By Ruby Thomas 12 Aug 2022 8 min read

Does Running Your Own Garage Give You a Good ROI

Why not capitalise your own garage space and start an automotive repair business? Despite the economic turndown, number of cars owned by public is growing continuously. They need to be services at some point or the other. According to a research, in the UK, automotive industry is growing; market value of car body parts will increase by 14% in the coming year. Therefore, if you’re into auto repair venture, there’s a lot of scope for the business. 

From the time you start up, get established, and are in expansion stage, you will need to boost returns to enhance your growth. The best thing about owning a garage business is that you don’t have to worry for a commercial location. Simply start when you feel like it and expand the business with your skills, knowledge, and expertise. 


Garage Owner Earnings in UK

No matter what business you’re in, your salary depends on how your business is currently doing. Owning a car garage business that is running great, you can expect to earn around £45,000 annually, in the initial years. Later on, as your business gets recognition, you can expect to earn around £55,000. If your business is thriving and you keep on adding some great business strategies, you can earn £65,000 or more per year. Average garage owner earnings are £41,650 per year. 

Earnings of a garage business vary on the location, experience, and qualification of the garage owner. There is a fluctuation in salary of garage owners in different cities. Income of garage owners within London is higher than the garage shops outside of London. That’s because the city caters a lot of electric and hybrid cars which require specialised roles when doing repair and maintenance. If you are in your training years or doing apprenticeship for some other garage owner, you can expect to earn around £18,000 per year. Highest incomes are recorded in Scotland while lowest are recorded in Wales. 


How to Increase Returns from Car Garage Business 

For a successful business, you need to be aware of your garage’s profit margins to maintain a high ROI. It’s not always easy to increase prices and reduce your material cost to improve profits. That’s detrimental to your business. Here are some of the ways you can increase your ROI. 


Automate Everything 

Automate your business processes to ensure efficiency, improve speed, and increase profitability. Use software and tools to assist you in your work. Automating your daily processes will give you time to enhance your business in many other ways. This also helps to keep a check and balance on profits and costs of a business. 


Keep a Digital Presence

You need to improve your brand reputation to increase customers. Initially you can get customers from your local neighbourhood but that’s not enough to generate sufficient revenue. In today’s world, you can get a lot of clients through online presence. So, mark that presence. Make your own website, ask customers for their reviews, participate in discussion forums, etc. Also write vehicle blogs and start online consultation on auto repair and maintenance. 


Integrate Your Marketing Plan

Though it is important to maintain relationships with your loyal customers, it is equally important to bring potential customers to your garage. If you have a strong outbound business strategy at hand, there’s nothing to lower your ROI. Integrating a marketing strategy can include;

  • Deals and discounts 

  • Auto shop signage

  • Running advertisements on social media

  • Sponsor the local events 


Get More Orders on Average

You don’t need to compromise your service quality to cut down the costs. You can always try cross promotions and upsell recommended services. Use data-driven approach to manage your tasks. Also use top-of-the-line technology to identify problems in the cars. Gone are the days when trial and error method was successful for repairing cars. Today, automobile owners want to know what is exactly wrong with their cars. Therefore, identifying problems and providing accurate solutions/services will make your business more profitable. 


Ensure Retention 

To retain customers to your business, recommend additional services to the automobile owners. Here’s what you should do to increase customers;

  • Schedule upcoming maintenance

  • Communicate effectively

  • Provide a thorough inspection of each vehicle

  • Market your brand to new customers 

  • Do provide the add-ons. For instance, adding new battery to automatic car remote or fixing a light bulb for car’s interior. 


Automotive Services which are Most Profitable 

If you want your garage business to flourish and give good returns, you need to offer more options for repair and maintenance. Your growth involves a full spectrum auto facility to the customers. Here’s a list of automotive services to expand your garage business. 

  • Diagnostics

  • Alignment check

  • Heating and A/C

  • Oil change

  • Brakes and suspension  

In order to keep adding to your business, customer feedback is important. Ask your customers what they want. Bring in new equipment and technology to assess problems. That’s how you improve your profitability. 


Frequently Asked Questions 


How can I make money with my garage?

There are different ways to earn additional income on your house. These include renting your garage for parking, renting it for storage space, start crafting, rent it for vehicle repair and maintenance, etc. These are some of the lucrative business ideas to start earning from your garage. 


How much do garage owners make UK?

The salary typically depends on how well your business is doing. If you have a successful business, you can expect to earn around £45,000 in the initial years. In 10 years, you must be making around £50,000 or more. The venture can bring in good income and healthy returns, depending on your location and work operations. 


Are garages good investments?

It’s a great idea to invest in garages. Since they don’t require too much investment, investing in a garage is a hassle-free process. Rather than renting them out for parking or storage, it is better to invest in them as they are low maintenance property. There are no noise issues, leaks or boilers so you can immediately set up your work.


Do you have to be a qualified mechanic to open a garage?

There is no law that requires you to obtain a qualification to start your own car garage. Ideally some experience is needed; may it be apprenticeship or some certification. Getting a diploma in the automotive sector is also a good option. Your expertise will bring you more customers and increase your revenue. 


How do I start my own garage business?

First of all, you need to have a plan. Clarify your service and get the number of staff required. Define the specialized service you’ll provide to the customers. Register yourself and get a trade license. Set up a location and finally buy the tools and equipment you need for your garage business. 

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