Can you afford to set up a bodyshop?
Page 101
If you've noticed an error in this article please click here to report it so we can fix it.
In order to help dealers generate more profits and encourage brand loyalty, Toyota's service marketing department provides paint and body repair facility layouts and the business management department weighs in with a business plan
• Professionally operated bodyshops are be major growth area in after-sales serlice, according to Toyota (GB), which has aunched an approved bodyshop scheme. Toyota says this growth trea is especially significant for dealers in view of extending service intervals, competition from specialist companies in parts and service, and the tightening of profit margins on new vehicles.
Additional areas of work can generate profits and a well-run paint and body repair facility can be a great profit area, it says, Therefore it encouraging its dealers to invest in their own paint and body repair facility.
Where, through local conditions, a dealer is unable to develop in-house facilities, he is required to nominate a sub-let repairer, who has to undergo an annual inspection and reappraisal by the dealer.
Since setting up a new paint and body repair facility needs considerable investment, usually funded with borrowed capital, to provide the required data the company is offering free the service of its business management department, which will if necessary assist with producing a business plan — development budget, cash-flow forecast, profit plan and related financial statistics.
How much will it cost? A typical Toyota approved paint and body repair facility needs a building of approximately 460m` (5,000sq ft) incorporating six bays plus equipment. The company's summary of approximate costs is: Building 460m2 (5,000sq ft) of built area at 2236. 8m2 (222 per sq ft) = 110,000 Equipment Low-bake oven 18,000 Measuring jig 7,500 Paint-mixing scheme free of charge Two-post hoist (Bradbury 20 series with wide-spaced columns) 2,800 Wheel-alignment equipment 1,000 Welding equipment (spot, MIG, gas) 1,500 Air compressor (screw type) complete 4,950 Hot-water wash 1,300 Space heater 4,000 General small equipment 10,000 51,050 Operating costs In addition to investment equipment and other assets, there must be budgeting for staff wages, salaries, power, rates, advertising, printing and sundry other operating costs during the start-up period, says the company. These vary in different parts of the country, but must be included in the business plan.
The design work, up to producing a budget estimate and local authority planning approval, is financed by Toyota GB. Typical design layouts are available from the service marketing department. Membership of the Vehicle Builders and Repairers Association is not obligatory, but is strongly recommended.