Start up and Avg profit on Replacments?!?!!?

[StarQuest]

Chris,

It's difficult to answer all your questions because so many different factors come into play. Market saturation is probably the most important! (if you look in the yellow book and see 3-5 pages of replacement companies I'd say your area is already saturated with replacement guys all willing to low ball to get the work. Many of these guys will replace shields for as little $125-$175 to make a $50-$75 profit.

Start up expenses would include garage keepers insurance (which is not cheap in any state) advertising, training, inventory, glass software (for billing and NAGS look up) and employer FICA and FUTA contributions. This is only scratching the service of expenses in replacement because the list does go on....like monthly vehicle maintenance, daily fuel cost, accidental damage too vehicles (which many times is not covered by insurance) ect....

You and only you has the ability to research your market area to figure out if going into the glass replacement business is a profitable choice.

Very first step I would take is to visit a local supplier like Pilkington, PPG or other and ask them all these questions. If you have never been in the glass business before, they will charge you anywhere from 2-3% over what they're charging already established replacement companies. So expect to pay between $75-$125 per shield and $8.00- $10 for a tube of urethane. Also, starting new, they will most likely require you to pay by cash, business check or credit card for first 6-12 months prior to extending you any type of credit.

I'd say you'll need at least $40,000_$50,000 in cash assets to start up a quality mobile replacement service. To provide both mobile and in shop services would require between $125,000-$150,000 in cash assets.

I'd like to also share my opinion that although door to door has been working for you in repair, I seriously doubt it would work with replacement! Been their and already tried that before! It just didn't work!!!

Not saying it will not work in your area but it didn't in mine.

Good Luck Chris....Feeling Lucky!

[StarQuest]

Chris,

I almost forgot to mention one other piece of information that would be critical to your start-up in replacement. (especially if you intend on providing insurance work)

In my area not one of the insurance networks will work with you if your company doesn't have at least 1-1 1/2 years prior experience in glass replacement. What that means, is you'll find it difficult to get authorization or approval for payment on many insured vehicles.

The customer does have the right to choose any glass shop to provide work but the networks also have the right to refuse any un-qualified or un-authorized shops for payment. In that situation, you would have to bill the customer direct collect from them and have them submit bill for reimbursement.

[Chris Williams (Trinsic)]

There we go! Thanks for the "gold." I will take these questions and start to find the answers. When we started doing replacements at the door and after I trained the tech how to do it... we would avg 2 replacements a day per tech. I've heard you need about 7-10 jobs a day per replacement tech.

Would you mind elaborating on your door to door adventure and why it didn't work? I understand people can do it for cheaper but thats just closing skills.

Once again thanks for the response!
It's time to roll the dice lol (the odds look good)
-Chris

[StarQuest]

Chris,

Door to door did provide some extra business but not enough to compensate for sales person expenses. I've found in my area people simply didn't like you knocking on their door! In your area it sounds like people don't have a problem with it. So just go for it!

I've done advertising with cable, local news paper, yellow book, direct mailers and other. When I did operate a full service glass and accessory shop I found the biggest bang for the buck was simply mailing out thank you cards with a $10 referral coupon. That worked the best for me and was the least expensive.

I have to admit when I see 2-3 glass shops closing their doors every month in this area ....I'd say your being very bold trying to break into this replacement market!

I do wish you well though!

Let us know how business is going along the way!

[autoglassrich]

Equalizer Tools in Texas,, you can get everything you need, just be carefull with them, some of the power tools can get you deep into the dash if you're not very experienced! Good luck to you! Rich

[autoglassrich]

Also, I hit up all the local Car Dealerships, it might take awhile, but that and all the constuction companies,, anyone with a fleet, will probably be receptive to your visit! Rich

[chanceany]

If you have solid chip repair base & want to start doing replacements, the best & practical way would to subcontract the work out. Find a small company, with 1-3 experienced employees or 1-2 different 1 man companies to do your work. They provide the vechicle, labor & tools, you provide the job & the glass. Pay them by the piece.

http://achanceofanything.blogspot.com/

[new2thebiz]

used van 3500.
tools 2000.
glass coast average 75.
cash job profit not much
isurance job 200. on up

[AGSS]

Originally Posted by StarQwest

Chris,

I almost forgot to mention one other piece of information that would be critical to your start-up in replacement. (especially if you intend on providing insurance work)

In my area not one of the insurance networks will work with you if your company doesn't have at least 1-1 1/2 years prior experience in glass replacement. What that means, is you'll find it difficult to get authorization or approval for payment on many insured vehicles.

The customer does have the right to choose any glass shop to provide work but the networks also have the right to refuse any un-qualified or un-authorized shops for payment. In that situation, you would have to bill the customer direct collect from them and have them submit bill for reimbursement.

I now understand that some networks are looking for 3 years in the business and Lynx now demands that you be AGRSS certified as well! did I mention another price cut?

Yep, more money out to do business and less money in! but atleast you will be agrss certified.

[AGN]

Door to door selling at various places has really worked for me. The only real downfall is that it seems like you can't really stop once you start. You have to keep going out there and getting more business.

I think face to face / door-to-door would be VERY effective if mixed with a good marketing campaign.

AGN