Thinking about opening a speed shop...thoughts and ideas?
 

My friend's and I have been tossing around the idea of opening an import performance shop in our old hometown of Milford in Northeast PA. Over the past 4 years the Honda and import scene down there in general has exploded and continues to grow every day. I've seen everyone from 16 year old kids in their first old-school hatch, to office execs in their mid to late 20's running around in 10 second monster civics and integras. Even the hot chicks down there are pimpin' at least a 13 sec. eclipse or better. Yes, there is some rice in the area as well, but after seeing all that is going on down there, and the lack of a close shop at all (closest decent shop is in Middletown New York, about an hour away) we've been tossing this idea around. We have the contacts, we have the suppliers and machinists, hell...we even have the commercial lot 3 bay garage already rented out for other projects. A couple of other people want to see what happens and then decide if they want to jump in on it as well, but for the time being we want to start out small and test the waters. I know a few people have their own business designs goin who are here on HMT, and I just wanted to get some feedback on what people think. And most importantly, all you guys on HMT that have your own business's dealing with performace related and specialty parts will be #1 on my list of suppliers for those types of parts...such as stealthmode with your oil line kits and such, weir_racing with your sexy-ass adapter's and plates, and xenocron with your ecu chipping and such. I'm here to support the HMT scene as much as possible, and to hopefully make a couple bucks doing what i love to do the most. I'm not saying I'm the most experienced person out there to do this kind of work, but I do have quite a few years under my belt, as do my friends. So that being said, let me know what you guys think...and if you have any pointers and tips, please...fill me in :)

Re: Thinking about opening a speed shop...thoughts and ideas?
 

Opening an import performance shop is a perfect way to loose a ton of money.

Re: Thinking about opening a speed shop...thoughts and ideas?
 

first things first, get good insurance and alot of it. Especially if your going to tune peoples cars or have a dyno. I know people are going to say its their own fault they wanted their car turbocharged bla bla. They will still try to find ways to get you to pay for the damages :-X. Hope that helps alittle

Re: Thinking about opening a speed shop...thoughts and ideas?
 

an even better way to sum it up :l

Re: Thinking about opening a speed shop...thoughts and ideas?
 

It wouldn't be our full-time job until we see how things go. Like I said, we have the place, the tools, the lifts, hoists etc. We just want to see if it would be worth it, mostly because we really don't like the jobs we're at right now...and instead of bitching and moaning about it, we'd really like to do something about it to see. If things don't pan out, then we're still back to where we were...minus some dough for advertising and stuff.

Re: Thinking about opening a speed shop...thoughts and ideas?
 

I would probably start out selling parts, then get into installing and fixing things.

Re: Thinking about opening a speed shop...thoughts and ideas?
 

The one kid sells parts from his dad's garage as it is for dirt cheap plus a little profit for himself, we're more interested in doing the motor swaps and stuff for the kids around here that really don't know what they're doing and charge em a little for doing it. The average fool in that area dishes out at least $2500 to have an LS dropped into their civics just in labor alone...mounts and crap are usually extra :-X

Re: Thinking about opening a speed shop...thoughts and ideas?
 

Re: Thinking about opening a speed shop...thoughts and ideas?
 

---- it man, follow your dreams. If you want to open up a shop and have the necessary skills, tools and $$ then do it. I think it's always good to actually like the job your doing, it makes work fun, and if you don't do it then you will never know. Like you said if things don't work out, then your back to where you were, but at least you tried and if your good and enjoy the work and have trustworthy friends then it's a good chance that it might work out.

Re: Thinking about opening a speed shop...thoughts and ideas?
 

chances are if it like it is out here, if you can reliably turbo your honda yourself, then you pretty much know more then anyone around.

Re: Thinking about opening a speed shop...thoughts and ideas?
 

Alot of my friends opened up shops and said things like this when getting it going. When you say "average fool" who exactly are you talking about? Make a post on HMT, turbo d16, Honda-tech about doing an LS swap and charging $2500 in labor and you'll see the reality of the marketplace.

Re: Thinking about opening a speed shop...thoughts and ideas?
 

Start an online business first. Your overhead will thank you.

Most "speed" shops, actually make most of their money doing window tinting, installing alarms, or installing remote starters. The only true "speed" shops these days are the ones doing the type of swaps/mods that your average HMT member isn't even into. (EX: full drag cars, Race engine programs, extensive tuning, ect...)

Start online, and specialize in something. Don't be the average parts -----. It doesn't work.

Re: Thinking about opening a speed shop...thoughts and ideas?
 

or by doing basic repairs or non performance work as well, in the winter you'll want to be doing regular work just to keep above water

Re: Thinking about opening a speed shop...thoughts and ideas?
 

I do "Freelance" work here. A REAL speed shop. www.jandmmotorsports.com It takes a ton of cash to do things right and make a good go of it.Xenocron (Chris) has the best chance I have seen in a long time. Great ideas, diverse products (Gas, store, Tuning, Fab work, etc..)

Re: Thinking about opening a speed shop...thoughts and ideas?
 

I've tossed the same idea in my head for a while now too, actually been thinking about it for 5 years or so now. And what did i conclude? I opted against it.

Why?
People will swap a motor for 300 bucks. Make a post on HT for a swapper and you have 300 bucks.
Also, gotta build a rep and need to pay rent for a shop. Hard to pay someone 2k in labor when working outta a garage.

So I still say it's no good.

Re: Thinking about opening a speed shop...thoughts and ideas?
 

like stealth said, START ONLINE! thats what me and my buddy are doing. we have been running www.redlinemax.com (ignore the gay intro music, not my idea, LOL )since Feb/March and the rmoney coming in is good, but when you start at 0(no loans etc.) its always a hustle, but so far breaking even hasn't been an issue. I must say I'm pleased with the money and exposure we've gotten so far, we've done tons of local shows, sponsored one of NYs biggest Nissan meets, have a sponsored 11 sec race car which locally has pulled in tons of publicity. we also caught a lot of breaks and have had a lot of favors done as far as putting the site together and getting all types of parts deals and discounts. we were apporved for our lease and will be opening 3k sq ft shop in March in Odneton/Bowie of RT 197 near FT Meade(for the MD peeps).

but like everyone is saying, speedshops today are a dime a dozen...it is a MUST to find a niche, even if doing Hondas, find SOMETHING that sets you apart from the shop that is 2 doors down. above all just make sure you have the finance and time to put in. I've worked part time in the industry for 2 years before this and its nothing that I would try to support my family on or make it my main source of income, but you never know, put in enough time and make enough sacrafices and you might be able to. but IMO find a niche, don;t turn into the usual ricer shop!! its a HUGE risk above all, so make sure you have something to fall back on. I've seen plenty shops crash underneath themselves because of poor planning and spending thei money on "mad tite JDM goodies"

Re: Thinking about opening a speed shop...thoughts and ideas?
 

oh for your first purchase don't and don't spend $500 on those cheesay ass button up "team/mechanic" shirts that are slowly becoming a fad.... :3

Re: Thinking about opening a speed shop...thoughts and ideas?
 

WEll the key to this is skills. Very few last do to not standing out. The few shops I have seen last do performance work but are more based on your tyipcal tune up stuff t-belts/clutches etc. Thats where you will make your money not sellin a part here and there unless you do a huge buy in and create a huge rep for yourself. If you do both it will work and of course can do typical dealer work clean and fast.

Re: Thinking about opening a speed shop...thoughts and ideas?
 

I have seen every shop around here in NC go under except for one, and they were the first one open and do pretty good business because they have a fairly good rep.

Re: Thinking about opening a speed shop...thoughts and ideas?
 

Most of the people you are marketing to are poor, so not alot of money to be made...

Re: Thinking about opening a speed shop...thoughts and ideas?
 

Actually, not in that area. These kids have money, their parents have money, and they don't care. Like I said, the nearest shops are at least an hour+ away. The one shop does do good work, but they're too far for most of the people down there. The other shop is pretty much your typical "ricer" shop. As far as doing stuff on the side, I also install alarms, car stereos, remote starters and other moblie electronics. I'm MECP certified master installer and have the skills for that to keep things floating. But I don't want to be the typical "ricer/pep-boys" type of shop. I see way too many of those as it is these days. I spent a good 7 years working for an actual race team/shop myself working on everything from a track crx and integra, to vintage lotus 7's and ferrari GTO350's, all the way up to the older Lola Mk.8 indy cars and Porsche 962's. My experience with all these cars and then some has added to my own little projects, and even though they're different machines the principles are all the same. My thing with starting this shop is to try and offer an alternative...these people go out and spend huge amounts of money on the greddy and edelbrock turbo kits...I want to show them another alternative, and a way to make more power for their dollar. An online store is also something that I would like to have along with the shop, and also as a place to showcase some of our work. I appreciate all the input...it's good to know what another person's perspective is. :)

Re: Thinking about opening a speed shop...thoughts and ideas?
 

first off, i highly highly doubt you are MECP Master certified. being that there are less than 100 of them total, its a very far cry. im first class, and that was pretty tough ----.

If you are serious, youll want a place in a "good" location. some garage out back wont cut it. heavily traveled roads, with other places to eat/shop nearby are good. while it is in a "good" location, youll want to make sure you can afford rent, elcetricity, water, heat, air, telephone (more than 1 line) and any other utility you may need. then add in payroll, taxes, vendor certificate and other ---- so you can legally sell products.

If all that is go, the first and most difficult part to being succesful is reputation. 1 person tells 10 people if they have a bad experience through you. youll most deffinitely have to start out selling ---- pretty cheap to get it going. cheap mainly because i gaurantee people can purchase it off the internet cheaper. once people realize you are more than a computer monitor and actually enjoy their business, and you have better/great customer service, they start referring and be repeat customers themselves. Dont worry about selling ---- too cheap though, if you have tools and knowledge to do the labor part, youll make more money off of labor than anything else. why? simply put there is tons of profit in labor, even moreso if it is not youre product. customer service is KEY in successful businesses, especially private owner businesses.

Next, Have fun and enjoy the headaches of keeping product in stock. Go to best buy and look at there wall of installation accesories, now double that, and thats what youre likely to be up against. multiply that by 100 and thats the internet. do lots of "investigating" and see what vehicles are more popular in your area and stock more parts for those vehicles than most other vehicles. I sell around 23 or so 1988 and up GM wiring harnesses a day, so I stock around 110 of them, that way i do orders roughly once a week. just as a general idea of stocking. If you can hang around for a little bit (at least a year) youll get a good idea of what you sell a lot of and what you dont sell at all.

Demo's and displays are great to have especially if youre advertising your "quality" work. i know youre looking at doing more performance setups than anything else, so build a vehicle or 2 and at least one good display that is going to cater to everyone that walks through the door. If someone is looking at turbo setups, build one, study it and find several key ways in which it is the better alternative to the other guys equipment. show several key ways to prove your installers/mechanics are better than the next guy.

Warranty/refund work sucks ass. you dont make any money. customers are getting irritated, and chances are, when it starts to go downhill, it keeps getting worse until you finally bend over backwards to give them exactly what they want. youll want to make sure that whatever you are selling to that person is EXACTLY what they are looking for. go over the pros/cons of most everything you sell. if they want an alarm with all the bells and whistles, start low and work youre way up, according to their budgets and needs.

but......i digress. i could sit here for hours and type about this, as ive really really been researching, talking, working, and contemplating this idea myself. best advice i can give you, is be a vendor for tylenol or excedrin. youll have lots of headaches.

Re: Thinking about opening a speed shop...thoughts and ideas?
 

Make sure one of you has some business sense.

Seems like you are confident in your automotive knowledge, but the fact that you are asking this question proves your lack of business know-how. Someone needs to be working on cars, while someone is marketing, selling, and accounting for the money that travels through your shop.

Re: Thinking about opening a speed shop...thoughts and ideas?
 

i work at pep boys as a mechanic, we just had another mechanic that graduated from UTI lock up a motor in a tahoe. Pep boys has to eat the cost of the new motor and installation. A couple of weeks ago another genius i work with put 4 racks in a mercury, blaming the rack each time when he was putting the wrong fluid in it. Pep boys had to eat the installation and parts on that as well.
As well as many, many other fuckups.

But if its your dream i say go for it ;D

Re: Thinking about opening a speed shop...thoughts and ideas?
 

Well, to 1SloSC2...yes, I am MECP master certified...I used to work for Best Buy and worked my way up to head Tech Installer, and part of the process is you have to take MECP's. They only require you to take and pass the basic installer's test, but heck...they pay for it, so why not. Plus each step up is a raise there. And yes, the test is very long, very brutal, and takes forever to study for. College entrance exams and the SAT's were easier than that test. And I also know what you mean about the "100 gm wiring harnesses"...Best Buy...been there, done that. Fortunately in that area the closest Best Buy and Circuit City is still an hour and a half away. My automotive knowledge in that area is well known, and i've had quite a few people ask me when i was going to start something down there. I know business's are a hard deal...I've been running my own little electrical and painting business on the side now for a few years. Taxes and paperwork suck. Vendor's licenses is something completely knew to me, but that's what the one guy is for...he's a business major. I know if things do work out though that it'll take quite some time to even show a profit. Average these days is around 2 years I beleive before you break even. I just want to do something that i've always wanted to do, and maybe someday it can be something i do full time.

Re: Thinking about opening a speed shop...thoughts and ideas?
 

Hey man I say go for it to. As long as you know how to work on the cars, sounds like you do, and do the work right you'll have a good rep. Like someone before said that's most important. Someone has a bad experience they'll make sure everyone they know knows it. If it's good they might tell half as many, unless you're really good. I got a little business down here in GA doing lawn maintenance and landscaping. Only spent about 1000 in overhead and now I just pay for gas for the mower and truck. Having connections to get you business is key. For me, once I start cuttin someone's grass, I make sure they never wanna do it themselves again and they'll keep callin. that's my 2 cents

later and good luck

Re: Thinking about opening a speed shop...thoughts and ideas?
 

a speed shop would rock man, Me and my bro-inlaw and accordepicenter wanted to do that forever, but like whitey said, it's an easy way to loose a TON of money... Think it through, if you plan it right, you hopefully will be fine

Re: Thinking about opening a speed shop...thoughts and ideas?
 

good advice right there too...its like me, I can come up with all types of ideas and stuff liek that, but when it comes to putting them into action or a business plan, I draw a blank, but my buddy I work with can get ---- together without a problem. so yeah, a keen business sense and understanding can be just as important as knowing how to wrench on a car!