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 also search for methods of saving money and
making what they already own last longer.
The marketing principles outlined within this report emphasize the moneymaking
potential of an independent auto tuneup 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 tunedup and running smoothly.
The increased computerization and intricacies of auto repair have made consumers aware
that if they are to have their cars and trucks properly maintained, it must be done by a
specialist.
There are several other reasons for the demise of the local
"doitall" auto mechanic. First, there are very few auto mechanics
running service stations anymore. A good journeyman auto mechanic can earn much more--and
without the responsibility brought along by owing a shop--by hiring out to bigtime
auto dealerships. Most service stations today are simply gas selling outlets combined with
convenience stores, and 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 may be 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 ripoffs 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
"doit 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
tuneup shop. Any automotive repair experience you may have will help, but a simple
knowledge of basic tuneup procedures is all that's really necessary. In fact, the
important prerequisites will be a strong business sense and an old fashioned
"downhome" ability to get along with people. Remember, in starting and
operating this business, it's not mandatory that you be a qualified auto mechanic. Your
success will depend upon your ability to "serve others" and upon displaying 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; patiently listening to them;
interacting with their problems and achievements. The best way to explain the "people
empathy" you need for success in any service business is to think of all your
customers as your close friends.
You can start this business in your garage, and even on a parttime basis. Run an
ad in your local paper such as the one below:
QUICK IN & OUT AUTO TUNEUPS. Low cost, guaranteed. We pick up and deliver.
Call Jim at 1234567
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 the phone. Simply
start calling people out of the phone booK. Tell them that your shop is offering a
changeofseason special on auto tuneups--in and out in less than an hour for
$10 plus parts, which usually run less than $20. Ask them if they+d like for you to pick
up and deliver their car this afternoon or evening.
Another method of managing, building, and promoting your business is via the service
stations and auto parts stores in your area. Have posters or signs painted that advertise
your quick inandout tuneup service. Take the signs 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 step in promoting your service is 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 stacks of circulars at your downtown parking lots and get the lot
attendants to hand them out as the people pay their parking fees.
You might be able to trade tuneup work for free radio advertising, servicing all
the cars owned by the station in exchange for an ad. This kind of advertising should work
very well for you, so plan to use it at those times when people are most likely to be
thinking about a tuneup.
You can set this business up very simply and operate it according to the sophisticated
timesaving 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. 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 cosigner. 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, 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 perhaps spark plug
wires. Be hesitant to suggest extras beyond the basics until your business is established.
Finally, set the timing, make any necessary adjustments, and the job is complete. You
charge the customer the retail cost of parts, plus $10 for labor. You should be well on
your way to a good income. Work with your local supplier and purchase parts at wholesale,
thus making a profit on material as well. Remember to always keep the customer's old parts
until he has left with his repaired car. If he does object to any work you did as
unnecessary, you can offer to prove the work was need by reinstalling his old parts.
As you become established and 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 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 troublefree 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 inandout tuneup 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 to have you take him to the office, leaving you
the car for repairs during the day. You would then pick him up after work and have him
drop you off back at the shop.
The charge for replacing major engine components such as suggested should be charged by
the hours involved. Generally, shops charge $25$50 an hour plus the cost of
replacement parts. 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 promised
him. 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 longterm loyalty than any fancy advertising,
"comeon" gimmicks, or discount prices ever offered.
As you organize your business, you'll need a cashflow system that works to your
advantage. Establish accounts with all the sources of wholesale parts and 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 thirty days.
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 "pepup" instead of a tuneup, but let them beat
their gums. Give each car the same procedure: an electronic check, new points and
condenser, then an engine diagnosis, adjust the idle, and collect your fee. An assembly
line inandout operation will reduce the necessary investment for tools, enable
you to hire lowercost workers, and greatly increase your profit potential by
eliminating wasted motion. Keep it simple, routine, and follow a definite procedure on
every car.
Talk with your customers. Get to know them and allow them to get to know you. Then when
your engine diagnosis indicates that a valve job or a new carburetor is needed, you can
recommend it to the customers and they'll trust your judgment. As the operator of a quick
tuneup 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 tuneup 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
generally have toward independent auto repair shops.
Once you have your business established and a regular following of people who bring
their cars to you for regular tuneups--usually every six months--you can begin
thinking about expansion. It's best to hire college students or "carcrazy"
high school students to work alongside you. Give your customers a chance to recognize and
to get to know your employees. When you find a person who seems to be especially
mechanically inclined, take him aside and offer him the title of assistant manager of your
shop.
Teach your assistant manager 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. 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, through whom
you will develop 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 and 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 five or ten cars at a time, and don't erect any kind of sign indicating
you're doing business in a residentially zoned neighborhood.
Once you move into a commercial location, you'll need to register the name of your
business with the appropriate local government authority (usually the office of the county
clerk), and check with the state tax commissioner's office to learn the rules on how the
sales tax collection system operates. Depending on your location, you may need some other
type of business license. Licensing offices are in reality offices for tax collecting.
They know little or nothing about your business. Their main purpose 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, it is better to estimate lower figures than either the true worth or the numbers you
anticipate achieving. Sometimes 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. If you've underestimated, you can always make up
the difference later.
A good eyecatching 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. Also, your sign should immediately state the
service you're offering. A sign that clearly and simply announces "Auto
Tuneups" 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, such as: "Rapid Auto TuneUp!" 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 slogan that will do you the most good.
Remember that fast, efficient service and low prices, coupled with a personality that
makes the customer feel as though you're his friend, are the keys to your success.
Organize yourself. Start slowly and build your customer loyalty. Work hard to instill
these principles in your employees, and you'll be on your way. Study this report again,
then act on the recommendations given here. Good Luck!
