According to IBISWorld, auto repair in the US is a $63 billion industry, and body shops can be found in virtually every neighborhood in the country. One of the selling points of auto repair is that it is a business that cannot go out of style, as society has come to depend on automobiles a lot. Your bodyshop will always find customers as vehicles constantly need repair and maintenance. Many bodyshop owners started off as mechanics before starting their own business, but there is room for investors too. Generally, larger auto repair shops can earn up to $100,000 per annum, and your mechanics may earn between $30,000 and $50,000. However, your profit may depend on where your auto repair shop is located and your area of expertise. You could charge your client per hour, and some auto repair shops charge between $70 and $100. Some routine services have fixed rates, including oil changes and tune-ups. The overall cost of starting an auto repair shop varies based on your location. Still, the main expenses are business license and certifications, insurance, hydraulic lifts, diagnostic machine, shop rental fee (you could purchase it outright), toolset, etc. Your monthly overhead may fall somewhere between $10,000 and $20,000, including supplies. Some auto repair shops start small and expand their facilities and services as the business grows. There are ready-made auto shops, and you can select the size you want, which may depend on where you want to specialize. For example, if you’re going to focus on detailing and customizing, you may not need most of the equipment commonly found in auto repair shops.
Owning your own auto repair shop has many advantages. For example, you can be your own boss, meaning you are in control of your time. Most auto repair shops open during working hours during the week and half the day on Saturday, giving you time to pursue other interests or simply be with your family. An auto repair shop is a good source of income, and it thrives, especially when the economy booms because many people would get a car. Moreover, bodyshops are some of the relatively few businesses that are not threatened by the boom in online commerce. Car owners will always need a brick-and-mortar place where they can fix their vehicles.
Whether you make a profit or not depends on how you run your business. For your auto repair shop profit margin to remain healthy, it is essential to optimize your cash flow. Below are the major areas you need to pay attention to for a sustainable auto repair business.
