Typical cost to run an indy Auto repair shop ???

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Originally Posted By: LT4 Vette
What about the overhead costs ???

Monthly expenses: rent, insurance, utilities, ... etc...


Those are quite variable based on geography.

Don't forget to include costs of large equipment such as compressor, lifts, frame machine, and other items the techs don't provide themselves. You'll either be financing them, leasing them, depreciation, or a combination thereof.

Estimates vary by industry and geography, but a typical multiplier for employee costs is 1.3. For example, let's say you plan to pay $30k in wages. Multiple that by 1.3 ($39k) to give you payroll tax, UI, benefits, etc.

As you can see, there's a reason shop rates hover around $100/hr.

Visit with your local chamber of commerce or SCORE chapter to develop a business plan.
 
You also have to consider that you buy parts and then get paid by the customer. Possibly some fees due to that. Not only do you have the tech labor, but you are likely paying someone to do your payroll, billing, pay bills etc, so labor costs there for activities that don't earn a dime.

Professional subscriptions to something like Alldata or other similar services. How often do you need to update the various computers that you might need to service modern cars, and what not.

The costs add up.
 
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