Alloy wheel refurb business
Discussion
Hi, I’m always on the lookout for a business opportunity and when I recently wanted to get a set of alloys wheels refurbished (powder coated) I had to travel 1 hour to find the nearest place that would do it, which made me think there might be an opportunity to set up such a business where I live. However, the problem is that I don’t know the industry or the technical process, etc. It’s really just an idea in its infancy at the moment but I wondered if anyone has any knowledge or experience for this type or work?
Any feedback / thoughts would be much appreciated.
Any feedback / thoughts would be much appreciated.
that is my wheel in the top left corner of the picture
http://www.thewheelspecialist.co.uk/wp-content/gal...
http://www.thewheelspecialist.co.uk/wp-content/gal...
Depends where abouts you are based, I'm in north Essex and run 5 mobile vans, with a unit with powder coating and dc lathe in Kent.
I also run www.alloypaints.com, so sell to many other companies countrywide. Let me know where abouts you are and I'll see if I supply anyone.
With regard to wheels, would I do it again, I don't know, I make money for sure, but nothing like the good old days, I'm still charging the same price for trade wheels, as I was in 2002 when I started. There are so many bodge it and scarper out there, £20 a wheel, don't even take them off the car. Gives the rest of us a bad name.
In a 25 mile radius of our depot I counted 27 vans that I knew of, and that was 2-3 yrs ago, guess there are more now.
I have a "spare" van that I rent out to people wanting to start a wheel refurb business, so far in the last 18 months it's been to Newcastle, Preston and Southampton, every single one has given it up after 6 months. Pretty much every dealership is tied up, you will struggle to get in with any, unless you have contacts, the only time we ever gain a new dealer is when someone moves from a dealer we already cover.
Welcome to ask any questions, can't promise to know the answer, but will always try my best.
I also run www.alloypaints.com, so sell to many other companies countrywide. Let me know where abouts you are and I'll see if I supply anyone.
With regard to wheels, would I do it again, I don't know, I make money for sure, but nothing like the good old days, I'm still charging the same price for trade wheels, as I was in 2002 when I started. There are so many bodge it and scarper out there, £20 a wheel, don't even take them off the car. Gives the rest of us a bad name.
In a 25 mile radius of our depot I counted 27 vans that I knew of, and that was 2-3 yrs ago, guess there are more now.
I have a "spare" van that I rent out to people wanting to start a wheel refurb business, so far in the last 18 months it's been to Newcastle, Preston and Southampton, every single one has given it up after 6 months. Pretty much every dealership is tied up, you will struggle to get in with any, unless you have contacts, the only time we ever gain a new dealer is when someone moves from a dealer we already cover.
Welcome to ask any questions, can't promise to know the answer, but will always try my best.
Might it be that the reason you couldn't find anybody closer is because there simply isn't enough business to warrant it?
I'd estimate that about 90% (probably a low estimate) of vehicle owners don't even bother getting their wheels repaired - so that leaves 10% that do. Of those most would go for 'paint' repair - only a very small minority know that powder coating even exists.
I'd estimate that about 90% (probably a low estimate) of vehicle owners don't even bother getting their wheels repaired - so that leaves 10% that do. Of those most would go for 'paint' repair - only a very small minority know that powder coating even exists.
Thanks for the replies guys, very useful indeed. I'm in the Scottish Borders. I suppose getting in with dealers would be quite hard and I do wonder how many people are that bothered about having their alloys done. When I had mine done I paid £240 for 4, I wonder how much profit is in it. I'd sort of like to start it off part time but then wonder if it's worth it.
Friend of mine in the Bristol area recently gave the keys back to the franchise company. He's hard working and had lots of dealerships but still wasn't worth it. When he told me the price paid for a wheel to traders against the time it takes I understood, that was before van, equipment, travelling, franchise fee, sick & holiday pay etc.
Might be different if no competition though.
Might be different if no competition though.
snobetter said:
Friend of mine in the Bristol area recently gave the keys back to the franchise company. He's hard working and had lots of dealerships but still wasn't worth it. When he told me the price paid for a wheel to traders against the time it takes I understood, that was before van, equipment, travelling, franchise fee, sick & holiday pay etc.
Might be different if no competition though.
Yep - this seems to be a big problem.Might be different if no competition though.
New businesses start up and undercut - and undercut again - and then the next newbie undercuts them and then undercuts again.
Then to try and make any money they cut corners, rush jobs through and scrimp and scrape on products, the quality of their workmanship goes down and the business starts slowing - the next newbie undercuts them - and then they start scratching their heads as to why there's no profit.
The wheel refurb business as a whole is very cut and thrust to say the least.
You've only got to keep an eye on ebay and spot how many 'ready to go' second-hand wheel refurb vans you could buy in a couple of months to recognise that whilst on the face of it might seem to be a fairly cheap, simple and get rich quick business to get into - longevity seems to be it's shortfall.
When i had my Forfour Brabus wheels done the guy charged me around £300 for the wheels.
Initially all he was going to do was rub them back, prep, spray & laquer, he had a very good reputation & was a great guy, as the person who had done it before had bodged it (acid dipped them or something, as it was previous to my ownership), he had to get that one shot blasted, as apparently everytime he tried to spray the paint bubbled off (he sent me photos).
Anyway, it turned out all the wheels needed this doing, he did this at his own cost.
He tried to do a lot of his work in his van but also said he needed a home workshop for some stuff.
He reckoned that the dealierships he was in with & it included all of the big German manufacturers (as well as various others) within a 30mile or so radius, would have 4-5 companies on the books & would just Dutch auction it out to the lowest bidder, he said he used to get £70 a wheel, but some companies were doing it for £25 a wheel, dealerships didn't care as they just wanted the lowest price.
Initially all he was going to do was rub them back, prep, spray & laquer, he had a very good reputation & was a great guy, as the person who had done it before had bodged it (acid dipped them or something, as it was previous to my ownership), he had to get that one shot blasted, as apparently everytime he tried to spray the paint bubbled off (he sent me photos).
Anyway, it turned out all the wheels needed this doing, he did this at his own cost.
He tried to do a lot of his work in his van but also said he needed a home workshop for some stuff.
He reckoned that the dealierships he was in with & it included all of the big German manufacturers (as well as various others) within a 30mile or so radius, would have 4-5 companies on the books & would just Dutch auction it out to the lowest bidder, he said he used to get £70 a wheel, but some companies were doing it for £25 a wheel, dealerships didn't care as they just wanted the lowest price.
Issues I see, and demonstrated here:
It's an easy market to enter, easy and low cost, so people will try to do this work for less than others, driving prices down.
The market cannot distinguish between a good and bad job therefore cheapest will always win.
If you were to do it keep it based at home and get people to come to you. You may build up a good reputation over time and not have the hassle of a van etc. That said it wont ever make much more than a passing salary I suspect.
It's an easy market to enter, easy and low cost, so people will try to do this work for less than others, driving prices down.
The market cannot distinguish between a good and bad job therefore cheapest will always win.
If you were to do it keep it based at home and get people to come to you. You may build up a good reputation over time and not have the hassle of a van etc. That said it wont ever make much more than a passing salary I suspect.
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