Quote:
Originally Posted by Vegas69
Business is business to a large degree. They all have inherent challenges. X amount of dollars invested leads to x amount of potential profit. That ratio is dictated by the type of business. There are always the 20% that make it in the industry and the 80% that struggle. Blake mentions $80 an hour but there are guys in the industry that are pulling in 4-5 times? that with Greg Weld type clients. Just like the best attorney's, doctors, businesses, there's always someone making a killing in each field. It's typically not magic either. They progressively gain skills, operate with integrity, provide great customer service, and can run a business. Eventually it all snow balls into a Brizio or Ring Brothers where the demand is so high, they can pick and choose their clientele at a high rate.
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Brizio's posted hourly rate is $105 an hour. Your math is a bit fuzzy....
That sounds "expensive" until you get the bills and see how QUICKLY they do a common job such as run brake and fuel lines - or build you a custom exhaust. They've done it so many times they're fast at it. In the end - THEIR shop rate is not expensive at all. What's expensive is the guy that quotes $35 an hour and takes 3 times as long and doesn't do as nice a job... or never finishes your car and you end up ripping everything they did out and paying someone else to do it over. THAT is expensive.
This is the other thing that I've come to figure out. I've built and repaired more cars than I care to remember. I've personally done all of this work. I have a ton of tools - I have all the time in the world - I have space to work in. But I can never build something as QUICKLY or as NICELY as a guy that specializes and does the same type of work day in and day out. At shops like Brizio - they have guys that only do plumbing and exhaust. Another guy does sheet metal etc. In my little shed - I have to do the brake lines - and the TIG welding and the patch panel and figure out the axle width.
When you look around at a shop like The Roadster Shop... they have specialists. They have fabulous tools... they have in house machining... they have guys with serious skills. They have two or three (IDK) guys MANAGING the shop and ordering parts and billing and maybe a guy that just drives around picking up and delivering stuff. If you're a small shop -- you have to do all of that yourself and that time costs money. There's only so many hours in a day. Can you manage the shop - do the bidding - fetch the parts - shop for parts - do the bookkeeping and payroll etc. Can you earn enough money quickly enough or have the CAPITAL to go out and buy a $16,000 Eckold Kraftformer if you need one...
Why can a shop like Brizio or The Roadster Shop or The Ring Brothers build such "EXPENSIVE" cars? Because they have the skills required -- and the customers required to foot the bills to build unlimited budget cars. People look at these cars and then gasp at the numbers thrown around.... but they don't apply the corresponding amount of hours it takes to do the enormous amount of HAND BUILT EVERYTHING.
Roy B will tell you that it took him 25 YEARS to get to where he's at, and for many years it was tough sledding.... Not sure how long it took Phil and Jeremy - but it wasn't rags to riches in 6 months.... and Ring Bros had another business and the fancy stuff was born from that.
I think most guys that are doing this line of work are doing it because they love it -- and they can eke out a living doing something they love to do. If you really asked them - they probably made a better / easier living when they just worked for someone else. BTW -- if you want to check out something where real actual MANAGEMENT is in the works -- make an appointment to tour Brian Hobaugh's body shop! Now there is a place where you could apply your (TO THE OP) productivity skills. You've never seen such a well oiled machine!