How much to open a body shop?

[theoriginator]

I'm a painter in Dallas, TX and I'm looking to open my own body shop in the next year or so. I know there's a body shop on every corner but as someone once told me "there's always room for one more". I don't want to have one of those "get it in and get it out type of shops". I want to focus on higher quality paint jobs, mainly completes, and color changes. Also supplementing that with bumper repair, spot-ins, buffing, touch-up, etc. I would also like to do some totaled cars to have multiple revenue areas. I've heard from $10,000-$50,000. Any help would be appreciated, thank you.

[toxicz28]

Here ya go,
http://www.autobodytoolmart.com/pc-1...p-package.aspx

Monthly leases starting at $1040. But it does not include all of the nickel and dime crap. Then add shop space, supplies, other equipment, electric, gas, insurance, water, telephone, advertising, employees, workers' comp. insurance, unemployment insurance, taxes,etc.
Best of luck to you.

[hotrdblder]

if you got hand tools, body tools, that package and a shop is what you need, 75k is probably a better number.

[jilge71]

i run fishers in norman ok and a good booth alone is 50-60k not including any type of shop expenses or air compressors,wiring. plus you have to check with the city and see all the codes and zoning crap. plus your fire system, any frame equipment/measuring equip, think about it before you go head first because it takes 2-3 years to really get a name for yourself out to the public. talk to one of your paint reps to see about help funding your project as well as the bank with the loan. alot of times a paint company will give you money just to have your buisness. if you have any questions just pm me and ill be glad to help

[ProdigyCustoms]

If your planing on doing restos, older cars, higher end all overs, you better budget a lot of donated hours doing "star cars" that will be shown for people that will promote you. It is easy to pick up a few jobs to get started, but you really need some proud customers to promote you, along with all the other advertising and promoting cost to keep things going

[cad]

I apologize if you already knew this....some may not.
Contact your local Small Business Association (www.SBA.gov) which is a government funded entity which solely exists to help persons like you. They will help you write your business plan and can assist with acquiring funding based on your business plan, as well as several other things such as getting incorporated, tax ID, etc, etc. You dont want to open a business and not have your personal assets "protected", ie. your home, personal vehicles, etc. A limited liability corporation, or LLC, is an example.
http://www.sba.gov/aboutsba/index.html
http://www.sba.gov/localresources/di...las/index.html

Clark

[68fusion]

You may want to develop a following before you make the jump if you don't have one already. Sometimes it's better to specialize in one area than to be a "universal" bodyshop, be it high end collision or resto's. Trust is a big factor on who's willing to leave a car in you care, takes a while to earn. So for while it's gonna be overdeliver and get underpaid.
At least thats the way it was for us....

[danbob67]

our shop from scratch was a mil that is with blowtherm booth, 2 prep stations,2 car-o-liner frame machines and the building with offices compressors dryers and all. to me the shop is small for what it cost but it is one of the nicest around here. As the other guy said local paint stores may help you out I know of a local shop that ppg just bought the booth for them to get started, as long as they used there products. when we switched to dupont they gave us the first mixing machine setup with toners included for us to switch to them.

[theoriginator]

How many of yall rebuild total loss vehicles? I've heard this is a real good way to become wealthy pretty quick, if you play it right. What about exotic/ sports cars. Are they too much of a hassle to deal with or can you really make money off of these cars?

[ProdigyCustoms]

I rebuilt totals for a few years back in the early to mid 90s when the muscle market went south and when restoration got slow. Back then we had a unlimited supply of rebuidables. Without blowing my horn too much, I was very good at making the right by and finding the parts. It was getting them through the shop that was a PIA. Just like building Hot Rods. But we made money on every car and always did super quality work, so I had people looking for cars, (rebuilt cars). BUT. I think the business has got such a bad reputation from the butchers out there, it has cast a really big cloud of "rebuildable". I do not think I would try it now. Banks won't touch them.

[danbob67]

I wouldnt think total loss vehicles is the way to go there is money to be made there but usually the cars that are worth rebuilding are still bringing decent money as a total. But if you can get em cheap than it might be a good way to go. but is still a bit of a hassle most people that are out looking for a exotic car have the money to buy one that hasnt been totalled and it you did get a totalled ferrari or whatever it would take a nice chunk of change to total one to begin with so it would be damaged pretty good and parts could be a pain to get. usually when we get a higher end car at work it takes a lot longer to get those cars parts than a domestic.
the salvage market to me is the ticket, seeing what the yards are getting for used parts is unreal.

[theoriginator]

What type of volume do yall's shops do every month? The dealership body shop I used to work at would average about $500,000 a month. Supposedly it's one of the top 5 in the country in volume, supposedly.

[danbob67]

What type of volume do yall's shops do every month? The dealership body shop I used to work at would average about $500,000 a month. Supposedly it's one of the top 5 in the country in volume, supposedly.

we only do about 100,000 a month we are small time I guess compared to that number.

[gearheads78]

our shop usually runs 12000-14000 hours a month. just a little shop here in Dallas

The money is in collision but you have to have DRP's feeding you or you will starve. You are not going to jump right in and get insurance work.

Totals are tough. Even if its perfect expect to only to sell for 60-70% of a clean title car. As already said buyer will have to have cash no bank will touch a rebuilder. With ****** and similar out there getting the general public to think a built car will explode and kill them you have to look hard for any potential buyers.

If you are going to do total repaints you better have deep pockets. The money can be good if you are good but paychecks have to stretch a long way till the next one comes.

[MrQuick]

Also look into an already established shop.
My friend bought a body shop and took over most of the accounts. Insurance work is where he makes his money and he said he hasn't done a full paint job in almost a year. For him there is no money in it.

[danbob67]

full paints usually are a losing job in the collision business I can do what a allover usually pays in a day doing small hits and dent ding bumper repairs where as the allover will take me weeks depending on the vehicle for the same money. restos hurt more money wise but that is something I like to do also depending on the car.

[lcartag1]

The best way to go is to find an existing shop that is overloaded with debt.Do the research and see if the work is there but being miss managed. I recently bought a body shop in Richboro,Pennsylvania by having the owner act as the bank and taking over most of his debt.For $300,000 I have a shop with 1 Million per year in sales.Stay away from the full paints and total losses,the collision end of the business is where the money is.