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New diesel shop Maybe

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Old Aug 24, 2004 | 07:54 PM
  #1  
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From: Richmond Michigan
New diesel shop Maybe

I live in a fairly rural area about 50 miles north of Detroit. This is a heavy agricultural area and their are many diesel trucks in this area. There is a cummins shop nearby (10 miles) and the standard dealers. All of the auto-truck repair shops do not deal with diesels in any big way and what I have noticed is the repair guys are pretty devoid of diesel knowledge.
My own background is heavy Mfg. with a ton of marketing and P&L experience. I know the books well and served an apprenticeship as a machinist and machine tool builder. I spent my first 10 years working on engine tooling for new engines and have a good knowledge of motors and how they work.I owned a business with partners for 12 years. I am now semi-retired and do some consulting for Prototype manufacturing and do some fishing charters. I also have a step son who has a mechanical background which includes heavy diesel truck repair and service. also have a friend that has spent all of his adult life in the auto parts business and I think he could help set up the right contacts for suppliers.
I guess I am throwing this out there to see what response I might get all comments are welcomed. being in my mid fifties I still have plenty of time to make another run at it and who knows maybe something to help make ir through the retirement thing.
I would be betting on the thought that diesels will continue to be more popular and the fact that this area has more than a normal amount of diesel pick-ups.
The business would concentrate on service and repairs but I am thinking that I would not do heavy service work that would require engine removal. no big deal on pulling a motor other than the bull work and I think the monies would be more in the minor services. I would also include transmission service as I have a local source for heavy tranny repair if necessary.
Right now just some thoughts running through my head but I could get serious in a hurry. what do ya think
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Old Aug 24, 2004 | 07:59 PM
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Sounds like you might just enjoy it!!! So I would say goodluck and best wishes keep us informed how it goes. Goodluck,,,Rick
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Old Aug 25, 2004 | 05:08 PM
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From: New Holland, PA
I think you could make a good business for yourself. There's no place around me I'd trust to fix my truck. You ought to think about selling and installing high performance parts too. There's a big "nervous" factor for a lot of people for something as simple as a gauge install.
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Old Aug 25, 2004 | 06:40 PM
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From: Richmond Michigan
wannadiesel, I think I would install and sell performance parts as a part of this venture. I would spend time looking for a couple of options for the performance stuff and talk to the manufactures to make sure that I had a complete understanding of the products benefits and pitfalls. then only sell those parts that make sense to me. and that I have a high level of confidence in. Throughout my career I have always made the utmost effort to deliver the highest quality I could and on time if humanly possible. and then stand behind what you do and sell. That is why I would rather offer just a couple of BHAF rather than anything anybody suggested as an example. Or exhaust systems or injectors, fuel modules etc... any how if I do this thing I want to do it right I just need a way to better figure the market potential in this area. there really are very few shops catering to the diesel crowd and I wonder if that is because of low requirement or just no one is thinking about it.
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Old Aug 25, 2004 | 07:07 PM
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From: boyden, IA
I have thought of doing the same thing lately. I went to school to be a mechanic but got a job as a CNC Machinest and have been doing that ever sence. The local dealers are very dumb when it comes to diesels and have no clue abought aftermarket fuling boxes and such. I to live in an area with more than normal diesel trucks du to being in the middle of an agricultural are. My only problem is I have absolutly zero buisnes knowlage and even less marketing knowlage. I would say if you have the buisnes know how and can figure out the marketing end of it, Go for it. Sounds like a great way to make a living.
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Old Aug 26, 2004 | 09:53 AM
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From: Bristol Michigan
Getting tired of fishing? I bet you'd find a niche in our state if you got heavy into pump and injector service/testing.
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Old Aug 26, 2004 | 06:03 PM
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Sounds good Blackjack. Just remember that software costs to stay up to date with diagnostic testing procedures etc. is pretty steep. And IMO one of the problems that the small shop owner runs into. Take for example Cummins INSITE, the cost of the software, registering the software, and the datalink adapter can get up into the 3,000 dollar range real quick. More if you dont have a laptop. Now, this program is compatible with every Cummins electronic engine, however add the 1500 dollars a year to stay registered and up to date and you have a pretty big bill. Add software for Detroit, CAT, International, etc. and you are looking at a pretty steep bill per year to stay up to date.


You can get by with using cheaper alternatives but in order to change parameters, take snapshots, and recalibrate ECMs, the OEM software is a must.
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Old Aug 27, 2004 | 02:33 PM
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Thanks monty,
It's a reminder of why service costs remain high and the compitetion not as much.
In the design and machine business I had to keep those softwareware cost up on my programing and design software and as you mention the ongoing maintainance contract were steep just another cost to consider when you put the figures on paper thank's for reminding me.
Redleg, I will never get tired of fishing it's just like other jobs though when they guy's on the boat are paying the bill's it's their game I like it alot better when it's just friends. BTW when you comming over to fish? I'd like to explore more about the niche you are speaking of I've always made my living in those niche type of things.
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Old Aug 27, 2004 | 04:58 PM
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From: Windsor Ontario Canada
Re: New diesel shop Maybe

Originally posted by blackjack
I live in a fairly rural area about 50 miles north of Detroit. This is a heavy agricultural area and their are many diesel trucks in this area. There is a cummins shop nearby (10 miles) and the standard dealers. All of the auto-truck repair shops do not deal with diesels in any big way and what I have noticed is the repair guys are pretty devoid of diesel knowledge.
My own background is heavy Mfg. with a ton of marketing and P&L experience. I know the books well and served an apprenticeship as a machinist and machine tool builder. I spent my first 10 years working on engine tooling for new engines and have a good knowledge of motors and how they work.I owned a business with partners for 12 years. I am now semi-retired and do some consulting for Prototype manufacturing and do some fishing charters. I also have a step son who has a mechanical background which includes heavy diesel truck repair and service. also have a friend that has spent all of his adult life in the auto parts business and I think he could help set up the right contacts for suppliers.
I guess I am throwing this out there to see what response I might get all comments are welcomed. being in my mid fifties I still have plenty of time to make another run at it and who knows maybe something to help make ir through the retirement thing.
I would be betting on the thought that diesels will continue to be more popular and the fact that this area has more than a normal amount of diesel pick-ups.
The business would concentrate on service and repairs but I am thinking that I would not do heavy service work that would require engine removal. no big deal on pulling a motor other than the bull work and I think the monies would be more in the minor services. I would also include transmission service as I have a local source for heavy tranny repair if necessary.
Right now just some thoughts running through my head but I could get serious in a hurry. what do ya think
Blackjack!
I'm in Windsor and just called a guy in Northern Ontario around Thunder Bay about his car and truck shop. I'm going up in a couple of weeks to look at doing the same thing.
Got some vacation time coming and for the price he's asking, I'ld have to be an idiot to pass on at least looking at it. $100,000 Canadian with all equipment, including 1 ton wrecker (FERD F350 YUUUKK. 3 bays, 3 hoists, gas pumps (gasoline and diesel), rent a car contract, CAA contract for local towing, with stock and supplies.
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Old Aug 28, 2004 | 08:53 AM
  #10  
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From: Bristol Michigan
Originally posted by blackjack
Thanks monty,
It's a reminder of why service costs remain high and the compitetion not as much.
In the design and machine business I had to keep those softwareware cost up on my programing and design software and as you mention the ongoing maintainance contract were steep just another cost to consider when you put the figures on paper thank's for reminding me.
Redleg, I will never get tired of fishing it's just like other jobs though when they guy's on the boat are paying the bill's it's their game I like it alot better when it's just friends. BTW when you comming over to fish? I'd like to explore more about the niche you are speaking of I've always made my living in those niche type of things.
I'll tell you what, I've got some vacation time coming last couple weeks of Sep and beginning of Oct. Somewhere in there, Me and Karen are gonna hit the U.P. So far, a bunch of us are leaning towards the 1st Saturday in Oct to have a meet in B.C. at Herb's. Let me know what days in there won't work for you and I'll compare notes. I'm also off 10-13 Sep. Looking forward to it.
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Old Aug 29, 2004 | 05:03 PM
  #11  
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From: Des Moines, Iowa
I am in the process of opening my own repair/performance place in Des Moines right now. Have a loacation leased, already have most the tools. Just need to get my air compressor plumbed in, and get a bunch of stuff settled with some posible suppliers. It sure is a lot of work, but I think it will be well worth the effort.
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Old Aug 29, 2004 | 05:22 PM
  #12  
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From: Michigan
Blackjack, You will have a good customer here. Let us know when you open the doors.

Steve
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Old Aug 29, 2004 | 07:42 PM
  #13  
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From: Richmond Michigan
Rammer64 goodluck to you sounds like a deal.
Redleg let me check that week I will get back to you soon.
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Old Aug 29, 2004 | 07:57 PM
  #14  
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From: markham, ontario, canada
Re: Re: New diesel shop Maybe

Originally posted by Rammer64
Blackjack!
I'm in Windsor and just called a guy in Northern Ontario around Thunder Bay about his car and truck shop. I'm going up in a couple of weeks to look at doing the same thing.
Got some vacation time coming and for the price he's asking, I'ld have to be an idiot to pass on at least looking at it. $100,000 Canadian with all equipment, including 1 ton wrecker (FERD F350 YUUUKK. 3 bays, 3 hoists, gas pumps (gasoline and diesel), rent a car contract, CAA contract for local towing, with stock and supplies.
for $100k, that seems like a steal.... [i'm still trying to find a house for less than $300k in my area ]
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Old Aug 29, 2004 | 07:59 PM
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From: Flat Rock, MI
That would be great!

I looked all over for a Diesel Performance shop when I was getting upgrades done since I don't really know squat about this stuff... couldn't find anything around here!



Tony
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