Posted to Shop Management Forum on 11/15/2015
Re: Shop Owners Ready To Bail?
The part that blew me away is that 56% were considering
exiting their business within the next 4 years. Or should I
say only 44% were considering staying? They failed to
mention the age group of the respondents. I'd bet the
majority of them were baby boomers.
According to the article (if you do the math) since 2005,
independent shops have dropped 3.5% in number and the number
of technicians working in them have dropped 2.5% while
during the same time, dealership PARTS & service sales have
grown 48%. I can't help but think a lot of that growth is
more in parts than in service.
It's very common nowadays for shop owners to not be making
money and then take out a mortgage on their home to keep the
shop going or some other creative form of financing. Some
shop owners are retiring in debt. How many phone calls a
week do you get with offers for business loans? I call them
"Uncle Guido Loans".
It's the mafia's new way to loan shark. 40%+ interest rate
and they file a UCC-1 on your shop.
Check out https://www.ondeck.com/business-loans/term/
Technical Information Specialist/Technician
Draper, Utah, USA