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| Setting up a Repair Shop http://w-ww.luthiersforum.com/forum/viewtopic.php?f=10102&t=14581 |
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| Author: | Brad Way [ Sun Nov 18, 2007 1:10 pm ] |
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I am curious what it takes to setup an official repair shop. I am not interested in doing this full time but just on the side out of the house. What is the best way to get the parts at cost, is it worth setting up a LLC, any other words of wisdom? Thanks! |
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| Author: | David Collins [ Sun Nov 18, 2007 5:16 pm ] |
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Your first step is to recognize that the word "official" carries little to no meaning in this trade. Second, an LLC is reasonably cheap and simple to setup, but also may not be be necessary or even beneficial in many cases - i.e., if you are simply doing repair on the side out of your home, the protection it offers would likely be easily shot through in the event of any law suit. Make your decision based on the advice of a tax advisor, as if your single person business is operated out of that single person's house, the liability protection of an LLC won't mean much so you'll probably do just as well as a sole proprietor. As to cost of materials, that will vary. For many companies such as AllParts, all you need is to file for a federal EIN (employer identification number, even if you don't have employees) then file with your state for a resale license after you have your EIN for sales tax purposes. Many other distributors on the other hand, will have tighter criteria such as having a commercial store front before they will sell to you, though the stringency of this will certainly vary. After that, it's all going to be based on your experience and reputation. There is no "official" way of recognizing a repair shop. Many folks try to get authorized as "certified" warranty repair centers for manufacturers, and while this may add some credence to your name, it also comes at a cost. I've done warranty work in the past for all the major manufacturers, but am happy to say that I am an official warranty repair center for no one as of now. Most manufacturers will pay only pennies on the dollar for warranty work, and in the end it can range from breaking even to being a significant loss. There are a few exceptions, but in general I don't miss it. I regularly get jobs that although I advise the customer it may qualify for warranty work, they prefer to pay me in full because they (rightfully) do not trust the local warranty center to touch their instrument. Most importantly though, do good work. I have no idea of your skill level, but don't take on anything you feel may be over your head. I know that your area seems to be lacking in good repair shops. I get a good deal of business from the Toledo area, and from what I've heard there's not much to choose from around there. I don't know how it is toward the Cleveland area, but the region in general seems to be a relative void in good repair service. The most important factor is the quality of your work, and that will decide whether your business succeeds or not. |
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| Author: | tippie53 [ Sun Nov 18, 2007 11:48 pm ] |
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Another thing I can ad is that this takes time. Most of us that are doing repairs and build started small. It took me about 4-5 years till I was comfortable enough to open a repair shop. I did take classes and learned from mentors. There is more to repair than slopping glue and clamping. Often you will get some repairs that will really test your skills. Being Authorized by a guitar company also comes at a cost. Your shop may be put on a list but you won't make as much from the work. There is the trade off that you can use that repair center for some reference of qualification but in the end it will be your skill that will make or break you. Get good business advice and remember that it is a business. john hall blues creek guitars |
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| Author: | Evan Gluck [ Mon Nov 19, 2007 12:28 am ] |
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When you start out take in whatever you feel you can do an excellent job repairing. After a while the cases will start piling up and you are becoming buried by work. This is the time to see what makes sense for you to continue doing. If a certain job goes quickly and efficiently while another type of job for whatever reason becomes a money or time pit it may just be that you don't have the attention for that particular aspect of the repair field, it may be time to revisit the type of work you are taking in and become more specialized. In my area I often hear "oh the last time I brought my guitar to them it took six months to get it back" If you can avoid having anyone say that about you it helps a bit in an area with other repair shops or stores that handle repairs in particular. Being streamlined cost effective and professional is almost as important as the quality of work. In a time when anything can be purchased from anywhere on the internet it is amazing how valuable personal service is to people. Hope this helps, Evan |
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| Author: | tippie53 [ Mon Nov 19, 2007 1:05 am ] |
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This is a great point.I have a number of benches so that I can start one project and move on to another. After all you spend more time waiting for glue to dry. I to am often back logged and to be honest a 3 month wait is not out of the norm. I try and schedule the repair and have the customer bring it in a week before I think I will get to it. That way I don't have it to trip over in my shop. john hall |
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| Author: | MarkW [ Mon Nov 19, 2007 1:49 am ] |
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Brad, I started my repair business in a situation similar to yours (part-time, shop located at home). Set your hours on a by appointment basis. Sole proprietor owner designation is very easy to set up. You really need to think about a business insurance policy through a company like Heritage because your homeowner policy will likely not cover this situation or any liability that may occur. Start with the basic stuff like setups, pickup swaps, etc.. Progress to more difficult repairs as you gain experience, tooling, and space. Keep in mind that your part-time schedule is going to limit how fast you can turn around more extensive repairs, especially any repair that involves finish work. You may want to consider establishing a business relationship with a local retail store. |
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| Author: | Brad Way [ Mon Nov 19, 2007 4:55 am ] |
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Thanks for all the advice. Mark....sounds like exactly what I was thinking about. I have been repairing electrics for years as a hobby and as favors for friends. Since there aren't too many repair shops here I am getting more and more people asking me to repair their guitars. I guess I figured it might be time to make it a little more official. |
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