New Shop In Town

BlueOvalFitter

BlueOvalFitter

Joined
Feb 28, 2003
Messages
11,977
Location
Cajun Country, La.
The small town next to mine (5 miles away) a family opened a general mechanic repair and detail shop just recently. They are doing oil changes, tire repair, and other misc. basic repairs. They are even detailing vehicles, boats, 18 wheelers, RV's, tractors, etc. I stopped by earlier today to talk to the owner. He has a silent partner that owns a big shop in Baton Rouge. He gave me a menu of all their services and prices. It looks very reasonable. If you bring in your own oil and filter they will change it for $12 + tax. Their OCI's start at $18.95 and up. Tire repairs are $8 for a plug, $12 to patch. There are too many prices and repairs to list, but I was just sharing some basics. We really needed this shop to open locally and will be getting my business. (y)
 
clinebarger said:
Rural Louisiana might as well be on a different planet than Silicon Valley. I don't do "Loss Leader" services as I cannot compete with other shops, Don't really understand how they do it either??
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I can, but my scenario is a little different. My partner and I run a 'shade tree shop' that does the very same things except for tire repairs. We run solely on word of mouth, but both of us have extensive, growing connections/family/co-workers/friends that keep us a bit too busy, considering we both do it on the side. We don't have "sales" or "specials" because we're already cheap enough. Our BYO oil & filter is $10. If we do everything it starts at $20 for five quarts, and that includes full synthetic offerings & exclusively NAPA Gold filters. Labor rate is $80/hour for most repairs. Parts can go two ways: BYO or shop supplied. Whichever can beat the other will supply the parts (fun fact: the house has never once lost).

Trust me when I say we make good money. We aren't getting rich though, because we do pass on the majority of savings to the customers. We aim to be the cheapest around, period. If we aren't saving people money versus anywhere else they can go, then we've failed. It's all about reducing cost from start to finish for both parties. It just takes a very tiny amount of capital to buy parts/supplies at the right time. When you combine this site's sales & promotions section, Slickdeals, camelcamelcamel, rebates, price errors/glitches, etc., it's a deadly combination ;).

The goal is to make enough to open a legitimate shop to expand our operation, but that will take some time.
 
Nice we can’t plug tires here if you are a business but individuals can. It’s a strange law but it’s one we have to follow to run the business.
 
clinebarger said:
Rural Louisiana might as well be on a different planet than Silicon Valley. I don't do "Loss Leader" services as I cannot compete with other shops, Don't really understand how they do it either??
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Fair enough, but if this operation is pricing their oil changes cheaper than Jiffy Lube, they cannot be sustainable unless they are upselling a ridiculous amount of unneeded work at exorbitant prices.
 
I love hearing stories like this and I wish this business great success indeed. :)

Not that this new shop is hiding anything or being dishonest(I wouldn't know) however, I'm sure that are some costs not discussed here. This new shop needs to make a profit and pay their overhead.

For example, the labor for changing the oil & filter that the customer provides may start at $12. Certain vehicles may be extra cost, as we all know that some oil filter placement are in the most inconvenient locations. Or what about vehicles that need the plastic under panels removed in order to perform an oil & filter change.

And oil changes that start at $18.95 may just be drain/refill of oil w/ NO filter. And I've seen here locally, similar prices for an OCI for $14.99. But it was for a D&F and only 4 qts of oil. The filter and any additional qts of oil are extra.

And though a tire plug may be-$8 and a inside patch-$12, what about the labor in finding the leak if it's not obvious. Like dunking the tire in the water tank to find the leak. Or the dismount, proper cleaning of the inside of the tire & remount and balance of the tire after the patch is installed.

There is much that we don't know.
 
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The Critic said:
Fair enough, but if this operation is pricing their oil changes cheaper than Jiffy Lube, they cannot be sustainable unless they are upselling a ridiculous amount of unneeded work at exorbitant prices.
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We'll agree to disagree. "A family" won't have much overhead. I'm doing it: paying for a building, electric, heat, A/C, have zero overhead other than the two of us... I destroy Jiffy Lube prices on my worst of days paying retail, all while not even having a sign out front. We do top quality work, use top quality parts, and never upsell. Ever. It's honesty, cheap prices, and reputation/referrals that keep us plenty busy. It's doable with the right setup.
 
OilMagnate said:
We'll agree to disagree. "A family" won't have much overhead. I'm doing it: paying for a building, electric, heat, A/C, have zero overhead other than the two of us... I destroy Jiffy Lube prices on my worst of days paying retail, all while not even having a sign out front. We do top quality work, use top quality parts, and never upsell. Ever. It's honesty, cheap prices, and reputation/referrals that keep us plenty busy. It's doable with the right setup.
Click to expand...
Liability and garagekeepers insurance?
Shop management software?
Scan tool subscription costs?
Business permits?

How much are you making per hour? Are you happy with that number?

I do not understand the no upsell policy. Every car, if carefully inspected, should yield some recommendations. Filters, wiper blades, batteries, scheduled maintenance, etc. Is every vehicle receiving a MPI and pre-service test drive? Every car I service leaves with at least a few recommendations or items to monitor.
 
clinebarger said:
If it works for you....That's great. Never was concerned with being the cheapest, I do try to use the best parts available coupled with the best workmanship I can provide.
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It does. Being the cheapest and doing quality work are tied for #1 for us. Using the best parts makes it a 3-way tie unless the customer chooses to be cheap. I understand I'm an exception, but that exception allows me to do all 3. It's that old phrase: good, cheap, fast. Pick two. Admittedly, our weakness sometimes is fast, due to being side work.

On a serious note, you shouldn't be concerned with being the cheapest. We've all seen some of your work. You probably aren't paid enough.
 
The Critic said:
Liability and garagekeepers insurance?
Shop management software?
Scan tool subscription costs?
Business permits?

How much are you making per hour? Are you happy with that number?

I do not understand the no upsell policy. Every car, if carefully inspected, should yield some recommendations. Filters, wiper blades, batteries, scheduled maintenance, etc. Is every vehicle receiving a MPI and pre-service test drive?
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Fair point. We don't have to deal with most of that. We do have scan tool subscription costs though. But again, we're the odd exception here due to not being legit. The OP is in LA. I'm sure the cost of doing business is less than half of what it is where you are.

We're very happy with our earnings.

As for no upselling, we do not dig around unless the customer asks to check everything out. If they don't ask, sure, if we see anything obvious it will be mentioned (not to be confused with pushed). If they do ask, then we identify any potential problems and give them a list of any faults. If they choose to have us fix some, great. If not, that's the end of it. We keep it simple and hassle-free. Our rapidly growing number of customers tells us we're doing just fine.

Edit: we do check for anything safety related, obviously.
 
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OilMagnate said:
We'll agree to disagree. "A family" won't have much overhead. I'm doing it: paying for a building, electric, heat, A/C, have zero overhead other than the two of us... I destroy Jiffy Lube prices on my worst of days paying retail, all while not even having a sign out front. We do top quality work, use top quality parts, and never upsell. Ever. It's honesty, cheap prices, and reputation/referrals that keep us plenty busy. It's doable with the right setup.
Click to expand...

I have a lot of respect for people like you! I really wish more shops did honest, quality work without ripping off the customer.
 
OilMagnate said:
You and I both. That's why we started. There's too much nonsense, and people are sick of it.
Click to expand...

That's basically how I function, too. Technically it's "side" work but as word of mouth gets out it's steadily growing.

I do mention safety issues or anything I readily notice, but I try to do the opposite of upsell and tell them it should be moved near the top of a priority list and I'll give a guesstimate as to how long they have (ie brake pads that are just "thin" aren't a panic situation). If it's really important I'll tell them and try to SHOW them the issue, and I'll make it clear if it were MY vehicle or MY SISTER'S vehicle I'd recommend addressing it ASAP. I'll also explain what could happen if it fails outright, without being sensationalistic about it.

People have come to trust me so they know I don't exaggerate and I'm honest.

I do have liability & shop keeper's insurance and business license. I don't presently subscribe to any online resources - right now if that's really required I'll just tell my customer it's over my skill level.

That said, I can only do what I do because I run lean. I don't fault larger shops for having to charge more - they've got way more overhead
 
I don't want to go into great detail for you "UPSCALE" members. The towns around here in "COONASS COUNTRY" are below 500-600 in population. My town (actually called a village) is 300 population +/-. You see, the "BIG CITY" is 17 miles away (about 5K population). Then, we have the "BIGGER CITY" (about 52 miles away 20K? population) that has all the "BIG CITY" things you "UPSCALE" members have.
This little shop is FAMILY ran. And, the building is on THEIR land (about 5-6 acres). So, all in all, us "LOW LIFES" here are very happy it opened.
If you want more information, PM me and I will give you directions to travel here and make up your mind if they meet your approval!
 
BlueOvalFitter said:
I don't want to go into great detail for you "UPSCALE" members. The towns around here in "COONASS COUNTRY" are below 500-600 in population. My town (actually called a village) is 300 population +/-. You see, the "BIG CITY" is 17 miles away (about 5K population). Then, we have the "BIGGER CITY" (about 52 miles away 20K? population) that has all the "BIG CITY" things you "UPSCALE" members have.
This little shop is FAMILY ran. And, the building is on THEIR land (about 5-6 acres). So, all in all, us "LOW LIFES" here are very happy it opened.
If you want more information, PM me and I will give you directions to travel here and make up your mind if they meet your approval!
Click to expand...
We are not being elitist. We recognize that certain areas have a lower cost of living, but there comes a point where a legitimate, full-time professional shop (with all of the necessary tools, licensing and administrative costs) cannot price services below a certain point and still be sustainable.

The prices you quoted are either:

1) New business specials
2) A shop that does not have insurance, work comp, software subscription costs, etc.
3) A shop that is really a side-business for someone and is not a long-term career.
4) Charging an outrageous amount for the real repairs being upsold.
5) All of the above.
 
OilMagnate said:
Fair point. We don't have to deal with most of that. We do have scan tool subscription costs though. But again, we're the odd exception here due to not being legit. The OP is in LA. I'm sure the cost of doing business is less than half of what it is where you are.

We're very happy with our earnings.

As for no upselling, we do not dig around unless the customer asks to check everything out. If they don't ask, sure, if we see anything obvious it will be mentioned (not to be confused with pushed). If they do ask, then we identify any potential problems and give them a list of any faults. If they choose to have us fix some, great. If not, that's the end of it. We keep it simple and hassle-free. Our rapidly growing number of customers tells us we're doing just fine.

Edit: we do check for anything safety related, obviously.
Click to expand...
All fair points.
Just to put it in perspective, labor rates locally range from $160-$240/hr. Most are in the $190-$200/hr range. Independents are on the lower end of that range for labor, but are much heavier on parts mark-up than the dealers.
 
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