I have found a man who opened a Smog check station just to sell for profit...sadly he did this at a bad economic time. Usually a business like this would sell for good money, but right now everyone is worried for whatever reason. This guy is so desparate to get this business out of him name so he doesn't have to be there that he's willing to let someone just take it over and make payments to him.
I once asked a smog station in Las Vegas, NV how many customers they get on an average day. He replied an astounding 80 on a good day, 50 normally and anywhere as lows as 20 on a really bad day. That is incredible. I wonder how acurate that is though.
So quickly throwing some numbers together an average smog check costs $20. $6 has to be paid to the DMV. That leaves a $14 profit. Times that by the worst days of just 20 cars per day and you get $280. If you have someone else running your booth for you then you will pay them nicely at $120 M-F and $150 for Sat. So your weeks gross earnings are $1,680 but you have to pay your workers which totals $750 leaving you with a net profit of $930. Times the net profit by 4.3(average number of weeks per month) and that comes out to $4,000. Now you have to subtract the cost of own this business (rent, phone, utilities, etc.) which is $1000 (that's high) which leaves you with $3,000 total pre-tax net profit for the owner. And that is just 20 cars a day! Try that with the 50 car average....
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I have an update on this smog business. I met with the owner and here's the low-down.
He hardly ever has the place open. But he says that on the days that he does have it open he averages around 20 cars a day. (8 hours tops)
I figured if you hired someone to run it for you for $12.50 an hour 6days a week 8 hours a day, plus the cost of overhead expenses of $1,100 a month and your minimum take home of $2000 a month that comes out to about $5700 a month. Which translates to almost 13 cars per day. So doing 20 a day would increase your $2000/mo take home to $5,000+/mo. Not bad for not really working!
Oh and just and extra tidbit of info, there is a smog check station some 6 miles away from this one that reportedly gets over 100 cars smoged per day with two machines and two attendants going full time. Now that is some serious cash flow!
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