What would it cost to equip and operate a garage?

[Dec]

Could anyone give me an educated estimate as to what it might cost to equip and run a garage specializing in the repair and service of Mercedes cars?

The garage would be approximately 4,000sq feet, basically a shell with all the usual utilities like power, water etc.
I don’t know exactly what would be needed in the way of tools and equipment, as I am not in the motor trade.

Equipment?
All the equipment would be new and there would be, for example about 6 car lifts, work benches, tools, specialist tools, ventilation, tracking and diagnostic equipment, in short every thing that you would find in a well equipped main dealer workshop.

Labor Costs?
There would be 1 Manager, 4 Technicians 1 Apprentice 1 parts assistant and 1 general assistant.
The Manager would be a very well qualified and an ex-Mercedes Technician, (as opposed to a glorified receptionist) and know the job well, the wages would need to reflect these qualities.
The 4 Technicians would also be very experienced and paid accordingly.

Other Annual Costs?
WIS and EPC annual subscription, Star updates, public and employer liability insurance, rates and any other charges. Obviously standard costs like electricity, heating, and telephone are easy to estimate it’s the items above that are an unknown.

There are no budget restraints on this, it will cost whatever it costs using new equipment only.
Likewise there is no requirement to save on labor costs by employing 4 apprentices and 1 Technician, it is knowledge and experience that are the main requirements.

I don’t expect an accurate estimate, just a rough idea.

One last question, what would be a typical amount of hours for the average Mercedes car to spend in a garage for service and/or repair in a 12-month period? Or to put it another way, how many cars would be needed to keep 4 Technician busy in a 12 month period.


Dec

 

[PeterCLK]

I have no idea but I would say 2 things to you :-
1. Be absolutely sure that you have enough sales (at a known profit) to cover these costs. So many people start up with over optimistic sales estimates. Without sales you do not have a business.
2. The current economic climate means it is not the best of times to start something new. Ok, if we are at the bottom it is, but are we there yet?

and a 3rd - surely you should set budget constraints?

 

[PeterCLK]

See you've posted this on the "other" forum as well???

 

[JEZ.S320L]

Hi and welcome to the Forum.

You would also need to factor in - Sickness, Holidays and Marternity/Paternity Leave. These are also additional costs, such as; Private Health cover and Accountancy Fees - to name but two.

The Apprentice will also need paid leave to attend College etc.

A credit line would also need to be opened with several parts suppliers.

Good Luck with your venture.

 

[BlackC55]

My workshop with two ramps cost around £60K.

That is without the hand tools at about £20K that I already have.

 

[stumpy]

Is it not a better idea to take over a 'going concern'? Less of a risk.

 

[roofless]

Could anyone give me an educated estimate as to what it might cost to equip and run a garage specializing in the repair and service of Mercedes cars?

The garage would be approximately 4,000sq feet, basically a shell with all the usual utilities like power, water etc.
I don’t know exactly what would be needed in the way of tools and equipment, as I am not in the motor trade.

Equipment?
All the equipment would be new and there would be, for example about 6 car lifts, work benches, tools, specialist tools, ventilation, tracking and diagnostic equipment, in short every thing that you would find in a well equipped main dealer workshop.

Labor Costs?
There would be 1 Manager, 4 Technicians 1 Apprentice 1 parts assistant and 1 general assistant.
The Manager would be a very well qualified and an ex-Mercedes Technician, (as opposed to a glorified receptionist) and know the job well, the wages would need to reflect these qualities.
The 4 Technicians would also be very experienced and paid accordingly.

Other Annual Costs?
WIS and EPC annual subscription, Star updates, public and employer liability insurance, rates and any other charges. Obviously standard costs like electricity, heating, and telephone are easy to estimate it’s the items above that are an unknown.

There are no budget restraints on this, it will cost whatever it costs using new equipment only.
Likewise there is no requirement to save on labor costs by employing 4 apprentices and 1 Technician, it is knowledge and experience that are the main requirements.

I don’t expect an accurate estimate, just a rough idea.

One last question, what would be a typical amount of hours for the average Mercedes car to spend in a garage for service and/or repair in a 12-month period? Or to put it another way, how many cars would be needed to keep 4 Technician busy in a 12 month period.


Dec

{i am not in the motor trade}you best stay that way {no budget restraints} you would if you took this load on ??look's like pie in the sky sorrry

 

[cj...]

In todays climate i think you would be taking a massive risk especially in view of the fact that you dont have any motor-trade experience.
Its a tough enough trade at the moment even for dealers/workshops with years of experience.

Sorry to be negative but these are the facts.

 

[Ellsy Tanners]

Manager £35-50k
Technicians £28-35k each
Parts advisor £20-25k
assitant £18-20k
Apprentice peanuts!!

 

[Ellsy Tanners]

Lets say the average car through the door takes 2hrs.

Thats 4 cars per tech per day,

thats 16 cars a day, 80 cars a week,

minus holiday give 47 approx working weeks thats 3760 cars a year at max capasity.

lets say 70% production is possible,

Thats still some 2632 cars a year.


Very inacurate put might show as a guide!!

 

[Dec]

Thanks everyone for the feed back, broadly in line with that of my own thinking. Now I am not actually starting a garage, I am exploring the feasibility of an idea that could involve the setting up of a garage, but not as we know it, I will explain myself later.

Dec

 

[roofless]

Thanks everyone for the feed back, broadly in line with that of my own thinking. Now I am not actually starting a garage, I am exploring the feasibility of an idea that could involve the setting up of a garage, but not as we know it, I will explain myself later.

Dec

the first star trek garage. it's a garage dec but not as we know it

 

[TKM]

Hi

I am a Service Manager and worked in the industry all my life, I have just recently worked on a project creating a business plan to start up a independent car worshop from scratch and would respectfully offer you the following advice.

1. If you have never worked in the industry then I would suggest you should stay well away from this ventre, simply because you will need to draw on practicle advise and experience to make this venture work. A mechanical background is also very helpfull when dealing with customers.

2. On a start from nothing you will need 2 years to start making money and thats providing you meet your budget.

3. Be prepared to put up in excess of 120k of your own money up front, there is no way the Bank will throw money at a cash swallowing business

4. Employing only the very best technicians will see you through the early stages and be prepared to invest heavily in diagnostic equipment and a huge amount of training days in order to keep up with the ever updating world of diagnostics in the workshop. I work in the industry and updates come through from the manufacturer daily.

I could go on and on but to be honest in the current climate you would insane to consider this.

 

[Dec]

Thanks again very one for the feed back, if you would step this way I can explain myself. roofless if you step into that pod over there I will beam you up.

Dec