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Starting a Transmission rebuild shop

Talemaker Talemaker
New User | Posts: 2 | Joined: 01/08
Posted: 01/04/08
07:20 PM

I am trying to find some info on a really great transmission shop layout..I am looking for info to have a top of the line rebuild shop equiped with the latest equipment to handle foreign and domestic transmission installations and rebuilds..including complete inventory. Is there anything out there that can help me setup the best type of shop and a list of the equipment thats best for the trade now..i want a state of the art facility and i am not sure what i want yet..please help..basically equipment positioning and a complete checklist of everything I would need to open my doors and be fully equiped with parts and equipment..  

Hog Rider Hog Rider
Enthusiast | Posts: 275 | Joined: 02/07
Posted: 01/08/08
05:58 PM

E-Mail Me
(in Private message)  
Hog Rider

Stuart Stuart
User | Posts: 164 | Joined: 04/06
Posted: 01/12/08
09:15 AM

Start with $1,000,000.00 and go from there.

That will get your foot in the door.  
Journeyman mechanic, transmission builder since 1963.

Talemaker Talemaker
New User | Posts: 2 | Joined: 01/08
Posted: 01/18/08
01:43 PM

your an idiot...  

Stuart Stuart
User | Posts: 164 | Joined: 04/06
Posted: 01/24/08
05:35 AM

Well let's see now.

What size of building are you looking at and where?
You need at least a 6 bay shop.
A rebuilding area.
Office space.
Parts department.

That's a minimum of 5000 square feet.
Depending on your location that can cost $250,000.00.

6 bays need 6 lifts. 6 X $8000.00 = $48,000.00.

Rebuilding benches.
Parts washes.
Convertor flusher.
Selective tools and equipment.
Computer break out boxes.
Air compressors, lines.
Oil storage, new and old.
Heavy duty wiring.

Another $80,000.00.



Office equipment.


That's already over $500,000.00.

You can't forget about taxes, utilities, maintenance etc.

Of course you can always do a spray can rebuild for a lot less.  
Journeyman mechanic, transmission builder since 1963.

makoshark makoshark
New User | Posts: 2 | Joined: 02/08
Posted: 02/26/08
10:55 AM

I am a Professional who has had several successful transmission and general repair shops. I stumbled across this inquiry by accident. I am new to this sight and was just surfing around. Taking your questions as you have posted them in your Paragraph, it sounds clear to me you have no idea how to operate or generate income in a shop. No disrespect intended, but all the best equipment in the world won't make you a dime if you don't know how to use it or what to do with it. A couple of botched jobs up front and you will have no business. THE WORD WILL GET AROUND QUICK. I am now a consultant and can really get you started in the right direction. Look up my name here and e-mail me. (makoshark) I will get you to profitable quickly. But there are so many variables at the point inwhich you describe, you (with no ill will intended just the truth) sound like a beginner with no experience at all. You would be smarter to invest in someone you could trust who has multiple years of experience and get going that way. I can help you but I do it for money. Investing in me will cost you a great deal less in the long run than just hoping a miricle worker will suddenly get the urge to create a dynasty for you. Serious inquiries only. Good luck in your dream.  

Lulzsec Lulzsec
New User | Posts: 1 | Joined: 04/12
Posted: 04/05/12
05:43 PM

Here we ***

If you want to start a transmission business. Do the following.

Rent a portion of another shop's space. You will only need 1 lift. Get a business license, register your business name, seller's merit and under your social security number.

Buy only used equipment. Buy what's only necessary. Washer, tools, benches, shelves, some parts, ATF fluid, etc. One lift will cost 1300. and the rest all should be under 20k.

Advertise first to local shops in your area. Make business cards and start handing them out quickly to all mechanic shops in your local area. You will first need to establish a foundation of revenue sales from doing wholesale business with other shops. Just having 1 account with a shop can bring you in at least 2 jobs a month at a constant basis. It is the wholesale business of doing business with other shops that will enable to you open up your own shop in the future. But now you must start small.

Do not spend any $$ in advertising. NONE! The rate of return of advertising dollars is so small. Instead, advertise for free on both google and Yelp.

Remember, your emphasis on wholesale is crucial. Begin getting known by other shops that you provide rebuilding. They will ask you for prices. Do not give pricing. Tell them to call you for a quote.

You do not need to know how to rebuild. But you must know how to remove and install transmissions from cars, because you will also be needing to do this to increase your margins.

Here's the trick. Do not hire a rebuilder. Instead begin asking around for known rebuilders. Find a good connection. When you need a transmission rebuilt, then you call the rebuilder. After he finishes the job, you pay him by per unit.

That's your layout. Now for the fun stuff!

Average selling cost per transmission=  $800
Average cost of parts per Transmission= $120
Labor per Transmission unit=            $160
Ideal cost of rent=                     $1200-$1400
Cost to install and remove=             $300
So your average selling price for the whole job will be $1,100 to $1,200. Retail would be $1,400 to $1,800. But retail will come later.

Taxes:  You pay none. File under your social security and report losses or say that you are a 'mechanic'.

Typical Transmission shop gross revenue sales per year:   $300,000 to $500,000.
Typical Annual net income for Transmission shop owner:   $80,000 to $130,000.

Starting Transmission shop estimated annual Revenue:    $38,4000
Annual net income for 1st year in business:             $7,200.

Capital recommended to begin transmission business.  $120,000.

Min. Capital required.   $60,000.

After 5 years dealing with and selling to shops, (used dealerships as well) then you can now begin your business on your own. By renting out a 3 bay garage in a researched area. Total operating costs will be $8300-$10,000 per month estimated.

Created by LULZSEC  

NEVER BUY A FRANCHISE AUTO REPAIR SHOP LIKE AAMCO. Monthly cap on sales, annual fees will take at least 20% of your income.  

440t4 440t4
Guru | Posts: 1009 | Joined: 04/09
Posted: 04/05/12
08:04 PM

Your average parts per transmission needs to be updated.Its more like $350 these days. Also if you can't rebuild you aren't going to make it. You can't rely on another rebuilder that does piece work for you and if you can't diagnose transmissions yourself you are going to be in a world of *** in no time. Where i do agree with you is on wholesale. The best way to do the trans business {and keep your sanity} is to do it small keep your overhead low and maximize profits. With a big overhead operation the slow periods kill you. More overhead means you have to do more jobs to pay for it.More jobs = more headaches.

PS: And working for used car dealers will get you nowhere. There isn't anyone in the world cheaper than a used car dealer. You will be working for peanuts and sooner or later they will owe you a few grand and stick you.  

walterwhite24 walterwhite24
New User | Posts: 4 | Joined: 04/12
Posted: 04/16/12
08:40 PM

A ton of really good info here! Props, this forum needs a karma thing  

Griffeth Transmission Griffeth Transmission
New User | Posts: 2 | Joined: 11/14
Posted: 11/05/14
06:42 PM

I know this post was a long time ago, but if you check it can you email me a great layout also.  

Griffeth Transmission Griffeth Transmission
New User | Posts: 2 | Joined: 11/14
Posted: 11/05/14
06:42 PM

I know this post was a long time ago, but if you check it can you email me a great layout also.  

gsferraro gsferraro
Enthusiast | Posts: 478 | Joined: 08/14
Posted: 11/06/14
06:42 PM

I agree with lulzsec. Thats the way to get started.  

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