Currently it seems as if overnight the market grew many fine washing shops, small * shops, O2O concept store, and etc. One is more luxury than another. Usually before the opening, luxury cars, beauties as well as the TV broadcasting studios comes. They pour generous investment. However, I personally worry a lot: this is just like when a decade ago a lot of the quick-repair shops sprung like mushrooms, and then fell closed in great numbers. Some concerns are as follows. Let’s discuss and explore:
1: Is car washing really that profitable? Fine-wash a car, RMB 50; let’s do 80 vehicles a day (this is rather good).Just imagine we can wash cars 250 days per year in accordance, that’s RMB 1 million a year. Plus other income, it will still be no more than RMB 1.3 million. So, the gross profit is RMB 1 million. 2: Now what is not expensive nowadays? Equipment is expensive——even if it is quite cheap, it should be not less than RMB 100,000 totally, right? Decoration is expensive, and anyhow it should be at least RMB 200,000; the initial fee is also expensive, anyhow it should be at least RMB 100,000 (sometimes it’s RMB 300,000); the rent is also expensive: normally it should be 200,000-300,000; staff cost is also high: RMB 300 000 for 8 staff. Office and operating expenses, etc, at least RMB 200 000. Still many expense names haven’t been carefully included and enumerated, However, I would like to ask, is there any profit left?
3: Risk: The lessee is at high risk, because the homeowners may take the house back. Now the storefronts’ rent period is generally five years at the most. Employees make you risky, because now the employees are hard to find due to young man unwilling to endure hardship. After all, car Washing demands heavy manual labor.
In summary, the following recommendations are given to you before you get down to business,
1: Try not to join the franchise chains. If you have to, then join the lowest level, because nowadays customers seldom notice which brand it is, as long as you make it clean and tidy.
2: Enough equipment is ok with stable quality. Simple decoration and fitment (clean and tidy is ok) will also do. Remember, never let the sewage overflow.
3: The overall investment is supposed to be not more than RMB 500,000. If the rent is too high, you must pay attention to the risk.
Now actually the “generous” investors are the ones out of the “Fortress Besieged”, where the insiders urge to come out. So I suggest that if you really have enough money to invest, to build an all-direction and integrative auto repair workshop is much less riskier than the quick service shops. There can be a lot of repair shop business, some of which doesn’t require high technology, such as the gradual release of car sales. The planning and solutions we supply can meet the one-stop service, covering quick repair, fine-washing, car sales and any other functions. As the development of society goes, technologies and ideas are always changing rapidly, and thus our designs are also walking in the front——auto repair workshops nowadays are from “none” to “luxury”, from “luxury” to “exquisite”, and from “exquisite” to “all-direction”. Currently our designs and solutions for auto repair workshops include the below content.
Automotive Beauty & Cleaning: low profit. The aim is to accumulate the resource of car owners/clients.
Car Supermarkets: low profit. The aim is to accumulate the resources of the non-car-owning people and the insurance applicants. Auto quick repair and maintenance: low profit. The aim is to maintain the customer resource.
Auto repair: the aim is to create real profit, so you must have strong technology.
Automotive sheet metal renovation & paint: the aim is also to create real profit, but you must have done a very good job in all the former working procedures.
From these relations, you may get to know car washing and supermarkets are only used to make low profit for survival. As a matter of fact, the main purpose is the accumulation of customer resources for the subsequent repair work.
On-site scenes of our customer
Drawings of our design package
Because the planning for an auto repair workshop requires a lot of time and intellectual work, we propose to charge RMB 4000 for it. I hope you can understand. (Please notice: this fee can be regarded as a part of advance payment whereafter). We will go to check the place and present the ideas within two days, and meantime we provide the correspondent planning/designs and solutions. After our planning and solutions are accomplished, equipment purchase is still in accordance with the customer's own wishes and ideas. That we can make planning does not mean that our equipment is very expensive. Of course, if you buy our equipment, later you will find it is very sensible, because our equipment solutions are always reasonable and balanced on the whole with more steady quality assurance. As you know, business is not easy nowadays, so supplying workshop planning and solutions is our own auxiliary way to enhance the competitiveness of our company only.
During the past years, Shanghai Hengchen has designed and equipped lots of repair workshops across China, including: Jinxiang, Hanzhong, Bazhou, Shangcheng, Zhuji, Guiyang, etc, and our customers are very satisfied with our equipment and service. Meantime we have received a lot of customers from Burma, Pakistan, Kenya, Nigeria, Libya, Mozambique and other countries regarding ENTIRE WORKSHOP EQUIPMENT AND DESIGN SOLUTIONS. After we completed our business, they were always giving a thumbs-up, and we felt very pleased.
Equipment selection (omitted)
Foundation drawings, circuit drawings, air pipeline drawings, water pipeline drawings(omitted)