I think the forementioned reasons are a major contributor... 80% of the cars I've got in the shop have been in at least 2 other shops prior. Clients are tired of getting raped by guys with big shiny shops and no talent so they would rather trust their money with someone operating a respectable business from a smaller facility... even if it is in their backyard.
Gitomer made the statement that "All things being equal people want to do business with someone they know... and all things being unequal people still want to do business with someone they know."
Another major contributor is the fact that I think a lot of smaller builders are going underground. With the cost of doing business nowadays I think a lot of guys are building shops on their on property where their money stays home instead of renting a shop and paying someone elses mortgage. With as thin as the margins can be in this business sometimes it takes off the pressure of having a high overhead facility, and the cost of employees. Alot of guys don't have the $$ or business sense to open a large shop with employees / work to feed the animal it becomes to keep the lights on and doors open so this is a safe way to live the life.
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