In today’s business scenario the smart investor will be the one, who gains on faster Return On investments (ROI). Bodyshop investors or dealership investors are also not different from this. Like any other business, the Faster ROI can be only achieved by investing wisely-which is a common mantra
To get a faster Return on Investment from Bodyshop or Collision Repair Business, there are certain logics required to be applied before investing. If not vigilant during investing the aftereffects will be huge revenue loss lead by poor production, poor quality, employee dissatisfaction, the high attrition rate of employees, and on the top of everything dissatisfied customers
Some of the questions as an investor you must ask yourself before finalizing on infrastructure:
- Does the size of the facility support the future business plan of the Bodyshop?
Before the selection of the facility, you need to have a business projection for at least 5-7 years. Else you will end up in adding unwanted expansion costs or do an over investment
- Does the facility have enough parking accessibility?
Only 1 thump rule applies here, the working bay to parking bay ratio is 1:2.5 to get the optimum output from any Body & Paint repair business
- What will be the average number of repairs per month?
Knowing this will enable you to plan the number of bays and the number of equipment or making provisions for future addition
- What would be the skill level of technicians available in the market?
Most important for selecting the equipment such as Crash Repair System/ Collision Repair System, Welding Equipment, etc
- What would be the repair mix?
The severity of the damages will vary depends on the location of your collision repair Centre or Body & Paint shop. The types of damages reporting to the Collision Repair Centre will vary depends on the location such as inside the city, outskirts of the city, or near to a high-speed motorway, etc
- When the Body & Paint Repair centre will run in its full capacity?
Understanding this will help you to schedule your investments. Currently, you have a load of 100 repairs per month and you are projecting 300 repairs per month in the 5th year of operation, you will have more flexibility during initial investing
- Which equipment supplier provides the best service?
Do not consider only the prices here. There is no point in investing in a piece of equipment which has not got adequate after-sales support
- How many suppliers are offering a subscription model?
Nowadays many equipment suppliers offer subscription models in various markets. You may do a feasibility study before finalizing it. This also will help you to minimize the initial investments
- Does the OEM offer a library system for any pricey equipment?
Please check with your OEM for this. Nowadays many OEMs have a library system for expensive diagnostic as well as Crash Repair Systems. If your OEM is providing similar options to the investor better use that to keep your investment in control initially and you can take a called as and when you progress
- Does the equipment supplier have an SLA with the OEM?
Always prefer to invest in OEM backed products that are proven more beneficial in long-running in terms of support and training.
In body & paint repair business or collision repair business, the major chunk of investment goes into infrastructure. At many occasions, we have seen that the dealers either do an over or an under-investment since they misconceive information from generic trade people. It is always better to consult subject matter experts before finalizing the investments. Any wrong decision in this will cause delayed Return on Investment or Loss.