How profitable is an auto repair shop?

According to Body Shop Business, profit margins on parts sales typically average between 20 and 28 percent, while labor profit margins range between 50 and 65 percent. Focus instead on reducing your labor costs by adjusting the benefits you provide, lowering wages or increasing your retail labor prices.Click to see full answer. Considering this, is owning a mechanic shop profitable? Reason 1: Auto Repair Produces a Good Income Affluent Marketrevenues. This means that if a shop has $750,000 in revenue it can generate an owner’s cash flow over $150,000. This is also a business which can thrive in any economic climate.One may also ask, do auto repair shops make money on parts? This markup will vary depending on the type of shop it is, and the job, but an average markup for parts by a mechanic is between 25% to 50%. This means that a part that a mechanic pays $100 for will cost you between $125 and $150 on your bill from the mechanic. Regarding this, how much does it cost to open an auto repair shop? Expect your startup costs to hover around $50,000, including equipment, rental fees and insurance. These are the bare basics: Diagnostic machine, between $5,000 and $10,000. Rental fees for your space, anywhere from $1,500 to $15,000, depending on the size and location.What do mechanic shop owners make?The median annual salary for all automotive service technicians and mechanics is $39,550 as of May 2017, yet many auto repair owners are more experienced and may be more likely to earn incomes at the top end of the pay scale. The top 10 percent earn more than $65,430, while the bottom 10 percent earn less than $22,610.