How to Start a Transmission Repair Business

Nowadays, at the time of rapid developments of technology and innovations in the field of car transmissions, shift from manual to automatic (and more complex) transmissions creates new opportunities for first-time entrepreneurs and skilled transmission repair specialists to try and succeed in the transmission repair/rebuilding business.

10 or 15 years ago it was hard to imagine that GM in collaboration with Ford would design a 10-speed automatic transmission

Currently, the number of cars equipped with 7-,8-, or even 9 speed transmissions is getting bigger and bigger, and it is not the limit! Moreover, now transmission options for modern cars may include not only conventional manual and automatic gearboxes, but also CVTs, dual-clutch, and hybrid units. To maintain and repair these complex units promptly and efficiently you need to find a reliable repair shop which employs highly-qualified and experienced technicians, but it is easier said than done. Therefore, if you have financial capacities and passion for auto services, the transmission repair business may be a right business area for you.

Remember Important Start-Up Aspects

After settling all legal questions and matters related to official registration of your business, you have to pay a lot of attention to the following aspects to attract potential customers:

• Convenient location of the workshop;
• Reliable and multifunctional equipment;
• Quality tool kits;
• Competent and polite staff;
• Efficient business management system;
• Regular promotion of the business on local and regional markets.

The business owner must take into consideration this list of tasks at the start of the project and regularly address them.

Establish Workshop Premises

To perform transmission maintenance and repair services, you need a proper workshop premises that has the space to accommodate several cars and an area for inspecting and working on transmissions. You can buy, build or rent a car service space. Depending on your starting demand projection, choose a building that has several bays for parking cars at different stages of repair, as well as a warehouse for parts and equipment and a small office area.

Transmission rebuilding area

Warehouse for transmission spare parts

The optimal area of a small auto repair shop is about 200 m2 (2100 sqft). It is important to have a convenient road access for customers. The height of the repair area must be at least 3.5 meters (11ft). This parameter will provide an opportunity to service small trucks and minibuses in the workshop. The facility must be connected to the electricity and water supply, have good ventilation and heating systems.

Good lighting is still one of the major factors frequently underestimated in repair workshops. A good natural light source is an important advantage to your technicians, especially for detecting sources of fluid leaks and other hardly noticeable signs of malfunctions. A tiny split or damage to a hose could, if left unnoticed, result in engine or transmission damage. The floor at your repair facility is also important. The floor surface must be resistant to stains from thin and hot oil. It happens that spills do occur in the process of the transmission fluid change or draining. Make sure that the painted floor surface is skid-resisting and smooth to roll equipment on.

Equip the shop

The proper equipment is crucial to opening a transmission repair business. It takes a solid knowledge of workshop tools to make all the right decisions and you also need to learn using and maintaining different equipment accurately.

5 Ton Hydraulic Floor Jack

Vehicle lift

The list of the most used transmission repair tools includes the following: transmission jack, car lift, output shaft seals, flywheel wrench, wrenches, computer diagnostic tools, spline alignment tools, part washers, rebuilding benches, and more. At a good transmission repair shop you need several car lifts and transmission jacks to stay busy. A good shop will want to keep things moving in order for everyone to be making money...and stay happy.

Transmission repair tools and equipment are not cheap. Therefore, at the initial stage of your business, you can cut costs by purchasing used equipment. It is also necessary to think about the necessary volume of transmission spare parts and lubricants. It is required to find reliable suppliers that can offer OEM replacement parts or quality aftermarket components. It is necessary to seriously address this question, do some research work in order to save as much money as possible, but not at the expense of the transmission parts quality.

Hydra-Test HT-VBT

Hydra-Test HT-SOL

These pieces of equipment, produced by Cottingham Engineering, for testing valve bodies and solenoids accordingly can be purchased on go4trans.com

To save time and money, it is possible to use internet sources specialized in transmission business and transmission equipment & spare parts, like go4trans.com. This unique platform was developed as a single space for transmission rebuilders. At this web-site you can easily top-quality equipment for transmission testing (like dyno stands, leak test units, valve body and solenoid testing units, torque converter equipment, part washers, jacks, lifts, lathe machines, scanners) as well as a wide range of transmission spare parts from well-known manufacturers and distributors.

Develop a Business Plan

When you are aware of financial resources which should be invested in the repair shop premises and equipment, you can start planning business processes and price formation which is better to do with the help of the business plan. This document can be used for profit planning. Within the frame of the business plan the business owner calculates the following parameters:

•Distribution of initial capital;

•Operating costs;

•Volume of purchases from third parties;

•Cost of each service and its profitability;

•Required volume of service sales;

•Planned income;

•Options for profits distribution.

The abovementioned information will provide an opportunity to determine the payback period of the investments made at the start.

Employ a Skilled Team

In the old days, the technology was not so complex and a good technician could perform basic diagnostics and in most cases, would disassemble a transmission to see what is wrong and to work out possible solutions. Generally, this approach was viable. But today, it doesn’t work anymore. The sophistication of the new breed of transmissions requires a higher level of professional qualification for transmission repair specialists. A lack of understanding of the ’basic structure elements’ and the reason for the development of the new generation models will cause many headaches for the “old-fashioned” transmission specialists, along with financial losses and customer disloyalty.

In the transmission repair business, like in many other types of business, everything starts with the business owner and his professionalism, and commitment to the business. His attitude to the work often determines the employee morale and the way the workshop will be perceived by customers. The Owner is a resolute person who stands behind the work of his people and who is proud enough of what he does to warranty a very sophisticated car component. You must be ready to spend a few extra dollars to look sharp, look professional, stand out from the crowd, or meet the "visible" standards of a transmission workshop. As a potential business owner you are not only the source of money, but you should also have profound knowledge of the transmission repair industry, keep up with the latest trends, and be a role model for the staff. Only then, will it be possible to earn trust and respect of your team.

Transmission repair specialists at work

Well-trained transmission specialists are a key element in doing a profitable transmission repair business. It is a must to employ technicians with expertise and experience in diagnosing different types of transmission systems. ASE-certified technicians with experience in the transmission repair industry are able to gain customer’s trust, promptly and efficiently diagnose transmissions, and consult customers on repair and maintenance needs of their vehicles. Aside from the team of technicians, you will also need administrative staff to be in charge of parts inventory, manage bookings, work with customers and deal with estimating and invoicing.

Car transmission technologies develop so fast that even the most skilled and experienced technicians have to spend some time on learning the latest trends in the industry and stay competent in transmission repair services.

But, even the most experienced technicians are humans and they cannot remember everything, thus go4trans.com offers such helpful features as OBD codes and Transmission Look-up to help a little in their hard work.

Spend Resources on Business Promotion

After you complete all the abovementioned stages of business establishment, there would be another crucial task – letting people know that you have a workshop. It means that you have to pay a lot of attention to marketing the shop itself. And some smart marketing tactics can help your business to make progress in this competitive industry.

The name of your workshop is the first thing that catches eyes of potential customers. Therefore, the name of your business must capture the essence of what the shop is all about. The naming of the workshop is the 1-st step to market your repair shop. Try to avoid ambiguous and misleading wording. Get a business license, register your business name. In addition, it would be great to come up with a unique business logo (or even some mascot) and an easy to remember motto to distinguish yourself from competitive shops.

Examples of creative approach to creation of logo for a transmission repair shop

When you launch a new business, it is necessary to announce to potential customers that you have a workshop. You can start with advertising on local newspapers or maybe, if the budget permits it, launch a web-site to spread the news about your transmission repair shop. It is also possible to establish partnerships with local auto repair shops and offer them help in repairing transmissions.

You can build the community's trust to your business by joining well-known industry associations such as ATRA, ATSG, ASA, ASE. In addition, it would be very useful to visit different major events ( exhibitions, seminars, presentations, etc.) dedicated to the transmission repair industry not only to promote your business, but also to share experience with other transmission rebuilders and to learn something new about the latest trends and technologies in the industry.

This is how a trustworthy transmission shop office should look like

When customers visit your shop it would be great to meet them with some welcoming poster on the wall. Pictures of the team (best customer, or employee of the month), Better Business Bureau insignias, emblems of associations which confirm your membership, some certifications will certainly make a good impression on customers.

Go4trans.com also provides an excellent opportunity for owners of transmission workshops to promote their business. After registering your workshop on our web-site absolutely free of charge, you can generate customer activity and increase your brand awareness by enlisting your transmission workshop on the global map.

But you should never forget that in the long-term the best marketing strategy is a top-quality customer service. If a customer is fully satisfied with your services, he will become a repeat-customer and his references will serve as a powerful advertising tool by spreading the word that you provide an outstanding service.