I have a dream..... actually it's more like an idea

[NoGear]

As some of you know my goal when I get back from this trip overseas is to trade the green suit for a contractors one go to Afghanistan. Some of you wonder about why i would want to do that but to put it plainly they'll pay me an obscene amount of money to do what I do as a civilian.  My goal is to do it for a few years then come back and start my own business with the blood money I've made. Anyway I'm digressing.

There are a lot of people who want to work on their own cars and bikes but don't because they don't have a place to do it at. On military bases we have a Auto Craft Centers where you can pay five bucks and rent a bay to work on your vehicle. They have specialty tools available and the people working there are trained mechanics that can advise you if you get stuck.   For those of you that don't have a place to work on your vehicle would you use a facility like this if it was available?

Here's what I'm thinking:

Need a place to fit at least 10-20 vehicles.

To rent usage:

Specialty tools

Diagnostic machines

Bay space to include bays with lifts

Have a car mechanic and bike mechanic on staff encase someone gets in over their heads - advice free, actual labor chargeable

Secured storage lot

Retail space:

Normal expendables: oil, filters, gaskets, etc...

Soft drinks

snacks

bar type foods

what do you guys and girls think?

[sleazy rider]

We had a few around here in the metro Detroit area.  They went the way of the dodo.  I miss 'em for renting the hoist on a few jobs, but get around it with a floor jack and some stands now.  Then again, I have a reasonably well equipped garage with air and electric, but no heat at the moment.  I'm working on that.

[CLAY]

I've never heard of that.  In Grand Rapids (second largest city in Michigan) I don't know of any such place.  I have an indoor place to work, but back in the day I'd gladly paid to do indoor work in the winter- especially with specialty tools and some knowledge available.

I would be concerned about your profit margins.  It seems you'd want to start small- maybe buying (or leasing) an out-of-business oil change place with 2-4 bays, then scheduling times for people- maybe leave one open for higher pay rate "emergencies".  You'd have to pay a knowledgeable mechanic and start-up costs would be pretty big (unless you already have the tools).

Sounds very interesting though- I would think given the economy in our area there might be a market- especially if you'd start offering basic classes, like how to change your oil, do a brake job, etc.  Of course there'd be a liability issue and you'd want to check into insurance (a dude does his own brakes and they fail), but I think it sounds like a great idea.  

[NoGear]

Found out some guys in Jacksonville, FL opened one up last year and only lasted 6 months. I've emailed them and hoping to hear back from them to find out what difficulties they had.  Sounds like to me (from newspaper articles) that they sort of did it on a whim without doing a business plan first.  Before I do anything I'll make sure I've done my homework. If over twenty years in the Army has taught me anything it's to do the hard part in planning first. It makes the outcome more predictable and there are far fewer surprises.

[Flyer]

We have one nearby, operational for over 30 years.
Strictly rental space and tools/small parts/vending machine.
Let someone else pay for two mechanics and a short order cook.
Fewer employees = fewest headaches.
Don't spread yourself too thin but do find and/or marry a good accountant.
 

[naustin]

The show "cafe racer" on HD net highlighted six guys in new jersey who essentially did tha, except it was more like a club and not open to the general public.  

I think it would be tough to cash flow.  You might need to offer full blown repair services, tires, and other parts to make it work - and have the DIY bays be more of a secondary line of buisness.

Be safe.  

[NoGear]

Before I had to give up the retirement and put the green suit on I was a financial planner and I had a few accountants as clients or had a business relationship with them.  

Selling parts, including tires, would be where I'd for see the greatest profit.

[Thundergod]

GOOD IDEA.  Sell it like a CO-OP. People join a membership, but need to sign up for Bay Usage. Normal Tools are part of the package, very specialized tools require minimal cost rentals.
One issue you will need to think about is Used Oil/HazMat Disposal. That will be a huge hidden cost to you as the owner.

There is company here called "Resource" -- They rent nearly any kind of tool, and will help you with projects. Its the community coming together to help each other with specialty skills.

[dm_gsxr]

And the food too. That's a big money maker. My biggest concern would be all those folks around tools and lifts and the cost of insurance. All you need is one dumb-ass having his car fall off of a lift and injuring someone else and you're done.

Carl

[NoGear]

Oil wouldn't be an issue. First there are companies that buys used oil. Secondly, you convert your heating system to run off of it. You also charge a disposal fee.

[NoGear]

First is a good waiver. Secondly, the lifts are only operated by the staff.  Safety First!  

[SuperHans]

Liability is probably your single biggest issue and one of the reasons you don't see these types of businesses. I think it's a good idea if planned well especially in a poor economy. The key is making it affordable while still allowing yourself to turn a profit.

I read an article recently that talked about how places like Advanced Auto and AutoZone were making a killing in this economy. People are looking for ways to cut costs and the do-it-yourselfer is making there own auto repairs instead of taking it to the mechanic. I have found I can often buy a specialty tool and parts to make a repair and still come in well under what it would cost to take it to a mechanic.

Most garages have access to an on-line service that provides instructions on how to do a job as well as a place to ask questions when you run into problems. The use of this service through one of your employees would also be a good selling point. I would also include some type of short term storage for those who may not be able to complete a job in a day’s time. Of course this would be for a fee. Once again this would all have to be affordable for the customer while still allowing profit.

I would also try to work out some kind of deal with a local auto parts place. You recommend them to all your customers and they get a discount and delivery at the shop just like any garage.

[Kneescrubber]

You're going to have to charge more than $5. Just sayin'.

[NoGear]

Most garages have access to an on-line service that provides instructions on how to do a job as well as a place to ask questions when you run into problems. The use of this service through one of your employees would also be a good selling point.

 I would also include some type of short term storage for those who may not be able to complete a job in a day’s time. Of course this would be for a fee. Once again this would all have to be affordable for the customer while still allowing profit.

I would also try to work out some kind of deal with a local auto parts place. You recommend them to all your customers and they get a discount and delivery at the shop just like any garage.

Someone else suggested having WiFi available.

If you re-read my post I already put in there "secured storage". This would be for people that can't finish in a day.

I'd like to sell the basic items: oil, filters, etc. but having a close contact with a Autozone or Advance Auto Parts would be good to have.

[NoGear]

You're going to have to charge more than $5. Just sayin'.

I never said that is what I would charge. I said that is what the Army charges you on post. The Army Auto Craft Center is subsidized. They don't have to make money.

[SuperHans]

Someone else suggested having WiFi available.

I'm talking about more than WiFi. I'm talking about the same type of service garages subscribe to. A Friend of mine that owns an Exxon station has an on-line service he subscribes to that he has full access to all vehicle schematics and information plus it has a searchable forum that allows mechanics to share common problems and solutions among themselves. It's like a giant manual for every make/model of vehicle with a troubleshooting forum. It's a website you pay to access. I've gone over to his shop and used if before and it's very good. I don't recall the name, but I can find out, and from what I remember it wasn't that expensive. At least from a business stand point.

As part of their fee you let your customers have access to this, although I would have them go through one of your employees. You can set up some kind of tiered system so one price gets them the bay and for a higher price they also have the ability to access the system via an employee.

[Hardware]

I think overall it's a great concept.  

Many Canadian Forces Bases have auto clubs, along the lines of what NoGear's describing.

Lots of good ideas and observations mentioned above.

I will add liability to the number of times it's already been pointed out.  Simply because there's no accounting for stupidity in far too many people out there.

Also have a well defined and posted policy on storage and be prepared to use whatever local laws/regs apply to abandoned vehicles.  I've seen many guys get in over their heads on a repair or mod and the job that was going to be done on a Saturday afternoon sees the car left at the club for days, weeks or months.  At every auto club I've ever been to, there's always a few cars sitting outside and lots of parts in the rafters left behind by guys who ran out of money, motivation or both and simply walked away.

I think the idea of having a personable mechanic on staff to assist patrons might more than pay for itself.  A guy starts using the facility to tackle jobs he's confident with.  Sees the Friendly Neighbourhood Mechanic helping others get jobs done and decides that's enough of a safety net to bring his vehicle back for a bigger job that he might otherwise not tackle on his own.  Having this facet of the business might also draw more women customers who want to save money and do some of their own work but never learned basic things like oil changes from their Dad.

Maybe offer periodic classes as well like basic vehicle maintenance.

[SuperHans]

Maybe offer periodic classes as well like basic vehicle maintenance.

This.

[NoGear]

Hardware:  Actually on another forum a female rider suggested classes.

Remember I don't want this to just be cars. I want a couple bays setup specifically for motorcycles.  

Safety is going to have to be stressed time and again. After all we all know you can't fix stupid, even with duct tape.

I'd like to get someone I know to either work there or buy into it who is certified as both a car and motorcycle mechanic.  If not him then someone like him. Or clone him.  

[cbsnbiker]

Others have mentioned liability. How much does liability insurance cost? (I haven't a clue.)

[Kneescrubber]

I never said that is what I would charge. I said that is what the Army charges you on post. The Army Auto Craft Center is subsidized. They don't have to make money.

Well, that was the point I was trying to make. So how much is this going to cost me? Is it structured around what I use? I.E., separate charges for space, tools, lift....?

[NoGear]

Well, that was the point I was trying to make. So how much is this going to cost me? Is it structured around what I use? I.E., separate charges for space, tools, lift....?

That will have to wait till I do the business plan and figure out the costs.

[HipGnosis]

I liked the auto center in the Air Force.  I was use to a well supplied garage as my Dad use to be an auto mechanic.

Your post reminds me of a place like you're talking about; Hands-on Garage  Milwaukee if you want to google them.
I think I'll use them to change the oil in my car this winter - can't get it in the garage now that I have 2 bikes.

I'm pretty sure a rental-garage will certainly do better where there is bad weather; cold, hot, etc.

[Justin]

I thought of this thread while reading - http://www.sport-touring.net/forums/index.php/topic,69893.0.html

Said to myself, "This sounds familiar"  

Just passing this along in case you are still pondering the idea. Looks like http://www.bayareamotoshop.com is doing something very similar to what you want to do, except limited to bikes. Might be worth looking through their site to see what they are doing for some ideas.

[stevent]

I used the one on base all the time when I was in the Navy, I don't even think we had to pay for it back then. The biggest problem I can see is that newer cars are a whole lot harder to work on than the 60's and 70's cars we all drove and worked on. There's an awful lot of expensive plastic under the hood these days that most people would be leery about messing with. Simple things like air cleaners can be done in your own driveway, I think your biggest business is going to be oil changes and brake pads. I'd rent out floor jacks and creepers as well as hydraulic lifts for that kind of work.

A well stocked shop is going to be expensive, keeping even basic consumables on hand for all the different makes and models out there now is going to be spendy. Maybe some kind of sweetheart deal with a local auto parts shops would work, you send customers there for parts at a slight discount, the auto parts shop recommends you to their customers, that kind of a deal. On the plus side with so many people living in apartments and duplex's now, there's a lot less places an owner can do any kind of work on a car without the neighbors or property managers having a fit. That would work in your favor.

[Kneescrubber]

I thought of this thread while reading - http://www.sport-touring.net/forums/index.php/topic,69893.0.html

Said to myself, "This sounds familiar"  

Just passing this along in case you are still pondering the idea. Looks like http://www.bayareamotoshop.com is doing something very similar to what you want to do, except limited to bikes. Might be worth looking through their site to see what they are doing for some ideas.

Yeah, me too. Only I couldn't remember NoGear's name or post title.  

[NoGear]

Thanks!