Auto glass/plastic repair business - good or bad??

[mark387mw]

I need to get a part time job or a little business, doing around 15 hrs a week (just to keep me busy and to bring in a few extra $$$) and found this on TradeMe
It's a plastic car lens and glass repair business and he wants $17,000 for it.
Now, I'm not familiar with this type of business as in the UK lens repair wasn't a big thing. Is it a big thing here and is there a market for it? I understand holes in lenses fail the WOF and new ones are expensive.
All advice welcome as I wouldn't like to buy a white elephant and be sat waiting for non-existent work.
TIA
Mark

[Kiwi XTR2]

Well Miracle Mend is not exactly a household name. There are others that get the insurance referrals and have more franchise advertising.

Also "The yearly turnover for November 04 to 05 was $20,000.00". With a turnover that low would you really want it?

As a general rule I'd stay away from any franchise that doesn't seem to require the purchasers to 'qualify'. If they let you in, who else might they get in the franchise system. Any one of them, in a different territory, can effectively vapourise your goodwill in one FairGo appearance.

[mark387mw]

Kiwi XTR2 said:

"The yearly turnover for November 04 to 05 was $20,000.00". With a turnover that low would you really want it?

Apparantly for putting in 12hrs a week.

It is a work from home so low overheads. I will have to find out what the fees cover, marketing etc.
What are the other franchise names as I'm not familiar with anyone doing this in Palmy North.

Alternatively this is for sale ceramic studio that I can involve all the family

[Richard Gee]

Just brought my Elise in this year from the UK. Needed four or five little chips repairing. Guy charged $140 and was fully booked all day. Looked pretty straightforward work and an opportunity to get regular business from dealerships, importers etc if you turned up slightly smarter than my guy, who had a dirty looking ginger beard incorporating most of his lunch.

[kylie]

Friends of the family based in Timaru were trying to sell their business to Dad. It was a paint touch-up business. He was also flat tack and as mentioned worked in with car dealers etc. He was wanting $80K for his business that he had built up over two yrs of ownership. Dad opted out of course as it were really hard on the back and one of the reasons why the guy was kind of selling it.

[Kiwi XTR2]

kylie said:

. . . Dad opted out of course as it were really hard on the back . . .

Didn't he become a Gangsta ?

[kylie]

Mark, if your interested in high end professional Audio and lighting and have got some cash up front you could buy some of my husbands stock at a good price and sell on trademe. Got a guy who is independant of Jansen based in Wellington I think, who has sold over $20K in the last few months by doing this. This guy is also part-time. Food for thought
Their site with stock is: www.jansen.co.nz Talk to Simon.

[mark387mw]

Thanks for the replies and the TradeMe opportunity. I shall follow that one up.

I made further enquires on the Miracle Mend business and $15000 is for the franchise however the franchise and website seems to be dormant so what do I get for $15000 and $150 monthly fee!!!!! I will ring the franchisor and ask him
Apparently there is a guy in Auckland working 40hrs a week with his Miracle Mend franchise but do a Google and nothing comes up

[mark387mw]

I spoke to the franchisor. The $150 each month is for maintaining exclusive area rights and the $15000 is the business customer base and goodwill, which have disappeared, and the trade secrets which is therefore a lot of money!
...on with my search...

[roger A]

What specifically are you after?I looked at franchises when I left my job in '97 and found i'd be buying myself another job, only with crappier pay. There are viable alternatives (and, yes I found one)

[mark387mw]

roger A said:

What specifically are you after?I looked at franchises when I left my job in '97 and found i'd be buying myself another job, only with crappier pay. There are viable alternatives (and, yes I found one)

To be specific the only thing would be where I do the hours I want to do and flexible as to when! Perhaps too hard a requirement as you only get out what you put in. Working for myself would allow the flexibility.
I don't need or want to do a 40hr week and my main interest is cars so even grooming/delivery if available.
I'm open to anything, not afraid of hard work but done that

[Kiwi XTR2]

mark387mw said:

To be specific the only thing would be where I do the hours I want to do and flexible as to when! Perhaps too hard a requirement as you only get out what you put in . . .

Ever seen the movie 'Deuce Bigalow' ?

[roger A]

Now now. no need to be smutty

[Kiwi XTR2]

roger A said:

Now now. no need to be smutty

I was simply applying a bit of creative licence to his requirements listed above

[roger A]

creative licensuousness?

[madazrx7]

I owned a franchise for "Ultra-Bond" windscreen repair system in Perth in the mid 90's. IIRC I paid about $15K for 1 of 8 licences in Perth metro area, bought another (adjoining area) licence later for a lot less. Ran the business part time for 2 or 3 years (as well as a few other things). Most of the work was for car dealers, made a reasonable living from it. If I was more of a salesman could have done even better.
Eventually sold the business for a bit more than I paid for it.

[mark387mw]

The guy selling it said if its promoted well and I get the work then it will be a good income and the franchise cost will be worth more later on. Its a big if though!

[Kiwi XTR2]

Yeah, but what is the value of the "franchise" over and above the value of the "small local business".

I don't think they have a patent on a superior product, technology or process. Nor does it seem they do a lot of advertising or have tremendous brand recognition that puts you to the front of the queue.