Don't miss the big change coming to the auto repair industry

GM. This is Work "After" Work, the newsletter that walks you down the yellow brick road of success.

It’s Taco Tuesday. Let’s boogie:

• 🚗 Mobile auto maintenance

• 😂 Meme of the day

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OIL CHANGES COMING TO YOU

Uber, DoorDash, and Amazon all have one thing in common. They provide convenience. With one click of a button you can get a ride to the airport, your dinner, or lightsaber chopsticks (yes, they’re a thing!) delivered right to your door.

These are all multibillion-dollar businesses that took what already existed and made it easier.

What’s a niche where you can do the same? 
The auto markets, specifically, auto maintenance!

Think oil changes, new brakes, and battery swaps.

Instead of someone having to go to a shop to get their oil changed, it comes to them. A service that car owners will pay a premium for because it saves so much time.

How do I know this?
Because Wrench, a mobile car maintenance site, makes $51 million a year.

Worldwide, the auto repair industry is worth $790 billion and is set to grow to $1.6 trillion by 2031. The oil change business alone is worth $9.9 billion.

I tell you this because when you’re building a business you want as many tailwinds as possible (aka things you don’t control that accelerate your growth)

This industry is set to boom and just a .001% piece of the pie will make you millions ($7.9 million to be exact)

So what are the pros and cons of this business?

Pros:

#1 You don’t need to do the oil changes/brake jobs yourself. If you’re able to get customers, hire mechanics looking for work to go do the jobs for you.

#2 Cars always need maintenance. Oil changes may be a thing of the past when we move to a majority electric, which is set to happen in 2030, but brake jobs will still be needed. If you provide a quality service, you’ll have returning customers.

Cons:

#1 It’s going to take time to get customers. You’ll have to find what Facebook ads and marketing work for your area (definitely try Nextdoor!)

#2 This will require a lot of communication. Having a site that connects buyers to mechanics (how Wrench does it) is something a semi-experienced developer can solve but you’ll have to pay for it.

How are you going to beat your competition?
Here’s the thing: you don’t have to.

Since this industry is already massive there’s room for everyone to eat. The biggest advantage I’ve seen is speed. Even Wrench had me on a few day waitlist.

Source a mechanic and be there the next day. Don’t put customers on a waitlist and you’ll grow faster than a Chia pet on a summer’s day.

HERE’S HOW TO GET THIS GOING IN 3 STEPS:

1. Find a mechanic

This is a no brainer. You're going to need a mechanic on hand to send to jobs.

Go on sites like TaskRabbit and Thumbtack. These are sites where mechanics are looking for work.

In the beginning, you'll most likely only be able to pay mechanics hourly and send them to jobs when they're available. This means customers may have to wait a day or two. Not ideal but when you don't have money it's the best you can do.

But right when you make enough every month to hire a full-time mechanic, do it. Don't take any for yourself. The money will come.

Focus on growing your business and providing the fastest service to your customers. A full-time mechanic will solve that.

It's also not a bad idea to learn yourself in case you need to fill in last minute while you're starting out. As they say, "Get your hands dirty."

2. Get customers

This is a great idea, but it's a bad one without customers.

How are you going to get customers?
You'll have to hustle and get creative. Almost everything starts out as a hustle. This was Amazon just 25 years ago.

Here are 4 ways you can market:

1. Social Media - Facebook ads are not dead, no matter how bad they are to set up

2. Offer discounts, promotions, and special plans to attract customers

3. Reach out to local mechanics and offer a finders fee (aka if they give you a customer, you pay them)

4. Offer a rewards program where customers can earn a free oil change/brake job after so much repeat business (just like Starbucks or Chipotle)

3. Figure out your margins

The last step is running the numbers.

Revenue
Check what your competitors are charging to give you an idea. YourMechanic charges $105 to do an oil change on a new Honda Accord. Your price point can be similar and will depend on your location.

Expenses
Mechanics are charging anywhere from $30 to $75 an hour. Subtract how much you're charging vs. how much you're paying and this will be your spread per job, assuming each one takes an hour or less, which it should.

Profit
When it comes to how much you're actually taking home, let's say it's $30 for every job you complete. Quick math tells us that 5 oil changes a week equals $150 or $600 every month.

Now think bigger. This is a business you can scale as you gain more customers.

Imagine down the line you now have two mechanics on staff and one virtual assistant (or AI) handling customer service. You're doing 21 jobs a week (3 per day). That's (21 jobs * $30) = $630 per week and over $2,500 every month.

Now this little side hustle isn't so little no more!

MEME OF THE DAY

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That's all I got for ya today folks!

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.