7 Things to Know About Auto Service
Even though auto service franchises offer great opportunities to make money, not just any fool can fall off a turnip truck and make a fortune with one. You need to work hard and have a certain sense of business acumen. There are also some things you must know. Here are seven things you should know about auto service.
1. You don’t need to know everything
This first thing to know is that you don’t need to know everything. Many people are discouraged from seizing an auto service franchise opportunity because they don’t think they know enough about automobiles, how they work, and how they are serviced. But that’s OK because you don’t need to be an expert in auto repair to run an auto service franchise. Any good franchisor will provide training and education to get you up to speed on everything you need to know
2. Franchise are better
There’s a reason we are discussing auto service franchise opportunities specifically. Franchises, though they charge fees, are better options than opening your own independent auto service business. On your own you won’t have training and support, nor will you have a brand name that people recognize and trust. A lot of independent auto service businesses fail because of this, even ones run by knowledgeable and astute businesspeople.
3. Some franchises are better than others
Not all auto service franchise opportunities are equal. Some franchisors offer better opportunities than others. You will have to choose the right auto service franchise opportunity to succeed. You need to look for certain key qualities, such as…
4. Protected territories
Protected territories are crucial to any good auto service franchise opportunity. A protected territory means that the franchisor won’t let another franchise open in your area, as this would undercut the customer base for both of you.
5. Preferred vendor programs are hallmarks of good auto service franchise opportunities
The most successful auto service franchises offer something called preferred vendor programs. The biggest cost expenditure you will have will be parts and equipment. But high-quality parts and equipment are crucial to your success, so you can’t skimp on these. However, large franchised companies can leverage the buying power of all their franchise locations to get reduced prices on parts and equipment, thus reducing your expenditures.
6. Auto service franchise opportunities don’t come cheap
Auto service franchises can bring in a lot of revenue. But they’re not cheap buys; you need to have an appropriate amount of liquid capital to capitalize on a good auto service franchise opportunity. Depending on where you are, you might need anywhere from $65,000-$170,000 in liquid capital. The total investment could come out at over $400,000, but much of that can be financed.
7. Now is a great time to look for auto service franchise opportunities
There are more automobiles on America’s roads today than ever before. And the average age of these vehicles is higher than ever before, which means more auto service and auto repairs are needed than ever before. The US automotive aftermarket, which is largely comprised of auto service businesses, is valued at $296 billion and is projected to reach a global value of $1.4 trillion by 2024 (all figures in USD).
Tuffy Tire & Auto Service
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