I’ve had a lot of hair-brained ideas over the years, but none as ridiculous as opening my own restoration shop.
It was the late 1980s, and I was selling 20 to 30 cars a month to overseas clients. One of my chief competitors was Mark Hyman. We had both figured out how to get six sports cars, loaded at an angle, into a 40-foot-high cube container.
Project cars were still plentiful and inexpensive in the US. Restored cars were rare and expensive in Europe.
I figured if I opened my own car service shop, I could buy the cars cheap, restore them at in-house costs and sell them for top dollar overseas. It would also be wise investing in a car ramp.
Hence, Exotics NW was born. I envisioned myself as an Oregon Phil Reilly (a noted restorer in the Bay Area), walking around in a lab coat carrying a clipboard. I’d spend my time checking over the continued daily progress on every restoration and depositing the never-ending flow of five-figure checks that would come in the mail each day.
It didn’t quite work out that way.
Aside from the fact that the market collapsed, and I was left with a shop full of fully dismantled cars and owners who stopped paying their bills, I learned a few lessons along the way. One of them being that, compared to running a restoration shop for classic cars, publishing a magazine is a piece of cake. Which is part of the reason SCM is in its 35th year and Exotics NW lasted just three.
The greatest challenge a shop faces today is having a good business backend to support the artistry of the front-facing components.
I learned that a car that is not being worked on is not making the shop any money. I also learned that spending the day looking for obscure parts didn’t rack up much billable time.
Which, by the way, is the reason I am so supportive of the new business, the Collector Part Exchange. This is a new, centralized way to find, buy and sell rare parts and it is definitely something the classic car world needs.
The first thing a shop should install is an accurate and easy to use accounting system. In today’s world, this includes functions that let you keep track of the mileage of the cars you are working on, and will send you and the client automatic notices when it is time for a service.
Second, you need to have a focus. The most successful shops are specific about what they will work on. For some shops it is Land Rovers, for others Porsche 928s, and some work on Alfas only. (Don’t ask why I picked those three.)
You don’t want to have to go to school every time a car comes in because it is new to you. Repairs will always take longer than you think, and parts that are 50 years old have a way of disintegrating when you look at them. Further, the replacement you need is likely to be on a two-week backorder.
Stick to what you know.
Be upfront with customers about the potential costs involved, even if they are frighteningly high. I also advise against letting customers bring their own parts (unless they are exceptionally rare “unobtanium” items). First of all, that’s an early indication that they are cheap, and the last thing you want is a cheapskate owner of a classic car as a client.
Second, you can’t warrant a part someone else supplies, and it’s no fun to get into finger-pointing when a set of rod bearings turns out to be out of spec and someone is going to have to pay for another rebuild.
Hire an apprentice. Pay them well. (Will $20/hour get you someone decent these days?) As the master mechanic you are the money maker for the business. Let your apprentice chase parts, clean the shop and eventually keyboard in the invoices. Yes, keyboard – no more hand-writing invoices that can’t be electronically filed and retrieved.
Keep your spares and extra parts organized. I’m about to have an SCM garage sale, and part of what I want to go away is a set of three-shoe front drum brakes with a-arms I have been carrying around like a pair of dead water buffaloes for thirty years. I thought they were rare and only fitted Alfa Sprint Zagatos. Then I learned that all early Giulia Spider Normales had them, and everyone wanted to upgrade to disc brakes anyway. But I still have them, hoping the drums will magically change from aluminum to gold one fine night.
Point being: Sell the stuff you don’t need and unclutter your place.
Never forget your focus, like an attorney, is on billable hours. Don’t answer the phone while you are balancing carburetors.
Even if you do everything right, owning a classic car repair shop is not an easy go. There are just so many unknowns in terms of condition and parts availability. Further, you need to develop a client base of the right kind of owners, where you have established a mutual trust. They need to be willing to leave their car to you and trust you to make the right decisions as you work on it.
Again, have someone to keep the shop tidy, answer the phone, prepare invoices and chase parts. Have as your primary job generating income by being the one doing the work that only you can do.
If I had known all these things, would my shop have been a success? Probably not, because I am not a mechanic. I am a writer, so from time to time I can assist a bit with the creation of each issue of SCM. But as a hobbyist technician, I was instantly and hopelessly over my head when it actually came to repairing anything.
There is a definite future for classic auto repair and restoration shops. As our old cars become more rare and more valuable, we are willing to spend more money on them. That’s why I only flinched slightly when the $20,000 rocker-repair job on my 30-year-owned Giulia Spider Veloce became a $130,000 total body and paint restoration. (No mechanical or upholstery work was included at that price; I needed to check the “premium level” box to go there.)
Run your shop like a business, and it will reward you. Treat it like a hobby and you have a path of frustration ahead. I speak from experience.
It looks interesting.
As someone with a very similar experience, Keith is spot on with his advice here,
Which is why after buying a 1964 Giulia Sprint on BAT I have asked Bill Gillham to do what he would do if it were his. He also was kind enough to give the car a once over before I bought it.
Changing the oil and greasing the suspension is the extent of my expertise.
Good article Keith. As a shop owner (Porsche restoration) and ex Porsche Dealership owner; comparing restoration shop ( straight hourly billing) vs Dealership ( beat the book hourly rate) would be helpful to customer knowledge. PS. I saw w you at Chattanooga car event in 2019. Thanks, Jim Comer
I worked summers and part time for good UAW wages then found a local job restoring big classics. My firs was a Rolls Royce Silver Ghost. That was in 1970. I was in college. It went to England, got 99 points (squeaky spoke) and completed the 60th Alpine tour without a hitch.
I got married. We took turns earning master degrees and working. I didn’t realize until Keith shared his story I got two good educations simultaneously and stayed clear of the auto industry in Motor City an hour east and figured out that business will ruin a hobby.
But the passion persisted. The hobby became lucrative a few years ago. Guess I lived the sweet spots of auto culture and tuition. I never tried to turn a profit, just not waste time and money.
But yes, I could have bought one of two local GTOs. But then I would be insufferable now.
And, Keith, I have photos of my Giulietta just like yours ????.
???? right. Look as a business! Not a hobby. Try to balance your restorations, 2/3 customers and 1/3 yours car for Sale. Don’t sell Dreams that you can not fulfill profitable. Imposible Dream usually end on upset customer and a loosing proposal. But a good finish car, can bring a lot of satisfaction and $$$$ and referrals. Be brutally honest to your self and the customer. Never look for the trophy, they will come on payment for your dedication and labor. But remember that second is a First Looser. Jaime I
So cool. I’ll read anything Keith writes, always have. Peter Egan, Denise McClugage, Keith Martin and Shakespeare…in that order. Look forward to every blog. Take care of yourself Keith and stay clutchless.
It’s a sad fact that most auto repair technicians have no idea how to run a business. These are two very different skill sets, and in reality it’s almost impossible to work on cars AND run a successful shop. As repair industry consultants like to ask, do you want to work IN your business or ON your business? If the former, hire a professional shop manager to run things. If the latter, lay down your wrenches, hire qualified techs, and get a formal education on what it takes to run a successful automotive repair and restoration business. It’s as complex and daunting as a Porsche 550 twin-cam engine overhaul, but requires a whole ‘nother set of skills that can ultimately be more profitable.
Excellent article Keith! I started working in the auto body repair trade in 1971. In 1978 I got a job in a shop which the owner wanted me to specialize and work in his Restoration Dept. After a collection of jobs, businesses, partnerships I am the sole proprietor of a successful restoration shop. I have 10 techs. including, a shop supervisor, parts man and my daughter who is my Finance officer (Thank God) and so much more. It took a lot of years of eating Corn Flake sandwiches to get here. The only different for us than in Keith’s article is that we are not marque specific. But we do tend to gte many of the same marque cars. Overnight success, huh? Whew……..
Keith’s article rings 100% true here. I take my cars to a local restoration/classic car service shop for routine maintenance and repairs. They generally do good work and are honest, but not always quick as they always seem to have way more work than they can handle. A big problem they have is the same as most “mom and pop” small businesses, and that is finding and keeping good talented, reliable employees. That’s a tough nut to crack for any small business.