Does anyone here own/manage a garage?
Discussion
I'm currently spending around £6k a month in garage bills to keep my taxi fleet on the road, and that cost is only growing as we get bigger and the fleet gets older.
I've spoken to our landlord who has a bigger unit available and I want to look at setting up my own small workshop, employing a mechanic to carry out routine servicing, repairs, brakes, clutches maybe tyres etc.
I will also be bunkering biodiesel on-site.
If things go well, I may look at taking on a second mechanic and offering the service to other taxi drivers, charging them a cheaper labour rate than elsewhere.
The things I need to know are what I need in terms of insurance and compliance. For example - do lifts/pits/jacks/power tools etc have to be built/maintained to a certain standard and what do I need to do in terms of training, Health & Safety etc.
I expect to make a significant investment in this to save money in the long run... hopefully it has the potential to become another income stream for the business too.
Skoda main dealers are charging upwards of £60 per hour labour rate, and even the cheaper garages hereabouts are charging £40 per hour. My thoughts are that I can give a mechanic a very good wage and still save a packet. Also it means I will have someone specifically negotiating lower prices for parts - something we have little time for currently.
Is it all quite straight forward, and are there different regulations for operating in-house as opposed to opening to the general public (ie: doing repairs for the wider taxi trade)?
Thanks in advance for any help
I've spoken to our landlord who has a bigger unit available and I want to look at setting up my own small workshop, employing a mechanic to carry out routine servicing, repairs, brakes, clutches maybe tyres etc.
I will also be bunkering biodiesel on-site.
If things go well, I may look at taking on a second mechanic and offering the service to other taxi drivers, charging them a cheaper labour rate than elsewhere.
The things I need to know are what I need in terms of insurance and compliance. For example - do lifts/pits/jacks/power tools etc have to be built/maintained to a certain standard and what do I need to do in terms of training, Health & Safety etc.
I expect to make a significant investment in this to save money in the long run... hopefully it has the potential to become another income stream for the business too.
Skoda main dealers are charging upwards of £60 per hour labour rate, and even the cheaper garages hereabouts are charging £40 per hour. My thoughts are that I can give a mechanic a very good wage and still save a packet. Also it means I will have someone specifically negotiating lower prices for parts - something we have little time for currently.
Is it all quite straight forward, and are there different regulations for operating in-house as opposed to opening to the general public (ie: doing repairs for the wider taxi trade)?
Thanks in advance for any help
Edited by KingRichard on Wednesday 14th July 13:18
How much of that expense is in routine stuff, basic oil and filters, brakes etc. How much is tyres? Accident repair?
To do it by the book, you've got every bloody liquid in the place locked in a storage cupboard with it's safety data sheet until its needed. Risk assessments for every activity carried out in the place. Go write a risk assessment for changing the brake pads of a car that will be used as a taxi.
If you're putting out that level of work, then the basic stuff, brakes, oil changes etc shouldn't be costing you more than 30 an hour, maybe 25 if you can find a couple of Poles in a lock up. You'll save far more doing this unless you really know the score about managing mechanics.
To do it by the book, you've got every bloody liquid in the place locked in a storage cupboard with it's safety data sheet until its needed. Risk assessments for every activity carried out in the place. Go write a risk assessment for changing the brake pads of a car that will be used as a taxi.
If you're putting out that level of work, then the basic stuff, brakes, oil changes etc shouldn't be costing you more than 30 an hour, maybe 25 if you can find a couple of Poles in a lock up. You'll save far more doing this unless you really know the score about managing mechanics.
TVR Moneypit said:
Just a quick thought, and maybe not a very good one, but an idea all the same......
I'd have thought that the biggest risk for any mechanic wishing to set up on his own would be the investment needed and whether or not they would get enough work through the doors short term to make a living?
What if you were to find a mechanic who wished to set up on their own, offer them a decent injection of start-up capital if they were to do your fleet at bargin basement prices and give priority to your cars over everyone elses?
So essentially have a self employed mechanic that visits, works on our cars in our workshops and then buggers off?I'd have thought that the biggest risk for any mechanic wishing to set up on his own would be the investment needed and whether or not they would get enough work through the doors short term to make a living?
What if you were to find a mechanic who wished to set up on their own, offer them a decent injection of start-up capital if they were to do your fleet at bargin basement prices and give priority to your cars over everyone elses?
spikeyhead said:
How much of that expense is in routine stuff, basic oil and filters, brakes etc. How much is tyres? Accident repair?
To do it by the book, you've got every bloody liquid in the place locked in a storage cupboard with it's safety data sheet until its needed. Risk assessments for every activity carried out in the place. Go write a risk assessment for changing the brake pads of a car that will be used as a taxi.
If you're putting out that level of work, then the basic stuff, brakes, oil changes etc shouldn't be costing you more than 30 an hour, maybe 25 if you can find a couple of Poles in a lock up. You'll save far more doing this unless you really know the score about managing mechanics.
Okay, can't we get data sheets from the parts suppliers? Surely they can provide a data sheet for their products (it's only oil and grease after all). Strictly speaking we need a warning sheet in our office for the washing up liquid but that's just stupid... err, don't drink it, you'll probably be alright! To do it by the book, you've got every bloody liquid in the place locked in a storage cupboard with it's safety data sheet until its needed. Risk assessments for every activity carried out in the place. Go write a risk assessment for changing the brake pads of a car that will be used as a taxi.
If you're putting out that level of work, then the basic stuff, brakes, oil changes etc shouldn't be costing you more than 30 an hour, maybe 25 if you can find a couple of Poles in a lock up. You'll save far more doing this unless you really know the score about managing mechanics.
KingRichard said:
spikeyhead said:
How much of that expense is in routine stuff, basic oil and filters, brakes etc. How much is tyres? Accident repair?
To do it by the book, you've got every bloody liquid in the place locked in a storage cupboard with it's safety data sheet until its needed. Risk assessments for every activity carried out in the place. Go write a risk assessment for changing the brake pads of a car that will be used as a taxi.
If you're putting out that level of work, then the basic stuff, brakes, oil changes etc shouldn't be costing you more than 30 an hour, maybe 25 if you can find a couple of Poles in a lock up. You'll save far more doing this unless you really know the score about managing mechanics.
Okay, can't we get data sheets from the parts suppliers? Surely they can provide a data sheet for their products (it's only oil and grease after all). Strictly speaking we need a warning sheet in our office for the washing up liquid but that's just stupid... err, don't drink it, you'll probably be alright! To do it by the book, you've got every bloody liquid in the place locked in a storage cupboard with it's safety data sheet until its needed. Risk assessments for every activity carried out in the place. Go write a risk assessment for changing the brake pads of a car that will be used as a taxi.
If you're putting out that level of work, then the basic stuff, brakes, oil changes etc shouldn't be costing you more than 30 an hour, maybe 25 if you can find a couple of Poles in a lock up. You'll save far more doing this unless you really know the score about managing mechanics.
spikeyhead said:
KingRichard said:
spikeyhead said:
How much of that expense is in routine stuff, basic oil and filters, brakes etc. How much is tyres? Accident repair?
To do it by the book, you've got every bloody liquid in the place locked in a storage cupboard with it's safety data sheet until its needed. Risk assessments for every activity carried out in the place. Go write a risk assessment for changing the brake pads of a car that will be used as a taxi.
If you're putting out that level of work, then the basic stuff, brakes, oil changes etc shouldn't be costing you more than 30 an hour, maybe 25 if you can find a couple of Poles in a lock up. You'll save far more doing this unless you really know the score about managing mechanics.
Okay, can't we get data sheets from the parts suppliers? Surely they can provide a data sheet for their products (it's only oil and grease after all). Strictly speaking we need a warning sheet in our office for the washing up liquid but that's just stupid... err, don't drink it, you'll probably be alright! To do it by the book, you've got every bloody liquid in the place locked in a storage cupboard with it's safety data sheet until its needed. Risk assessments for every activity carried out in the place. Go write a risk assessment for changing the brake pads of a car that will be used as a taxi.
If you're putting out that level of work, then the basic stuff, brakes, oil changes etc shouldn't be costing you more than 30 an hour, maybe 25 if you can find a couple of Poles in a lock up. You'll save far more doing this unless you really know the score about managing mechanics.
I've done a bit of digging around and it seems that the HSE are only interested if Motor Vehicle Repair is the main business function. If it is in support of another main business function, ie: maintaining a Taxi fleet, then regulation falls to the local authority.
With any luck, and knowing our local council quite well, the regulations will be basic common sense. I'm waiting for a reply to an email sent to our licencing officer, which should give me an answer.
I'll update this thread for the benefit of anyone who might need the info in the future
The set up for ramps, compressor, hydraulic press etc is not a huge amount of money but your insurance company will insist on regular safety inspections as will H&S. Basic work isn't difficult to accomodate and any local dealer with half a pound of brain will set you up a good trade/volume parts account, maybe even with impressed stock to suit your fleet. I've certainly done that in the past with fleet workshops like local police, BT and some independent garages.
Where are you as we have Skoda in our group and would certainly look at it but I won't commit as I'm not responsible for that franchise.
The difficulty will come when you need more complex issues resolved as the investment required in diagnostic equipment is significant as is the training that goes with it.
Surely a local garage will give you a fleet deal? We are doing very reduced labour rates for bigger fleets but would offer discounts for securing business on anything on fleets of 5 or more.
Where are you as we have Skoda in our group and would certainly look at it but I won't commit as I'm not responsible for that franchise.
The difficulty will come when you need more complex issues resolved as the investment required in diagnostic equipment is significant as is the training that goes with it.
Surely a local garage will give you a fleet deal? We are doing very reduced labour rates for bigger fleets but would offer discounts for securing business on anything on fleets of 5 or more.
Lastinclass said:
The set up for ramps, compressor, hydraulic press etc is not a huge amount of money but your insurance company will insist on regular safety inspections as will H&S. Basic work isn't difficult to accomodate and any local dealer with half a pound of brain will set you up a good trade/volume parts account, maybe even with impressed stock to suit your fleet. I've certainly done that in the past with fleet workshops like local police, BT and some independent garages.
Where are you as we have Skoda in our group and would certainly look at it but I won't commit as I'm not responsible for that franchise.
The difficulty will come when you need more complex issues resolved as the investment required in diagnostic equipment is significant as is the training that goes with it.
Surely a local garage will give you a fleet deal? We are doing very reduced labour rates for bigger fleets but would offer discounts for securing business on anything on fleets of 5 or more.
It's not just these issues, the main one is time.Where are you as we have Skoda in our group and would certainly look at it but I won't commit as I'm not responsible for that franchise.
The difficulty will come when you need more complex issues resolved as the investment required in diagnostic equipment is significant as is the training that goes with it.
Surely a local garage will give you a fleet deal? We are doing very reduced labour rates for bigger fleets but would offer discounts for securing business on anything on fleets of 5 or more.
We run all our cars 24/7 as much as possible. We like to keep one spare car available but with the rate these cars are falling over we're often without enough cars for our workload/drivers.
When we get downtime for anything more than a pre-booked service, we can end up missing 3 or 4 shifts and may be as much as £7-800 down on turnover plus the cost of repair. If we have our own man in house with a stock of common parts we can have the car back on the road in a matter of hours.
I think it makes sense in a lot of ways, even if it will take a bit of management
I think this is a very good idea, the initial outlay for tools and equipment will soon be recovered in the savings made looking after your own fleet, I own a garage and one of the taxi firms we look after tyre wise has recently started servicing thier own cars and also offering thier services to the general public and it seems to be working really well for them. I think the best advise I could give would be to employ a very very good mechanic, not just someone who can operate a diagnostic scanner and tell you your MAF sensor isn't working! You need someone who is a problem solver and is competent with his spanners! Also a good accountant will make and save you money from day one
jon- said:
Slightly off topic, what what's actually failing on these cars? I'm sure I remember reading you praising the Skodas for reliability not too long ago.
They must be racking some USS Enterprise mileage.
My bet would be apart from routine services, frequent supsension failures of balljoints & shocks etc with 3 monthly MOT's. Then its engine sensors failing & related management light faults. They must be racking some USS Enterprise mileage.
KingRichard said:
Lastinclass said:
The set up for ramps, compressor, hydraulic press etc is not a huge amount of money but your insurance company will insist on regular safety inspections as will H&S. Basic work isn't difficult to accomodate and any local dealer with half a pound of brain will set you up a good trade/volume parts account, maybe even with impressed stock to suit your fleet. I've certainly done that in the past with fleet workshops like local police, BT and some independent garages.
Where are you as we have Skoda in our group and would certainly look at it but I won't commit as I'm not responsible for that franchise.
The difficulty will come when you need more complex issues resolved as the investment required in diagnostic equipment is significant as is the training that goes with it.
Surely a local garage will give you a fleet deal? We are doing very reduced labour rates for bigger fleets but would offer discounts for securing business on anything on fleets of 5 or more.
It's not just these issues, the main one is time.Where are you as we have Skoda in our group and would certainly look at it but I won't commit as I'm not responsible for that franchise.
The difficulty will come when you need more complex issues resolved as the investment required in diagnostic equipment is significant as is the training that goes with it.
Surely a local garage will give you a fleet deal? We are doing very reduced labour rates for bigger fleets but would offer discounts for securing business on anything on fleets of 5 or more.
We run all our cars 24/7 as much as possible. We like to keep one spare car available but with the rate these cars are falling over we're often without enough cars for our workload/drivers.
When we get downtime for anything more than a pre-booked service, we can end up missing 3 or 4 shifts and may be as much as £7-800 down on turnover plus the cost of repair. If we have our own man in house with a stock of common parts we can have the car back on the road in a matter of hours.
I think it makes sense in a lot of ways, even if it will take a bit of management
Your idea for the in house service/repairs is good especially to shorten the time sat doing nothing in a garage.
Keep us updated.
cptsideways said:
jon- said:
Slightly off topic, what what's actually failing on these cars? I'm sure I remember reading you praising the Skodas for reliability not too long ago.
They must be racking some USS Enterprise mileage.
My bet would be apart from routine services, frequent supsension failures of balljoints & shocks etc with 3 monthly MOT's. Then its engine sensors failing & related management light faults. They must be racking some USS Enterprise mileage.
We're getting all sorts of silly problems. The most annoying one is the amount of broken door locks - that's just a silly failure.
We've had two cars do a camshaft this month because of a problem with oil supply. While 90% of the camshaft has been getting lubed, the last lobe hasn't and has disintegrated!
Other than that it's mainly suspension components, bushes, brakes, hubs, CV joints, the odd engine management malady... It's important to keep some perspective, these cars are getting a lifetimes use in just a couple of years. It's just irritating when you have to run your business around somebody elses diary
Thanks for the nice comments... We're really bucking the trend in this recession - It's hard work, but then being a slacker never put a TVR in the garage did it?
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