ideas setting up autobody repair and paint shop?

Question

I am planning to set up autobody repair and paint shop which will have the size of 5 workbays including one paint booth.

The operation will include straightening, welding and others.As a beginner, I will need some tips before making any serious financial commitments.
My question is:
1.Is this kind of business really profitable?
2.Estimatedly, how much capital would be required for such venture?

Any helpful inputs from experienced guys or direction to a particular helpful websites would be highly appreciated!
We are still learning.

anticipated location would be in MD-DC area.

Answer 1

If you have a macco in your area it will be hard to get business because of the low prices.

Its a hard business to have, new cars are to cheep.

Do it for love of the work, not because of the money!

Answer 2

I have to agree with Matt. Years ago this was a great industry to be in, easy money, it almost flowed like an open water tap. But since 9/11, the entire automotive industry has really taken a hit. From dealers to parts departments to even the body shops and their suppliers. I talk to these guys weekly and we all are crying one way or another.

I would not advise such a large investment. You are talking at least $3000 or more in rent, a $25k or more paint booth, all the filters, regulations, exhausts systems, fire systems, etc that are entailed. Its a huge undertaking and can really drain you. Easily be from $100k to 1/2 million or more. All depends on how fancy or hick you make it.

I use to have a shop (cost me .4 mil) but it just became too much. Me and 17 other workers... compared to just me now mobile. I make more now and work 1/2 as much. To me thats being smart. Working less and making more.

I would look into items like vendor services for dealers and retail public as a source for good cash if you like cars. Can be any of the following:

pin stripe (avg $35 hour)
paintless dent removal (avg $150 hour)
interior repair (avg $60 hour)
touch up and bumper repair (avg $65 hour)
mobile mechanic/tire changer (avg $55 hour)
wing/spoiler installer (avg $45 hour)

I myself have done detailing, no money in that so stay clear. I do touch up and bumpers now and have for 10 yrs. Good, easy money. Have a Blazer set up as a rolling mobile body shop. Paint the side of a car if I wanted too outside. Currently working on my newest idea, headlight restoration. Its back to the days of money flowing like tap water.

Answer 3

I ran a few large shops in the Milwaukee area but they were already established when I came in. The largest was an independant shop of 60,000 sq. feet of space, 7 techs--2 bays each and aisle space, 2 painters, 2 booths,1 full time mechanic, 2 cleanup persons. We were a direct repair shop for several large insurance companies like State Farm, Progressive, American Family, Geico, Badger Mutual, Allstate and others. In our busiest month's, we were netting 240,000 per month in sales.
For a startup shop, you need to get as many commercial accounts or insurance companies as you can to send business your way and gradually work into being a direct repair shop. Talk to agents and insurance adjusters as often as possible and develope a good relationship with them....tow drivers too. Give them an incentive bonus for sending work your way if possible....consider it advertising costs. You need a steady flow of work to be profitable. Maximize efficiency and work flow in the shop. Keep an eye on costs. Try to get dealer business for those that have no bodyshop. Hire good techs with experience and management that has several years in the business and good contacts. Write up a business plan that targets where you want to get customers and sets production or sales goals.
Figure on a hundred thousand or more for startup but it depends on how hi-tech or finite your business model is. Talk to other shop owners or banks for advice. Paint companies will usually pay for a booth if you contract to buy only from them...it's a real cutthroat business for large accounts...can be several grand a month in paint sales. We preferred to use Akzo-Nobel products and had full training and support for the painters. Other equipment like frame racks can be leased....choose them well, there are lots of brands and options...get input from the techs.
Look to lease an existing shop if possible..adding all the required safety and equipment items can be pretty expensive for a regular commercial building.

Answer 4

Our business has been running for 33 years now, My brothers and I took over from our father, there are three of us, 2 painters 2 booths, 3 panel beaters, 2 office staff, 2 towtruck drivers and room to work on 10 cars at once.
This is a very expensive industry to get into and is no-where near as profitable as it once was.
We have towtrucks which add to our business but they are very expensive to buy and maintain.
Paintshop products are also extreemly expensive and are key to they quality of your work, I use and reccomend Glasurit products, they are the most expensive because they are the best. Anyone who tells you otherwise doesn't know what the hell they are talking about.
Insurance companies are usually the main source of your work because people only spend money on their car if they have to (excluding enthusiasts) and the problem is the insurance Co wants the best job for the cheapest price - they will cut your quotes to pieces any chance they get.
I would advise you think long and hard about it before committing to a business of this type. The reality can be very long hours, stress, huge bills and even bigger wage bills to pay tradesman and not much in your pocket.
I hope this helps

Answer 5

1. yes it can be very profitable.
If your are working at a shop learn as much as you can about estimating. See what was estimated. And compare it to the car when completed.
2. Just to open the door in the morning.
A. Rent.
B.electric
C.heat
D. shop keepers insurance. Do not open with out it!
Check other shops labor rate. also insurance companies will only pay x amount per hour. Good Luck