Where to go with this business?
Discussion
bearman68 said:
Hi All, some interesting ideas here.
Some of the problem with the business is my personal circumstances. The business runs from old farm buildings, and started life predominantly as an auto electrician. I'm tied to the premises because I need to be at home to look after the kids etc as they go to, and come home from school. Cook the tea, do the homework and stuff like that. That's going to be the case for a few more years yet. And I still feel a strong loyalty to the customers who helped me start. It started with nothing, and would still be nothing but for the support of those people that first came. I feel obliged to help them out now, especially given there are few people locally who do what we do. The other bloke that does has a 3 or 4 week waiting list.
Mobile is possible - not for me, but possible as a franchise type business - and there's no reason why that wouldn't work across Europe. We reckon there's about 1/4 million units in the UK, with about 5 - 10% of them failing in any one year. If we repair 1000 a year we are doing well. We warrant the repair for 12 months, and so far we have repaired 1 at 9 month, and 1 at 14 months, so we're pretty confident the process is robust.
But if there are 1/4 million in the UK, there are nearly 5 million in Europe. Probably about 1/2 a million a year failing. And we're seeing 1 a week.
One problem is that an exchange unit won't work very well, as the units are tied to the original car by software and the board design, so not so easy to exchange.
First of all, congratulations. Some of the problem with the business is my personal circumstances. The business runs from old farm buildings, and started life predominantly as an auto electrician. I'm tied to the premises because I need to be at home to look after the kids etc as they go to, and come home from school. Cook the tea, do the homework and stuff like that. That's going to be the case for a few more years yet. And I still feel a strong loyalty to the customers who helped me start. It started with nothing, and would still be nothing but for the support of those people that first came. I feel obliged to help them out now, especially given there are few people locally who do what we do. The other bloke that does has a 3 or 4 week waiting list.
Mobile is possible - not for me, but possible as a franchise type business - and there's no reason why that wouldn't work across Europe. We reckon there's about 1/4 million units in the UK, with about 5 - 10% of them failing in any one year. If we repair 1000 a year we are doing well. We warrant the repair for 12 months, and so far we have repaired 1 at 9 month, and 1 at 14 months, so we're pretty confident the process is robust.
But if there are 1/4 million in the UK, there are nearly 5 million in Europe. Probably about 1/2 a million a year failing. And we're seeing 1 a week.
One problem is that an exchange unit won't work very well, as the units are tied to the original car by software and the board design, so not so easy to exchange.
Be very wary about how you roll your expertise out to partners. As there is no patented tooling etc then you will be 100% reliant on goodwill as you lack the capital to enforce any agreement however water tight. Frankly, I wouldn't risk training other businesses to do this as you are just creating competitors. Someone sitting in Europe or further afield in the UK won't pay you your royalties for long.
Find a way to expand where you are and utilise couriers and some form of like for like system. Keep the work where you are. Build relationships with businesses that can supply you with the broken units and need the replacements. You can reach every corner of the UK from home.
Once you are free of so much childcare requirements in a couple of years that is when you find a distribution partner in Europe rather than train a European company to do your job. You are in a part of the UK with good transport and great labour access so use that to your advantage. Plus, Brexit will be less uncertain.
tumble dryer said:
How much does the end user save by going refurb v new at the same Indie?
Do they get replaced in pairs?
Typically we charge an average of £230. These will fit, work, and don't need specialist diagnostic kit to fit. A new unit is about £500 from ECP and another £150 or so from the main dealer. However this will need a good level of equipment to fit back onto the car. Part of our expertise is to advise the customer if it's the unit that's gone down or something else - we can normally tell once it's on our test rig and we have understood the error codes.Do they get replaced in pairs?
Used units are typically £150 or more, so we are a very competitive solution, with a good track record.
bearman68 said:
tumble dryer said:
How much does the end user save by going refurb v new at the same Indie?
Do they get replaced in pairs?
Typically we charge an average of £230. These will fit, work, and don't need specialist diagnostic kit to fit. A new unit is about £500 from ECP and another £150 or so from the main dealer. However this will need a good level of equipment to fit back onto the car. Part of our expertise is to advise the customer if it's the unit that's gone down or something else - we can normally tell once it's on our test rig and we have understood the error codes.Do they get replaced in pairs?
Used units are typically £150 or more, so we are a very competitive solution, with a good track record.
I think I’d be inclined to keep it cottage size and see it as a niche, whilst building your output incrementally. Hopefully the unassisted learning curve, and relative anonymity, might keep competition away / at bay.
I’m not sure it’s fully scalable given the ‘personal’ manner of each repair (though good USP for Indies, but less so for end user with a potential 4/5/6 day turnaround) – is it possible to bring each unit received back to manufacturer’s original spec, or thereabouts? With a guarantee?
bearman68 said:
Typically we charge an average of £230. These will fit, work, and don't need specialist diagnostic kit to fit. A new unit is about £500 from ECP and another £150 or so from the main dealer. However this will need a good level of equipment to fit back onto the car. Part of our expertise is to advise the customer if it's the unit that's gone down or something else - we can normally tell once it's on our test rig and we have understood the error codes.
Used units are typically £150 or more, so we are a very competitive solution, with a good track record.
You may need to split the business to cater for customers with different time horizons?Used units are typically £150 or more, so we are a very competitive solution, with a good track record.
I imagine that customers demanding 24 hour solutions are buying new or used rather than opting for your service? This suggests that units can be fitted to other cars? If so then can you not offer recon units, sent out same day (with a discount for the return of the faulty one) as it reads like a garage with the right kit can reprogram a non original unit to work?
Use pricing to steer the choices but you could then expand by setting up an offsight unit that constantly recons and stores units in prep for same day sending?
But I really would keep your expertise as close to you as possible and just become the chap people know to call.
Interesting thoughts - thank you for taking the time to respond. I'm wondering if we should be looking at getting a load of units refurbed and made up, erasing all the data from them,and making them programmable to a new car - essentially this would be what the OE would do. I'll need to mull this over, and drink much tea to think about it.
One think I didn't mention of is that the units were only massively fitted in a 5 or 6 year window - since then other technology has been used. In 10 years there probably won't be a market for these things. (Though it might not bother me too much by then). So it's a case of making hay while the sun shines.
One think I didn't mention of is that the units were only massively fitted in a 5 or 6 year window - since then other technology has been used. In 10 years there probably won't be a market for these things. (Though it might not bother me too much by then). So it's a case of making hay while the sun shines.
bearman68 said:
Interesting thoughts - thank you for taking the time to respond. I'm wondering if we should be looking at getting a load of units refurbed and made up, erasing all the data from them,and making them programmable to a new car - essentially this would be what the OE would do. THIS. I'll need to mull this over, and drink much tea to think about it.
One think I didn't mention of is that the units were only massively fitted in a 5 or 6 year window - since then other technology has been used. In 10 years there probably won't be a market for these things. (Though it might not bother me too much by then). So it's a case of making hay while the sun shines. THIS.
One think I didn't mention of is that the units were only massively fitted in a 5 or 6 year window - since then other technology has been used. In 10 years there probably won't be a market for these things. (Though it might not bother me too much by then). So it's a case of making hay while the sun shines. THIS.
tumble dryer said:
bearman68 said:
Interesting thoughts - thank you for taking the time to respond. I'm wondering if we should be looking at getting a load of units refurbed and made up, erasing all the data from them,and making them programmable to a new car - essentially this would be what the OE would do. THIS. I'll need to mull this over, and drink much tea to think about it.
One think I didn't mention of is that the units were only massively fitted in a 5 or 6 year window - since then other technology has been used. In 10 years there probably won't be a market for these things. (Though it might not bother me too much by then). So it's a case of making hay while the sun shines. THIS.
One think I didn't mention of is that the units were only massively fitted in a 5 or 6 year window - since then other technology has been used. In 10 years there probably won't be a market for these things. (Though it might not bother me too much by then). So it's a case of making hay while the sun shines. THIS.
Can you turn what you're doing into an ebay shop supplying refurb/swap units with the option for buyers either paying upfront or exchange?
If it gets enough business employ a couple of young lads to do the donkey work for you.
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