Quick Answer: How Do I Start A Successful Auto Body Shop?

How much does a auto body mechanic make?

How much does an Automotive Mechanic make in Australia?CityAverage salaryAutomotive Mechanic in Sydney NSW 15 salaries$68,730 per yearAutomotive Mechanic in Melbourne VIC 12 salaries$60,014 per yearAutomotive Mechanic in Brisbane QLD 8 salaries$69,492 per yearAutomotive Mechanic in Perth WA 6 salaries$96,359 per year1 more row•Oct 27, 2020.

How do body shops make money?

The sale of parts does make auto-body shops money—but maybe not as much as you would think. On average, according to the Body Shop Business website, the sale of parts generates between 36 to 44 percent of sales proceeds, while parts produce only 20 to 28 percent in profit margin.

How can I promote my auto repair business?

If you are curious about what is the best marketing for auto repair shop, keep reading.Website Branding. … Search Engine Optimization. … Social Media. … Email Marketing. … Local Reviews. … Content Marketing. … Referral Program. … Reward Program.More items…•

How much can you make owning a body shop?

According to Chron.com, the average annual salary for an auto body shop owner is $101,000, although this varies by region.

How can I improve my body shop business?

Here are some basic, easy-to-implement strategies that should work in most collision shops.Social media. First and foremost, let’s start with online presence. … Referral marketing. Referral marketing is one of the least expensive and most effective ways to market your business. … Community involvement.

Is a body shop a good business?

The body shop business can be a very profitable business for the man who doesn’t mind getting out and selling, while making friends with lots and lots of people. If you do not want to do marketing and selling, then do not buy a body shop.

What is the labor rate for auto body work?

Auto repair labor rates vary widely across the country, and even within the same city. As of January 17, 2017, auto repair shops in the AAA Approved Auto Repair network charged between $47 and $215 per hour, based primarily on the shop’s cost of doing business.

Why is mechanic labor so expensive?

With certain car brands, the reasons why mechanics charge so much is due to the contracts they need to sign to work on them. Bugattis are among the most expensive car brands to fix. So are Lamborghinis and Ferraris. The parts themselves are pricey, sure, but then again, so is the labor involved with these cars.

Are auto body shops profitable?

According to Body Shop Business, profit margins on parts sales typically average between 20 and 28 percent, while labor profit margins range between 50 and 65 percent (Source). Accurately allocating and tracking the amount of time needed to complete jobs is key to running a lean and profitable auto shop.

How much does bodywork cost per hour?

Auto body repair takes time and, with labor costs ranging between $75 and $150 per hour, it’s easy to see how just labor can significantly inflate the cost of auto body repair. Luxury cars are always more expensive to repair with pricier parts and additional technology and finishing processes.

How much is a body shop worth?

The average auto body shop is rather small with some $578,000 in annual revenues and a staff of just over 5….Example: Valuation of an auto body shop using multiples.MultipleMultiple valueBusiness valueLow0.21$463,200High0.92$1,171,100Average0.37$623,100Median0.31$564,5001 more row•Dec 19, 2012

How do I start my own auto repair business?

10 Steps to Grow Auto Repair Shop Sales in 2011#1: Avoid the HIPPO. … #2: Cut traditional media. … #3: Talk less about you and more about customer needs and wants. … #4: Stay focused on marketing. … #5: Pay attention to ROI. … #6: Analyze everything about customers. … #7: Sharpen your axe. … #8: Interact with existing customers.More items…