Setting Up Automobile Workshop: Need Guidance

[Octy_Vin]

@ss80, What an anlaysis, Thanks for your efforts man.

I am planning to have the following things but one by one as per the situation
My initial idea is like what you mentioned
* Mechanicals & water wash (which is going to fetch some regular income)
After that,
* Full Interior Cleaning / Exterior cleaning & detailing.
* Body shop & Paint shop.

The details you mentioned in the list gives me a fair idea about what are all required.
Also its great that you have analyzed very imp things like saving electricity bills /re using used engine oils etc and keep the expenditure in check. I am also thinking about some of these Go green practices.

So initially i had 2 options like setting up a new garage or leasing/renting out any existing garages if available so that initial setups will not be a problem thought investment will be bit more. I am analyzing the pros and cons between these 2 options.

 

[Octy_Vin]

That's great as you are from the same field only you need to have some experience in mechanical side. It will be more easy for you as you have the basics in you already. Madipakkam is also a good residential area, and you can try somewhere between Kaively and Ponniamman koil BS. You might have seen that AMS Maruti service, he started in a small way and now he has settled with his business. And if Salem is comfortable for you that's also a good city with lot of potential customers.

Ram sir, It seems like you know this area very well. And yes, that is OMS Motors and i have been there twice. we can meet if you come here next time. As i mentioned, i am thinking of 2 options, setting up a new one or leasing out an existing one. But the main point is that i have to take care of so many things before i quit my current job and enter this.

 

[AR Ram]

Ram sir, It seems like you know this area very well. And yes, that is OMS Motors and i have been there twice. we can meet if you come here next time. As i mentioned, i am thinking of 2 options, setting up a new one or leasing out an existing one. But the main point is that i have to take care of so many things before i quit my current job and enter this.

Octy_Vin

use multi-quote option

http://www.theautomotiveindia.com/f...e-multi-quote-function-thread.html#post101577

Yes, before you take a final decision and quitting your job, have a through study about the feasibility on this venture.

I used to take my esteem to OMS for service in 2001. And I too was staying in Madipakkam those days. Definitely we will meet when I come to Chennai. BTW where do you service your Octy in Chennai?

 

[Octy_Vin]

Octy_Vin

use multi-quote option

http://www.theautomotiveindia.com/f...e-multi-quote-function-thread.html#post101577

Yes, before you take a final decision and quitting your job, have a through study about the feasibility on this venture.

I used to take my esteem to OMS for service in 2001. And I too was staying in Madipakkam those days. Definitely we will meet when I come to Chennai. BTW where do you service your Octy in Chennai?

Oh, great. Then you might very well know about keelkattalai where i am staying now.
Yes, As you said, I started this analysis/feasibility study now because i dont want to land in any major problems later as i have a family and i am the lone earner.

Currently i am servicing my Octy in Performance Automotives near Porur. They are good in servicing, body shop and painting also. Apart from this, there is one Bosch service centre in kodambakkam. They are too good in German cars especially Octys.

 

[Octy_Vin]

@Ram sir, Thanks for the multi quote link . I was searching for that previously.

 

[AR Ram]

Oh, great. Then you might very well know about keelkattalai where i am staying now.
Yes, As you said, I started this analysis/feasibility study now because i dont want to land in any major problems later as i have a family and i am the lone earner.

Currently i am servicing my Octy in Performance Automotives near Porur. They are good in servicing, body shop and painting also. Apart from this, there is one Bosch service centre in kodambakkam. They are too good in German cars especially Octys.

That's why I suggested to have a proper study on this.

Yes, Keelkattalai is very familiar to me too.

As far as possible use the original parts in Octy, they will really last long.

 

[Shantanu.lko]

Hi,
Its good to know that you are planning to start a garage. Anand (SS80) has explained all the points and detailed about the parts price in an excellent way. I would also like to add some points from my experience of working in my friend's garage.

1. One important thing is the location of the garage. If the garage should have proper boundary and gate, so that no one can trespass and steal some equipment or any thing from a customer's car. Also if the garage is in residential area, then NOC from the neighbors is required along with registration. If you do not want a registration then make sure that the people around do not complain later about all noises from the garage. Recently a garage owner in my city faced problems due to NOC.

2. In the beginning you can also keep accessories like seat covers, lights, horns, music systems, etc. This will add a little profit. You can also contact a particular accessory shop for fitments in your customers cars. We used to take our customers cars to the fixed shop for all installations and a fixed percentage was given to us. The same can be done with an AC mechanic.

3. Washing services and basic servicing can be provided for two-wheelers too. If your garage will have 2 wheeler servicing too then it will add a lot to your income. As two wheeler are more in number as compared to cars.

All the best for future and waiting for the opening your garage

 

[Octy_Vin]

That's why I suggested to have a proper study on this.

Yes, Keelkattalai is very familiar to me too.

As far as possible use the original parts in Octy, they will really last long.

Then we can meet in Keelkattalai next time whenever you are coming to chennai
And Yes, I always prefer original parts. I dont want to invite unneccesary problems in my vehicle.
Can you can see now, i used this multiquoting

Hi,
Its good to know that you are planning to start a garage. Anand (SS80) has explained all the points and detailed about the parts price in an excellent way. I would also like to add some points from my experience of working in my friend's garage.

1. One important thing is the location of the garage. If the garage should have proper boundary and gate, so that no one can trespass and steal some equipment or any thing from a customer's car. Also if the garage is in residential area, then NOC from the neighbors is required along with registration. If you do not want a registration then make sure that the people around do not complain later about all noises from the garage. Recently a garage owner in my city faced problems due to NOC.

2. In the beginning you can also keep accessories like seat covers, lights, horns, music systems, etc. This will add a little profit. You can also contact a particular accessory shop for fitments in your customers cars. We used to take our customers cars to the fixed shop for all installations and a fixed percentage was given to us. The same can be done with an AC mechanic.

3. Washing services and basic servicing can be provided for two-wheelers too. If your garage will have 2 wheeler servicing too then it will add a lot to your income. As two wheeler are more in number as compared to cars.

All the best for future and waiting for the opening your garage

Shantanu, Thanks for your valuable suggestions. I never know about this NOC issue. And yes, the 2 wheeler idea is good, atleast wash alone is a good idea. I have to consalidate all the points and update my list.
Now only i am starting to get some valuable suggestions from some of our TAIns which is kind of motivating me.

 

[AR Ram]

Then we can meet in Keelkattalai next time whenever you are coming to chennai
And Yes, I always prefer original parts. I dont want to invite unneccesary problems in my vehicle.
Can you can see now, i used this multiquoting



Shantanu, Thanks for your valuable suggestions. I never know about this NOC issue. And yes, the 2 wheeler idea is good, atleast wash alone is a good idea. I have to consalidate all the points and update my list.
Now only i am starting to get some valuable suggestions from some of our TAIns which is kind of motivating me.

Very good!! Multiquote - you did it!!!

Yes, we will meet at Keelkattalai when I am coming to Chennai.

 

[Figoian]

Hi Everyone,
I am planning to start my own garage in near future, may be in another 1 year (or 1.5 years). Though i have done some analysis and ground work, i still need valuable suggestions / ideas from all of you. Your ideas may be related to anything from tools, equipments to garage plan etc, etc.. Each and every suggestion from you guys is important to me.

Before anything, Congrats Vinoth on this bold decision. I can understand that it's a big and quite a critical move for anyone who is used to be salaried. I am as well planning to quit these corporates and get in to some business by 40. So, few more years to go.

So, what TAIans get? Free Services? Multi-point Checks? Wash? Accessories? Jokes apart, we are immensely happy that one of us is doing this, not just as a career but as a passion.

Just a thought, how about taking dealership of some brands or multibrand?

Incase of independent garage, I would suggest something like General Service, WA & WB, Water Wash & Minimal accessories to start with.

Madipakkam is also a good residential area, and you can try somewhere between Kaively and Ponniamman koil BS. You might have seen that AMS Maruti service, he started in a small way and now he has settled with his business. And if Salem is comfortable for you that's also a good city with lot of potential customers.

Ram Sir - Thanks for the suggestion of places. All of these are quite close for me, when I visit my home in Chennai.

Hi Octy_Vin,

Happy to know that you want to start a workshop. May be the below points can give you a rough idea of what you need and what you wont.

Anand - That's absolutely mind blowing. This could be the most valuable input that Vinoth would need. Keep up the good work.

 

[ss80]

Figoian:
Thanks a lot Sir.

A few more points to share:
1. The last few pages of all auto magazines have ads of product manufacturers with their contact details. You can contact them in case you need to buy any of those big machines etc.

I could gather these info from some March edition of AutoCar and Autobild magazines.
AIPL ABRO- Car care products, hardware products,car care - A distributor for Abro products - Abro manufactures cleaning agents such as WD40 and is cheaper than most of its competitors.

AC servicing equipments:
www.technomaticindia.com

Fuel injector cleaning machines:
Garage Equipments,PUC Equipment,Cleaning Equipment Manufacturers in Faridabad,Haryana
aceequipment@vsnl.net

Upholstery cleaners:
Cleaning Equipments Suppliers, Cleaning Machine Dealers: Bangalore, India
Industrial Floor Cleaning Machines,Floor Scrubber,High Pressure Washer,Water Jet Cleaners,Industrial Vacuum Cleaner,Industrial Floor Scrubber machine

The above links are pretty old, I suggest you can buy any latest edition of a few magazines to get the latest details of major equipment sellers.


1. For the first few months, avoid buying and stocking costly accessories - like Head units, reverse parking sensors, HID kits, mufflers etc

2. Do have resonable stocks of 500ml/ 1litre car shampoo bottle, car perfumes, micro fibre cloth, dashboard polish, windshield washing liquid packet, wet tissue paper box and similar consumable stuff that customer can buy from you while they come to collect the car.

Preferably display the above items in a glass shelf near/next to the cashier counter/sofa. This is something they will be interested to buy and wont cost much either. You will get most of these items at about 80 - 85% of the MRP printed. So you do get about 10% margin on every item, although small it does add to your income.

3. You should have one electrician in your team, in case you dont have, then get one of your mechanics trained on adding fog lamps, additional horns, using multimeter etc

4. Also avoid investing in any tyre related equipments such as Digital Tyre Inflator, tyre changing machine, rim rectifier, wheel alignment etc. Most of the machines easily cost a few lakhs and it will be many years before we break even.

5. Wheel alignment needs a dedicated pit below car to work on alignment adjustments, hence it occupies a lot of valuable space. For the first few months, skip this. Later once you are sure that you will get about 200cars a month for servicing etc then try getting a used wheel alignment machine from any one who is selling their alignment shop etc.

6. Ensure that either yourself or one of the senior employee is responsible for PDI. PDI must be done on every car before it is handed over to the customer. Also avoid driving the customer's car on road for any reason other than PDI. For example, skip outsourcing wheel alignment, tyre changing etc as a simple accident en route can cause huge loss and spoils the reputation of the garage.

7. Also please ensure all cars leaving the garage go through a quick and simple - 20point check list that starts from functional bulbs to brakes, oils etc. This way you know the condition of the car and also the customer can be kept informed about any possible issues that will arise in near future. Sometime such simple things can avert accidents and breakdowns too. I will prepare a simple checklist for you (printable A4 size) when you need it.

8. You dont need any big car for towing purposes - Towing is required rarely and almost any car can tow any other car easily. I have seen a M800 towing a TATA Winger without much fuss. Do not use any towing ropes, instead get a custom welded Iron rod of about 8 feet length, with "O" shape pieces welded at the corners and use CV joints from worn out drive shafts at the 6 or 7 inches before the end points.

9. Always have a old used car with only 2 seats in it (preferable Omni) with a simple repainting job (and your garage name on it) along with cargo holding space in the rear to haul those bulky gearboxes to & fro from junkyard, transporting lubricants etc.

10. Most of the time, small retailers offer door step delivery of parts and lubricants to the near by garages provided you offer them regular business, also bill settlement happens only once in 35 - 40days, so your money earned from servicing can fetch you interest if put in bank for these many days.

11. Shocking but true - MGP outlets do not give one rupee discount to regular customers (like me who spent half salary on parts for so many days), however if you are having a garage they do give you some discounts. Most spares shops on J.C.Road (here in Blr) have computers where they register the garage name and they give 6 - 9% discount on all parts, so you may have to meet up some of them and register your garage name. They too accept monthly payments.

My story of a lost opprtunity
12. Last month I got an offer, ZERO INVESTMENT 100% returns, monthly income of 40,000/- guaranteed. I know the chairman of an apartment owners association nearby my home, the apartment has nearly 200+ flats, each flat costs over 75lakhs easily, there are roughly 215 cars (50% are hatchbacks).

It was a contract for daily car wash for all the cars, the payment would be fixed - 80K per month and these are the conditions they had.

1. All cars to be cleaned everyday
2. Cars should not be driven/started by the cleaning persons/contractor
3. Nearly 93cars are of those are daytime office goers (most of them are managers and above) so 93cars have to be washed before 7.15am, the rest can be washed during the daytime as nearly 50cars are second cars in the family and the housewife/student drives them.
4. Water will be supplied free by the apartment
5. All other consumables to be bought by the contractor
6. They are looking for basic plain water + cloth cleaning - not shampoo and upholstery cleaning/dashboard polishing etc.

The issues with the setup
1. No electricity will be provided & no place for setting up pressure wash/ water compressor
2. Cars have to be cleaned wherever they are parked and cannot be driven to/fro anywhere even within the apartment
3. You are collecting keys from the owners (from their flats) - a big wastage of time collecting keys from every one’s door step.
4. The set up they will permit is 4 cleaners, 1 contractor, basic cleaning (non electrical) tools.

I requested for a space to clean cars using pressure wash and then permission to drive from the parking space to the cleaning area (both are within the apartment premises). But the association refused to both the requests, hence I dropped out of it. If I had taken that proposal, this would be the financial condition

One time Investment:
0/- security deposit (The chairman is my ex-boss and offered to skip the security deposit completely, as he would sign as assurance for me)
20K for pressure washing equipments

Monthly bills:
Consumables = 2000/-
Salary = 30K max (10K x 3 Nos)
Rental is zero as I dont need any space at all, so no advance, no monthly rent etc

Monthly Income:
Fixed bill: 82,500/-
Misellaneous = 5000/-

[Misellaneous = Margin from sales of car perfume, tissue papers, windshield wiper replacements, coolant top ups, distilled water top up for battery, jump starting dead cars, repainting wheel caps]

Cash in Hand on every month 1st is approx = 50K
I hate making someone work hard at odd hours with wet cloth and walking around in that huge apartment for just 10K/month. So without equipments and basic freedom I cant do that work. Within 2days of me walking away from the proposal, some contractor took over it and guess what he has employed 3 night shift security guards to do the washing and he is already in trouble with 20+complaints in less than 3weeks - about scratches on cars, salt water marks everyday on windshield, cleaners listening to music, smelly interiors due to wiping with cloth that is wet for hours and not dried properly etc.

May be you can start up something like this too. Most big apartments need such services.

 

[Octy_Vin]

Very good!! Multiquote - you did it!!!

Yes, we will meet at Keelkattalai when I am coming to Chennai.

Sure, Looking forward to meet you.

Before anything, Congrats Vinoth on this bold decision. I can understand that it's a big and quite a critical move for anyone who is used to be salaried. I am as well planning to quit these corporates and get in to some business by 40. So, few more years to go.

That is my plan too. You have to atleast start planning by now.

So, what TAIans get? Free Services? Multi-point Checks? Wash? Accessories? Jokes apart, we are immensely happy that one of us is doing this, not just as a career but as a passion.

Anything for you, man

Just a thought, how about taking dealership of some brands or multibrand?

That was already planned with some friends, but budget is the main constraint. But still that is in pipeline. May be a skoda dealership if possible

Incase of independent garage, I would suggest something like General Service, WA & WB, Water Wash & Minimal accessories to start with.

Yes Subbu, That is what is i am planning, btw what is WA & WB?

 

[Octy_Vin]

Ram Sir - Thanks for the suggestion of places. All of these are quite close for me, when I visit my home in Chennai. .

Nice, we can meet when you come to chennai.

Anand - That's absolutely mind blowing. This could be the most valuable input that Vinoth would need. Keep up the good work.

Yes, that's right.. Once it is started and eshtablished, i think i should give some royalty to ss80 for his great efforts and information

 

[Octy_Vin]

Figoian:
Thanks a lot Sir.

A few more points to share:
1. The last few pages of all auto magazines have ads of product manufacturers with their contact details. You can contact them in case you need to buy any of those big machines etc.

I could gather these info from some March edition of AutoCar and Autobild magazines.
AIPL ABRO- Car care products, hardware products,car care - A distributor for Abro products - Abro manufactures cleaning agents such as WD40 and is cheaper than most of its competitors.
AC servicing equipments:
www.technomaticindia.com

Fuel injector cleaning machines:
Garage Equipments,PUC Equipment,Cleaning Equipment Manufacturers in Faridabad,Haryana
aceequipment@vsnl.net

Upholstery cleaners:
Cleaning Equipments Suppliers, Cleaning Machine Dealers: Bangalore, India
Industrial Floor Cleaning Machines,Floor Scrubber,High Pressure Washer,Water Jet Cleaners,Industrial Vacuum Cleaner,Industrial Floor Scrubber machine

The above links are pretty old, I suggest you can buy any latest edition of a few magazines to get the latest details of major equipment sellers.

Wow, so much details. Every time i really want to take some time to go thru your post in detail before replying.
As you told, nowadays i have started looking into those automotive magazines that are available in our offices.That is really informative and also up to date.

1. For the first few months, avoid buying and stocking costly accessories - like Head units, reverse parking sensors, HID kits, mufflers etc

Yes, these items are not at all in my list.

Preferably display the above items in a glass shelf near/next to the cashier counter/sofa. This is something they will be interested to buy and wont cost much either. You will get most of these items at about 80 - 85% of the MRP printed. So you do get about 10% margin on every item, although small it does add to your income..

Correct.That's a good odea.

4. Also avoid investing in any tyre related equipments such as Digital Tyre Inflator, tyre changing machine, rim rectifier, wheel alignment etc. Most of the machines easily cost a few lakhs and it will be many years before we break even.

5. Wheel alignment needs a dedicated pit below car to work on alignment adjustments, hence it occupies a lot of valuable space. For the first few months, skip this. Later once you are sure that you will get about 200cars a month for servicing etc then try getting a used wheel alignment machine from any one who is selling their alignment shop etc..

Yes, I have plans for these tyre related things but yes, may be after some time.

6. Ensure that either yourself or one of the senior employee is responsible for PDI. PDI must be done on every car before it is handed over to the customer. Also avoid driving the customer's car on road for any reason other than PDI. For example, skip outsourcing wheel alignment, tyre changing etc as a simple accident en route can cause huge loss and spoils the reputation of the garage.

7. Also please ensure all cars leaving the garage go through a quick and simple - 20point check list that starts from functional bulbs to brakes, oils etc. This way you know the condition of the car and also the customer can be kept informed about any possible issues that will arise in near future. Sometime such simple things can avert accidents and breakdowns too. I will prepare a simple checklist for you (printable A4 size) when you need it..

Thanks man, I am so grateful to you.

8. You dont need any big car for towing purposes - Towing is required rarely and almost any car can tow any other car easily. I have seen a M800 towing a TATA Winger without much fuss. Do not use any towing ropes, instead get a custom welded Iron rod of about 8 feet length, with "O" shape pieces welded at the corners and use CV joints from worn out drive shafts at the 6 or 7 inches before the end points.

9. Always have a old used car with only 2 seats in it (preferable Omni) with a simple repainting job (and your garage name on it) along with cargo holding space in the rear to haul those bulky gearboxes to & fro from junkyard, transporting lubricants etc. .

Yes, using iron rods could be useful.

My story of a lost opprtunity[/B]
12. Last month I got an offer, ZERO INVESTMENT 100% returns, monthly income of 40,000/- guaranteed. I know the chairman of an apartment owners association nearby my home, the apartment has nearly 200+ flats, each flat costs over 75lakhs easily, there are roughly 215 cars (50% are hatchbacks).

It was a contract for daily car wash for all the cars, the payment would be fixed - 80K per month and these are the conditions they had.

1. All cars to be cleaned everyday
2. Cars should not be driven/started by the cleaning persons/contractor
3. Nearly 93cars are of those are daytime office goers (most of them are managers and above) so 93cars have to be washed before 7.15am, the rest can be washed during the daytime as nearly 50cars are second cars in the family and the housewife/student drives them.
4. Water will be supplied free by the apartment
5. All other consumables to be bought by the contractor
6. They are looking for basic plain water + cloth cleaning - not shampoo and upholstery cleaning/dashboard polishing etc.

The issues with the setup
1. No electricity will be provided & no place for setting up pressure wash/ water compressor
2. Cars have to be cleaned wherever they are parked and cannot be driven to/fro anywhere even within the apartment
3. You are collecting keys from the owners (from their flats) - a big wastage of time collecting keys from every one’s door step.
4. The set up they will permit is 4 cleaners, 1 contractor, basic cleaning (non electrical) tools.

I requested for a space to clean cars using pressure wash and then permission to drive from the parking space to the cleaning area (both are within the apartment premises). But the association refused to both the requests, hence I dropped out of it. If I had taken that proposal, this would be the financial condition

One time Investment:
0/- security deposit (The chairman is my ex-boss and offered to skip the security deposit completely, as he would sign as assurance for me)
20K for pressure washing equipments

Monthly bills:
Consumables = 2000/-
Salary = 30K max (10K x 3 Nos)
Rental is zero as I dont need any space at all, so no advance, no monthly rent etc

Monthly Income:
Fixed bill: 82,500/-
Misellaneous = 5000/-

[Misellaneous = Margin from sales of car perfume, tissue papers, windshield wiper replacements, coolant top ups, distilled water top up for battery, jump starting dead cars, repainting wheel caps]

Cash in Hand on every month 1st is approx = 50K
I hate making someone work hard at odd hours with wet cloth and walking around in that huge apartment for just 10K/month. So without equipments and basic freedom I cant do that work. Within 2days of me walking away from the proposal, some contractor took over it and guess what he has employed 3 night shift security guards to do the washing and he is already in trouble with 20+complaints in less than 3weeks - about scratches on cars, salt water marks everyday on windshield, cleaners listening to music, smelly interiors due to wiping with cloth that is wet for hours and not dried properly etc.

May be you can start up something like this too. Most big apartments need such services.

So sad that you lost this business, but yes, it is better to skip something rather than doing it in un practical and unethical way.

As of now, i have copied all the details into a separate document and planning to consalidate everything. Loads and Loads of information.

BTW, Have you started a garage or something on your own?

 

[Octy_Vin]

I am planning to get some things one by one slowly. May be i am planning to get a OBD tool first. I have seen some VAG COM tool that can be used for VW group cars alone. I am sure about that. But is there any common OBD reader which can be used in almost all the cars?
Also I dont know whether we have common connector in all the cars.
Any idea / suggestions pls.