The situation developing in the market of road transport services are directly linked to the development trends of the domestic car fleet. Over the last decade it has increased markedly and today includes more than 30 million cars. And every year this figure increased by 8%.
That is why in relation to the garage there are favorable conjuncture — a significant and steady increase in potential consumers of these services. Steadily growing and the number of themselves car services, and still majority of networks is not traced.
While the structure of the market of maintenance service are not clearly expressed. Of course, it provides for the separation into individual specialization, there are also different vertical levels. However, very few recognizable brands: one car service can be served “Mercedes” and VAZ products. Today the market is allocated four levels: network garages, authorized services, to provision of maintenance services in an individual order, single service items.
But before organizing of own repair activity, you need to draw up a business plan of car service which will determine the size of the initial capital, profitability and payback of this type of activity.
To calculate the ROI and payback period of future business need to make a list of expenses, as well as determine the size of the expected revenue.
Calculation of costs for opening car service
- Acquisition and installation of equipment — $ 60,000;
- Advertising — $ 900;
- Agreeing — $ 600;
- Total: 61 500 dollars.
- Office rent — $ 4,500;
- Consumables, operating costs — $ 2,500;
- Salary — $ 6,000;
- Total: $ 13,000.
In general, the costs required to open auto service can vary between 30000-150000 dollars. All depends on the expected number of services and the quality of the equipment through which these services will be provided.
Calculation of profits
Profitable part of the project is extremely difficult to estimate, but if we consider that in a month’s revenue will be $ 15,000, the median monthly income of auto service will start with a mark of 3000 dollars.
Calculation of payback
Practice shows that the payback invested in the implementation of this business idea varies within 1.5 — years. Stable profit provides the correct organization of the enterprise, based in competent business plan of car service.
Conclusions. Today we can safely say that the one of the most reliable and profitable investments are fired on the creation and development of the garage. Such places will long continue to enjoy strong demand, because automobile technics breaks down with an enviable constancy.