Quote:
Originally Posted by Tcoat
OK some rough numbers (very rough I didn't get quotes):
A 10 bay facility fully equipped, with ample parking in a neighbourhood that people will come to = $10K a month lease/payment ($120K year)
Liability insurance of $20 million a year (may not be enough in the sue happy U.S.) = $10K a month ($120K a year)
Building maintenance, tool replacement and equipment repair $20K a year
Four staff (may need more) wages, benefits, comp insurance costs, employment costs = $200K a year (If using skilled techs this could double)
Utilities, grounds upkeep = $10k a year
Business fees and taxes = $20 a year
Total expenses $490K a year (This is conservative with rough numbers provided by my plant Comptroller)
Rental at $20 an hour if all booths filled for 8 hours a day for 300 days = $480K
Soooo, unless you can cut some costs you are going to lose your shirt.
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I will match your rough style with a very rough style of my own!
Well I think $10k/mo is a non-starter for this type of enterprise period. I'm looking at a facility where I could get 5 bays for ~2k/mo. Liability and other various business insurances for adequate coverage would probably be the same amount/mo as per commented on by the owner of a shop like this "Insurance is almost as much as the rent, if not the same" and his shop isn't exactly on Rodeo Drive.
Rent + insurances = $4k/mo 48k/year
Tool replacement and repair most likely $10k, maybe even less depending on what get's stolen.
Rental @ 20/hr is way to low.
For market rates in this area it's be $40/hr.. maybe $35 but since this would not be a "bring your own tool" type of shop it starts at $40. Special tools, welder, tire machine, assistance form a Pro... all extra. Estimated Average Revenue per billable hour would be ~$50. You take all profits and divide by hours billed. That way your ARPU incorporates upsell items like assisted service, special tool rental, vending machine sales, product sales, etc etc. ARPU may actually be higher than $50.
Assume 5 bays at 25% occupancy with 10hrs open per day @ 7 days a week.
350 hrs/week -75% = 87.5hr * $50 = $4375/week = 227,500/year.
227,500 -
rent/ins 48,000-
loss/repair 10,000-
2 employees 90,000-
Misc and Tax 15,000
Initial tax burden will be low due to initial capex and using a 10 year linear depreciation of the expensive bits.
$64,500. Not rad, but that's at 25% operational efficiency and it doesn't take into account the money from the full-service bay at all which could be another $50k/year all on it's own.