Quick Answer: Is A Body Shop A Good Business?

How does a body shop make money?

The sale of parts does make auto-body shops money—but maybe not as much as you would think.

On average, according to the Body Shop Business website, the sale of parts generates between 36 to 44 percent of sales proceeds, while parts produce only 20 to 28 percent in profit margin..

How do I start a body shop business?

7 Key Tips for Opening Your Own Auto Body ShopGet The Experience And Knowledge On Auto Repair Industry. … Seek a Location Ideal For Your Work. … Secure Financing. … Buy The Equipment Needed For The Job. … Suppliers of Auto Parts Can Give You Tips for Opening Your Own Auto Body Shop. … Hire People With Experience. … Get Certification, Licenses, and Insurance Cover.

Where do mechanics make the most money?

The 10 States With The Highest Mechanic Salaries For 2019Wyoming.Illinois.Nevada.North Dakota.Texas.Washington.Utah.Michigan.More items…•

Is owning a tire shop profitable?

Gently used tires sell for up to half their initial cost, while more worn tires sell for much less. Despite these low prices, businesses can still earn a handsome profit. … For each tire sold, many businesses charge an additional $15 to $45 to mount and balance the tire.

What is the labor rate for auto body work?

Auto repair labor rates vary widely across the country, and even within the same city. As of January 17, 2017, auto repair shops in the AAA Approved Auto Repair network charged between $47 and $215 per hour, based primarily on the shop’s cost of doing business.

Are auto body shops profitable?

According to Body Shop Business, profit margins on parts sales typically average between 20 and 28 percent, while labor profit margins range between 50 and 65 percent (Source). Accurately allocating and tracking the amount of time needed to complete jobs is key to running a lean and profitable auto shop.

How much is a body shop worth?

The average auto body shop is rather small with some $578,000 in annual revenues and a staff of just over 5….Example: Valuation of an auto body shop using multiples.MultipleMultiple valueBusiness valueLow0.21$463,200High0.92$1,171,100Average0.37$623,100Median0.31$564,5001 more row•Dec 19, 2012

How much money do auto body shop owners make?

According to Chron.com, the average annual salary for an auto body shop owner is $101,000, although this varies by region.

What is the highest paying job in the automotive industry?

Career Options for the Highest-Paying Automotive JobsJob TitleMedian Salary (2018)*Job Growth (2018-2028)*Automotive Body and Glass Repairers$41,3304%Transportation Equipment Painters$42,2805%Industrial Designers$66,5903%Automotive Service Technicians and Mechanics$40,710-1%2 more rows•Jan 18, 2020

Can Mechanics make 6 figures?

The median wage for an auto mechanic in the US is quite low unless you have credentials, own the shop, or work as a heavy equipment mechanic. The typical year is 2000 hours, so making 6 figures means earning $50 per hour, or about double the 90th percentile of mechanics wages.

What are the highest paid mechanics?

The Top 10 Highest Paying Careers for Mechanics#1 Aircraft Mechanic. Job Description. … #2 Industrial Machinery Mechanic. Job Description. … #3 Mobile Heavy Equipment Mechanic. Job Description. … #4 Heating, Air Conditioning and Refrigeration Mechanic. Job Description. … #5 Diesel Mechanic. Job Description. … #6 Electrical Mechanic. … #7 Radio Mechanic. … #8 Automotive Mechanic.More items…