder in word of mouth from our loyal customers. We had a recent price increase in labor and parts that has helped and has hardly been noticed by our customers that helped. There really is not anything we can cut back on that we haven't already. The end of 2012 was really bad and so improvement on our old building have had to wait.

[xrac]

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[williamballard]

I have found that your broker will not always try as hard as they can to get you the best price for your insurances. This year I reduced my workers comp cost $3000 and my pollution insurance down over $4000 by going out and getting another quote. Don't get to comfortable with the same broker year after year, they too are in business to make money.

[FROGFINDER]

I suggest owning the shop and land. The best landlord can be you. If things go south the building is shelter and the place to make a stand for a new start.

[FROGFINDER]

WHAT IS NOT AN EXPENSE IS SHORT PLEASURES AND SLEEP.