Questions Re: First 6months of business.

by stelised90. Posted on Sep 11, 2020    1    12


So I opened a mobile automotive repair shop in my area in June of 2019. and due to the COVID pandemic, last year did \~60k we don't operate in Winter ( Maine Business) So we closed in December and planned to open back up in April. Well, that didn't happen due to state lockdown and didn't get to open until August.

Year to date (Last Month) we have done 2500.00 and from what I can gather is we seem to be having issues converting customers this go around. I am generating traffic to both our FB page and Website. Potential customers are looking at our FB page or FB Ad, go to our webpage look around and then leave.

We operate out of a 8.5 wide x 20 deep x 13 tall car hauler that was converted into a mobile automotive bay with all the shop tools and equipment necessary to perform your typical automotive repairs.

The typical labor rate in my market is $115/hr Indie - $130/hr Dealer.

We charge 84.99/hr as the Regular Rate | 64.99 Discounted Rate for Veterans, College Students / Large sized businesses we have partnered with to offer our services as a fringe benefit to their employee's. Our Fleet Rate is 44.99/hr and has several businesses that have us do their maintenance.

Parts are Net 30 and Marked up using the following formula.

Retail = Cost * 1.33 for Regular Rate

Retail = Cost * 1.22 for Discounted Rate

Retail = Cost * 1.11 for FleetRate

Shop supplies are $10 applied to every order.

My Operational Costs are 8.78/hr of operation or just under 80.00/day. (Breakeven Point = 1920/mo)

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Example: if a brake job is listed in the labor manual as 1hr and you are charged the regular labor rate. Pads & Rotors cost the shop 200 to order and a 10$ shop supply fee is added to the order along with a 5.5% sales tax on the parts.

280.63 in Parts (Including Tax)

84.99 in Labor

10.00 in Shop Supplies

Total 375.62 for the Repair. The same repair at a different shop in town would cost around 425.

Savings of 50.62$ for that particular job.

​

All of our Technicians are Experienced ASE Master Level Tech's with Chrysler FCA Level 2 Cert along with a Maine State Inspection Cert. We are Licensed, Insured. All of our work is guaranteed for 1 year -12k miles.

Our USP / Competitive Advantage is

Price

With the bigger shops, you cant supply your own parts.

Lowest Labor Rate within 30mi

Convenience

We come to your home, school, or office and perform the repairs in your parking spot, That way you don't have to take time out of work or waste your lunch break sitting in a waiting room.

Quality

Only ASE Certified Technicians are employed.

All Work is backed by a 1-year 12k warranty.

​

We Compete on price and convenience. I know that the other shops cannot support our prices as last year they stopped taking our quotes as a price match. ( How we ended up getting most of their customers at the time.)

What can I do at this point, our shop management system sends a CT a message based on service intervals when to come back in.

I'm starting to think that because we were mobile and could not operate during the lockdown that all the traction we gained was lost to the other auto shops in the area that were brick and mortar and allowed to stay open.

​

Any Advice?

​

Website is www.davesdiagnostics.com


Comments

lacadasical 1

Did you pay someone to make the website or was it a DIY thing?

Is google local services available in your area? (You will have to start the signup process to find out).

  stelised90 1

DIY with images provided by a marketing agency. As far as google local services not sure.


We are listed on both maps and google search listings.

  stelised90 1

>google local services

Just checked the google local services we don't qualify as Automotive Repair is not a category they support for the service.

lacadasical 1

Dang. They offer it in some places but not others.

lacadasical 2

After google local services I’d suggest optimizing your google my business listing. They are both better than Facebook and your website.

For your website, how many visitors did you get last month and how many contacts did you get as a result (calls and emails)?

  stelised90 1

August 279 Visitors | 449 Views | 1.6 Views / Visitor | 47 Contacts called or emailed to schedule service about 16% of my traffic.

lacadasical 1

Based on your ad spend, how much are you paying to acquire each customer? Also, how much is each customer worth in terms of profit (e.g. I make $10 profit from each customer on average).

  stelised90 1

CPR = $0.81 Total Ad Spend on Facebook is $250.00 MTD.

  stelised90 1

We also just spent $254.00 for ad space on the local radio stations and it is too soon to get metrics for this.

lacadasical 1

So you spent $250 to make $2500. (assuming all of your business came from FB ads). Is that profitable for you? If so, can you just dump more money on ads.

How many calls did you get last month from google my business?

  stelised90 1

I didn't get any from google my business just Facebook. That $250 spent covered 2 weeks of Ad space on Facebook we then generated 2500 in revenue and had including the ads 1900 go out (counting some expenses paid annually or \~500 if you do not include those.)We ended August with 2200 in retained earnings.


AAA states the average RO is $400.00 if that RO costs a customer 400 it cost us \~178 to complete generating \~222.35 in profit.

lacadasical 1

You need to work on google my business then. You should be able to get 30+ calls a month easily from it.

If the ads were profitable then just spend more. Changing your website is possible, but it can quickly become costly and you won’t see results for a while.