Discussion
Hi all,
I have been a mechanic now for a number of years and would like to start my own garage or buy one over at least with maybe 3-4 ramps doing MOTS with about 3-4 mechanics aswell.
I know there is a few threads on here about starting up and so on but what I would like to know is how much profit is a garage of that size likely to make and also what sort of wage are some of you paying yourself as the owner.
Also just as a wee add on what kind of car are you driving as an owner of a garage.
cheers
I have been a mechanic now for a number of years and would like to start my own garage or buy one over at least with maybe 3-4 ramps doing MOTS with about 3-4 mechanics aswell.
I know there is a few threads on here about starting up and so on but what I would like to know is how much profit is a garage of that size likely to make and also what sort of wage are some of you paying yourself as the owner.
Also just as a wee add on what kind of car are you driving as an owner of a garage.
cheers
It's not a great way to earn a living, you will make money but will take a while to do that. With the costs of setting up specially with an mot bay it will be a lot of money invested. Your looking at 20k to set up as a mot testing station, ramps/tools/equipment/diagnostic equipment that's the start of it.
The garage I work at for a independent garage as 5 employes with 2 bosses, it's been open for the best part of 15 years and both bosses do get a good wage but the garage in the time ive been there has just broke even for the past 5 years.
I would start up with just yourself first with a small garage 1 or 2 ramps to keep costs down, building the business up then expanding that how most garages do it and what im doing atm.
The garage I work at for a independent garage as 5 employes with 2 bosses, it's been open for the best part of 15 years and both bosses do get a good wage but the garage in the time ive been there has just broke even for the past 5 years.
I would start up with just yourself first with a small garage 1 or 2 ramps to keep costs down, building the business up then expanding that how most garages do it and what im doing atm.
MG CHRIS said:
both bosses do get a good wage but the garage in the time ive been there has just broke even for the past 5 years.
that sounds good though, there's no point retaining profit unless they intend to expand, otherwise its ideal to draw the maximum wage that leaves a break even on the business.Gmac90 said:
Cheers for the advice MG CHRIS how are finding working for yourself other than working for other people?
Im still working for someone else but have my own unit im slowly filling with tools and equipment and using it for work on my own cars/family and friend, I also involved with mx5 got a kit car built with one stripped 4 and do work for other 5 owners as a side line. But the plan is to slowly grow so I can make the jump without losing money that I would if I made the jump straight away. But as Im only 21 getting traders insurance is hard work and a lot of money so cant see myself making the move full time till that becomes affordable.
My neighbour runs a decent size garage - 4 ramps, all the diagnostic gear, 3 or 4 lads working for him etc. His son left school last year & he told him to do something else so he's doing an apprenticeship for a building firm. In his opinion the garage market is dying a death because a lot of the problems that are going to kill cars in the future aren't stuff like rotten sills or a seized engine, but blown ECU etc and people just won't want to pay £000's to find and fix a fault.
Just his opinion though.
Just his opinion though.
How long is a piece if string? Get a good reputation, live off recommendations, be booked up a week in advance with no breaks, you'll do fine.
Spend big at the start, employ 3 mechanics and an MOT tester, have a massive advertising budget, and eventually you'll do fine.
As above with no advertising, go bankrupt within 6 months.
Good garages rarely get sold, the owners just pay someone to run them.
Spend big at the start, employ 3 mechanics and an MOT tester, have a massive advertising budget, and eventually you'll do fine.
As above with no advertising, go bankrupt within 6 months.
Good garages rarely get sold, the owners just pay someone to run them.
Gmac90 said:
OK it might be a pain in the ass to some people but it is going to pay well if you own your own garage ?
Depends what you call paying well.....I closed my workshop even though it was profitable....I wouldnt have another if it was clearing 100K a year...too much hassle, investment, cars becoming more complicated, quality staff harder to find and retain, customers not wanting to pay even 40 quid an hour.I just look after a few customers now who own rolls/bentley as I enjoy working on the cars
Gmac90 said:
OK it might be a pain in the ass to some people but it is going to pay well if you own your own garage ?
The only real way to make money being a mechanic is owning your won garage. But you got to priorities what will earn you the most money be that in the diagnostic side of things or the bread and butter servicing/mot work/brakes etc quick easy turn over work. Or specialising in bigger jobs take longer to do but more money from it. Being a specialist is something also helps, im into mx5 like ive said around my area very little in the way of this so I get repeat custom from owners who will pass it on to others.
The one customer could be a gold mine do a job good and he will go out tell everyone about you and also come back for his own cars. Either keep small and keep expenses down or go large and take the risk. That's what business is all about risk.
I have a few mates who run garages. The key is to develop a specialty for which people will pay for. For example one friend specialises in high end classic cars. His clientel have plenty of money and no time/expertise to work on their own cars. Therefore they are happy to pay someone else to do even minor things (eg oil changes, spark plugs etc). Working on ****boxes and having tight-**** clientel is a way to lose money and constantly argue with customers!
Gmac90 said:
Cheers guys I think im going to start small and work my way up hopefully earning a good profit to expand the business and keep on top of diagnostics and electrical
Diagnostics and electrical is a good area not many people can do it properly and just fit parts hoping it fixes it. Try and find a market where your in demand if that is French/vag/jap etc most diagnostic work carried out in work tend to be on French cars and vags.Friend of mine has been working as a mechanic for a large dealer for a while and recently set up his own unit for additional work.
He works long hours and by himself so does proper job from about 8am-6pm then will be working at his unit till about 10 most nights, regularly works weekends.
Fortunately he loves his work and is raking it in. He has a very good reputation and is booked up 2-3 weeks in advance.
Ideally he would like to give in the day job and do his own one full time but he would need to pick up a lot of custom and maybe employ someone else. He is happy working the day job as. It is a very well paid safety net should he ever be quiet in his private work.
As for cars he drives hot hatches at the mo but will be picking up a new M5 in March, git lol.
He works long hours and by himself so does proper job from about 8am-6pm then will be working at his unit till about 10 most nights, regularly works weekends.
Fortunately he loves his work and is raking it in. He has a very good reputation and is booked up 2-3 weeks in advance.
Ideally he would like to give in the day job and do his own one full time but he would need to pick up a lot of custom and maybe employ someone else. He is happy working the day job as. It is a very well paid safety net should he ever be quiet in his private work.
As for cars he drives hot hatches at the mo but will be picking up a new M5 in March, git lol.
OP, your earnings will be however many hours labour you manage to charge out, less expenses ie insurance, tax, VAT, staff wages, rent/mortgage, VOSA fees,accountants fees.
As business builds you will find yourself torn between paid work and just keeping the place running, ordering parts, writing bills, talking to customers etc. If you can't find and keep good reliable staff then you are in for a world of pain.
You will inevitably have to change roles from mechanic to manager, if you cannot do this then working for someone else is the better option. There is a lot of paperwork to running a garage properly, are you prepared for this?
Most really successful self employed people I know have no time or energy left to enjoy the money they make.
As business builds you will find yourself torn between paid work and just keeping the place running, ordering parts, writing bills, talking to customers etc. If you can't find and keep good reliable staff then you are in for a world of pain.
You will inevitably have to change roles from mechanic to manager, if you cannot do this then working for someone else is the better option. There is a lot of paperwork to running a garage properly, are you prepared for this?
Most really successful self employed people I know have no time or energy left to enjoy the money they make.
Gassing Station | General Gassing | Top of Page | What's New | My Stuff