Session 3 - Dave\'s Auto Repair PDF

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Download Session 3 - Dave's Auto Repair PDF

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DAVE’S AUTO REPAIR: HOME-BASED OR A LITTLE BIGGER

Business Description: Dave has been an automobile mechanic for fifteen years. He started his training in a commercial garage as a teenager. By the time he became a certified mechanic (in his early 20’s), he had a following of steady customers who always asked specifically for Dave to work on their cars. They liked how he would explain what was needed and how he would do only what had to be done. He didn’t charge less, but his clients didn’t care because he gave them the impression that they were getting “fair value” for what they were charged. As a twenty-three year mechanic, Dave decided he could make more money working for himself. Over the years, he had collected most of the tools that he would need, so he knew his initial setup costs wouldn’t be too high. He already had a large garage at his home. When he left the commercial garage, he told his clients where he was going and asked them to remember him when their vehicles needed service. Over the next ten years, business was excellent. Dave initially did some advertising, but only at local community clubs and grocery-store billboards. His house was located in the middle of a residential block in a quiet area of the city that he lived in, so he believed that any type of “curbside” advertising would never be noticed. Plus, he didn’t want to irritate his neighbours by reminding them how most of the traffic on their street was coming to his house. In the beginning, business was slow. It was based on a combination of clients who followed him from the commercial garage plus a few people who saw his business card on the local Safeway billboard. But his reputation kept bringing more clients. Eventually, the business had grown to the extent that a client had to wait almost a week to get into Dave’s garage, but they were willing to wait. Although Dave was busy, he knew more money could be made on big jobs (ie: engine rebuilding and replacement) rather than small jobs. But he would need a much larger garage so he could do two or three jobs at one time. Plus, with all of the traffic around his little garage six days a week, he was concerned that unhappy neighbours might push to have his zoning revoked. Dave had been made aware of a four-bay garage that was available for lease and/or purchase. It is twenty minutes away from his present location on a quiet gravel road north of one of the suburbs of the city he presently lives in. It also has a house on the property. From a financial perspective, he thinks there’s enough business to cover the costs, but he knows that assumption would depend on maintaining his existing client base.

Dave’s Marketing Concerns (if he moves to the new location):  Will my clients follow me to the new location?  Will my suppliers charge me a premium for delivering parts to the new location?  Am I busy because of who I am (my reputation), or where I am (ie: conveniently-located)?  Should I focus on cars and SUV’s (residential) or big trucks (commercial clients)?  Are my prices too low or too high in the new territory to draw clients?  How do I tell my new territory that I exist? There are no local community clubs or stores; everybody on the outskirts of that suburb drives to the city for work and shopping.  What if my business shrinks? How do I promote myself?  What if the business does too well? Should I hire a second mechanic or stay small?...