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
journeyman
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, among consumers turn
to
"do-it-yourself" auto repair until they run into
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 and 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" to
get
along with people.
Remember
this fact: In staring 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 solicit customers via phone. 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 repair,
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 manufactures 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
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,
(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 generates
--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 a 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 promised 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
established
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: and 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 judgement.
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 your 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 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 low-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
responsibility 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 the 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 to
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 of 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 a 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 you way. Study this report again, then act on
the
recommendations given there.
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