Lube Shop Set Up? Just a couple questions

[diverdan83]

I'm new to the forum and new to the business. Are there any other business owners out there who set up shop in Lube Shops (ie Kwik Kar)? That's the way I'm headed and it really seems like the only way to go.

You see 40-80 cars a day, close at 15-20%, and have the potential to pull in $8,000-$15,000 a month... per shop.
The only overhead besides forms, fax line, and resin, is paying a monthly fee to the lubeshop owner and general liability insurance.

After spending all morning in this forum reading however, i feel like I'm the only one... and there are a few variables that I haven't considered... and maybe you guys can help guide me in the right direction...

1. I've read about some of you "applying" with lynx and other companies... Is that just to be a prefered shop? When I called, they told me all i needed to do was register online, call in the claims, and wait for a check. With everyone using networks for collecting, I feel like I'm missing part of the process... Am I? Anyone feel like mapping it out for me?

2. If I call in the claim with the customer, do I have to fax invoices in? If so, is it better to fax them in one at a time as you get them, or save a weeks worth and fax them all in at once?

3a. Is there somewhere that I can find a list of all of the insurance companies who waive deductibles for auto glass repair?
3b. Is there a list of EDI companies and who they bill for? (I.E. EDI Safelite bills for Nationwide, USAA, Progressive, etc. Lynx bills for... and so on)

4.Is it pretty much the industry standard to only reimburse customers, who's windshield I've broken (Hopefully not many), the amount paid by their insurance company? I feel like, if I sell them the repair and then crack out their windshield, I should buy them a new windshield... Or no?

Thanks for reading and thanks in advance for any help or recommendations!

[usmc68]

Don't wan't to burst any bubbles, but all lube places have been contacted by WSR manufactures for in house repairs. They have all tried it, and most have quit, because of the quality of the repairs of their employees.Minimum pay, don't care. think about it.
If you even think about that much money, they will not allow it to you. Plus your rent.

[diverdan83]

You strike me as a "Well, that's the way I've always done it and I'm not gonna change" type of guy. It takes more than that to burst my bubble, sir. I've seen it work. I worked for a guy who's company is in about 30 lube shops in my area and easily clears 7 figures doing it. Yes, that's right... 7 figures. I'm not worried it being possible. I'm more concerned with the insurance claims process and making sure I get paid in a timely manner... Feel free to chime in about that at any time.

And you are right about one thing. Most lube shops have been contacted by WSR Manufacturers and bought into the idea. The problem with that, is 99% of them bought a bridge, some resin, and a couple extra o-rings, and tossed them in a drawer somewhere to be forgotten about. Every lube shop I've spoken with has had the same response. "Well, we have the equipment to do it but, we never really do." They have the location and the traffic but, they all fail to realize the potential. If you were a lube shop owner and I told you that you could add an extra $100,000 gross annual income to your business, simply by hiring a repair tech, spending $500 bucks on a kit, doing some extra paperwork, AND there is very little overhead cost, AND, short of replacing a crackout every now and then, almost ZERO liability... I'm pretty sure you would jump at it. Well, instead of telling them all of that, I simply told them that I would pay them $30,000 a year, just to stay out of their way. Hook, Line, Sinker... I start Monday. I could dig a little deeper with details but I'm not here to build you a new business plan. I'm here looking for help.

Save the negativity Devil Dog. Send something constuctive, pertaining to my questions, and helpful, and I'm all ears. Beyond that, I don't have the time.

[usmc68]

Good luck to you, Sir.
Please post again in a year and let us know how you did. I learned many, many years ago to never believe one of us who brags about his income.
I do wish you well in this economy.

[diverdan83]

Bragging about my income? At this point I don't have an income. I'm just young, ambitious, and hopeful. After you told me it couldn't be done, I refered to a former employer who has done it. I was really just trying to prove a point to shut you up. I made the initial post because i was looking for help... which I still haven't gotten, and that's fine. But the last thing I need to see, is some yahoo nay-sayer hop on here out of boredom, and shoot nothing but negativity at me through his keyboard...

[usmc68]

Lose the chip on your shoulder, young man, and reread my last post. I wished you well and no where did I question your income, integrity, or any thing else. I expressed almost 21 years of experience, that's all. You are being the negative yahoo, but I still wish you well.
Let's just drop it. You need to go read all the positive responces you've gotten.

[diverdan83]

What positive responses? I'd love to read them. How do I do that?

[t4k]

You need to go read all the positive responces you've gotten.

Do I detect a note of sarcasm??

[usmc68]

Wink, wink.
Were we not all bright eyed newbies once? I was in 89, broke, gonna save my butt!
Dealers, retail, fleets,oil change, insurance, dealers .Made money,lost money.
Newbie will learn if his 'friend' didn't provide his tax return, his info is worthless without it. There fore, no facts to post.

They lie about income to rope in new people.
No problem here.
Good luck non experienced Newbie.
Again, bye bye.
Gone

[diverdan83]

I can't believe i keep getting sucked into this arbitrary argument... Guess I'll either prove you wrong or fail. Either way, I'm sure neither of us will lose sleep. I love my haters...