Looking into buying or opening your very own smog check station? Don’t take your first step until you watch this video, trust me, you’ll thank me later. What’s up guys Oscar Gomez, here from Master Automotive Training. I was recently asked, how much does a smog shop owner make a month? Followed by Is it worth opening your own smog shop? I have done the work for you, GO ahead and grab your tools guys, let’s get ready, let’s hit it!
Before I can tell you how much a shop owner makes, we need to see the normal operating costs of a smog shop so we can later deduct that from our sales to calculate our earnings as a shop owner. As an experienced past shop owner, I will be sharing this information from my personal experiences opening my own shops and coaching others to do the same. An average Star certified test only station will average a couple hundred cars a month. I know of stations that do more than 400+ cars a month, that's possible but I want to share a realistic numbers.
Let's start with a slower shop first. If the shop does a couple hundred inspections at the state average of $50.00 that would be a grand total of $12,000.00 a month!With a lease, plus your utilities, government fees, equipment rentals, and payroll if you will be hiring a technician, this would mean that from your $12,000.00 gross profit you will be left with a pretty big chunk for you free and clear. On a high car volume station with a lease, plus your utilities, government fees, equipment rentals, and payroll if you will be hiring a technician, this would mean that your gross profits will be near $18,000.00!
These numbers don’t include state licenses, payroll taxes, taxes in general, your CPA, marketing and some other items that are considered part of doing business. I like to point out that by simply working to add 5 more cars a day to your daily operation, you can increase your gross profits by 33%. Imagine simply talking to everyone you know about your business handing out a frew flyers or business cards as you go about your day brings in an extra 5 cars, bringing your entire business profits up by 33%, that's simply AMAZING!
I always recommend clients I coach to work their shops as owners operators for at least a year to put systems in place, then I help them structure that shop solid, before we begin to work on opening their second, third, or forth locations. Knowing the business from the technician side first then moving into the business side is best to better understand how your business functions from the ground up.
I wish you luck on your new smog shop, and hope you don’t stop and keep opening more and more! Did you learn something new from today's video? If so then make sure to subscribe to my YouTube channel, right now! Also, if you want my exclusive 5 tips on how to start your own smog shops,click my newsletter link down below, ITS FREE!
Now, I want to turn it over to you, which city are you going to open or buy your smog check station at? San Bernardino, LA, San Diego, San Jose, Oakland? Either way let me know by leaving a comment below right now. As always guys a good technician is always learning, signing off here, Oscar Gomez, smartautotraining.com
Looking into buying or opening your own smog check station?
Stop!
Don't take your first step until you watch this video.
Trust me.
You'll thank me later.
What's up guys?
Oscar Gomez here from Master Automotive Training.
I was recently asked, how much does a smog shop owner make a month?
Followed by, is it worth opening my own smog shop?
I've done the work for you.
Go ahead and grab your tools guys.
Let's get ready.
Let's hit it.
Before I can tell you how much a smog shop owner makes, we need to see the normal operating cost of a smog shop.
So you can later deduct that from your sales to calculate the earnings of an actual smog shop.
As an experienced past shop owner, I will be sharing information from my personal experiences, opening my own shops, and coaching others to do the same.
On average, a star certified test only station will average approximately 240 cars a month to about 360 cars a month.
I know of stations that do 400 plus cars a month.
That's very possible.
But I want to share a realistic number to show what the average shop and owner make.
So let's start with a slower shop first.
If the shop does 240 inspections a month, that averages to about 10 cars per day at a state average of $50 per inspection.
That would be a grand total of $12,000 a month pre-expenses.
With a lease on a lower end unit, plus your utilities, government fees, equipment rentals, payroll if you're hiring a technician, this would mean that from your $12,000 gross revenue, you will be left with $4,936 a month.
If you plan on being an owner and operator, you'll be left with $7,396 a month free and clear.
Because you're the owner and the technician.
Since we saw a low volume station, now let's take a look at a higher car volume station, but still within the average.
Saying that the shop does 15 cars a month, this would total 360 inspections a month at a state average of $50 per inspection.
Your grand total would be $18,000 a month.
Of course, that's pre-expenses.
So let's break it down.
With a lease on a higher end unit, plus your utilities, government fees, equipment rentals, payroll if you're hiring a technician, this would mean that from your $18,000 gross revenue, you'll be left with $8,974 a month.
If you plan on being an owner and operator, you'll be left with $11,974 a month free and clear.
So notice that by being owner and operator, your expenses drop and your profit increases and the only reason that happens is because you are taking the role of the actual technician.
So you are replacing your technician and of course you should be paying yourself as well, but that's a whole different story.
These numbers don't include state licenses, payroll taxes, taxes in general, your CPA, marketing, and some other items that are usually considered part of doing business in any business that you take on.
I always like to point out that by simply working to add 5 more cars to your daily operation, you can increase your gross profit by 33%.
Imagine simply talking to everyone you know about your business, handing out a few flyers or a few business cards as you go about your day, brings in an extra 5 cars a day.
This brings your entire business profit up by 33%.
That's amazing!
I always recommend clients I coach to work their shops as owner and operators for at least 1 year to put systems in place.
Then I help them structure the shop solid before we begin to work on opening their 2nd, 3rd, and sometimes even 4th location.
Knowing the business from the technician side first, then moving into the business side is best to better understand how your business functions from the ground up.
I wish you luck on your new smog shop and hope you don't stop and keep opening more and more.
Did you learn something new from today's video?
If so, make sure to subscribe to my YouTube channel right now.
Also, if you want my exclusive 5 tips on how to start your own smog shop, click on my newsletter link down below.
Guess what? It's free!
So now I want to turn it over to you.
What city are you going to open or buy your smog check station at?
San Bernardino? LA? San Diego? San Jose? Oakland?
Either way, let me know by leaving a comment right below right now.
As always guys, a good technician is always learning.
Signing off here, Oscar Gomez, SmartAutoTraining.com
