How much does a mechanic shop traditional make?

[steppinthrax]

I was talking to a old guy in my area. He used to own a mech shop. He did brakes, engines you know general maintenance. He was telling me how right before closing his shop (2000's) he worked every day even weekends and worked like hell. At the end of that year he just broke even!!!!

My theory is these shops don't make an extraordinary amount of money due to the increased reliability of newer cars and less serviceable areas. He was telling me how the newer transmissions (which I already knew) were sealed. They lacked a dip stick etc..

Pretty much he was alluding to or inferring that cars today are getting smaller/cheaper and more reliable and places like Autozone/Advance Auto is making harder for a mechanic.

Maybe this is why some places charge extraordinary prices for simple work (welding a exhaust pipe etc..)...

 

[Zivic]

a good mechanic/shop should do fine. brakes and other wear items still need servicing. if you are talking exhaust work, that is getting more specialized/harder/more expensive due to emissions and what not.

as far as trans go, I have had a synchro put in 2006, but I am sure other vehicles simply swap out the trans, which likely still requires a shop.

what I can see is the biggest hurdle for a mechanic shop would be things like - reputation, wages, finding skilled workers, and input costs -> rent/lease costs, disposal fees, insurance, etc. these far more so than the types of cars on the road.

I use a friend of mine for my mechanical work. I would say from his perspective people just don't do actual maintenance anymore. People will literally run their brakes till the rotor is GONE. wont service wheel bearings or ball joints until the wheel actually falls off the car. They will not service a tranny until it is shot and needs replacement.... same with timing belts.. heck, people don't even check their oil anymore...

 

[Jimzz]

Sounds like he did not keep up with current tech/cars. Even cars that do not have dipsticks from the factory can be serviced. My Mercedes did not have one but I changed its fluid and filter. I also did the same for many GM trans like some that came in Cadillac's that had not dipstick or even dipstick tube.

If he owned his shop he needs people there to keep the bays full. If it was just him and/or the bays were not always moving then yea you can not do well. Its just like any other business.

When I ran my shop I had more work then I needed most weeks and charged what needed to be charged to cover overhead and make it worth my time.

 

[Meghan54]

Maybe this is why some places charge extraordinary prices for simple work (welding a exhaust pipe etc..)...

Dunno about how much welding an exhaust pipe costs in your area, but I had a muffler replaced (I brought the replacement with me to the muffler shop)....welded in....and it cost $40 last year.

 

[Brian Stirling]

I believe the hourly rate is about $80/hr so figure from there.


Brian

 

[manimal]

Depending on what state you live in and the regulations there the cost of doing business in automotive is somewhat high. There are lots of capital expenditures that takes years to recoup and the insurance costs have tripled in most states in the last decade.

The biggest issue for any auto shop owner is finding good people who you trust and develop. The best talent find a job at a dealer and stay there forever. The guys that bounce around do so for a reason. If you go the developmental route you end up training people and spending thousands on them and they get poached by a dealer.


never underestimate the cost of keeping the lights on...

 

[Zenmervolt]

The best talent find a job at a dealer and stay there forever.

While dealer guys are often good, they're not the "best talent."

The best guys work at high-end shops that also do real race prep and restoration (not "my buddy has an F-body that he races at the local drag strip" but rather, "we're currently restoring Alain Prost's 1980 McLaren M29 to run in this Spring's Historics").

Dealer techs are usually above average, but the best of the best, the real cream of the crop, aren't going to be found in a Ford or Chevy dealership.

ZV

 

[T2urtle]

With the DIY guys getting more common. Seems like everyone knows someone who can do it for half. And some cars getting harder to work on. Also throw in the customers not fixing things til it's really broken.

I can see many average shops shutting down. The good mechanics working out of home garages and taking customers.

Many of the shops are making millions. owners probably working 40-80hours and taking home $50k or less.

 

[steppinthrax]

While dealer guys are often good, they're not the "best talent."

The best guys work at high-end shops that also do real race prep and restoration (not "my buddy has an F-body that he races at the local drag strip" but rather, "we're currently restoring Alain Prost's 1980 McLaren M29 to run in this Spring's Historics").

Dealer techs are usually above average, but the best of the best, the real cream of the crop, aren't going to be found in a Ford or Chevy dealership.

ZV

I think the main advantage of the dealer is the "knowledge library" they have regarding "that" particular vehicle. Example, years ago I drove a Saturn SC2. Saturns had a real common transmission issue where the differential pin would punch out of the case. This was because the "oil grooves" cut into the pin were too small and there was lack of lubrication. Saturn updated their differential to include large oil grooves and a stronger dowel pin to hold it in place.

If you went to a normal shop they might just overhaul the transmission and replace the diff, not knowing they need to update it. Most likely if you walk into a dealership with this guy everyone there will know the issue and know how to fix it "properly".

 

[nerp]

It's hard to make money as a small time shop when you have to pay tens of thousands every year just so you can tap into the computers. If you don't keep up with the systems, you won't be able to diagnose newer cars.

 

[exar333]

I think the main advantage of the dealer is the "knowledge library" they have regarding "that" particular vehicle. Example, years ago I drove a Saturn SC2. Saturns had a real common transmission issue where the differential pin would punch out of the case. This was because the "oil grooves" cut into the pin were too small and there was lack of lubrication. Saturn updated their differential to include large oil grooves and a stronger dowel pin to hold it in place.

If you went to a normal shop they might just overhaul the transmission and replace the diff, not knowing they need to update it. Most likely if you walk into a dealership with this guy everyone there will know the issue and know how to fix it "properly".

I do agree with this, but this argument is actually why I like 'specialist shops' rather than dealers, if they are around.

For example, there are often VW/Audi shops or Subaru places that specialize in a specific company or geographical area (euro shop, japan, etc.) and often you have great mechanics who drive those cars and often enthusiasts as well. Its win/win.

Their rates might be a bit higher than a the cheapest indy mechanic, but often MUCH cheaper than a dealer. They have all the specialized equipment and know-how on the model you have and likely more expertise vs. the dealer (both the MN and NC place we took my wife's car were 1/2 dealer labor cost and ~ parts cost). I see less turnover there as well, so it gives you a great opportunity to build a relationship and trust too.

 

[Vdubchaos]

I work on cars enough to realize and accept that no amount of money would be enough for me to do this sort of work on daily basis.

NEVER

 

[pauldun170]

I was talking to a old guy in my area. He used to own a mech shop. He did brakes, engines you know general maintenance. He was telling me how right before closing his shop (2000's) he worked every day even weekends and worked like hell. At the end of that year he just broke even!!!!

My theory is these shops don't make an extraordinary amount of money due to the increased reliability of newer cars and less serviceable areas. He was telling me how the newer transmissions (which I already knew) were sealed. They lacked a dip stick etc..

Pretty much he was alluding to or inferring that cars today are getting smaller/cheaper and more reliable and places like Autozone/Advance Auto is making harder for a mechanic.

Maybe this is why some places charge extraordinary prices for simple work (welding a exhaust pipe etc..)...

I have a friends who own their own shop. I've seen the "behind the scenes" in a couple of shops in the area
One of them I've known for 20 years now.
He started off as a GM certified, Dealer mechanic then moved on to managing another guys shop to getting his own.
He spent a long time working tons of hours 6 days a week. He is a very good, HONEST mechanic. Just as important, he has good head on his shoulder for managing his finances (in other words, he spends his money wisely).
Its a small shop in a decrepit building (he rents) but he has lots of loyal customers and a few commercial clients. He also has had some good guys working with him from time to time.
Financially he does just fine. His kids will have college money. His house is just about paid off. He has a boat, motorcycle and a nice car. He has health insurance and savings.

Having spent plenty of time in his shop, talking to his mechanics and seeing what comes and goes in.
Cars still need work. Engines and transmission are not "sealed". They still get opened up and diagnosed. Electrical shorts still get diagnosed. All the crap that mechanics had to do years ago still takes place today.
The big difference now is that there are lots of tools that makes the job a LOT easier.
The systems a lot of shops use, software packages (Alldata being an example) to just being able to plug into the obd port to pull diagnostic info) counteracts a lot of complexity that modern cars have introduced.

The shops that I saw have trouble were run by guys who either made bad choices (location, specialties), didn't know who to "market" the shop and pull in business, were bad mechanics who got a rep or just plain drunken idiots.

 

[pauldun170]

Taking it to the dealership doesn't guarantee you anything. There is just as good a chance of an idiot working on your car at a dealership as an indy shop.

The benefit you get from the dealer is that you have guys who have seen trends and have the ability to get better manufacturer support in case of "oddities".
Won't help you much if some noob strips out your oil pan plug at the dealer or forgets to add oil after an oil change...or drops your car off the lift. there is just as much a chance of a dealer trying to screw you as an indy shop.
It will help you if a defect is found and you need to escalate it.

 

[pauldun170]

I think the main advantage of the dealer is the "knowledge library" they have regarding "that" particular vehicle. Example, years ago I drove a Saturn SC2. Saturns had a real common transmission issue where the differential pin would punch out of the case. This was because the "oil grooves" cut into the pin were too small and there was lack of lubrication. Saturn updated their differential to include large oil grooves and a stronger dowel pin to hold it in place.

If you went to a normal shop they might just overhaul the transmission and replace the diff, not knowing they need to update it. Most likely if you walk into a dealership with this guy everyone there will know the issue and know how to fix it "properly".

Year ago that would have been the case.
Nowadays, just about all the shops around here have all that info at their fingertips.
Load up alldata\mitchel\whatever
Look up the car, bring up symptoms or related areas
You get the troubleshooting walk-through, all the relevant bulletins, procedure to do the job and the estimated time to do it.

 

[Jimzz]

I have a friends who own their own shop. I've seen the "behind the scenes" in a couple of shops in the area
One of them I've known for 20 years now.
He started off as a GM certified, Dealer mechanic then moved on to managing another guys shop to getting his own.
He spent a long time working tons of hours 6 days a week. He is a very good, HONEST mechanic. Just as important, he has good head on his shoulder for managing his finances (in other words, he spends his money wisely).
Its a small shop in a decrepit building (he rents) but he has lots of loyal customers and a few commercial clients. He also has had some good guys working with him from time to time.
Financially he does just fine. His kids will have college money. His house is just about paid off. He has a boat, motorcycle and a nice car. He has health insurance and savings.

Having spent plenty of time in his shop, talking to his mechanics and seeing what comes and goes in.
Cars still need work. Engines and transmission are not "sealed". They still get opened up and diagnosed. Electrical shorts still get diagnosed. All the crap that mechanics had to do years ago still takes place today.
The big difference now is that there are lots of tools that makes the job a LOT easier.
The systems a lot of shops use, software packages (Alldata being an example) to just being able to plug into the obd port to pull diagnostic info) counteracts a lot of complexity that modern cars have introduced.

The shops that I saw have trouble were run by guys who either made bad choices (location, specialties), didn't know who to "market" the shop and pull in business, were bad mechanics who got a rep or just plain drunken idiots.

Very first shop I worked at the owner was a great tech but just AWFUL business person. He let his wife run the office/phone. She would turn the ringer off and take naps, got bored and ran up several hundred dollars in 900 calls, etc...

I learned a lot there though. Not only working on cars but also what not to do when running a auto repair business. When I put my own shingle up I had as much work as I can handle many weeks and did fine, and I was still in college at the time.

 

[slashbinslashbash]

There is definitely a difference between being a good mechanic and being a good business owner.

Also, the meaning of "not making much money" can vary by who you're talking to. If the shop has enough money coming in to keep the lights on, pay the rent, pay its techs a good salary, and pay its owner/head mechanic enough to make a middle-class living, there might not be a lot of bottom-line "profit" left over at the end of the day (since the owner draws a salary) but it is stable enough to be a going concern and to provide a comfortable living for everybody involved.

 

[Vdubchaos]

If you are honest and have morals, you won't make it in ANY business.

Especially as a mechanic.

 

[monkeydelmagico]

There is definitely a difference between being a good mechanic and being a good business owner.

.

+1. Translates to all forms of business. I've known plenty of talented people who try their hand at business ownership. Most fail.