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Permalink Reply by Larry Montanez on July 22, 2012 at 3:03pm

The first rule of business is location, location, location.  With that said you have provided us with some good information but you left out some important information.

1. What kind of road is it?

    a. are there traffic lights?

    b. are the strip malls?

    c.  is it an interstate, highway, country road, how many lanes?

2. What city and state is it in?

3. What are the demographics? City, suburban or country?

4. What is the average vehicle year in that area?

    a. New, 3-7 years old, high-end luxury, exotics or pick-ups?

5. Are you buying an existing shop, buying a building (which needs renovations to be a shop), renting or other?

6. Are you planning on being on a DRP or DRP's?

   a. many times the insurer can assist you on a decision of a location based on their insured's demographics

   b. other there other shops on the same DRP in that area?

7.  How many other shops are near by?

8.  What are the zoning rules in that area for a collision repair shop? 

I am not trying to be difficult, but these are all important factors to decide on a good location.

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Permalink Reply by Butch Pope on July 29, 2012 at 5:30pm

You Bet your booty it matters. You should do your demographics no matter where you are intending on opening. It goes without saying that you check the necessary permits and CO's needed for the site.

Larry gave you very good advice. Take it and do your research.

The only time location does not matter is when you don't care if you succeed or not. I doubt that is the case.

Butch Pope

A.A.B. SERVICES, INC.

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Permalink Reply by Shawn Counts on August 30, 2012 at 8:01pm

Keep in mind cost matter as well. To much overhead can really wreak havack on your profitability. If for example you are an industry average shop at 40%GPM your overhead should never run past 35% to end up at an average 5% net. My thought process is you need the best location you can AFFORD.

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