Hey fellow collision hubbers, I'm right now in the process of considering a location for my collision shop and I'm worried that the shops location isn't good. The speed limit is 45-50 mph on the road itself, it has a lot of industrial buildings on it but a lot of other stuff as well. Gas stations, parts stores, restaurants etc but I'm not sure what aspects to base my decision on, can anyone help ?
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.
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.
A.A.B. SERVICES, INC.
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.