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How to start your own auto tune- up shop
HOW TO START YOUR OWN AUTO TUNE-UP SHOP
This business idea is one of those recession-proof opportunities
that can put you on "easy street." When the economy heats up and
inflation increases the cost of living, people become
"do-it-yourself" conscious, looking for ways to save money. Whenever
the economy falters, people again are searching for methods of
saving money and making what they already own last longer.
The marketing principles outlined within this report emphasize the
money-making potential of an independent auto tune-up shop in any
part of the country. One of the secrets of success in this business
is the specialization. No longer do auto owners expect their
neighborhood service station to keep their cars tuned-up and running
smoothly.
There are several reasons for the demise of the local "do-it-all"
auto mechanic: First, there are very few auto mechanics running
service stations anymore. A good journey man auto mechanic can earn
much more, without the responsibility, by hiring out to big-time
auto dealerships. Most service stations today are simply gas and
tire selling outlets operated by the major oil companies who advise
you to take your mechanical problems elsewhere for repair. When you
do find one with a mechanic on duty, the prices are such that only
the very rich can afford them.
There's also the problem of unethical operators. Although many
state legislatures have enacted licensing and consumer protection
safety measures, the rip-offs continue. The crux of the problem is
that most auto owners do not realize they've been taken until after
the fact, and then it's too late. After being taken once or twice,
many consumers turn to "do-it-yourself" auto repair until they run
into the technology and advanced electronics of the ignition system
on today's cars. That's when they'll be needing your help.
It really doesn't take any special education or training to set up
an independent auto tune-up shop. Any automotive repair experience
you may have will help, but a simple knowledge of basic tune-up
procedures is all that's really necessary. In fact, the important
prerequisites will be a strong business sense and an old fashioned
"down-home" ability to get along with people.
Remember this fact: In starting and operating this business, it's
not mandatory that you be a qualified auto mechanic; but your
success will depend upon your ability to "serve others," and upon
having a genuine desire and ability to do a good job.
This means remembering faces and names; addressing customers by
first names as you get to know them; and listening to them;
interacting with their problems and achievements. The best way to
explain the kind of "people empathy" you need for success in any
kind of service business is to think of all your customers as close
friends.
You can start this business in your garage - and even on a part-time
basis. Run an ad in your local paper:
QUICK IN & OUT AUTO TUNE-UPS... Low cost, guaranteed...
We pick up and deliver... Call Jim at 123-4567
Place a similar ad or notice on all the bulletin boards in your
area. To drum up business and get the ball rolling, you could even
elicit customers via telephone. Simply start calling people out of
the phone book. Tell them that your shop is offering a
change-of-season special on auto tune-ups - in and out in less than
an hour for $5, plus parts, which usually run less than $10, and
then ask them if they'd like for you to pick up and deliver their
car this afternoon or evening.
Another way of managing, building, and promoting your business is
via the service stations and auto parts stores in your area. Have
posters or signs painted, advertising your "quick in-and-out"
tune-up service. Take them around to all the service stations that
don't handle auto repairs, and to the auto parts stores, and ask
them to put your signs in their windows.
The next thing would be to hand out your business cards wherever you
go and to everybody you meet. Give a handful to your friends, and
ask them to write their name on the back of the cards and hand them
out for you. You could promise them a dollar or two for every
customer who brings in a card with their name on it. You'll be
quite pleasantly surprised at how fast your business will grow when
you take advantage of these promotional methods.
Still another idea is to have advertising circulars made up. Pay
some junior high school students to hand them out at busy shopping
centers on weekends, especially after the first cold snap or hot
spell of the year. If you live in a large metropolitan area, leave
off stacks at your downtown parking lots and get the lot attendants
to hand them out as the people pay their parking fees.
You should be able to trade tune-up work for free radio advertising,
especially after or during any change in the weather. This kind of
advertising should work very well for you, so plan on it and use it
at those times when people are most likely to be thinking about a
tune-up.
You can set this business up very simply and operate it according to
the sophisticated time-saving methods of the highly capitalized
franchised operations.
This means an electronic check of the ignition system and scientific
diagnosis of the engine. Check with the auto parts and tools
distributors in your area. They should be able to steer you onto
the national manufacturers or suppliers of the equipment you need.
Here's how to buy the equipment: Decide upon a supplier and explain
your business plan to him. Tell him you want to finance the cost of
the equipment through your local bank with him as your co-signer.
Get the bank to draw up the papers, make a layout of your shop and
equipment with the help of your supplier, and that's all there is to
it.
After you've electronically checked the ignition, the next step in
your quick tune-up procedure is to replace all parts that aren't
operating properly. This usually means points, condenser and plugs.
In some cases, this may include a new rotor, distributor cap, fuel
filter, air cleaner and maybe spark plug wires. Be hesitant to
suggest extras beyond the basics until your business is established.
Spray some chemical cleaning fluid into and on the carburetor, start
the engine, set the timing, make any necessary adjustments - and the
job is complete. You charge the customer about $10 for parts, (or
according to your cost) plus $5 for labor, and you should be on your
way to a good income.
As you become established, and as your customers gain confidence in
your work, you'll be able to suggest and sell them such things as
new batteries, battery cables, starters, voltage regulators,
alternators and sometimes even generators - when these parts are not
working properly and need replacement. It's important that you
don't sell, or even allow your customers to buy parts from you that
are not really needed for continued trouble-free operation of their
vehicles. Another thing: when you do replace a major piece of
equipment on a customer's auto, always schedule the replacement work
for a time when you're not handling regular in-and-out tune-up
customers. In other words, you might schedule the replacement of a
generator for Monday, after advising the customer of the need on
Friday. Suggest that he leave the car with you all day, and pick it
up on his way home from work. Or he could stop by on his way to
work, and you take him to work, replacing the generator during the
day , and pick him up after work.
The charge for replacing major engine components such as suggested
should be $10 plus the cost of the replacement part. It's also very
important that whenever you contract to do this kind of work, you
have the work done and the car ready for your customer at the time
you promise him it'll be ready. No one likes to wait around for the
completion of work that was promised to be done at a specific time.
By completing the work on time, and having your customer's car
properly serviced as promised, you'll build more long-term loyalty
than any fancy advertising, "come-on" gimmicks or rock-bottom prices
ever offered.
So the thing to do as you organize your business is to establish
accounts - sources of wholesale priced parts - with the major auto
parts distributors in your area. You'll want to maintain a general
supply of new parts on hand, and not have to worry about paying for
them for at least 30 days. In other words , you'll need a cash-flow
system that works to your advantage .
Your profit will come from developing a standard routine that allows
you to move at least four cars through your shop every hour. Some
automotive purists may argue that you're only providing a "pep-up"
instead of a tune-up, but let them beat their gums. Give each car
the same procedure: an electronic check, new points and condenser,
then an engine diagnosis, and collect your fee.
Talk with your customers. Get to know them and allow them to get to
know you. Then when your engine diagnosis indicates a valve job or
a new carburetor you can recommend it to them and they'll trust your
judgment.
You, as the operator of a quick tune-up shop, should not volunteer
any major mechanical work. Suggest someone whose work you trust.
Your customer will appreciate your suggestion and concern. And
he'll remain loyal to you for not taking his money and attempting to
give him a repair job in an area where you don't specialize.
After all, you're a tune-up specialist - the guy who knows all there
is to know about a car's ignition system - the guy who keeps cars
running smoothly. By specializing in a particular area of auto
repair, and recommending other specialists as needed, you'll be able
to quickly dispel the skepticism many car owners have for
independent auto repair shops in general.
An assembly line in-and-out operation will reduce the necessary
investment for tools, enable you to hire lower-cost workers, and
greatly increase your profit potential by eliminating wasted motion.
Keep it simple, routine and according to a definite procedure on
every car.
Once you have your business established and a regular following of
people who bring their cars to you for regular tune-ups - usually
every six months - you can begin thinking about expansion. It's
best to hire college students, or "car-crazy" high school students,
to work alongside you. Give your customers a chance to recognize
and know your help. When you find one who seems to be especially
mechanically inclined, take him aside and offer him the title of
assistant manager of your shop.
Teach this young man how you want the business to operate; explain
where the profit comes from; and assign more of the actual
responsibilities to him. Leave him on his own to run the shop for
longer periods of time. Be patient; compliment him on his work; and
if you want him to stay with you, give him a raise now and then, and
eventually, a percentage of the profits.
Offering him a percentage arrangement will result in even greater
profits for you, plus a very strong local image for your business.
Because you're "giving him" a part of the business, he'll promote
your business to his friends, and through him and his friends, a
long line of new customers and a chain of loyalty that could become
more valuable to your business than any amount of advertising you
could buy.
When you're ready to expand your operation from your garage to a
regular commercial location, look for a vacant service station. One
of the larger facilities built by a major oil company, located on a
strategic corner, will be your best bet.
So long as you operate out of your garage and on a small scale, you
probably won't have to worry too much about licenses. That is,
providing you get along well with your neighbors, don't clutter up
the street with 5 or 10 cars at a time, and don't erect any kind of
sign indicating you're doing business in a residentially zoned
neighborhood.
However, once you move into a commercial location, you'll need to
register the name of your business with the appropriate local
government authority. In most states, this is the office of the
county clerk.
If your state has a sales tax, you'll have to check with the state
tax commissioner's office to learn the rules on how the collection
system operates.
All these licensing offices are in reality offices for tax
collecting. Basically, they know nothing about your business, and
usually could care less. Their main reason for existence is simply
the collection of money for the administration of government in your
area. If they should ask you questions relative to the worth of
your business, or how much money you will be taking in, always
estimate a much lower figure than either the true worth or those you
anticipate. Most license fees are based upon the investment of the
entrepreneur and his anticipated income from the new business, and
you certainly don't want to start off paying excess taxes.
A good eye-catching sign is vital to the success of any business in
a commercial location. The most important requirement for you is
visibility. Your sign should be big enough and tall enough for
people to see it from several different directions at a distance of
at least a half block away. Check with your city ordinances for the
sign limitations in the location you select.
Secondly, your sign should immediately state the service you're
offering. Hence, a sign that clearly and simply announces "Auto
Tune-ups" fits this requirement. However, in order to attract
customers into your shop, your sign should "promise" a benefit. It
should describe an added benefit to the reader. So, your sign
should read: "Rapid Auto Tune-Up!"
Basically, that's all you'll need for a sign, but to "fill it out"
you might come up with a special logo or business motto. You can
probably get an art student at your local college to design
something for little more than the privilege of including it in his
or her portfolio. For a business slogan or motto, something along
the lines of "Better performance from your car, at a price you can
afford," is the kind of thing you want to come up with, and that
will do you the most good.
Remember, fast, efficient service and low prices, coupled with a
personality that makes the customer feel you're his friend, are the
keys to your success. Organize yourself; start slowly and build
your customer loyalty; instill these principles in your employees,
and you'll be on your way. Study this report again, then act on the
recommendations given here.
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