Truth be told, your smart-alecky kid has a point, and one that also applies to your shop.
Your business is what you make of it. The more you make of it - the greater the number of services you offer, the greater your willingness to update and make changes - the greater your potential revenue.
The challenge is creating your business the right way, deciding what the right services are to add and what the correct new revenue streams are to build. Choose wisely, and your business grows, along with your bank account. Choose poorly, and you risk not only your investment, but perhaps your entire operation, which explains why many operators shy away from making any decision at all. If only they had someone to steer them in the right direction.
Help has arrived. Whether it's installing spray-on bed liners or adding services such as detailing or glass repair, Motor Age walks you through the basics of what you'll need to know and do to diversify your shop with new profit centers.
Available operations:What's out there and is it for me? What new services should you check into? Refer to the following list and keep in mind you can customize most of these offerings to fit your particular business niche. For instance, you could combine detailing with accessories by selling items like car mats, steering wheel covers and interior accessories as part of your detailing service. Or you could combine detailing with dent repairs.Business: Spray-on bed linersDescription: All truck owners face a common fate - watching helplessly as the beds in their prized beauties suffer nicks and scratches along with abuse from scorching sunrays, acid rain and all types of cargo. These folks need bed liners and are looking for professionals to perform the installation.(Photo: Collision Repair Specialists)
Isn't this work better suited for collision shops, you ask? Nonsense. Selling spray-on liners is for anyone willing to learn the trade and take advantage of the millions of new pickup trucks sold each year and the millions more already on the road.
Considerations: Space, personnel and investment expenses are the most important. Some spray-on liner franchisers recommend you have at least 1,800 to 3,500 square feet available for this service. If you can't allocate that much space under your roof, you can opt for an outdoor system that utilizes makeshift ventilated application areas with plastic drop cloths as a covering. Mobile systems with temperature-regulated trailers are another option, one that also allows you to take this service on the road. Costs for a standard indoor system generally start around $2,500.
Selling spray-on liners can be a great way to boost your regular business. Most truck owners buy accessories such as bed liners within 90 days of a new vehicle purchase. Selling liners means forming early relationships with customers you can offer services to, especially maintenance.
Business: Glass servicesDescription: They're in your shop everyday: cracks, pinholes, scratches, the complete gamut of destruction wrought by road debris and weather on windshields and windows. Even though the work is already under your roof, someone else is going to make a nice chunk of money performing repairs if you don't. Beyond glass repairs, this work offers other profitable avenues, for example, tint installation. Considerations: You will need to scrutinize space, personnel, training and investment expenses. You can integrate this business two different ways. One, start your own glass facility. This means hiring and training replacement specialists and finding a glass supplier. The other option is to purchase a franchise and have experts take care of these chores for you. Franchises don't come cheap, though. Expect to spend anywhere between $30,000 and $170,000. Regardless of which direction you take, you'll need a work area where vehicles can sit in regulated temperatures while glass sealants cure properly. You'll also need space to store supplies, equipment and a small inventory. Installing window tint requires a more modest investment of re-
sources. Alexia Foster, co-owner of Autowindowtintings.com, says an initial investment of $3,500 will get you professional training along with enough materials and tools to get your business off the ground.
How much can you expect to make? Foster says $45 worth of tint will cover most four-door vehicles. Depending upon factors such as location and cost of living, Foster says a tint job can net profits anywhere between $100 and $400: "We used to work in Oklahoma where there was a tint shop on every street and the cost of living was low, so we made around $100 on each job. That was still very good money and provided us with a good living."
Business: Sunroof installationDescription: So what if 90 percent of all sunroofs are factory-installed? Consider the 10 percent that aren't. With new car prices soaring and Americans holding onto their vehicles longer, spicing an older car up with some rooftop ventilation has become a popular alternative to investing $25,000 to $30,000 for new sheet metal. New-car buyers turn to aftermarket help when they can't get a vehicle with a sunroof in the color they want. One other factor driving this industry: owners of older vehicles with sunroofs who are looking for upgrades or repairs.(Photo: Webasto Product North America)
Considerations: Training, tools and personnel are all factors. Sunroofs run the gamut from manually operated, pop-up models to mid-range spoiler models with power and rise up at the rear, to high-end motorized retractable in-built models. This work can retail anywhere from $150 to $1,800, with profit margins typically hovering around 30 percent.
Apart from training, your largest investments will be for tools and inventory. Some sunroof manufacturers demand specific tools for the
job.
Expect to invest around $5,000 for equipment, supplies and parts to get started. If you decide to devote a good part of your business to sunroofs, expect to invest heavily in inventory. Dave Bosiljevac, co-owner of Executive Motors in Gibsonia, PA, says a good stock selection can go between $50,000 and $100,000, especially if you install a lot of power sunroofs.
Business: Aftermarket accessoriesDescription: No doubt you've already installed at least a few aftermarket accessories for your customers. Why not cut to the chase and begin selling them as well? Get your share of the $10 billion aftermarket parts industry.Considerations: Space and personnel are important. This is another business you can approach in two ways. You can stock your own shop with accessories, which requires significant space and inventory management, or you can offer a kiosk or catalogs and let customers order, purchase and pick up their accessories at your service counter.In either case, one resource you won't survive without is a knowledgeable salesperson to help customers locate the right parts for their vehicles. You'll want someone who knows the accessories industry and all the latest trends and products. Because consumers can order many of these products over the Internet, you'll want to offer something extra in terms of service. A talented, well-informed salesperson who can make recommendations will set you apart and pump up sales.
Business: Paintless dent repairDescription: Technology has placed dent removal in the hands of virtually every repair professional. As with spray-on bed liners, you might think this work is better left to body shops. Not so.Consider the convenience a repair shop can offer. Customers already are dropping their vehicles off for engine repairs, brake work, etc. While the vehicle is there for one service, they may as well have the exterior taken care of as well, saving them an extra trip to a body shop for the same work. Some shops take advantage of this factor by pointing out dents on vehicles as owners drop them off.
Considerations: A commitment of space and personnel is needed. Make sure your employees get professional training. Don't simply buy the dent removal kit from a markdown bin at your local discount store. Those kits might be fine for consumers willing to risk their vehicle finishes to save a few bucks, but they're not for you. Start by getting some training and experience.
Business tip: Leased vehicles must be returned in good shape, without excessive wear and tear. That means without ugly dents. Market yourself to lessees and dealers alike. If the lessee doesn't come to you for repairs, the dealer could turn to you later to get the same vehicle ready for resale.
Offering mobile services can be key to capturing this business, especially from dealerships that might want you to come in weekly or monthly to work on multiple vehicles.
(Photo: Ultimate Auto Care)
Detailers also offer air-cleaning services that knock pollutants, allergens and odors out of vents and air systems. They can restore finishes and apply paint protectants that prevent damage from UV rays, acid rain, salt, dirt and debris. Help yourself and your customers with services that protect their investment and restore value.
Considerations: Space, personnel and investments in equipment and resources are required. Depending on what detailing services you want to offer, initial costs can range from several hundred to several thousand dollars for equipment, supplies and training. Again, consider taking your services on the road with a mobile detailing service that can restore vehicles while they're parked at the customer's home or workplace.
This is business strategy you can approach with multiple paths. You could offer to fix these vehicles or build others from the ground up. You could also try your hand in the performance scene by purchasing these vehicles, finishing the work and selling them yourself. If you choose the latter route, consider letting potential buyers know what you have in stock before you complete the work. Give buyers the opportunity to have the vehicle finished the way they want it.
Considerations: Personnel, materials, training and familiarity with the industry are all important. You're going to need to know what's hot, where to get it and how to install it. Consider specializing in one segment, such as tuners, instead of the entire range of performance offerings. Become an active fan of that segment. Attend car shows, meetings and other events to let enthusiasts know you're available.
One benefit of becoming an expert, particularly with muscle cars and hot rods, is that you can sell your services as a professional consultant to investors looking to buy classic rides.
Getting started: Choosing the right business Which new service(s) will best benefit your shop? That depends on a number of factors, including which services interest you, what your business market is like, what your resources are, etc. Before settling on any new investment, collect every bit of info available. Information is your chief commodity, so cover all the bases.Speak with your accountant. Contact a business manager. Talk to your employees. Be familiar with their complete skill sets and experience. Find out what other work they're interested in. Determine how much extra revenue you'd like to collect and how much you're able to invest.
Thoroughly explore the available markets. Be realistic. If you live in a small town with two glass installation businesses that are already short of work, you probably won't want to start a windshield replacement center.
Turn to an invaluable resource, the experience of others. Use industry associations and trade shows to find other operators who are willing to share their experiences and knowledge of the service you want to start selling.
Finally, talk to your customers. Survey them on what services they'd like. A business consultant can help with this.
When you do select a new service, make it yours. Stay current. Make sure no one does it better.
Marketing: The final puzzle piece Once you have your new profit center in place, you'll need to get the word out as soon as possible - ideally before you begin offering the new service. Marketing probably will prove a bit of a challenge. How many consumers have poked their heads in your door lately to see what else you're selling? As with most shops, you face a major hurdle simply getting the public to identify you with more than traditional auto repair. Your task is making your new business offerings public and getting your name associated with that service.Marketing to your regular customers is a great place to start. Train your service people to mention your new services. Hand out pamphlets to customers with work estimates and payment receipts. Tack up posters in your service areas and customer lounge - anywhere you have customer traffic.
Make sure your literature contains details about your new offerings. It should describe how these services benefit the customer. For example, with window tinting, explain that tinting not only keeps an interior cooler and protects it from UV damage, it also adds security by blocking a vehicle's contents from prying eyes.
With detailing, most customers aren't aware of the numerous services available. Explain that a professional detailer can erase ugly stains and interior scars that previously would have been permanent. Describe what each service involves and always advertise the price.
Sell the convenience factor. The vehicle already is on the premises. Why should a customer spend more time taking the vehicle elsewhere when you can do the same work now, while you're already taking care of another service for them?
Beyond notifying your regulars, take advantage of radio time, newspaper ads, business cards and mailings (again, talk with a business consultant). Make sure a sign for your services appears on the front of your shop. This way, your new business will catch the eye and hopefully stick in the mind of passing motorists.
Final steps - watch the money roll in, and don't hesitate to tweak your operation or consider adding more profit centers down the road.
Keep in mind that one great motivating factor: If you're successful enough, eventually you could offer temporary employment to your latest college graduate while she decides what to do with her life.
