Thinking about opening a different kind of shop?

[Arkyhunter46]

I am considering opening a different kind of repair shop in my area and wanted some feedback. The lake I want to service at has well over 8000 boats with a large number of wide body houseboats. Many of the owners are from out of state or out of town and only visit the lake during a few weeks in the summer. They almost always get to the lake to find numerous problems with their boat and end up with a frustrating boating experience.
I am thinking about offering small number of owners (25-35) a yearly maintenance plan that covers the basics like oil changes, winterization/summerization, impeller service, battery water level, ect., but also includes going to their boat every month and performing a complete checklist of things that include starting engines/generators, electrical tests, head system operation, steering, thruster, and HVAC system check. I would make minor repairs as needed and schedule major repairs with the customer before they fail at the lake. I would also ONLY service customers on my list. This would ensure a quick response to their needs when they do have an unforeseen failure instead of waiting for two to three weeks during peak season.
I have over twenty years experience in the marine repair industry and a degree in business to support this effort. I am certified in Mercruiser, Yamaha and OMC/BPR as well as Westerbeke Gensets. What I am wondering is what your thoughts are on this idea. I'd love to hear from shop owners as well as houseboat owners. Prices will be similar to the annual expense most owners would pay already during the year and any work preformed besides the routine maintenance would be billed separate.

Thank you for your responses, Arkyhunter46

 

[pckeen]

Re: Thinking about opening a different kind of shop?

If you are planning on starting up a business (buying a shop, buying equipment, having a physical store front), then you are looking at a significant upfront investment, and the risk associated with it. If you already have the infrastructure, equipment, etc., and plan to do most of the work onsite, then it strikes me you can do this with little upfront risk. The worst that happens is you don't get clients and are out advertising money. Be aware that many (most?) boaters will have relationships with established businesses, so it may take you a while to get established.

Good luck!

 

[Arkyhunter46]

Re: Thinking about opening a different kind of shop?

I have all the equipment and a shop to work out of when the need arises but i think most all of these repairs will be done on site. I will be targeting houseboat owners who are not local. The lake I am on has one repair shop that does really good work but are overwhelmed in the summer months. My biggest question is if this type of service is marketable. I owned a repair shop on the lake in the 90's and did very well. We closed because of a divorce and I have been pondering getting back into the game for a while now. I do not want to run a conventional shop like before. The hassle of finding techs that are any good is not in the cards this time. I want to do all the work myself with one helper during the summer.

 

[calvinator]

Re: Thinking about opening a different kind of shop?

Couple of thoughts.... I opened a "shared time" Human Resources and IT firm years ago. I performed HR and IT "monthly maintenance" items like you were thinking of.

I did get some clients, but most did not want to commit to paying monthly for services. Even the ones that did pay, they waned over time because nothing was breaking (I was doing my job) and thought their great running IT systems were business as usual.

Over time I changed the model --- here is what I'm thinking. You might get some takers for monthly maintenance, test the waters.

But also offer a "concierge service". For example, when these boaters are planning their trip, they call you to show up a few weeks before and get the systems running. They can also pay you to be on standby during their vacation if something does break. This model works great and I bet you can charge more for your just in time services.

Make sure you are easy to find and you have a menu of services that are easy to understand. People need to find you on Facebook and Twitter. Once they find you there, they will follow you and call when needed (Facebook and Twitter have this follow feature built in, so no work on your part).

I can't emphasize your menu of services needs to be easy to understand. My marina has a three page service menu that is impossible to navigate... so many if...then... logic on there I have to figure out.

Lastly, make sure all the fuel dock, boat hauler people know who you are for referrals !

Go for it !

 

[Bondo]

Re: Thinking about opening a different kind of shop?

Ayuh,... Welcome Aboard,.... I'd think that all these houseboats are moored or docked,..??

Could there be a conflict, 'tween the Marinas that own the moorin's, 'n docks, with You doin' work, they could be doin',..??

Otherwise, it sounds alot like the cottage service folks 'round here,...
Owners come to their cottages once a year for a couple weeks, 'n the cottage is Ready to live in, 'n not work on,,...
lights on, water on, docks in, No hassles,...

 

[Arkyhunter46]

Re: Thinking about opening a different kind of shop?

Thanks for the input! I like the idea of the concierge service as well. Great point. The boats are docked at several marinas on the lake. It is a corp of engineers lake so the only requirements are 1million in liability which is no problem. I have discussed this with several marina managers and they seem to like the idea. They would rather see a conventional shop at their resort for 14% of gross but that's not going to happen again. I have put out questionnaires to possible customers and the response has been positive. I am concerned about the waning customer when he has a few years of hassle free boating because I am doing my job. It's a difficult decision to make because this type of service has not been practiced in this area. I have a large customer base that has followed me over the years and I am sure many would sign up. I plan on doing this in late March or early April. Thanks again for the input.

 

[Bondo]

Re: Thinking about opening a different kind of shop?

Thanks for the input! I like the idea of the concierge service as well. Great point. The boats are docked at several marinas on the lake. It is a corp of engineers lake so the only requirements are 1million in liability which is no problem. I have discussed this with several marina managers and they seem to like the idea. They would rather see a conventional shop at their resort for 14% of gross but that's not going to happen again. I have put out questionnaires to possible customers and the response has been positive. I am concerned about the waning customer when he has a few years of hassle free boating because I am doing my job. It's a difficult decision to make because this type of service has not been practiced in this area. I have a large customer base that has followed me over the years and I am sure many would sign up. I plan on doing this in late March or early April. Thanks again for the input.

Ayuh,.... Interestin' business plan,.... I see gettin' agreements with the Marinas as the hinge pin of it though,...

14% sounds high, but I'm guessin' yer gonna have to cut 'em in at some percentage,...

 

[crabby captain john]

Re: Thinking about opening a different kind of shop?

"concierge service" ~~~ in a resort area these are not uncommon for owners of 2nd homes. They offer the monthly service you describe but also receive fax with grocery and booze orders. You go and set the temp or AC, stock the fridge, check the place out the day prior to arrival.

 

[Arkyhunter46]

Re: Thinking about opening a different kind of shop?

14% is the standard on this lake if the shop is located at the marina. I did this for years and believe me, it was difficult at best. As long as the shop is not on Corp property there is no fee from the marinas. A local lawsuit eliminated this fee. The only requirement now is proof of insurance.

 

[JASinIL2006]

Re: Thinking about opening a different kind of shop?

Similar situation for us: we have a cabin up in Ontario that is only accessible by boat. I would happily pay someone to open the cabin, get the boat out of storage, put the motor on and have it waiting for me each year. If I could just go up there and enjoy my stuff, instead of working like a dog for half a day just to get things opened and set up, I'd be a happier vacationer.

I imagine a lot of boat owners would also love such a concierge system. It all comes down to cost, though, to the boater. If you can find a price point that makes boaters feel like their money is well spent, and you can still make a profit, it ought to work.

You don't live in Northern Ontario, do you?

Jim

 

[JimS123]

Re: Thinking about opening a different kind of shop?

A friend of mine (my own personal mechanic) does this. He is swamped with business and now won't accept new customers. That's the good thing. The bad thing is he has no life and really isn't getting rich.

For many months of the year, when the snow is flying, he has no business. At first he had a shop to do Winter work, but with everyone watching football, there is little business then. In the Summer, when his kids are off, he has to give up sales to take a vacation.

Liability insurance goes without saying. But based on my own personal business experience, you better have "Errors and Omissions" insurance as well. No matter how good you are, and even if you never make a mistake, there will be those cases where the motor won't run in the Spring and your winterization will be blamed for it.

 

[Arkyhunter46]

Re: Thinking about opening a different kind of shop?

I am located in Arkansas. We do not pull boats for winterization. It is a year round lake. We winterize the engines, gen and water system. I will be performing routine maintenance as stated above that includes impellers, oil changes, tune ups, ect. When needed I will schedule pulls with a local transport to perform large jobs, including engine replacements if necessary. Although I think in the last 20 years or so I have replaced maybe one engine in a houseboat, several hundred in ski boats. I do have a person, a retired tech, that can work should I get sick. Our season runs March thru November and I would do most pulls during the off months. The boats I am looking for are newer wide body houseboats equipped with Mercruiser engines from 3.0-350mags, Westerbeke gensets, raritan heads. The idea is to save these customers the headaches accompanied from a conventional shop where service is just a word on the wall. The list of things I will be able to do will be complete and understandable and explained in detail before a customer signs a contract. I will offer to locate qualified techs for services I do not perform and give the customer the option of using them. This will include HVAC, electricians, carpentry, hot tub repair, and fiberglass repair. Other than that I am more than qualified and capable of taking on any other repair. My wife is a cpa and will handle all the office work. This is not something I am doing on a whim, I have been planning this for over two years. I have all the specialty tools needed and the drive to get the work done. 35 customers/houseboats will be the max I will be able to service and still maintain a high level of service. Any more than that I feel would be detrimental to the customer. During peak season I will be like every other good technician; I will be running ragged. During the off season and semi-busy season I should be able to get three boats per day done with no problems.

 

[Arkyhunter46]

Re: Thinking about opening a different kind of shop?

" The bad thing is he has no life and really isn't getting rich."

If I wanted to be rich i wouldn't be a marine technician!!!

 

[JoLin]

Re: Thinking about opening a different kind of shop?

But also offer a "concierge service". For example, when these boaters are planning their trip, they call you to show up a few weeks before and get the systems running. They can also pay you to be on standby during their vacation if something does break. This model works great and I bet you can charge more for your just in time services.

I applaud the OP's ambition. We need people who will honestly help us maintain our boats. My first thought is that the concierge service might result in his being overlaoded as badly as the shop(s) he plans to compete with. Summer holiday weeks are the same everywhere, and everyone wants their boat serviced and ready to go at the same time. Or maybe not- I'm throwing this out for consideration.

I really hope you find a workable plan.

 

[Fun Times]

Just a thought!

Just a thought!

To try to help avoid conflict, you'll want to be up front with all the owners with your plans by providing them all with some sort of an detailed list of your planned scheduled time frames for each individual boat you are working on for the day. That may help them all help you by not bombarding you with last second requests while they're planning their trips out. A calendared list will let them know when their boat was last inspected or serviced. Then as a courtesy to you, a general phone call, text or email to you from them at their convenience letting you know they may be coming up sometime soon, while at the same time double checking that your still on schedule with their boat. That should help you be ready to be on stand by if needed and maybe allow some time for a quick triple check.

 

[Arkyhunter46]

Re: Thinking about opening a different kind of shop?

"From all you have said you want to compete against full service and fully equipped shops by skimming off the cream and leave the tough work to traditional shops that will view you as a competitor when you call on them. I will tell you that if I were your competitor I would do all I could to drive you out of business, not help you stay in it."

Actually, I am not skimming the cream and leaving the tough work. I am planning to offer the same services a conventional shop offers and more. By limiting my customer base I can do a better job for my customers by seeking out problems before they happen and perform maintenance before breakage. If skimming off the cream is doing a thorough job instead of rushing the boat out the door then I will be skimming away.

This concept should get competitors attention. That is the whole idea. If the industry as a whole gave service the attention it needed I would not be able to even think about this venture. Unfortunately it does not. It is not uncommon for a customer to wait weeks for even simple repairs due to the volume of business at a given shop. Shops that do quality work can see the wait even longer and customers really have no choice in the matter. The reality of this industry is there are only a handful of techs that can actually perform quality work and thousands of parts changers. I have hired techs right out of marine schools that insist on plugging every engine up to a computer because they cannot diagnose without one. For every decent shop out there there are 5 shade tree shops making things worse for an already struggling industry.

I would rather have 35 extremely satisfied customers than 1000 customers who were not completely satisfied. My thoughts are to change the perception of customers towards the marine service industry in my area. If that scares some local shops then so be it. There is more to service than fixing problems as they arise. I would like it if my customers never called me while they were at the boat because I have done my job well and they had a worry free week at the lake. Should something happen they will at least be serviced in a much quicker time frame than a conventional shop.

 

[JimS123]

Re: Thinking about opening a different kind of shop?

" The bad thing is he has no life and really isn't getting rich."

If I wanted to be rich i wouldn't be a marine technician!!!

True stories....had 2 friends that were wrenches for big local dealers...

My one friend did what you are contemplating. He's the one I spoke about before. He has high school age kids that he adores. Family is important to him, so he is forced to lose some business in the Summer when the kids are out of school. A solid business, though. A little short on income in the Winter.

My other friend stayed with his employer and eventually bought him out when he retired. He took chances and expanded the business. Bought more property next door and put in docks. He's now the largest marina in the state and doesn't really need to make money in service or sales because the dockage costs make a nice living all by itself. Now he stops in every day to check on things, but usually he's just cruisin in his 40' Fountain.

A mechanic CAN make zillion - just depends on how much time you're willing to spend, how much money you are willing to borrow and how many chances you are willing to take.

Good luck to you - stay focused and you'll make it. Just get the insurance I suggested, get training from the local SBA so you don't get into trouble financially or legally, and of corse, get the 100% backing from your family.