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I want to open my own shop. I’ve been a tech for 13 years and for the last 10 of those i have been a John Deere tech. I run a small engine business after hours out of my garage and pretty much fix anything that people will bring to me. I’ve worked on some automotive, but not a lot. I live in a small town of about 1500 people and the “good ole boy” that is the current auto mechanic in town is looking to retire. I see there is a need for a good tech in the auto market in my town and i know that i can fulfill that need. My only concern is money. I have a great paying job now, but i want to be out on my own. What are typical labor rates? I live in western Kansas, from what i’ve heard the typical labor rate is about $65, but i’m not sure because i do all my own repairs. How much money can a 1 person shop make a year? I know it will be slow going at first, but i want to know what potential could be.
Thanks
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My advice to you would be to keep running your side shop, while working your regular job. When the demand for the side shop out grows your ability to manage it on the side and consistently provides a measurable source of income then I would look at leaving your job.
With the town mechanic looking to retire maybe you can get with him and he can give you pointers on labor rates and what to charge. Possibly even work something out where he teaches you about auto repair to a point you are more comfortable with auto stuff.
Giving advice on labor rates is like telling someone what to wear for the weather in a place you’ve never been.
I hope it works out, please keep us posted on how it goes.
I agree with Pitt and might add one more thing. You live in a small town and there’s a certain percentage of car owners who can be “very difficult” so to speak.
One person gets upset with you over one repair not fixing everything on the car from nose to tail or some hiccup which happens a month after the repair and which has nothing to do with the work you did can lead to someone badmouthing your rep. Within 48 hours everyone in town will know about it.
An example; although people around were familiar with this cantankerous old farmer. This farmer (now deceased) was rich but stingy. He bought a very nice Toyota pickup for 200 bucks with an exploded clutch. I get it apart and the disc is fractured, the pressure plate shredded, and the throwout bearing grenaded. I called and gave him an estimate. He then spent 10 minutes insisting that I “piece the pressure plate back together”. Sorry, can’t.
His son called me and told me to fix it right while apologizing for his dad. Truck is repaired and off she goes with no problems.Almost a year later there’s a knock on my door one night about 10 o’clock and there’s some younger guy standing there whom I did not know.
He introduced himself as an employee of the farmer. The farmer sent him over to demand that I redo the head gasket which he alleges I had done a year before. Sorry dude, the only thing I did was the clutch. Period.The old farmer got irate and never talked to me again while running his mouth off a bit about my “shoddy” work and refusal to fix my screwup.
There’s other examples but you get the point. Watch your back at all times.
Giving advice on labor rates is like telling someone what to wear for the weather in a place you’ve never been.
Funny, but accurate.
Really hard to put a dollar amount down here. My feeling is that for the first few years you could be taking home less that if you were working for someone else. I live in a very rural part of Southern CA (right on the LA/Kern County border). 65 seems to be way low in what you will have to be charging per hour. The rate by me is sitting at 100.00 per hour right now.
[quote=”Tech 1″ post=167816]Really hard to put a dollar amount down here. My feeling is that for the first few years you could be taking home less that if you were working for someone else. I live in a very rural part of Southern CA (right on the LA/Kern County border). 65 seems to be way low in what you will have to be charging per hour. The rate by me is sitting at 100.00 per hour right now.[/quote]
Back in 99 I responded to a Kern county fire. Almost died. A buddy of mine pulled me out of the fire dozer I was operating, I passed out from smoke while we were running direct. He got some nasty burns and we both ended up in the ER for smoke inhalation. We lost the dozer of course. 900 deg fire walked right through it.
I bring this up because just last week I was explaining what the difference between camaraderie and baby sitting is. I used that exact fire to explain it.
I think I posted this, labor rate in Ohio is roughly $104.95 that’s mid Ohio and we have top 10 economy in the country. Not sure if that helps.
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