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Just thinking out loud

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  • Just thinking out loud

    So my shop does ok. It pays the bills and keeps me fat so really I have nothing to complain about. Problem is I am in the stix and while repeat and word of mouth is good I would do WAY better in town. Problem has always been cost of getting a shop in town that was large enough that I could afford. As luck would have it one of my customers has a family member that has a shop for lease.

    Here it is:




    Its about half the size of my current shop but its also just open unused space in my shop. The bays are shallow but everything I have can fit. Upside is everything is nicer. Better building and way nicer office with central heat and air (I currently do not have). The bigger bonus is he also owns a State Inspection station and it is literally in my front yard. I am also across the street from a new Stripes gas station and right on the circle which is an I-35 exit. Its only 3 miles from my house as well. It also already has one in ground lift so with my two 2-post lifts that would allow all three bays to have usefulness where as two of my bays now are pretty useless.
    Has a lot going for it for sure. Big bonus is its about the same lease price.

    Here in lies the problem. This time of year sucks so business is slow and I don't have much to spare. I am in my current lease until February and would have to start paying on this place NOW. I also need an extra $3000 to move. Signs, bolts for the lifts, wire for the lifts, trailer rental etc etc. If I terminate my current lease early I pretty much lose another couple grand. I just don't know what to do.

    On one hand my business would triple and my travel expenses would drop to 1/5 of what they are. One the other I cant tie up $4000 to make it happen. I would loose a lot of car and parts storage space though. You need money to make money and I don't really have any money.

    But oh man would it be nice to have plumbing that worked when it rained and to have real internet and a real paved parking lot and a building that does not leak everywhere and have heated work bays and be near everything instead of 12 miles away from anything...... and choices for lunch!

    Wish I had good credit or was more business savvy to figure out how to make my shop go from one that is surviving to one that is prosperous.

    Oh well. Should just be happy I have a job and don't require welfare. LOLZ
    Good judgment comes from bad decisions and a lot of that comes from bad judgment.

  • #2
    Shops are all about location location location. Might be best to move during the slow time of year and get acclimated. It also might not be "as slow" in the new location. No risk, no reward. Also, how do you know you would do 3x the business? Why is the shop up for lease if it was so successful?

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    • #3
      Originally posted by talisman View Post
      Shops are all about location location location. Might be best to move during the slow time of year and get acclimated. It also might not be "as slow" in the new location. No risk, no reward. Also, how do you know you would do 3x the business? Why is the shop up for lease if it was so successful?
      The guy that owns it and the inspection station wants to retire and only do inspections so he closed up the repair portion. He did well there and I have heard he was not that good. We are. I hear that all the time and that's also from other shops that know us. We have a good rep. Problem is when we get people referred to us they don't want to make that 20 mile drive when there are so many shops near them.

      This shop is situated just right. I wont be stepping on the toes of friends that own shops in the heart of Waco but I will be near enough that people will make the trip. I move from a town of 759 to a town of 127,000. Plus having a busy inspection station in my front yard really helps. "Your car failed because of this. Go behind and have them fix it."
      Good judgment comes from bad decisions and a lot of that comes from bad judgment.

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      • #4
        Have you thought about keeping both locations open? You could keep the emphasis on quick service/lube/tires/inspections at the in-town location, and keep the out of town one in the more in-depth repairs.
        ZOMBIE REAGAN FOR PRESIDENT 2016!!! heh

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        • #5
          Sounds like you need to figure a way to make it happen!

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          • #6
            Wow, I hadn't thought of that. I would need employees though and I am not ready for that. Plus we would still retain all my customers from my current location but would be open to picking up so much more.
            Good judgment comes from bad decisions and a lot of that comes from bad judgment.

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            • #7
              No brainer. Move.

              Sent from my SAMSUNG-SGH-I317 using Tapatalk 2
              2015 F250 Platinum

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              • #8
                Originally posted by kobuzz View Post
                Sounds like you need to figure a way to make it happen!
                Yeah I am banging my head on the desk now. I have no debt but also don't really have much in assets. Being stupid with my credit in my youth is haunting me now. Stupid stupid stupid.
                Good judgment comes from bad decisions and a lot of that comes from bad judgment.

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                • #9
                  From the given information it sounds like you should do it. Gotta spend money to make money brah.

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                  • #10
                    Break down the fixed costs on the new place, find your break even based on the work you do now and see if it is workable. The extra work will be profit, but will probably have to pay for more employees so that you can keep a decent turnaround time.

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                    • #11
                      Being one to stay on the safe side, I'd do what you could to open both locations., and test the waters. If shop A "keeps you fat," then eat lean for a little while, and see if shop B will eventually float itself. Then pick the more profitable location to roll with long term, or have bigger aspirations, and hire a few more good mechanics to keep both shops open.

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                      • #12
                        Originally posted by BMCSean View Post
                        Break down the fixed costs on the new place, find your break even based on the work you do now and see if it is workable. The extra work will be profit, but will probably have to pay for more employees so that you can keep a decent turnaround time.
                        I am doing that as we speak. I have to go over my current lease contract tomorrow and see what I lose and if I get any of my deposit back if it was terminated early. I then have to check into what leaglities may arise. Where we are now there is no "code" so its a free for all but in McClenan county it may be different.
                        As it sits right now we could triple our book time hours and still only need me and my partner. Its just more paper work for me since I also handle all the office stuffs.

                        On the surface it all seems great and very doable. I just need to come up with more cash. It also eats into my flip car cash as I would have to use that which would meen it would be a couple months before I can do that again and really that's how I pay for a good potion of my home bills.
                        Good judgment comes from bad decisions and a lot of that comes from bad judgment.

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                        • #13
                          Location and advertisement is key, get the shop.

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                          • #14
                            I am getting closer to figuring it out. I know what I have to do tomorrow and the day after. Depending on the answers will dictate how I come to a decision. If I can take over the new location in January then financially it will make more sense and save me a couple grand. Also gives me time to flip a few more cars and not waste the money on stupid shit like shoes and food.
                            Good judgment comes from bad decisions and a lot of that comes from bad judgment.

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                            • #15
                              im quite familiar with waco, where you at, and where you looking?

                              god bless.
                              It is easier to build strong children than to repair broken men -Frederick Douglass

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