Date:         Fri, 26 Apr 1996 01:36:06 -0400
Sender:       Vanagon Mailing List <vanagon@vanagon.com>
From:         Vdubdude@aol.com
Subject:      serious about buying VW specialist shop?  Read on!  (longish, but exiting)

Hello all,

The list has been kicking around the idea of buying a shop in Tennesee for a
day or so now.  Apparently, the shop has a less than ideal reputation and
doesn't even specialize in vans.  Let alone costing $150,000.00?  Get real!
 One poster (an eyewitness) said that the 75 car inventory was a yard full of
derilicts having been picked clean long ago.

One poster said that if all of the listmembers were to equally invest in this
particular venture that $150,000.00 would cost the individual listmember
(numbering 627) approximately $240.00.

What would happen then?  Who would work the place?  Would it be
self-supporting and generate a profit that would be divided amongst the
listmembers (shareholders)?  Or would it wimper out of existance from lack of
leadership and pillaging from the shareholders?  Would the shop be able to
take care of its' current clientele as well as listmembers who require
restorations?  Who would be in charge?  Who would be accountable?  who would
act as legal counsel for such a firm?  Would the list want to own a business
located in a "seedy" perhaps Dangerous part of a town?  Would restorations
still be there when owners returned to collect them?

I think I have a solution...

I know of a VW Audi Volvo Specialist shop on a Coastal South Carolina resort
Island that is somewhat smaller and therefore more affordable.  It is
currently owned by two individuals who are totally dedicated to VWs, but
don't seem get along with each other anymore because of basic differences in
which direction the business should be taken, yet they still work together
everyday, in total cooperation and present themselves in a totally
professional manner.

The partners simply want to sell their thriving business and go their
seperate ways.  The most experienced of the two has about thirty years VW
experience and will stay until the new owner is well established (about six
months).  He also happens to be the best Type 4 engine specialist in the
entire Southeast (as well as type 1 and Wasserboxer).  The shop consists of a
rented 1100 sq ft work area, with two lifts, and two additional flat bays.
 Also, a large inventory of VW parts consisting of mainly brand new
aftermarket parts and a good inventory of used parts including a couple of
parts cars tucked around the corner well out of sight of the permissive
landlord.

The shop has full equipment including...  the two twin post lifts (already
mentioned), IBM compatible computer (486 dx66 16meg RAM & CD ROM), credit
card terminal accepting Visa, mastercard, discover, am ex., full Bentley
manuals for almost every VW around (Audis too), FMC tire changer, FMC tire
balancer, large Snap-on 60 gallon air compressor, pressure washer, parts
cleaner, lots & lots of special tools for VWs, very effective computer
software for bookkeeping, taxes, payroll, and parts cataloging etc., full MIG
welding setup (including aluminum capability), 10,000 lb. shop press, 2 full
sized bench vises, bench tool boxes, 2 sony cordless telephones, 1 sharp fax
phone/ copier, brand-name hardware and fastener assortments (big bucks), a
car load of industrial jack-stands, a 50,000 btu kerosene heater, a
refrigerator, creepers, full A/C evacuation & recharge equipment, wet-dry
vac, drill press, special updated labor times books, and three separate
bodyshop /restoration firms within easy reach in the same small industrial
park.

This shop also has the reputation in the three towns that it serves as being
the best place anywhere to take your VW.  The steady clientele (about 700
families) all perceive the quality of this shops' repairs to be second to
none.  It is the favorite.  It is the sweetheart that all the VW folks in the
area love.  THIS shop would be self- supporting.

The trainee of the shop is currently on flat-rate @$12.21 per hour with a
$5.25 per hour guarrantee for 42.5 hours per week.  He is soon to enter his
third year of VW Audi work.  He was previously a Navy welder.  His comeback
rate is currently about .2% (excellent).  His health insurance premiums are
currently being paid in full by the company, and he accepts cold-cut
sandwiches in lieu of full lunch hour.  He is dependable.  He receives five
to six paid vacation days per year depending on whether they are taken high
or low season (bonus day given with low season vacation).  He receives paid
holidays (normal holidays).  He is a newlywed and a new father.

The shop is currently seeking an additional trainee.

After five years of business, this shop has recently branched into the
lucrative Volvo repair market.  Several months of radio advertising have
started to bring in a more profitable demographic.  The new Volvo clientele
has proven to be more willing to spend money than most VW owners to keep
their cars on the road.  This shop has increased gross profits by
approximately 100% by Serving Volvo owners with simple repairs and
maintennance.  Whereas the partners have been loyal to VWs to the point of
subsidizing their repairs, strict business policies are enforced with Volvo
Customers (No credit, no bargaining).  This shop remains loyal to the VW
owner.

What do you all think?  Sound a little better than that Tennessee venture?
 The first $60,000.00 offer would probably take it.  Using the same formula
as the earlier estimate of per-member investment it turns out to cost
approximately $96.00 per listmember (shareholder) to purchase this gem of the
south.  Did I mention that this is a resort Island?
Or, an individual could own it for one easy installment of $60,000.00 !

Please E-mail me with replies/ inquiries

Ric
VdubDude@aol.com