Mike the Mechanic
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Everything posted by Mike the Mechanic
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Rambiss, It sounds like there is opportunity to improve everything in this shop a great deal. It sounds like the current owner has lost his fire. I am curious as to your background. Have you been in the auto repair industry? I did not see your previous post. When I purchased my shop I had been the service manager for 10 years. The transition was so smooth the client base did not know that ownership had changed. The first thing we did was clean up and get rid of all the old clutter, junk engines, old dead inventory, old obsolete equipment. We spruced up the image by painting, cleaning and installing a computer system. The techs were happy and were enthusiastic as well. If you need new staff this is a company I have used http://www.actautostaffing.com/default.asp Mike -
It sound like you have estimated the equipment a little high. That may work in you favor. Pay more for the equipment and less for the business. Remember, any equipment that you purchase you will be able to depreciate. I know a guy that bought a shop and way inflated the equipment and reduced what he paid for the goodwill (business). Tax advantage later on. You need to look at the sales numbers. What is happening on a weekly basis? 2 Techs should produce 80 hours chargeable per week parts sales is usually 50% of gross sales 80 hrs X shop labor rate + parts sales, less parts cost, less loaded cost of Technicians will give you Gross Profit for the week. Gross profit should be above 50% Good luck Mike
