Originally Posted by splinter

Sorry, no straight answer to your initial query.

Your responses are much appreciated

IIRC your brother is a practicing attorney, so there’s no sense rehashing the considerable legal exposure from having non-employees in your facility. CYA twice and again.

You lost me a little, but yes my brother is a practicing lawyer and also serves as my personal attorney. In that capacity, yes he has hired a team here in san diego to review the partnership contracts, insurance coverage and definition, and distribution deals. Again, you sort of lost me. I am saying we can do it. i am also saying that adding proper protocols for safety will add cost, but that is understood.

A friend recently expanded his local tire and general service facility from five bays to ten. Owing to their customer service savvy and the excellent reputation they’ve earned in our community, they’re beyond capacity virtually 60 hours every week – with customers’ cars on the lot regularly queued up two deep behind those. If Convoy Auto Body isn’t already making money hand over fist, respectfully suggest you solve that riddle posthaste. Build on its core strengths first.

Reality is that the business may be more profitable if we were to focus on bringing in more insurance companies, etc for the Auto Body. Exploiting the core competencies, so to speak. The is no doubt that we intend that and have already begun talks and action. I just didn't think people here cared. We are approved vendors for the city, county, state, and DOJ and currently have an $800k open PO for painting postal cars. We have every intent of securing the bread and butter business. It is the core. But, working as Auto Body estimator for the rest of my life ain't gonna cut it either.

Have previously been employed in various capacities at dealerships and independent repair facilities, so I’ll chime in with some constructive feedback - not criticism - to make of what you will during your contemplated transition.

All due respect, the “introductory” $12.50 an hour lift rate from open to close would barely cover a competent babysitter or a neighbor’s kid doing yard work. Understand loss leaders, but it’ll behoove you to be realistic with your time and its value.
The ONLY reason we are taking an INTRODUCTORY hit on this service is because we want to be sure that all safety bases are covered. To make that happen, we will need a tech to be there, adding to our costs. I understand it is a loss, but again, this would only happen when the bread and butter has the overhead covered.

Likewise, don’t discount the very real opportunity costs involved with your proposed venture.
Absolutely, and the only reason I am thinking of this part is because we have an area sitting. It will later be used for loaner cars and or a small used car "lot" but I want to start using it now just for fun.

You’re already aware almost every shop tacks on generous part, consumable, and labor markups in order to help defray their overhead and remain profitable. Eliminating two of those three could possibly negatively affect the bottom line.
The bay rental option is simply 1 of the perks we offer our clients. It is in no way intended to generate income. Most of the things that our clients will want us to do to their cars will require the trained staff (painters, welders, techs, etc.)

What becomes of the half-done, revenue-generating vehicle currently occupying its lift when an after hours customer comes in?
We do not mix bread and butter with Fun. The bread and butter funds the overhead only. Other than that, they do not share resources.

I’ve thousands of dollars invested in my tools and shop equipment. Friends are always welcome to borrow them. Understandably feel quite differently about entrusting - or even permitting access near same - to any walk-in customer off the street.
The only clients here will be my friends

Trust you intend to properly remunerate the supervisorial and “safety scout” staff when they’re scheduled or otherwise required to do so – in addition to their customary duties. Have those (possibly overtime) trusted managerial employees been selected and trained for the additional responsibility?
Absolutely. I am a big policy guy. We are drafting documents stating exactly what the training program needs to be and why. It will also have periodic refresher training and full documentation. i have been through very similar things before in Pharmaceutical risk manegement. Second, yes the staff has been identified and everyone will be taken care of. We run a very concervative and supporting management team. I believe in empoering my employees by training them and paying them.

A bay rental and (limited) tool access program could likely require in excess of $80 per hour to pencil out and realistically create an incremental revenue stream for your concern.
Here is the deal. You can go to a shop (including mine) and get charged $90 an hour for me to have a tech do it. I figure how much money can I lose if I am basically doing the same thing but allowing the client to be involved?

In addition, note that although there are several dedicated DIY types here, I’d venture a guess that the vast majority of well-heeled MB pilots rightly choose to remain in the DIFM category. No slight, merely a well-intentioned perspective after having enjoyed the business and hobby from both sides.
I agree with you 100% but we are in no way concentrating on MBs....
Best wishes with it, jangy.

Originally Posted by trina

Hi Everyone,
This has been VERY informative, I am located in Vermont and as you everyone knows the winters are long and cold. Also Vermonts are true people and want to do everything for themselves, including working on there own cars. They are also racing fans and follow it closely. What I am getting at is starting a RENT A BAY bussiness. I know there are not any in the state so this is my time. I have personally been under a car in the wet cold snow and many people have commented "if they only had a place to work on thier cars". I have so may questions. Jangy if your out there please let me know through this forum or email me if I can contact you please. If anyone else can help me with this .....PLEASE contact me @ myboyricki@gmail .com. I have a lot of questions and of couse insurance is the biggy. Saftey is # 1. So... thank you all for helpfull information and please email me if you have any other ideas. Thank you