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mot bay "setting up"

Posted by sean savage on January 31, 2006, 2:17 pm

We do not currently test but average between 10 and 20 tests per week at the moment. we have always sent our tests out which has worked fine but now "DUE TO THE FANTASTIC COMPUTERISATION SYSTEM" our test station goes online tommorow. With the price of tests going up to us and the problem with been able to book test in so far in advance i am seriously considering putting a test bay in our workshop as i believe if not our customers could begin to take thier mot's themselves to testing stations with the bonus of no retest fee's. this new system is i feel going to have a bad effect on us and other non testing garages. any advice on where to purchase mot packages from, pitfalls to watch out for,buy or lease would be greatly appreciated as i dont want to go into this area blind.

many thanks
sean

Re: mot bay "setting up"

Posted by Peter Lomas on January 31, 2006, 5:11 pm, in reply to "mot bay "

Hi Sean
Lots to think about, you need to check your building is right height (etc). If you can you should consider class 4 & 7. Bosch will price a MOT package for you as will plenty off others.
Plenty of pitfalls, same as any other investment you make. We have been doing MOTS for the last 25 years. If you are averaging 15 test a week £660 plus any repairs and you can afford it contact VOSA they will give you some good advice
Regards Peter

Re: mot bay "setting up"

Posted by sean savage on January 31, 2006, 6:12 pm, in reply to "Re: mot bay "

thanks peter.
our building is large and heigh enough for a bay,will have to make some alterations as to ramp positions etc if and when i go for this option. the amount of tests we do are just our existing customers,but i know numerous traders in our area that would also bring tests to us so i havent yet looked at the costs of setting up a bay (training courses etc) equipment but i think it is going to be financially viable,but the risk of customer loss due to the computerisation system is my main concern eg... a customer phones me to book an mot and i then have to call my test station,ask them when and then ring back the customer,time consuming and doesnt some across as very professional. once upp and running what sort of costs are incured as far as general maintanance and calibrations??? basicaly on say a £42 test what sort of profit?? eg how much are mot cert to purchase. i know this can sound a lot i am asking but i just want a general trade opinion before i start all the wheels turning so to speak.

thanks again

Re: mot bay "setting up"

Posted by Tony Gould on January 31, 2006, 8:07 pm, in reply to "Re: mot bay "

Hi Sean
Firstly a point about MOT charges which you may find enlightning.
If you were to spend 1 hour dianosing a car fault,which say was alternator,for which customer paid.Then he took car away to fit his self,then bought car back for you to spend another hour to re-check that he fitted it right and every thing worked, would you do that free of charge?
The same applies to MOT testing
We used to charge £39 but after going live now charge £44,Also from 1st Feb we will be charging £44 for re-test if taken away.trade the same.
Sounds harsh,but we cannot afford to give away labour,and so busy dont need too.
I know that some traders near us charge £25 for pre MOT and there customers are pleased to pay it plus all costs at MOT station.
We do about 150 MOTs a month which is £6600,pays alot of the overheads.We started doing them about 6 years ago and no regrets.
You can now lease a MOT package over say 5 years from a company like Partco at good rates,but you need to look round as many to choose from,Saw add from Crypton today for gas/smoke blue tooth and free service/calibrations for 5 years for around £30/wk
Training is free from VOSA
Getting every thing up and running can be bit of headache but well worth it
HTH
Tony

Re: mot bay "setting up"

Posted by Iain G Wood on January 31, 2006, 8:33 pm, in reply to "Re: mot bay "

Hi Sean Starting from scratch I would go for the latest ATL Automated Test Lane system may cost a bit more but does away with the assistant and reduces your labour costs. I agree with Peter Bosch equipment is usually dearer to purchase but very much lower to maintain as I have gathered over the years.
Inquires to VOSA will keep you right and ask about class 5 because I think you can test class 4 on the same equipment. Peter mentioned class 7 this class requires longer ramps or pit and includes coaches i.e. private owned not under PSV category.
Look at their web pages
http://www.vosa.gov.uk/vosa/mottestersgarageowners/mottestersgarageowners.htm
The computerized system is very simple the time per test averages .75 hrs but as you know the 3 year old 12,000 mile Polo is going to be quicker done than 200,000 12 year old Cavalier.
HTH

Iain

Re: mot bay "setting up"

Posted by derek stubbs on January 31, 2006, 9:00 pm, in reply to "Re: mot bay "

Nice that you recommend BOSCH but unfortunately they do not do a full MOT package in the UK at present.
Another good make to go for is MAHA who are a chosen provider to VOSA and to Ireland and installed the first ATL in the UK. HTH.

Re: mot bay "setting up"

Posted by Steve Middleton on February 1, 2006, 7:47 am, in reply to "Re: mot bay "

hi all,
i've been a test station now for 15 years and i've never assosiated the word profit with the MOT testing scheme, if your after a profit from pureley MOT's then continue taking them to another garage and charge for your time running to and from.
by the time you've paid two men (or 1 man & a boy), the calibration contracts, test slots from VOSA & service agreements for the equipment theres not a lot left out of £44.15 infact i think your in minus figures,

Re: mot bay "setting up"

Posted by Dave Harney on February 1, 2006, 12:37 pm, in reply to "Re: mot bay "

Here's how !!!

20 Mots a week charged at £42 (should be £44)
£840
52 weeks in year = £43680

Salary for 1 tester = £20,000
Salary for 1 assistant = £12,000

Cost of Mot slots 1040 x 1.44 = £1497.60

Calibrations/service agreements = £1,200

43680 -
20000 -
12000 -
1497. -
1200 = £8983 (profit) Hopefully
This doesn't take into account any investment you have to make to get your equipment or to install it.
You can also expect to get extra work as a spin off from doing the Mot's.
Dave

Re: mot bay "setting up"

Posted by Steve Middleton on February 1, 2006, 1:05 pm, in reply to "Re: mot bay "

Dave sorry to be picky but do you not pay rent, rates, electric, gas, insurance etc ???

steve

Re: mot bay "setting up"

Posted by Sean Connelly on February 1, 2006, 1:13 pm, in reply to "Re: mot bay "

If we had the right premises we would go for an ATL now. Can reduce the time of a typical test from approx 40-45 minutes to 20-25 and that's according to VOSA.

Of course they are approximately twice as much. We purchased a new Tecalemit class IV setup about 18months ago and it was about £9.5K (+VAT) I think the ATLs start around £18K. You will also need a Gas Analyser on top of this, approx £4-5K.

One other thing, don't get into doing trade MOTs if you can help it. You have to discount too much and they expect you to drop everything to squeeze them in. If your not careful you will become to dependent on them like us.

Also, if the market in your area will stand it, always charge for retests. Unfortunately the local competition for us don't charge, so we can't afford to at the moment - even though we ALL lose out! It will be better when they bring in the 3 stage retests in August this year, which will make charging more acceptable.....we hope!

We currently do about 10-12 tests a day (two bays, 3 testers). Main part of our business.....

Re: mot bay "setting up"

Posted by Dave Harney on February 1, 2006, 3:05 pm, in reply to "Re: mot bay "

Don't be sorry Steve

of course we do

but I'm assuming that Sean already does pay those things for the set up he has already.

Regards
Dave

Re: mot bay "setting up"

Posted by Tom Williams on February 1, 2006, 8:32 pm, in reply to "mot bay "

Hi all,

In the long run if the maths work out it may pay to become a test station. It's interesting to note that in my area, now that most stations are computerised, that price-cutting appears to have started again. You don't hear of many doctors, lawyers or even plumbers engaged in price cutting. Policemen & teachers don't work at discounted rates . I'm beginning to take the same view as the general public, that garage owners aren't all that intelligent.

Tom W

Re: mot bay "setting up"

Posted by kelly clarke on February 1, 2006, 9:08 pm, in reply to "Re: mot bay "

I am now setting up my own testing station as i am moving into new premises. being installed next week.
the paperwork side of the application was a pain as they want to know so much but once approved in principal vosa have been quite helpful.
I am putting in a class 7 ATL all Sun equipment cost close to 30k. The first one in Norfolk to be going live. have already been told to expect additional visits from vosa to see how it all works and how i am getting on with it.
Class 5 lightweight can only be done on a 7 lift but have to be applied for and additional training after you are operational doing 7's. It was vosa who recommended i done 5 as well i was just going to do 4 & 7 they calim there is a shortage of stations for these and it will aslo put me in good stead to become a taxi testing station for the council.

Re: mot bay "setting up"

Posted by Phil Dunmore on February 1, 2006, 11:42 pm, in reply to "Re: mot bay "

Hi Kelly,

So your nearly done with the building then. Those guys really know how to charge, put us to shame.

"The first one in Norfolk to be going live"

Sorry to be be picky mate but have you seen Sun's web site featuring KL Engine Centre? They are next door to one of Sun's units in King's Lynn.

Phil

Re: mot bay "setting up"

Posted by sean savage on February 2, 2006, 5:40 pm, in reply to "Re: mot bay "

AFTER SOME CONSIDERABLE THOUGHT INTO THIS MATTER i am 90% sure i am going to be opening a test bay class 4 only though. i have also recieved some prices on Tecalemit class IV setup and it works out at £10,000+vat or £82 p/w for a 5yr lease which is only 2 tests. Now my workshor is going to have to be rearranged somewhat and i really need some contact details of the people who can come out and measure up and advise me on location etc. i really do appreciate all these comments and am taking them all onboard so anymore advise is more than welcome.

many thanks.
sean

Re: mot bay "setting up"

Posted by Paul Rose on February 2, 2006, 5:49 pm, in reply to "Re: mot bay "

Hi Phil, the KL Engines unit is a safety test lane with MOT bay not a UK approved ATL like Kelly's.

Re: mot bay "setting up"

Posted by John Gallagher on February 2, 2006, 10:09 pm, in reply to "Re: mot bay "

Just to pick up on Tom's point about discounting. This has been the main reason why I have never seriously considered becoming a testing station.
I have been watching the m.o.t. computerization fiasco as it's been unfolding over the last year or so. To be honest I thought this could finally be the right time to get a test station and make some money.
Unfortunately though the muppets near me have already started cutting each others throats! The cheapest near me (for now) charges £35.00 and no retest fee, mind you as far as I know it's trade only for free retests. There is another station though only 3 miles away that is doing the same for £25.00!

Don't get me wrong if the chance came along to take over a testing station near by for the right price I would be tempted but I wouldn't see it as a huge profit making decision. It would just make my working day a bit easier and save me some time.

In my opinion unless you have or can get:-
(a) a good relationship with your "testing" neighbors and you all agree to stick to a fixed price.
(b) a very high volume station.
(c) an assurance that v.o.s.a. will finally do what they should have done years ago and make it a non-discountable fee.

I would be very careful and do your sums before diving in at the deep end, all you need is one or two arsehole's near by and they could scupper your hopes. The majority of the public (bless them) are only interested in one thing,"WHO IS THE CHEAPEST"

Just my thoughts,
Cheers,
John.

Re: mot bay "setting up"

Posted by sean savage on February 3, 2006, 12:52 pm, in reply to "Re: mot bay "

i agree with you completly john on the subject of price cutting,and as mentioned earlier we do it and just end up all losing out in the end. i have 2 or 3 testing stations within about a 3 mile radius of me and we all send each other and recomend each other if we are too busy and luckily have always done this. This is the main reason for me wanting to open a test bay though,as the customers get wise to the new mot retest fee's and the fact most will have to book well in advance now i believe the general public will start taking thir mot's themselves direct to the test station to avoid "retest" fees which in turn could mean them going to that garage permanently. i know i could fill all test slots allocated in the week but in honesty it is for the purpose as you state of making my life easier now and keeping all existing customers.

sean

Re: mot bay "setting up"

Posted by kelly clarke on February 3, 2006, 7:02 pm, in reply to "Re: mot bay "

Hi Phil

Yes am getting close have got a move in date but i know it won,t be completely finished but had to jump as present landlord is being a real pain in the arse.

I knew about KL in Lynn and as Paul says it is not approved. It was Vosa who told me i would be the first in the county and told to expect additional visits. lucky me!!!!

How is your place coming on?

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